Ministry of Railways speeds up investment

The Ministry of Railways invested 39.33 billion yuan ($6.21 billion) in infrastructure construction in August, up nearly 20 percent year-on-year, as China speeds up infrastructure investment in a bid to boost economic growth.

Total fixed-asset investment by the ministry in August was 45.78 billion yuan, according to a statement from the ministry.

A deadly high-speed railway accident in 2011 halted the previous aggressive expansion of China’s railway infrastructure.

From January to August, total fixed-asset investment was 271.5 billion yuan, 24.1 percent less than at the same period last year. But the decline is narrower than a 30 percent contraction from January to July, indicating a rebound.

The investment growth follows a slew of recent announcements by the government allowing the construction of new roads, railways and urban infrastructure projects that industry insiders estimate will have a combined value of about 1 trillion yuan.

However, the growth has also sparked concerns. By the end of August, the ministry reported a debt ratio of 61 percent, which may increase with additional investment.

Construction on Hongliuhe Bridge, a high-speed railway bridge on Lanzhou-Xinjiang Railway Line II, was completed on Sept 9, 2012. Work on the 1,652-meter bridge started on July 1, 2010, and cost more than 100 million yuan ($15.79 million). [Photo/Xinhua]