Guangzhou es­tab­lishes $1.5b ur­ban rail trans­port pub­lic fund

China Daily (Canada) - - BUSINESS - By QIU QUANLIN in Guangzhou qi­uquan­lin@chi­

A 10 bil­lion-yuan ($1.51 bil­lion) ur­ban rail trans­port pub­lic fund will be es­tab­lished in Guangzhou, the cap­i­tal of Guang­dong prov­ince, to fi­nance the de­vel­op­ment of the city’s ur­ban rail trans­port in­dus­try.

The new fund will in­vest in rail trans­port projects, help­ing in­te­grate re­sources re­lated to the ur­ban rail trans­port in­dus­try and pave the way for a sus­tain­able de­vel­op­ment of the in­dus­try, ac­cord­ing to Han Ying, chair­man of the Guangzhou In­dus­trial In­vest­ment Fund Man­age­ment Co.

The fund was es­tab­lished by the Guangzhou In­dus­trial In­vest­ment Fund Man­age­ment Co and a num­ber of lo­cal com­pa­nies re­lated to the ur­ban rail trans­port in­dus­try, with an ini­tial cap­i­tal of about 2 bil­lion yuan.

“The fund will help de­velop the rail trans­port in­dus­try into a pil­lar in­dus­try, which is es­ti­mated to reach more than 100 bil­lion yuan in in­dus­trial out­put in the near fu­ture,” said Han.

Ac­cord­ing to Han, the fund will also in­vest in key rail trans­port tech­nolo­gies and help en­cour­age com­pa­nies with cut­ting-edge tech­nolo­gies to in­vest in Guangzhou.

“We will in­vest in at least 100 key projects in the up­stream and down­stream sec­tor of the rail trans­port in­dus­try,” said Han.

The fund will help de­velop more than 10 listed rail trans­port com­pa­nies with in­dus­trial out­put of 3-5 bil­lion yuan for each in the near fu­ture.

“The com­pa­nies to be listed will be­come a major force to com­pete in the in­ter­na­tional rail trans­port in­dus­try,” said Han.

Guangzhou’s metro net­work currently spans 309 kilo­me­ters, rank­ing the third in length in the coun­try. It will sur­pass 520 kilo­me­ters by 2020, ac­cord­ing to the gov­ern­ment source.

Fol­low­ing the city’s ex­pan­sion of the ur­ban rail net­work, a num­ber of com­pa­nies re­lated to the rail in­dus­try have boosted their busi­ness and a se­ries of key tech­nolo­gies have been used in the city’s rail net­work in re­cent years.

“Guangzhou’s rail trans­port in­dus­try has ex­panded to al­most all ar­eas cov­er­ing train-equip­ment man­u­fac­tur­ing, com­mu­ni­ca­tion sig­nals, me­chan­i­cal and elec­tri­cal con­trols,

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