**Abstract:** In order to boost economic growth, both the central and local governments have shown strong enthusiasm for railway investment. Several new projects have been added in the second half of the year. This year's railway infrastructure investment is expected to rise by nearly 100 billion yuan, although its completion will depend on whether the necessary funds are secured. A few days ago, Wang Mengshu, an academician of the Chinese Academy of Engineering, mentioned in an interview that funding remains a challenge, especially at the local level.
He pointed out that there are over 10,000 kilometers of railway projects under construction, but many of them are still facing financial constraints. The State Council recently requested that all ongoing projects, upcoming initiatives, and survey-related funding needs be reported, aiming to better plan railway investments for the coming years. According to the schedule, the total investment after the 12th Five-Year Plan is expected to reach 1.33 trillion yuan over three years, with more than 20,000 kilometers of new lines put into operation. However, the initial target for this year was set at 520 billion yuan, and the projected investment for next year is only 810 billion yuan.
Wang Mengshu emphasized that to meet the goals of the "12th Five-Year" railway development plan and long-term planning, annual railway investment should remain around 600 billion yuan. According to recent reports, Lu Chunfang, vice president of China Railway Corporation, held a meeting discussing railway reform. It was unanimously agreed that the current investment level of 600 billion yuan would not be sufficient to complete the planned objectives.
Recent quarterly reports from China Railway Construction and China Railway Group show significant increases in new railway contracts. For the first quarter of this year, China Railway Construction signed 51.225 billion yuan worth of new railway contracts, a 302.72% increase compared to the same period last year. Similarly, China Railway Group signed 73.64 billion yuan in new railway contracts, up 712.1%. However, due to insufficient funding, the actual railway infrastructure investment in the first half of the year was relatively low. Despite stable monthly investment, the total for the first half reached only 186.9 billion yuan, accounting for just 36% of the annual target of 520 billion yuan.
Wang Mengshu also highlighted that the underutilization of railway projects has led to challenges in related industries such as steel, cement, coal, and machinery, which are now facing overcapacity. He argued that increased investment could help stabilize the economy while addressing this excess capacity.
He noted that key lines between Beijing and provincial capitals, as well as intercity rail networks within provinces, still require state-level attention. Local officials frequently visit China Railway to discuss project planning. Recently, the State Council executive meeting proposed reforms to the railway investment and financing system, aiming to open up the railway construction market and prioritize projects in central and western regions, as well as in impoverished areas. It also called for accelerating preliminary work to ensure timely commencement of key projects during the "12th Five-Year Plan" period, while maintaining quality standards.
In the second half of the year, several new projects—such as Chenglanke—have been added to the original plan. A senior engineer from a railway bureau told reporters that they are currently in the bidding process for these projects.
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