CHINA: TRANSPORT SECTOR BRIEF East Asia and Pacific Region Transport Sector Unit

Alberto Nogales - Version: March 1, 2004

1. BRIEF DESCRIPTION OF THE SECTOR During the last decade there have been many changes affecting the transport sector. Since the early 1990s, the economy has moved from a centrally planned environment to one which is more commercialized and competitive; the degree of openness has increased; patterns of transport demand have changed; passenger and freight traffic has grown rapidly, putting heavy demands on infrastructure; and the role of the private sector has substantially increased.

Roads. China has, in the past, underinvested in roads; its road network still ranks among the sparsest in the world relative to geographic area and population. China’s road network in 2002 extended roughly 1.76 million km, with some 25,130 km of expressways and about 27,468 km of other high-grade highways in operation.

Yet in recent years, governments at all levels have embarked on major highway investment programs. At the core of this program is the National Trunk Highway System (NTHS), a 35,000 km network composed of 12 major highways (five north-south corridors: Beijing-Fuzhou, Beijing-Zhuhai, Chongqing-Zhanjiang, Erlianhaote-Hekou, and Tongjiang-Sanya; and seven east-west corridors: Dandong-Lhasa, Hengyang-Kunming, Lianyungang-Huoerguosi, Qingdao-Yinchuan, Shanghai-Chengdu, Shanghai-Ruili, and Suifenhe-Manzhouli) with an estimated cost of $150 billion, connecting all provincial capitals and cities with populations exceeding 500,000 inhabitants (100 major cities). All sections of the NTHS will match US Interstate or European motorway standards. By 2002 roughly 27,000 km, or 77 percent, had been completed. About 5,000 km are under construction now, while the remaining 3,000 km are yet to be built. The original target completion date for this program was 2020, but the government has since decided to push up the deadline to 2007.

Traditional funding resources are inadequate to meet the increasing demands that a growing economy places on road infrastructure. Financing for NTHS construction relies heavily on tolls to repay loans. The government’s cash contribution has been raised from three earmarked road-user charges: the vehicle purchase tax ($4.5 billion in 2002), the road maintenance fee ($10 billion), and the highway transport management fee ($2.5 billion). But altogether the charges only covered one-quarter of new construction expenditures in 2002. The road maintenance fee is inefficient, expensive to administer, easy to evade, and currently generates less than 40 percent of its potential. Of the revenue collected, only 60 percent is actually used for road maintenance; the remainder is spent on new construction. The 1999 authorization of a fuel tax has yet to be implemented.

Relative to most other countries in the world, private sector participation in the growth of China’s highway system is extensive. Over the last decade, some 80 joint venture transactions between Hong Kong and mainland developers and their mainland-counterpart highway agencies in 14 provinces have raised an additional $9 billion from private sources. Further, asset securitization (the sale of highway equity through initial public offerings and private placements, as a substitute for long-term debt financing) raised another $2 billion through 19 transactions by 2001. Altogether, though, private financing has contributed less than 10 percent of China’s total commitment to new construction since the early 1980s.

Railways. By the end of 2000, China’s rail system reached 68,000 km. The nation constructed 5,600 km of new rail during the Ninth Five-Year Plan (FYP, 1996-2000), representing an 8 percent increase over the five-year period. During this time, $29 billion was invested in railway infrastructure construction--28 percent more than during the Eighth FYP (1991-95), which itself had set records for railway investment.

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The nation’s Tenth FYP (2001-05) proposes to expand the size of the rail network, speeding up railway construction in western China and adding capacity in the main corridors of the eastern network--notably to link Beijing and Shanghai. By 2005, the length of the national railway is expected to reach 75,000 km, increasing rail in western regions by more than 2,000 km. The projects should create roughly 14,000 km of high-speed track--that is, with maximum speeds of 200-250 km per hour--across the national network, about 25,000 km of double-track lines, and 20,000 km of electrified lines.

After careful deliberation and analysis of international experience, the PRC government has adopted strategic goals for the national railway system, aiming to make it more responsive to market needs. The railway is spinning off nontransport subsidiaries as independent companies, and in certain regions has initiated pilot operations where passenger services are set up as profit centers separate from freight.

Waterways. China has large navigable rivers--especially in central and southern China--that link many of its major cities. Moreover China’s geography and the location of its population are exceptionally favorable to inland water transport. These features create the potential for inland water transport to claim a larger share of China’s inland transport market, which today makes up roughly 10 percent of freight in tons and, because of the more efficient use of existing waterways, makes up 27 percent of the freight ton-km. Many rivers carry large volumes of bulk cargo that are hauled from rural to urban areas for processing. On the rivers' upper sections, limited water depth prevents safe year-round access by vessels with capacity of more than 100 tons. But for a relatively modest cost, the navigation channels on these rivers could be deepened enough to enable much larger vessels to reach far upstream. An added advantage is that inland water transport creates less of an impact on the environment than rail or road transport. Accordingly, to ease the pressure of demand for new roads and improved railways, the government has recently increased investment in waterways to deepen navigation channels and upgrade navigational aids.

