Railway investment up 5.7% in first 10 months

China's railway construction and investment saw stable growth in the first 10 months of this year, which experts attribute to the nation's stronger efforts in key projects to spur effective investment and boost domestic demand.

During the January-October period, fixed-asset investment in the railway sector reached 671.5 billion yuan ($94.8 billion), expanding 5.7 percent year-on-year, according to China State Railway Group Co Ltd, the nation's railway operator.

Railway investment played a key role in boosting investment, injecting impetus into the nation's pursuit of high-quality economic and social development, China Railway said.

The nation achieved a 5.2 percent GDP growth in the first three quarters, a hard-won achievement despite pressure from weak global demand and a tepid global economy, which weighed on various domestic sectors during the period. Stronger fiscal support, with a focus on key investment projects, is crucial to maintaining a resilient economy and securing the annual GDP growth target of around 5 percent, said Long Chaocan, an investment consultant with China Galaxy Securities Co Ltd.

In particular, as an additional 500 billion yuan through new policy-based financial instruments has been in place for key investment projects, while another 500 billion yuan within the local government debt ceiling has been allocated to strengthen local governments' fiscal strength, infrastructure projects nationwide are expected to see faster progress in the final quarter, Long said.

On Saturday morning, a high-speed freight rail line was launched, connecting Wuhan, Central China's Hubei province, with Guangzhou, South China's Guangdong province.

Trains on the line travel at speeds of up to 350 kilometers per hour, enabling direct deliveries between the Central China metropolis and the transportation hub in the Guangdong-Hong Kong-Macao Greater Bay Area.

Zhang Ting, manager of the Hankou Station business department at China Railway Express Co Ltd, said the new Wuhan-Guangzhou freight line will primarily serve time-sensitive goods such as fresh food, biomedicine and electronic products. The trains feature specialized packaging and temperature-monitoring systems to ensure products arrive in optimal condition.

Previously, several high-speed freight lines had been launched, including the Kunming-Chengdu, Zhengzhou-Chongqing and Nanchang-Shenzhen railway services.

The launch of this new line is expected to facilitate the coordinated development of the Central China region and the GBA.

China Railway said it has advanced railway planning and construction this year, accelerated the construction of the national railway network, further enhanced accessibility and coverage, and promoted high-level regional connectivity.

In the next step, it will continue to promote the construction of key projects, strengthen safety and quality control, and ensure the high-quality completion of the annual railway construction investment tasks, so as to support the sustained recovery and improvement of China's economy, the company added.

Xinhua, Di Da contributed to this story.