Technavio Publishes Railway Market Reports for China

Technavio, a tech-focused research firm published a new report on the railway infrastructure spending in China, which is expected to grow at a CAGR of almost 27% from 2015-2019.

According to the new Technavio report, the increase in government initiatives toward developing infrastructure and boosting investment opportunities in the railway infrastructure will trigger market growth. In October 2014, the government launched the Asian infrastructure investment bank to promote investments in infrastructure development in China and other Asian countries.

“The government is burdened by high debts in the infrastructure sector, hence, it is encouraging private investment in energy and transport infrastructure through the BOT model,” says Faisal Ghaus, Vice President of Technavio.

The report also highlights that to attract private investment in railway infrastructure, the government liberalized rail freight prices, stimulating the growth of railway spending and the demand for rail transportation in the country. In April 2014, the national development and reform commission approved liberalization of freight railway fees based on the market demand, which was earlier controlled solely by the government.

“Additionally, in December 2014, the government deregulated the price control on rail cargo, railway parcel shipping, and passenger fares,” adds Ghaus.

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