Air transport. Although central responsibility for airport development remains with the General Administration of Civil Aviation of China (CAAC), China’s provinces are increasingly involved in detailed planning, construction, operation, and financing. CAAC will support between 20 and 60 percent of the total airport development cost, depending on the airport’s role in the national hierarchy.

Air navigation is still the exclusive domain of CAAC and is likely to remain so for the foreseeable future. Although a plan for the development of air navigation facilities exists, there is no overall strategy for airport development. Instead, each proposal is considered on its own merits.

The Ninth FYP aviation policy emphasizes safety and regular quality service. To achieve this, substantial additions to capacity are being built at international airports in Beijing, Shanghai, and Guangzhou, as well as in many provincial capital airports, and improvements in facilities for airport management, flight control, fuel supply and maintenance are under way. Good airfreight facilities are important in attracting fast growing, high value-added industries. The smaller and newer airports that can offer better services are growing faster than the larger ones. Both Beijing and Hong Kong have experienced high growth rates, despite the opening of competing airports in Macau, Zhuhai, and Guangzhou, and massive investment in updating freight facilities at Shanghai.

Multimodal transport and logistics. China has for years maintained a hierarchical culture that resists crossing jurisdictional boundaries. This culture makes it difficult to take advantage of opportunities that require “horizontal” interaction--such as multimodal transport. Multimodal transport requires cooperation between providers of road transport and railways, which come under separate ministries and rarely interact. This may help explain why in 1999 China’s logistics costs were estimated at 18 percent of GDP, high in comparison with the US share of 9.5 percent in the mid-1990s, but about average for a transition economy. Transactions that are lengthy and costly to complete, high interest charges, and inefficient transport systems have contributed to

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China’s high logistics costs. In developed economies, transport costs account for roughly one-quarter of total logistic costs, while China’s transport costs in 1999 totaled roughly one-half of its logistics costs. Since 1999, big improvements have been made in both transport infrastructure and services in the coastal provinces, but the inland provinces are still lagging.

Urban transport. The Chinese cities are experiencing rapid growth as workers migrate from rural to urban areas. The substantial growth of manufacturing and consumer-based industries has also sped up the process of urbanization. Most large and medium cities in China are already facing serious traffic congestion problems generated by crowded and disordered traffic.

In the early 80s, there were only 28 cities with over 1 million people, but by 2002 these have increased to 36, of which 9 are metropolitan areas with a population of more than 2 million. As for the medium-size cities with half a million to one million people, the number increased to 45 during the last two decades. The trend of urban expansion is continuing characterized by the expansion of the urban boundary, the creation of large regional cities, and the development of suburban areas.

Under these circumstances, even though in the last decade Chinese cities invested massively in building and improving urban street networks, they can hardly keep pace with the growth rate of vehicles. The traditional passenger public transport cannot meet the demands of modern cities, for rapid, on time, and frequent service, and passengers in most cities heavily rely on bus and trolley systems that generally fail to meet the need of the local residents. A large number of bicycles are still used for daily travel to work, sharing streets with motor vehicles. The mixing of fast and slow traffic causes traffic disorder and high accident rates and slows down the average vehicle speeds, resulting in less efficient and poor-quality public transport services.

2. MAIN ISSUES

To reduce risks and bottlenecks in its transport sector, China must address several key issues.

Government and administration. China’s government bodies need to adapt to their new roles as regulators. Because the central government has only limited powers over provinces and China lacks a single, national ministry responsible for all transport modes, the pace of administrative reform varies from province to province. And because government bodies have maintained a strong cultural reluctance to cross jurisdictional boundaries, services that require cooperation across such boundaries have developed slowly.

Regional disparities. Provinces along China's eastern seaboard have benefited from logistical accessibility and well-developed infrastructure, and have grown more quickly than their western counterparts. The Northwest, seat of much of China’s early heavy industry and still dominated by state-owned enterprises, is now highly polluted and suffering high unemployment. Current PRC government efforts aim to narrow the widening wealth and income disparities among these three regions by attracting more domestic and foreign investment to the interior.

Shifting market needs. Shippers and passengers have more options now than ever before and are requiring faster and higher-quality services. Currently, however, some shippers resort to expensive and inefficient measures, such as operating their own truck fleets, to ensure quality service. As users demand better services, not only will infrastructure and other assets have to improve, but so will the capacity of operating companies to integrate services across transport modes and jurisdictions.

