The Beijing-Shanghai high-speed railway has got the green light from the
central government and construction on the long-awaited project is expected to
start soon.
According to a notice posted Tuesday on the website of the National
Development and Reform Commission (NDRC), the top economic planner, the State
Council accepted the feasibility study last month.
No more details were given, except for the railway's length of 1,318 km.
A source with the Ministry of Railways told China Daily that work on the
project will "surely begin before the end of this year", without specifying a
date.
Earlier reports said the project would use high-speed wheel track technology
instead of magnetic levitation.
With a speed of up to 350 km per hour, the railway will shorten travel time
between Beijing and Shanghai from the current 10 hours to less than five.
The project has been on the drawing board for more than a decade with work
expected to begin last year and be operational by 2010 - but was postponed.
Insiders said the central government wanted to act cautiously on such a
high-cost project.
Shanghai-based China Business News earlier quoted insiders as saying that the
railway ministry's initial estimation of 130 billion yuan (17.3 billion U.S.
dollars) would not be enough; and estimated the figure could exceed 170 billion
yuan (22.6 billion dollars) due to rising real estate prices and resettlement
costs.
Another report on China Economic Net (www.ce.net) quoted insiders as saying
the project cost is likely to exceed more than 200 billion yuan (26.6 billion
dollars), taking into consideration the increase in the price of raw materials
and labor costs as well as other countries' expenditure on building high-speed
railways.
The mega project has attracted the attention of France's Alstom, Canada's
Bombardier, Japan's Kawasaki Heavy Industries and Germany's Siemens, all vying
to provide technology.
It was not announced which technology will be used but Minister of Railways
Liu Zhijun said last year that the ministry prefers using indigenous technology.
Earlier reports quoted experts as saying the fare might be between 600 and
700 yuan (80 to 93 dollars), about half the list price of an air ticket.
Currently, passengers pay 453 yuan (60 dollars) for a seat, with the train
running at a maximum speed of 250 kph.