Identifier
Created
Classification
Origin
07GUANGZHOU564
2007-05-15 09:00:00
UNCLASSIFIED
Consulate Guangzhou
Cable title:  

Transportation Infrastructure in the Pearl River Delta

Tags:  ECON EINV ELTN KTDB CH 
pdf how-to read a cable
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UNCLAS SECTION 01 OF 02 GUANGZHOU 000564 

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: ECON EINV ELTN KTDB CH
SUBJECT: Transportation Infrastructure in the Pearl River Delta
(Part 2 of 2): Major Projects

REFERENCE: 06 GUANGZHOU 17429

UNCLAS SECTION 01 OF 02 GUANGZHOU 000564

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: ECON EINV ELTN KTDB CH
SUBJECT: Transportation Infrastructure in the Pearl River Delta
(Part 2 of 2): Major Projects

REFERENCE: 06 GUANGZHOU 17429


1. (U) SUMMARY: Guangdong will initiate 62 major transportation
infrastructure projects by 2010, requiring an estimated investment
of RMB 550 billion (USD 71.5 billion). Projects planned for
Guangdong's Pearl River Delta (PRD) include 17 expressways, a fourth
and fifth rail line linking Guangzhou to Hong Kong, the province's
first underground light-rail linking two cities, and an expansion of
Guangzhou's Baiyun International Airport. This cable discusses
specific projects by sector; septel describes overall planning and
the role of foreign companies. END SUMMARY

Projects and Spending
--------------


2. (U) In its 11th Five-Year Plan (2006-10),Guangdong province as
allocated RMB 550 billion (USD 71.5 billion) for 62 major
transportation infrastructure projects, most to be started by 2010
and most in the Pearl River Delta. The plan forecasts 2,000 km of
new expressway, 1,100 of railway, 270 km of light rail, and 262 km
of metro rail. The Guangdong government announced that it will
spend RMB 48.5 billion (USD 6.3 billion) to improve transportation
infrastructure in 2007. This is up from RMB 46.2 billion (USD 6
billion) in 2006, which was 13 percent more than 2005.

Roadways
--------------


3. (U) Guangdong has the second longest road network (3100 km) among
China's provinces (the longest is in Henan Province at 3439 km).
The PRD has plans for 17 expressway projects under the 11th FYP,
some of which are extensions of existing roadways. These roads will
link the PRD with major cities in China's interior, such as Wuhan,
Chongqing, and Xi'an. A second expressway between Guangzhou and
Shenzhen will be completed by 2009 with a total investment of RMB 16
billion (USD 2.1 billion). A Hong Kong firm is providing some of
the investment for the highway as well as a new ring road around
Guangzhou. (The first Guangzhou-Shenzhen highway was completed 10
years ago and was also Hong Kong-invested.) An expressway linking
Guangzhou to Zhuhai is also under construction.


4. (U) The expansion of Guangzhou city's road network during the
11th FYP will require an investment of RMB 50 billion (USD 6.5

billion). The city is currently building its second ring road and
plans to complete its fourth ring road by 2010, according to
Professor Fu Xinsha of South China Normal University. However,
Professor Fu said the speed of road construction does not match the
city's needs, and identifying and fixing bottlenecks is a priority.
Guangzhou is also building highways linking it to cities in central
and northern Guangdong, such as Conghua and Heyuan.


5. (U) A bridge linking Hong Kong with Macau and Zhuhai is still in
the planning stages and waiting environmental assessments and
approval from the three governments. It would extend 40 km and
require an investment of RMB 55 billion (USD 7.2 billion).
Observers estimate it will not be completed until at least 2012. The
Guangdong government hopes this will spur development in the
less-developed western half of the PRD.

Railways
--------------


6. (U) Guangdong's top railway projects include extending the
Beijing-Guangzhou and Shenzhen-Guangzhou lines. New rail will be
laid to improve connections between PRD cities and Xiamen, Shaoguan,
Zhanjiang, Nanning, Wuhan, and Luoyang.


7. (U) Guangzhou is also focused on expanding its rail network,
according to Chen Shanliu, Director-General of the Guangzhou
Development and Reform Commission. This includes two
Guangzhou-Zhuhai rail systems: one light rail and the other cargo.
Planners have also approved a fourth rail line from Guangzhou to
Hong Kong, which will shorten the travel time from two hours to one
hour. Another cargo rail line - the fifth railway between the two
cities -- is also in the planning stages.


