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China may cut railway infrastructure investment

5-May-2011 11:37 AM

China’s Ministry of Railways is reportedly considering cutting its investment in railway infrastructure by more than CNY200 billion (USD31 billion) this year, following its decision earlier this year to slow the operating speed of its high-speed trains from 350km/h to 300km/h (Economic Observer/China Daily, 04-May-2011). The ministry has been in discussions with experts and officials this week to discuss whether it was still necessary to commence work on railway projects that had not yet started. Recently appointed railway minister Sheng Guangzu stated last month that priority would be given to ongoing projects, projects for which there is urgent demand due to economic development and projects that link lines to form a network.