The first-ever railway to be built with privately invested shares is expected to break ground in East China this year - a key move in the finance and investment system in the previously government-monopolized sector.

Wang Min, director of the Planning Department of the Ministry of Railways, said the Quzhou-Chang-shan railway project in Zhejiang Province has been planned by his ministry and will be built this year.

Changshan Cement Co Ltd, a locally privately-owned company, holds 32.5 per cent shares in the total investment of the railway project, according to Sun Qin, director of the office for the project's preparation.

The other investors are the Ministry of Railways and Changshan County government with the proportion of their share holdings respectively being 35 and 32.5 per cent, Sun said.

The railway sector is among a few of the industries that remain a government monopoly in China.

The construction capital of the nation's railway network mainly depends on government input, including railway construction funds from the central government, the loan from the State Development Bank and economic input from local government.

Only around 1,000 kilometres railways are built every year due to the shortage of capital, which has constituted a bottleneck for the nation's rapid economic growth.

Statistics from the Ministry of Railways indicate the nation's total investment in the construction of railway systems per year is less than 60 billion yuan (US$7.3 billion).

According to the plan, the 45-kilometre railways needs a total of 775 million yuan (US$ 93.7 million) in investment, Sun said.

"The railway project to be built is small in its size and investment, but it is considered a pilot project for reforming the highly-monopolized system of financing and investment system in the sector," he said.

(China Daily)

break ground :（破土动工）

monopoly: (economics) a market in which there are many buyers but only one seller（垄断）

pilot project : （试验项目）