8. (U) Panyu, located 14 km south of central Guangzhou and a central
point in the PRD, has been designated as a central transportation
hub for rail and expressway networks, according to Chen Sanliu,
Director-General of the Guangzhou DRC. The hub station is scheduled
for completion in 2008 and will require RMB 4.1 billion (USD 0.5
billion) in investment. The Panyu hub station will be the service
point for the planned Wuhan-Guangzhou railway.


9. (U) Panyu will also be a hub for the 560 km light rail network
that will link Guangzhou, Foshan, Zhuhai, and Shenzhen.
Construction will begin this year on Guangdong's first underground
rail project to link two major cities -Guangzhou and Foshan. The

GUANGZHOU 00000564 002 OF 002


project costs RMB 14.7 billion (USD 1.9 billion) and extends 32 km,
according to news reports. It will be completed by 2012 and at peak
hours will be able to transport 40,000 passengers between the two
cities hourly. Already, more than 300,000 people commute between
the two cities daily.

Metro Rail
--------------


10. (U) Guangzhou and Shenzhen are rapidly expanding their metro
rail systems in order to alleviate pressure on their roadways;
Guangzhou is at times gridlocked with almost 2 million cars (and is
adding 150,000 per year while Guangdong Province adds 600,000 per
year). Guangzhou currently has four metro lines in operation; lines
three and four opened in December 2006. Another four lines will be
completed by 2010, expanding the system from the current 111 km to
240 km. Shenzhen plans to expand from its current two metro lines
to six by 2010 (reftel). Additional lines should improve linkages
with Hong Kong.

Airports
--------------


11. (U) CAAC has predicted that the air traffic in the PRD region
will grow by 15-20 per cent annually from 2005 to 2010. The PRD
currently has major airports in Guangzhou, Shenzhen, and Zhuhai.
Guangzhou's Baiyun International Airport, which opened in 2004,
handled 26 million passengers and 650,000 tons of cargo in 2006 and
is expected to see 40 million passengers and two million tons of
cargo by 2010. The airport recently began phase two of its
construction, which will require investment of RMB 17.5 billion (USD
2.16 billion) and which is scheduled to be completed in 2009. The
expansion includes new cargo terminals, aprons, and a third runway
that can accommodate the A-380. The Guangdong DRC Deputy Director
has stated that the government will retain a majority stake in all
airport-related projects. The airport will eventually be linked to
other PRD cities by highway, railway, metro, and light rail. FedEx
will use the airport as its Asia-Pacific hub beginning in 2008.


12. (U) Shenzhen International Airport is the fourth largest airport
in China after Beijing, Shanghai, and Guangzhou airports in terms of
passenger and cargo handling capacity. To cope with fast-growing
cargo demand, the airport plans to complete a new terminal and
runway by 2008. The Airport Authority of Hong Kong took over
management of the debt-ridden Zhuhai Airport in October 2006 and is
expected to focus on cargo transport. The airport is beginning
renovations, including a ferry service between airports in Hong Kong
and Macao.

Ports
--------------


13. (U) Guangdong has the heaviest port traffic among China's
provinces, according to Guangdong DRC's Zhang. The province spent
RMB 11.8 billion (USD 1.5 billion) on its ports in 2006 and its
cargo throughput was up 14 percent. Shenzhen is China's second
busiest port city and Guangzhou is number three after Shanghai.
Guangzhou ports' cargo volume is growing 20 percent annually --
largely because of the completion of deep-water Nansha Port in
September 2004. Nansha has 10 berths and will reportedly have an
annual capacity of more than 10 million TEUs by 2010. Guangzhou
will spend RMB 26 billion (USD 3.4 billion) to expand its ports in
the 2006-10 period, much of it going to new berths at Nansha.
Guangzhou is also building a new highway connecting Guangzhou to
Nansha.


14. (U) Shenzhen's largest port, Yantian, plans to add six berths to
its existing nine. Hutchison Port Holdings, a consortium led by
Hong Kong's Hutchison Whampoa, holds a 73 percent interest in the
port, with the Shenzhen government holding the remainder. Yantian's
general manager Kenneth Tse told a visiting delegation in March 2006
that rail and roadway bottlenecks are growing more severe in
Shenzhen because of the rapid growth of the city's port activity.

GOLDBERG