Expansion plans for expressways mean higher costs for transporters

Chinese drivers should not expect lower road tolls amid a construction boom of the nation's expressway network, despite proposals for toll reforms, say industry observers. The anticipated pace of road construction in the next few years along with a loan-based financing system are probably to blame, they said. "China is on a frenetic pace to expand its expressway network to meet road transport demand fueled by a rapidly growing economy," said Ji Lijun, a transport analyst with Shanghai Securities. "As the main funding is through bank loans, the borrowing cost plus a thirst for more funds will push road builders to charge high tolls to alleviate their burden," she said. China plans to almost double the length of its trunk roads by 2020. Investment The country plans to invest 140 billion yuan (US$18.1 billion) annually until 2010 to build 36,000 kilometers of new expressways, bringing the total to 65,000 kilometers, according to the Ministry of Communications. Trackback(0) TrackBack URI for this entry Comments (0) Subscribe to this comment's feed Show/Hide comments Write comment Show/Hide comment form Name Email Website Title Comment Write the displayed characters Add Comment Copyright 2007. All Rights Reserved.

 

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