Specifically, road and waterway freight transport will take market share from rail--road transport because it can provide better door-to-door service and waterway transport because it is potentially cheaper for bulk products. Rail and buses’ share of the passenger transport market will also shrink, as private car ownership and passenger air services grow.

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Demand for container transport services will increase since containers and multimodal transport reduce transport costs, facilitate global supply chains, and provide the reliable services and delivery that exporters and foreign investors depend on.

Road transport. The PRC government faces many new challenges concerning the nation’s highways. While continuing to expand the expressway system, China would do well to focus on overall road network management and maintenance. Other key cross-jurisdictional coordination issues include improving the transport standards of western provinces and the management of entries and exits to cities, road safety, logistics, and land use.

China’s road investment in 2002, including construction and maintenance, totaled roughly $45 billion. This high level of investment, which represents about 3.5 percent of the nation’s GDP and has been maintained during the last five years, is exceptional (few countries spend more than 2 percent of their GDP on transportation). Yet funding for maintenance and construction of the secondary and tertiary networks remains inadequate. Additionally, the private sector’s share of highway financing is unlikely to increase in the future. China, therefore, needs to introduce more efficient and sustainable modes of financing, such as a surcharge on auto fuel. (The State Council approved the gas surcharge concept in principle in 1999, but implementing legislation has yet to be passed because of strong objections from many stakeholders. This reform will entail a far-reaching restructuring of several major tax revenue sources, public spending powers, and the balance between national and provincial mandates.)

Railways. The performance of China’s rail system is, by international standards, very good, but the system needs to expand its capacity further, to keep raising the quality of services, and to acquire modern technology to remain competitive in the future. In the past, PRC rail management has tended to emphasize maximizing volumes carried rather than generating revenue or improving the value of services. But attitudes are changing.

The PRC government may find it useful to address these longer-term strategic questions: How much competition should be allowed among companies offering rail transport services (private or otherwise)? Can pricing be made flexible enough so that it reflects costs more accurately, permits fees on a service-by-service basis, and allows carriers and customers to enter into contracts that cover price and service quality? And what is the best way to handle surplus labor as information technology eliminates the need for many jobs? China opened its rail freight market to new private and joint ventures in specialized markets, such as container services, as part of its World Trade Organization entry. But apart from the formal declaration of such good intentions, the extent to which China’s rail administrators are willing to innovate remains unclear.

Waterways. As China’s economy matures and shifts toward manufacturing high-value intermediate and finished products, the primary sector (farming, fishing, forestry, and mining) and construction will decline in relative importance, shrinking the market for inland water transport. The coastal provinces will feel this transition first. But inland water transport may continue to thrive for bulk cargoes, oversized loads, or dangerous cargo; it may even prosper in the coastal provinces--especially in river deltas--where no road or rail alternative is readily available. A niche market for containers may also develop in places where road and rail service is deficient. Taken together, the demand for transport on China’s major rivers is likely to remain substantial for at least the next couple of decades.

To increase inland water transport efficiency, continuing channel upgrades and fleet modernization including the use of separate barges and pusher units instead of self-powered small vessels, will be necessary.

Private funding may be crucial in meeting China’s water transport demands, but further commercialization may be difficult because it implies an end to family-operated vessels, which are an important source of employment.

Air transport. Even though air transport makes up the smallest share of China’s total freight transport, it is the fastest growing mode, with more than 2 million tons transported in 2002,

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compared with only 100,000 tons in 1980. And air freight is important for China’s international trade since it allows quick access to China’s two major markets--Europe and the United States. Chinese officials are aware that the rapid growth in air travel creates a need for strong infrastructure investment in the sector. Most government resources have been allocated to finance new runways. But as runway use and aircraft size increase, medium- and long-term investments will shift toward passenger terminals. In the past, most funding has been allocated to finance new airports, terminals, and other facilities to serve large cities in coastal provinces. Since the Great Western Development Strategy began in 2000, the government’s attention has shifted to the needs of China’s interior.

Modernization of air traffic control in the coastal air corridors has begun in earnest. The next step will be expanding air routes as the demand for internal flights increases.

Urban transport infrastructure. Population growth and increased vehicle use are severely straining China’s urban transport infrastructure. The last decade has thus seen a decline in mobility for most classes of urban transport--especially bicycling and walking. As fast as ring roads are built, traffic expands to fill them. And the urban infrastructure planning process is neither comprehensive nor systematic. Traffic management and provisions for non-motorized traffic are hampered by difficulties in cooperation between the police, who are responsible for road safety and traffic law enforcement, and highway departments.

