Construction machinery China: Benefit of the three-year plan for major projects of traffic?

Editor: Susanne Hertenberger

Recently, the National Development and Reform Commission, and Ministry of Transport jointly issued the Three-Year Action Plan for Major Project Construction of Traffic Infrastructure.

Highway Construction
Highway Construction
(Bild: Website of China Construction Machinery Association)

As the Action Plan has indicated, from 2016-2018, a total of 303 traffic projects covering railways, highways, waterways, airports and urban railways are planned to be promoted intensively, with an overall investment amount of about RMB4.7 trillion correspondingly, which consists of RMB2.1 trillion, RMB1.3 trillion and RMB1.3 trillion for 2016, 2017 and 2018 respectively.

Upon the beginning of "13th Five-Year" plan, "huge sum" of domestic capital has been invested to the traffic infrastructure construction, which could be favorable news for the construction machinery industry thanks to its close correlation with infrastructure construction. Despite the fact that a conspicuous recovery of this industry may not be achieved in a short term, as promoted by the boom of infrastructure, the recovering growth is still worthwhile to be expected. While waiting for the favorable news, the construction machinery enterprises have been actively conducting transformation, adjusting modes and promoting upgrade, thus to get well prepared for the impending "recovery".


In terms of railways

Preliminary works of 86 projects are promoted intensively, with newly rebuilt and extended routes of about 20 thousand km, and a total investment amount of about RMB2 trillion. Combined with the compilation of the revised programme of medium and long term plan for railway network, as well as the 13th five-year plan for railway development, the national high-speed railway network is to be perfected, while accessibility and patency of mid-west railways are to be improved, thus to accelerate and boost the construction of interurban railways in urban agglomeration. It's estimated that during the implementation of 13th five-year plan, the investment of railway fixed assets would surpass RMB4 trillion, with an annual investment up to RMB810 billion, achieving an increase of 15% than that during the implementation of 12th five-year plan. Meanwhile, optimistic perspectives can be expected for overseas infrastructure projects under the background of "One Belt and One Road" in the future.

In terms of highways

Preliminary works of 54 projects are promoted intensively, with newly rebuilt and extended routes of over 6 thousand km, and a total investment amount of about RMB580 billion. Construction of the remaining sections in the national expressway network, together with extension of busy sections, is to be implemented, with a focus on the expressways within the channels of "three strategies" areas, thus to promote the upgrading of ordinary national highway and the construction of those non-through sections. While the "13th Five-Year" plan for modern comprehensive traffic and transportation, as well as relevant specialized plans, is to be compiled and issued as soon as possible, the Ministry of Transport is seizing the time to set up a batch of major projects included in the plan, and vigorously promote the construction of expressways, ordinary national and provincial highways, and rural highways, thus to steadily realize the goal of RMB1.65 trillion investment in the highways. Similarly, other goals are going to be steadily attained, including the newly built expressways of 4,500 km, newly rebuilt national and provincial arteries of about 16 thousand km, and newly rebuilt rural highways of 200 thousand km all through the year.

In terms of waterways

Preliminary works of 10 projects are intensively promoted, with a total investment amount of about RMB60 billion. The golden waterway of Yangtze River is under construction, with enhanced renovation of other inland waterways; modernization levels of coastal ports are improved, while shipping centers' function is consummated, thus to support the construction of the Maritime Silk Road.

In terms of airports

Preliminary works of 50 projects are intensively promoted, with a total investment amount of about RMB460 billion. Extension and rebuilding projects of airports covering the major airlines are promoted in combination with the revision of layout plan for national civil transport airports, thus to improve the guarantee capability of airline hubs; meanwhile, the airport construction is boosted, with the airport layout perfected.

In terms of urban railway transportation

Preliminary works of 103 projects are intensively promoted, with newly built urban railway transportation routes of over 2,000 km, and a total investment amount of about RMB1.6 trillion. Management of planning and construction is enhanced to orderly promote the construction of urban railway transportation, and gradually optimize the transportation structure of urban railways in metropolises. In the future, the urban railway transportation can be expected with great potential for expansion, of which the network is estimated to cover routes over 9,400 km in 2020. Meanwhile, during the implementation of "13th Five-Year" plan, annual fixed-asset investment in urban railway transportation, will achieve a dramatic growth of 76% compared to that of 2015. The annual investment in urban railways is estimated to reach over RMB700 billion, which will lose no time to catch up with the fixed-asset investment in railways during the implementation of "13th Five-Year" plan.