China Needs 60 Million Tons of Rail Steel, Jiaotong’s Ou Says

Ou Guoli, a professor at Beijing Jiaotong University’s school of economics and management, comments on China’s steel requirement for its railway expansion.

Ou spoke at a conference in Shanghai today.

On new rail investment:

“China said last year it would build 16,000 kilometers (9,941 miles) of new rail lines for passengers by 2020. This plan was expanded from the previously announced 12,000 kilometers. The new plan would need 40 million metric tons of steel.

“China plans to invest 600 billion yuan ($88 billion) in rail buildings this year. That would need 20 million tons of steel and 120 million tons of cement, and would boost GDP by 1.5 percentage points.”

On high-speed rail:

“China’s high-speed railway expansion needs high-grade steel. The Beijing-Shanghai high-speed line will need about 5 million tons of steel. Building the Beijing South station would require 65,000 tons of steel, and Wuhan Station 53,000 tons. Each exceeds the steel used to build the Bird’s Nest stadium for the 2008 Olympics.

“One kilometer of passenger railway needs 2,500 tons of steel. Moreover, the plan to increase loading capacity for cargo trains also needs high-strength steel. China needs to upgrade its 550,000 cargo trains, which will consume a lot of stainless steel. Thirdly, China also plans to invest 700 billion yuan by 2015 to build 2,400 kilometers of urban rail lines.”

To contact the reporter for this story: John Liu in Shanghai at jliu42@bloomberg.net

To contact the editor responsible for this story: Teo Chian Wei at cwteo@bloomberg.net

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