China’s urbanization and motorization growth rates have skyrocketed. The central government’s current policies support both trends, which are expected to continue into the foreseeable future. According to United Nations forecasts, China’s urban population will increase from 30.2 percent of the population (319 million) in 1995 to 49.1 percent (712 million) in 2020. Car ownership is projected to increase tenfold from an average of 10 cars per 1,000 residents to 100 cars per 1,000 residents during the same period.

3. MAIN POLICY RECOMMENDATIONS

Transportation will be increasingly vital in China as the nation’s economy continues to change from a planned, centralized system to one that is market-based and decentralized. To satisfy the rapidly changing needs of transport users, provide the necessary conditions for economic growth, improve access and mobility among the poor, and protect the environment, China will need to design, and fund, appropriate transport strategies.

In the short and medium term the PRC government needs to implement a number of policies to improve the performance of its transport sector. The Bank recommends that the PRC government give priority to the following: Overcome poor coordination between road and rail systems by creating a Ministry of

Transport, develop an effective institutional and regulatory capacity, and assist all levels of government adapt to their roles as planners and regulators

Identify and create sustainable financing sources, including a fuel tax Create a more favorable environment for private sector investments Support market-based initiatives for the provision of infrastructure and services to enable

China to take full advantage of globalization through improved transport logistics and trade facilitation

Support modal reforms and facilitate the introduction of market-based transport operations and services that offer more flexible pricing

Select investments that will improve accessibility for lagging provinces, and will reduce regional disparities through the provision of critical links between eastern and western China

Support direct investments in poor communities through the completion of provincial road networks that improve accessibility to poor and remote areas

Strengthen management of sector externalities like pollution, health, and safety and integrate urban transport planning and management

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Many of these objectives are already reflected in the PRC government’s Tenth FYP for the transport sector to support economic growth and spread its benefits to lower-income populations. These plans call for continued efforts to improve networks--mainly through capacity increases in infrastructure--and to develop transport services further.

PRC authorities are committed to continue with the construction of the National Trunk Highway System in order to complete the 35,000 km network by 2007; to improve transport to and within China’s western regions; and to improve accessibility to low-income populations everywhere in China. This long-term plan involves extending the East-West and North-South highways (which today total roughly 18,000 km) to link the interior regions to the coast and to connect western provinces together. It also involves rehabilitating and upgrading technical standards on about 180,000 km of the western road network and developing roughly 150,000 km of rural access road.

The government has announced that it attaches importance to developing and implementing logistics concepts--particularly for container transport within the seven corridors leading to the interior from major ports; improving road safety; and developing market mechanisms in infrastructure construction and operation and in the provision of transport services. To achieve these goals, the government must complete the reform of transport sector institutions and develop market regulations.

According to recent international experience, the PRC government would do well to follow a number of general principles when formulating its transport sector policies. Except in cases of clear market failure, rely more on the market and less on the government to allocate resources; allocate public expenditures in the transport sector more efficiently; and set standards and regulations for consulting firms, construction companies, and for freight and passenger transport services. These standards should include minimum conditions for market entry that are consistent with gradual improvements in service and safety quality, and should include regulations for transporting hazardous materials and other special transport.

In the short term, if the government improves coordination between China’s transport modes by creating a Ministry of Transport, develops an effective institutional and regulatory capacity, and creates a sustainable financing source (including a fuel tax), it will achieve the ambitious goals defined in its current transportation plans. In the medium term, if China succeeds in maintaining high levels of investment in transport infrastructure and selects investments that will improve accessibility for lagging provinces, it will reduce the regional disparities between eastern and western China. But in the long term, only through improved transport logistics and trade facilitation, and directly supporting market-based initiatives for the provision of infrastructure and services, will China create a more favorable environment for private sector investments and be able to take full advantage of globalization.

4. BANK AND OTHER DONOR ACTIVITIES

Most of the proposed assistance in the transport sector has been coordinated with the other two primary lending agencies in China which are the Asian Development Bank (ADB), and the Japanese Bank for International Cooperation (JBIC).

The World Bank's operational strategy in China is to support the nation while it makes two historic transitions: from a rural, agricultural society to an urban, industrialized society; and from a centrally planned economy to a more globally integrated market economy. The World Bank’s lending program has evolved over time and is constantly adapting to fit the changing needs of China’s transportation users.

The World Bank’s portfolio for the transport sector in China is the single largest program in any sector worldwide. As of December 2003, the Bank had approved 61 projects (34 closed and 27 active) that totaled $10.7 billion in the last two decades--an average of more than $500 million

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per year. The World Bank invested in all transport modes except aviation. More than half of the total lending has been in highways (54 percent); more than one-fifth in railways (22 percent); more than one-tenth in inland waterways and ports (11 percent) and in urban transport (11 percent); and the remaining 2 percent has been in mixed modes or container transport.

