China has intentions and a program to expand its network of railways to 150,000 kilometers by 2020.
The implementation of the plan means the total length of the railway network of the country to grow by 24% compared to 2015, as high-speed railway lines increase by 58%, reaching 30,000 kilometers, reports Reuters.
The government in Beijing offered the state-owned China Railway to increase the issuance of bonds to finance the necessary for the program investments, announced a senior official of the National Development and Reform Commission of the People’s Republic of China.
China plans to invest in the development of railway infrastructure 800 billion yuan ($119.71 billion) only in 2016.
Last year, China Railway made an investment of 823.8 billion yuan, building 9.500 km railway lines, 3.306 km high-speed routes.
Until 2025 the country expects to achieve an extension of its high-speed railway lines to 38,000 kilometers.
But at the time most of existing high-speed rail lines in China are at a loss. Only one of them Beijing-Shanghai, which was released in 2011, is profitable, according to operating company. The prospectus for the bonds “Railway Construction” issued by Tianjin on July 7, widely publicized in state media today shows that the line has reported a net profit of 6.58 billion yuan ($ 984.48 million) in 2015.
But the overall situation is not looking too good. China Railway had a deficit of 8.73 billion yuan between January and March 2016, wich is 35% more compared to the same period the previous year.