January 8th marks a big day for China's railway industry, as the country's first privately-owned high-speed railway, the Hangzhou-Taizhou railway officially began operation in East China's Zhejiang Province. CGTN's Wu Lei took the train and gave us more insight into its convenience and significance.
After around four years of waiting, passengers finally got the opportunity to take the first bullet train on the new Hangzhou-Taizhou high speed railway. The line connects three major cities, including Hangzhou, Shaoxing and Taizhou, all located in Zhejiang Province. With one local telling us how convenient the new railway is.
WU HAIYAN Taizhou Resident "In the past it took me two hours to get to from Taizhou to Hangzhou, but now it'll only take around an hour, making it much more efficient. This railway means a lot for us."
The line has nine stops over a 266 kilometers stretch, it will be inter-connected to the railway network in the Yangtze River Delta region.
YANG XIUZHI Senior Engineer, China Railway Shanghai Group "Currently we offer 35 return journeys or 70 single journeys each day; we will adjust the services according to the volume of passengers."
WU LEI Taizhou City, Zhejiang province "This new railway is expected to boost regional tourism and economic growth. And some experts say it's a major precedent for China's railway investment and finance reform."
Railway construction in China was always managed by state-owned companies due to its vital role in economic development. This railway was China's first of a batch of eight projects funded by a public-private partnership. The total cost of this railway is around 44 billion yuan, with 51 percent funded by a group of 8 private companies led by the Fosun Group.
FANG JIANHONG CEO, Fosun Infrastructure Group "This project shows that private enterprises are now investing in major infrastructures, and we also hope that this model can be promoted in other projects; we are willing to invest in other railway projects if the conditions allow it."
The China Railway Shanghai Group will operate the railway, collect the ticket income, and share the interest with these private investors. China has been encouraging more public-private partnerships since 2015.
CAO FUGUO Dean of the Chinese Academy of PPP Governance, Central University of Finance and Economics "So this kind of public private partnership shares both risks and revenues. All the involved parties need to work hard to guarantee the project's success."
Dr. Cao Fuguo says China has become one of the largest markets with public private partnership projects. More similar projects in transportation, infrastructure and environmental protection are expected in the future. WL, CGTN, Zhejiang Province.