The current lending in the highway sub-sector will continue to be on a provincial basis, supporting capacity expansion, improving the functional responsiveness of the network to accessibility needs and supporting the institutional strengthening of road management with more attention paid to regional differentiation. In the western and central provinces, the strategy is to assist the development of comprehensive road networks; while in the eastern part, the Bank will lend for high-class roads in coastal provinces if such loans can be shown to be needed as a catalyst to private sector financing.

In railways and waterways lending will be geographically focused to benefit poorer provinces, and pursue the reform agenda initiated under the innovative projects. The urban transport projects will be integrated into urban sector lending, with a sharpened focus on accessibility and mobility (particularly for the urban poor), safety, local and global pollution, and on sectoral reform at a city level in service delivery for public transport and road maintenance.

In terms of technical assistance, there is a need to better balance macro-economic and sector work; and within the sector work, to review the appropriate balance between broad strategic pieces of work (such as a broad transport sector strategy paper) and more specific pieces (e.g. logistics, containerization, road fund, technical issues). Mode-specific strategy papers would also encourage the central and provincial governments to include the Bank’s views into their process of planning major transport investments.

Compared to other World Bank clients, China has a huge appetite for new transport and other infrastructure, wants to build very quickly, and rarely gives the Bank opportunities upstream to exercise much influence on project design. The World Bank’s Chinese transport clients have abundant access to other finance sources and justify borrowing from the Bank mainly to enhance their access to international best practices in project management and transport operations. As a result the World Bank is able to deliver large loans quickly. It is difficult, however, for the World Bank to deliver poverty-alleviating financing that is in line with its priorities while satisfying China’s more concrete wishes to put new infrastructure into service quickly. Generally, China’s priorities are growth with stability, and the Bank’s priorities are poverty-alleviation under sound governance. Reconciling these priorities is a challenge.

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PROJECT LOAN/CREDIT APPROVAL# NAME SUB-SECTOR AMOUNT (2) STATUS DATE1 Highway Project Highways 73 Closed May-852 Highway Project (02) Highways 150 Closed May-873 Shaanxi Provincial Highway Project Highways 50 Closed Jun-884 Sichuan Provincial Highway Development Project Highways 125 Closed Jun-885 Jiangxi Provincial Highway Development Project Highways 61 Closed Feb-896 Shandong Provincial Highway Project Highways 110 Closed May-897 Zhejiang Provincial Highway Project Highways 220 Closed May-928 Guangdong Provincial Highway Project Highways 240 Closed Nov-929 Henan Highway Project Highways 120 Closed Nov-92

10 National Highway (01) Project Highways 380 Closed Jun-9411 Xinjiang Provincial Highway Project Highways 150 Closed Aug-9412 Shanghai - Zhejiang Highway Project Highways 260 Closed Aug-9513 Shaanxi Provincial Highway Project (02) Highways 210 Closed Mar-9614 Fujian Provincial Highway Project Highways 140 Active Dec-9315 Henan Provincial Highway Project (02) Highways 210 Active May-9616 Xinjiang Highway Project (02) Highways 300 Active Oct-9617 National Highway (02) Project Highways 400 Active Dec-9618 National Highway Project (03) Highways 250 Active May-9819 Tri - Provincial Highway Project Highways 230 Active Jun-9820 Anhui Provincial Highway Project Highways 200 Active Dec-9821 National Highway Project (04) Highways 350 Active Jun-9922 Fujian Highway Project (02) Highways 200 Active Jun-9923 Guangxi Highway Project Highways 200 Active Mar-0024 Henan Provincial Highway Project (03) Highways 150 Active May-0025 Jiangxi Highway Project (02) Highways 200 Active Jun-0126 Inner Mongolia Highway Project Highways 100 Active Jun-0227 Xinjiang Highway Project (03) Highways 150 Active Sep-0228 Hubei Xiaogan - Xiangfan Highway Project Highways 250 Active Sep-0229 Anhui Provincial Highway Project (02) Highways 250 Active Jun-03

13 Closed & 16 Active Highways Projects Sub-Total 5,729 54%1 Railway Project (01) Railways 220 Closed Mar-842 Railway Project (02) Railways 235 Closed May-853 Railway Project (03) Railways 230 Closed Apr-864 Railway Project (04) Railways 200 Closed Jun-885 Inner Mongolia Local Railway Project Railways 150 Closed May-896 Railway Project (05) Railways 330 Closed Sep-917 Railway Project (06) Railways 420 Closed Mar-938 Railway Project (07) Railways 400 Active Jun-959 National Railway Project Railways 160 Active Jan-02

