The meeting pointed out that it is necessary to deepen reforms in investment and financing, pricing, etc., increase the proportion of central funds invested in railway construction in the central and western regions, cultivate diversified investment entities, relax market access, encourage and support local governments, and broadly attract social capital including private investment and foreign investment to participate in railway investment and construction.

The mileage of China's high-speed rail will further increase significantly.

On June 29, Premier Li Keqiang presided over a State Council executive meeting, which approved in principle the Medium and Long-term Railway Network Plan, aiming to support the upgrading and development of the economy and society through the construction of major transportation arteries.

The meeting decided to build a high-speed railway network with the "eight vertical" corridors such as the coastal and Beijing-Shanghai corridors, and the "eight horizontal" corridors such as the land bridges and riverside corridors as the mainstay, supplemented by intercity railways, to achieve a 1-4 hour transportation circle between adjacent large and medium-sized cities, and a 0.5-2 hour transportation circle within urban agglomerations.

This "Plan" holds great significance. According to the adjusted medium and long-term railway network plan in 2008, by 2020, it is planned to establish passenger dedicated lines such as the "four vertical and four horizontal" lines, as well as intercity passenger transportation systems in economically developed and densely populated areas, with the construction of over 16,000 kilometers of passenger dedicated lines.

The actual situation is that by 2015, the operational mileage of high-speed railways nationwide had reached 19,000 kilometers. The approval of the "Eight Vertical and Eight Horizontal" high-speed railway network plan this time signifies a significant increase in the operational mileage of high-speed railways. Some experts believe that the total mileage of high-speed railways may increase by another 20,000 kilometers from the current approximately 20,000 kilometers.

Liu Huiyong, Vice President of the China Investment Association, believes that the current high-speed rail cannot meet market demand, and accelerating its construction can address the shortcomings.

Intensification of high-speed railway network

The Executive Meeting of the State Council held on June 29th concluded that China's railway density is lower than that of developed countries, and the railway network layout is not perfect, especially with insufficient development of railways in the central and western regions.

Building the railway network, as the main artery of the national economy, serves multiple purposes. It not only stabilizes economic growth but also adjusts the economic structure. It not only increases effective investment but also expands consumption. It is a significant measure that benefits both the present and the future.

The meeting approved in principle the Medium and Long-term Railway Network Plan, which requires adhering to the laws of railway development, balancing economic and social benefits, expanding the railway infrastructure network, constructing an integrated transportation system that organically connects with highways, waterways, aviation, etc., increasing effective supply, and enhancing transportation service support capabilities.

At the same time, we should improve the general-speed railway network, expand the coverage of the railway network in the central and western regions, optimize the layout of the eastern network, form inter-regional fast and high-capacity corridors, and accelerate the construction of railways for poverty alleviation and territorial development. We should break through bottlenecks and bottleneck sections in general-speed trunk lines, ensuring that railway transportation basically covers administrative districts at or above the county level. We should also promote connectivity with neighboring regions.

It is learned that the above-mentioned "eight vertical and eight horizontal" high-speed rail network is denser than the original "four vertical and four horizontal" passenger dedicated line network.

Zhang Jiangyu, a senior railway planning expert, believes that building a railway network has a strong supporting effect on the sustained medium-to-high-speed growth of the entire economy. The density of China's railway network is not yet high, so it is reasonable to increase the density of the railway network.

This is a process from preliminary network to basic network to developed network, and the railway network in the central and western regions is in an underdeveloped state. "The acceleration and densification of the railway network will play a supporting and guaranteeing role in driving the economy of the central and western regions," said Zhang Jiangyu.

The schematic diagram of the medium- and long-term high-speed rail network (by 2030) shown in the outline of the national "13th Five-Year Plan" indicates that the "Eight Transversal Corridors" refer to eight high-speed railway corridors, including Beijing to Baotou, Qingdao to Yinchuan, Lianyungang to Urumqi, Shanghai to Chengdu, Shanghai to Kunming, Xiamen to Chongqing, Guangzhou to Kunming, and Mudanjiang to Qiqihar.

