Railway Infrastructure Spending Market in China 2015-2019
About Railway Infrastructure Spending in China
Railway infrastructure spending in China grew by 3.6% in 2014 compared to 3.2% in 2013. The government's initiatives to develop the railway infrastructure, particularly in the less developed region, and central and western China, have significantly contributed to the growth of the railway infrastructure spending market in the country. The government has also given emphasis toward the development high-speed railway line and metro network. In 2014, China's Ministry of Railways announced its plan to expand further the high-speed railway network from 9,941.9 miles to 15,534.3 miles. As of 2014, the total length of the railway network in the country was 74,564.5 miles. In 2014, China launched 32 new high-speed rail routes, including a new railway link between Guangzhou and Shanghai. In addition, in the same year new high-speed railway line was opened between Xinjiang capital, Urumqi, and Hami city in the eastern Xinjiang, China. The government is also encouraging private investment in the railway infrastructure, which otherwise is solely funded by the public entities.
Technavio's analysts forecast the railway infrastructure spending market in China to grow at a CAGR of 26.7% over the period 2014-2019.
Covered in this Report
This report presents the current scenario and growth prospects of the railway infrastructure spending market in China during the period 2015-2019. The market size has been calculated based on the spending on railway infrastructure. In addition, the report presents the economic outlook of China and an analysis of the infrastructure development in the country. It also presents the major drivers influencing the growth of railways in the country. It discusses the major challenges faced by the vendors and the industry at large, as well as the key trends emerging in the market.
Technavio Announces the Publication of its Research Report – Railway Infrastructure Spending in China 2015-2019
Technavio recognizes the following companies as the key players in the Railway Infrastructure Spending in China: China Communications Construction, China Railway Construction, China Railway Group and China State Construction Engineering
Other Prominent Vendors in the market are: China Railway Signal & Communication and Dongfang Electric
Commenting on the report, an analyst from Technavio’s team said: “To attract private investment in railway infrastructure, the government liberalized rail freight prices, stimulating the growth of railway spending and the demand for rail transportation in the country. In April 2014, the NDRC approved liberalization of freight railway fees based on the market demand, which was earlier controlled solely by the government. In December 2014, the government deregulated the price control on rail cargo, railway parcel shipping, and passenger fares. Such initiatives by the government will create demand for a new and expanded railway network, triggering the growth of railway infrastructure spending in the less-developed regions of China.”
According to the report, increased government initiatives toward developing infrastructure and boosting investment opportunities in the railway infrastructure will trigger market growth. In October 2014, the government launched the Asian Infrastructure Investment Bank to promote investments in infrastructure development in China and other Asian countries. As the government is burdened by high debts in the infrastructure sector, it is encouraging private investment in energy and transport infrastructure through the BOT model. In this, a public entity delegates the construction project, which includes design, construction, finance, and operation of a particular facility to a private firm.
Further, the report states that the weak legal and regulatory framework of China hinders the market's growth.
China Communications Construction, China Railway Construction, China Railway Group, China State Construction Engineering, China Railway Signal & Communication, Dongfang Electric
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