7 Closed & 2 Active Railways Projects Sub-Total 2,345 22%1 Port IWW & Ports 124 Closed Nov-822 Tianjin Port Project IWW & Ports 130 Closed May-863 Huangpu Port Project IWW & Ports 88 Closed Oct-874 Dalian Port Project IWW & Ports 96 Closed Feb-885 Ningbo and Shanghai Ports Project IWW & Ports 76 Closed Dec-886 Xiamen Port Project IWW & Ports 36 Closed Dec-887 Shanghai Port Restructuring and Development Project IWW & Ports 150 Closed Dec-928 Inland Waterways Project IWW & Ports 210 Closed Jun-959 Yangtze Flood Emergency Rehabilitation Project IWW & Ports 80 Closed Feb-99

10 Inland Waterways Project (02) IWW & Ports 123 Active May-9811 Inland Waterways Project (03) IWW & Ports 100 Active Jun-01

9 Closed & 2 Active IWW & Ports Projects (3) Sub-Total 1,213 11%1 Liaoning Urban Infrastructure Project Urban Transport 78 Closed Mar-912 Shanghai Metropolitan Transport Urban Transport 60 Closed Sep-913 Tianjin Urban Development and Environment Project Urban Transport 100 Closed Jun-924 Shanghai Metropolitan Transport Project (02) Urban Transport 150 Closed Oct-935 Guangzhou City Center Transport Project Urban Transport 200 Active May-986 Guangxi Urban Environment Project Urban Transport 92 Active Jun-987 Liaoning Urban Transport Project Urban Transport 150 Active Mar-998 Urumqi Urban Transport Improvement Project Urban Transport 100 Active Dec-009 Shijiazhuang Urban Transport Project Urban Transport 100 Active Mar-01

10 Tianjin Urban Development and Environment Project (02) Urban Transport 150 Active May-034 Closed & 6 Active Urban Transport Projects Sub-Total 1,180 11%

1 Jiangsu Provincial Transport Project Mutimodal-Other 154 Closed Apr-912 Container Transport Project Mutimodal-Other 71 Active Mar-99

1 Closed & 1 Active Multimodal-Other Projects Sub-Total 225 2%Sub- total for 34 Closed Projects 5,465Sub- total for 27 Active Projects 5,226

TOTAL for 61 Projects 10,691(1) Includes Urban Projects that have Transport Components. Excludes Dropped and Pipeline Projects.(2) Amounts in Millions of US Dollars(3) IWW & Ports: Inland Waterways and Ports

THE WORLD BANK'S TRANSPORT SECTOR PORTFOLIO IN CHINA (1)Date: As of December - 2003

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5. STATUS OF BANK DIALOGUE

Recent meetings between Bank management and Government officials have informally outlined possible future directions for the Bank in the transport sector, in light of the options of the Eleventh FYP, the possible requests from the Government, and key priorities.

The Government needs to take a more holistic approach to both reform and financing upstream in the investment cycle, and the Bank needs to invest more on analytical work to support such broader upstream approaches. At this moment, a set of clear priorities needs to be identified, and government clients for such work need to be clearly defined.

It is expected that investment lending would remain the mainstay of the Bank program in the future and that pilot gradual approaches will continue. The railways and highway sectors will develop broader sector investment approaches. The main concern on policy issues is to respond to clear demands, to remain focused, and to be more strategic. The future program is not as strong as in the past and needs to be adjusted to the large financing needs in both the railways and the highway sector.

Dialogue on the highways sector is excellent. The priorities for future directions include: testing sector approaches for network management at the provincial level; support for knowledge transfer; dialogue on key policy issues; technical assistance to improve management skills and informatization; and greater focus on how to implement such approaches in a concrete way.

The railways modernization program and investment directions are clear. The railways would like to see an increase in lending from the Bank, along better defined priorities. Moving to sector lending to support defined objectives, bringing value added in high technology transfer, and informal advice on best practices would be key priorities together with a scaled-up investment program. Bank interventions should also be used to leverage additional financing, including financing from the private sector.

The technical assistance to be provided in waterways, while directly serving the needs of the implementing agencies, may also provide pointers for the national government and other provincial governments to pursue the questions of how to modernize the management of inland waterways transport, how to encourage restructuring of the fleet, and what pricing and cost recovery policies to adopt for waterways infrastructure.

The dialogue in urban transport is the most difficult because of the extensive decentralization and fragmentation in the sub-sector and weak coordination role of the Ministry of Construction. Sector work has an important role to play in giving wider publicity to the Bank’s policy recommendations on transport, especially in connection with growing concerns about rapid motorization and its impacts on urban life. More recently, the dialogue with the Chinese Association of Mayors is showing promising results. It has been proposed to prepare a China Urban Transport Strategy Review to develop with Ministry of Construction a strategic urban transport policy-framework which should address the priority areas for the medium-term (up to 10 years), as well as to maximize and scale up the Bank’s interventions.