The "Eight Verticals" refer to eight high-speed railway corridors, including the coastal high-speed railway (from Dalian to Guangzhou), Beijing to Fuzhou, Beijing to Kowloon (via Nanchang), Beijing to Guangzhou, Hohhot to Haikou, Baotou to Haikou, Lanzhou to Kunming, and Yinchuan to Fuzhou.

Some of these routes intersect, such as the high-speed rail from Shanghai to Chengdu, which has both a route that goes from Shanghai via Hefei and Wuhan, and another route that goes from Shanghai, Nanjing, Anqing, Jiujiang, and Wuhan.

The goal of the national "13th Five-Year Plan" is to achieve a high-speed railway operating mileage of 30,000 kilometers, covering over 80% of major cities.

Niu Fengrui, a researcher at the Institute of Urban Studies of the Chinese Academy of Social Sciences, believes that accelerating the construction of high-speed rail is of great significance at this stage, given the significant downward pressure on the economy and the weaknesses in the railway sector. The solution to these problems lies in accelerating high-speed rail investment through supply-side structural reforms. Only by constructing the corresponding supporting infrastructure can we provide favorable conditions for economic development.

Niu Fengduan believes that connecting multiple cities through high-speed rail construction will form over a dozen metropolitan areas of varying levels, promoting exchanges and communication between cities.

Raise funds through multiple channels using market-oriented methods

O June 29th, the Executive Meeting of the State Council also proposed that, in accordance with the "zero-distance" transfer requirements, a comprehensive transportation hub centered around railway passenger stations and connecting with other modes of transportation should be planned and constructed at the same station. The network of cargo distribution services, including container central stations and terminal distribution, should be expanded to form a modern transportation hub with convenient supporting facilities and integrated station-city integration.

At the same time, we should cultivate and expand new business forms of high-speed rail economy, promote regional exchanges and cooperation along the line, optimize resource allocation, accelerate the gradient transfer of industries, and drive the transformation and upgrading of the manufacturing industry and the entire economy.

Niu Fengrui believes that the so-called high-speed rail economic zones should exist at the intersections and nodes of high-speed rail lines, as well as around high-speed rail stations. The construction of high-speed rail economic zones involves planning, implementation, and construction processes, and corresponding supporting facilities should also be considered during the construction process of the economic zones. "In this process, attention should be paid to the arrangement of space, time, and sequence," he said.

The Executive Meeting of the State Council also discussed the issue of solving the financing of high-speed rail.

The meeting pointed out that it is necessary to deepen reforms in investment and financing, pricing, and other areas, increase the proportion of central funds invested in railway construction in the central and western regions, cultivate diversified investment entities, relax market access, encourage and support local governments, and widely attract social capital including private investment and foreign investment to participate in railway investment and construction.

Among them, the China Railway Corporation should advance its own reform, accelerate the establishment of a modern enterprise system, activate existing assets, and utilize market-oriented methods to raise funds through multiple channels, playing a pivotal role in railway construction and development.

Regarding this, Liu Huiyong, Vice President of the China Investment Association, believes that high-speed rail construction primarily relies on issuing bonds, with a portion funded by bank loans, and less than 20% coming from capital funds. This means that capital funds are still a minority, and the majority still depends on financing.

It is learned that the investment in high-speed rail is generally around 100 million yuan per kilometer. In some areas, due to complex geological conditions, the investment cost may be higher, making it difficult to achieve short-term profitability.

Zhang Jiangyu, a senior expert in railway planning, suggested that the construction of high-speed rail economy should be divided into local networks and national networks. The construction of national networks will have a basic guarantee of 20% to 30%, but it is still not enough. It can be further increased by 10% to 20% to reasonably guarantee the construction of railways.

Secondly, the state can increase the bond issuance quota for high-speed rail to 300 billion yuan. On the one hand, this can reduce the amount of commercial loans and lower costs. On the other hand, most of the current high-speed rail bond issuances are short-term bonds. Given the relatively long construction period of railways, the issuance of medium- and long-term bonds can be increased to reduce short-term bonds. Additionally, industrial funds and railway funds are also sources of funding for railway construction.

"The construction of railway supporting facilities can be entrusted to professional companies to alleviate financial burden," said Zhang Jiangyu.