Business / Industries

Railways investment down during Jan-April

(Xinhua) Updated: 2012-05-17 09:12

BEIJING - Investment in China's railways saw a significant drop in the first four months of the year, new data from the Ministry of Railways (MOR) showed.

Fixed-asset investment in Chinese railways decreased 48.3 percent from a year earlier to 89.6 billion yuan ($14.2 billion) during the January-April period, among which investment in infrastructure shed 54.1 percent to 71.71 billion yuan, according to the MOR.

The MOR planned to invest 500 billion yuan in railway fixed assets for the whole year, including 400 billion yuan on infrastructure.

After years of torrid growth, construction and investment in China's railways cooled remarkably in the wake of a train crash last July that left 40 people dead and 172 injured.

But construction has gradually picked up pace since the fourth quarter of last year, as the government moved to boost financial support to the sector to guarantee the progression of major projects.

According to Wang Mengshu, chief engineer of the China Railway Tunnel Group, 80 percent of the halted projects have resumed construction and, with more government-channeled funds this year, investment will gain momentum in the coming months.

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