More than 10 large cities across the country, such as Beijing, Shanghai, Guangzhou in South China's Guangdong Province and Southwest China's Chongqing Municipality have plans to build rail transit systems, including subways and light trackways.

By 2005, approximately 400 kilometres of rail transit systems will be built, sources said.The length of China's rail transit system currently exceeds 120 kilometres. The first subway was built in Beijing in 1969.

Qian Yongchang, president of the association, said development of the rail transit system will contribute significantly to alleviating traffic pressures in big cities.

The rail transit system, which can provide larger-capacity and quicker transportation with low pollution, has become an important method in improving transportation conditions in cities, Qian said.

Many big cities, like Beijing, are plagued by traffic jams, air pollution from automobile emissions and overcrowding.

Xiong Xianliang, an expert with the Industrial Economic Research Department of the Development Research Centre of the State Council, said rail transit system development will help stimulate domestic demand, accelerate the country's urbanization and absorb surplus labour from the rural areas.

Sources from the State Development Planning Commission said approximately one-third of the rail transit investment during the next five years will be from the State.

The Beijing municipal government allows foreign companies to invest in and manage some of its rail transit system projects. Foreign investors are eying the tremendous potential of China's rail transit markets.

"We are committed to providing China with advanced equipment and technology of rail transit systems,'' said David Peters, director of US Cummins Engine Company (International Rail).

Rail transit projects will need more than 2,000 locomotives during the next five years.

Shanghai, the country's largest economic powerhouse, plans to build 10 kilometres of the rail system annually within the next 20 years, said Xu Daofang, vice-chief engineer of Shanghai Municipal Institute of City Planning and Design.

Needed investment in construction of the rail system per kilometre is estimated at 700 million yuan (US$84.3 million), Xu said.

The central government has encouraged local authorities to use more domestic-made equipment in the rail transit system.

All rail transit system projects, regardless of investment type, are required to use no less than 70 per cent of domestic-made locomotives and other electrical equipment, said commission sources.

(China Daily)