Interlocutors at the Central Level

Ministry of Communications (MOC) for Highways and Inland Waterways Ministry of Railways for Railways Ministry of Construction – Chinese Urban Academic Planning and Design Institute and

the Chinese Association of Mayors for Urban Transport Interlocutors at the Provincial Level

Provincial Communication Department for Highways and Inland Waterways Municipalities for Urban Transport

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6. SELECTED REFERENCES AND BANK’S TRANSPORT SECTOR TEAM

Selected References

China Statistical Yearbook 2003. National Bureau of Statistics of China. July 2003.

Trade and Logistics in East Asia. A Development Agenda. EASTR Working Paper No. 3. June 2003.

The World Bank Country Assistance Strategy for China. 2003-2005. January 2003.

Sub-Study on China Road Transport Industry. Transport Planning and Research Institute. Ministry of Communications, China. Draft 2003.

Private Participation in Infrastructure in China. 2002.

Cities on the Move. A World Bank Urban Transport Strategy Review. 2002.

China: Highway Strategy Review. EASTR. 2001.

Chinese Railways. Biannual Journal. Vol. 9 No.2. 2001.

Atlas of China. China Cartographic Publishing House. January 1999.

China: Forward with One Spirit: A Strategy for the Transport Sector. EASTR Report No. 15959-CHA. April 1998.

China. Container Transport Services and Trade: Framework for an Efficient Container Transport Network. Report No. 15303-CHA. October 1996.

China’s Urban Transport Development Strategy. November 1995.

China Highway Development and Management Issues, Options, and Strategies. Report No. 11819-CHA. February 1994.

China’s Railway Strategy. Report No. 10592-CHA. February 1993.

Highways in China. 1949-1990. Ministry of Communications. Peoples Republic of China. 1991.

World Bank China Cluster for the Transport Sector

Jitendra Bajpai Transport Sector Director Michel Bellier Lead Transport Specialist Christopher Bennet Senior Transport Specialist Edward Dotson Senior Urban Transport Specialist Boping Gao Transport Specialist Yasuhiro Kawabata Senior Highway Engineer Shomik Mehndiratta Urban Transport Specialist Emmanuel Py Junior Professional John Scales Senior Transport Specialist Graham Smith Transport Sector Coordinator Supee Teravaninthorn Senior Economist Jacques Tollie Senior Highway Engineer Han-Kang Yen Research Analyst Yan Zong Transport Specialist

Basic Statistics Unit 1980 1985 1990 1995 2000 2002 Year Source[1] Total population million people 987 1,059 1,143 1,211 1,267 1,285 2002 NBS[1] Urban population million people 191 251 302 352 459 502 2002 NBS[1] Rural population million people 796 808 841 859 808 782 2002 NBS

Number of households thousand households 238,040 277,380 316,760 348,370 358,740 2002 NBSAverage household size in urban areas persons 3.90 3.50 3.20 3.10 3.04 2002 NBSAverage household size in rural areas persons 5.10 4.80 4.50 4.20 4.13 2002 NBSGNI per capita US$/cap 840 940 2002 WBGDP million US$ 216,200 363,000 673,500 1,079,948 1,267,122 2002 WB

Geographical & Land Characteristics 2002 Year SourceTerrain Type Distribution Mountains (&hills) Plateaus Basins PlainsPercentage of Terrain Type % of land area 43% 26% 19% 12% 100% 2002 NBS

2002Climatic Zones Distribution Humid Zone Semi-Humid Semi-Arid AridPercentage of Climatic Zones % of land area 32% 15% 22% 31% 100% 2002 NBSLand area thousand km2 9,598 2002 NBSNumber of Islands number 5,400 2002 NBSArea of Islands km2 38,700 2002 NBSLength of Coastline km 32,000 2002 NBS Length of Mainland Shore 18,000 2002 NBS Length of Island Shore 14,000 2002 NBSLength of Borders km -

Road Network Length km 107,390 166,060 340,770 370,200 43,800 1,028,220 1990 MOCRoad Network Length km 110,375 178,129 378,212 469,693 49,380 1,185,789 1996 MOCRoad Network Length km 118,983 212,450 461,872 800,681 85,861 1,679,847 2000 MOCRoad Network Length km 125,003 216,249 471,239 865,635 87,096 1,765,222 2002 MOC

[2] High Grade Expressways 2,316 1,060 46 3,422 1996 MOC[2] High Grade First Class 5,497 3,873 1,352 760 297 11,779 1996 MOC[2] High Grade Second Class 2,913 1,213 4 4,130 1996 MOC[2] High Grade Second Class 35,778 37,204 14,625 4,168 1,085 92,860 1996 MOC[2] Ordinary Roads Third Class 33,139 59,033 76,160 39,620 8,667 216,619 1996 MOC[2] Ordinary Roads Fourth Class 23,280 50,923 197,680 309,470 36,255 617,608 1996 MOC[2] Unclassified Unclassified 7,450 24,823 88,349 115,675 3,072 239,369 1996 MOC

Subtotal 110,373 178,129 378,212 469,693 49,380 1,185,787 1996 MOC

Road Network by Surface Type and Condition km 116,713 51,762 1,231,116 1997 MOCLength of Paved Roads km 96,699 14,527 472,261 1997 MOCLength of Gravel Roads km 19,116 33,696 660,447 1997 MOCLength of Earth Roads km 958 3,266 98,015 1997 MOCLength in Good Condition kmLength in Regular (Fair) Condition kmLength in Poor Condition km

Length of Roads km 522 2,600 43,200 690,000 291,000 1,027,322 1990 MOCLength of Roads km 3,422 11,779 96,990 834,227 239,369 1,185,787 1996 MOCLength of Roads km 25,132 27,470 197,145 1,133,179 382,298 1,765,224 2002 MOC

Length of Transport Routes 1980 (*) 1985 1990 1995 2000 2002 Year SourceTotal length of transport network km 1,045,100 1,006,500 1,195,300 1,327,300 1,590,700 1,958,700 NBSRailway Length in Operation km 53,300 55,000 57,800 59,700 68,700 71,900 NBSNational Electrified Railways km 1,700 4,151 6,941 9,703 14,864 17,409 NBS National Length of Railways in Operation km 1978 (*) 48,618 52,119 53,378 54,616 58,656 59,530 NBS National Double-Tracking Length km 1978 (*) 7,630 9,989 13,024 16,909 21,408 23,058 NBS Highways km 883,300 842,400 1,028,300 1,157,000 1,402,700 1,765,200 NBS Expressway km 0 0 500 2,100 16,300 25,100 NBS Navigable Inland Waterways km 108,500 109,100 109,200 110,600 119,300 121,600 2002 NBS

OtherLarge / Heavy thousand Large 754.8 Heavy 1,482.8 2002 NBSMedium / Middle thousand Medium 1,048.0 Middle 2,186.9 2002 NBSSmall / Light thousand Small 7,897.4 Light 3,605.8 2002 NBSMinicar / Mini thousand Minicar 2,323.4 Mini 846.6 2002 NBSTotal thousand Sub-Total 12,023.6 Sub-Total 8,122.1 385.8 20,531.5 2002 NBS

Vehicle Fleet Per Year 1980 1985 1990 1995 2000 2002 Year SourcePassenger thousand 350.8 794.5 1621.9 4179.0 8537.3 12023.6 NBSTrucks thousand 1299.0 2232.0 3684.8 5854.3 7163.2 8122.1 NBSOther thousand 385.8 NBS

[3] Total thousand 1,649.8 3,026.5 5,306.7 10,033.3 15,700.5 20,531.5 NBSMotorcycles thousand NBSTotal (including motorcycles) thousand NBS

1980 1985 1991 1995 2000 2002 Year SourceNumber of Accidents number 97,573 264,817 271,843 616,971 773,137 MOCNumber of Fatalities number 21,818 40,906 53,292 71,494 93,853 109,381 MOCNumber of Injuries number 80,824 136,829 162,019 159,308 418,721 562,064 MOC

2002 Year SourceTotal road user charges US$ million 24,000 2002 MOCRoad user charges (Public) US$ million 17,000 2002 MOC

[4] Road user charges (Private) US$ million 7,000 2002 MOC

Railways Highways Waterways Aviation OtherTotal Annual Public Expenditure US$ million 2002Capital Investment (New Const.,Expans.&Reconst.) US$ million 8,648 19,986 630 2,361 565 32,190 2002 MOCMaintenance and Preservation US$ million 2002

Public Expenditure Evolution 1980 1985 1990 1997 2000 2002 Year SourceExchange Rate with US$ 1.5 2.9 4.8 8.3 8.3 8.3 MOC

[5] Total Annual Capital Public Expenditure US$ million 16,528 27,436 32,190 MOCRailways US$ million 5,975 8,099 8,648 MOCHighways US$ million 8,051 15,875 19,986 MOCWaterways US$ million 480 566 630 MOCCivil Aviation US$ million 1,637 2,518 2,361 MOCOther US$ million 384 378 565 MOCNotes: Sources:

[1] Data on population excludes Hong Kong, Macao, Taiwan NBS - National Bureau of Statistics of China[2] Latest data presently available is from 1996 MOC - Ministry of Communication of China[3] Since 2002 the statistical standard of vehicles has been adjusted. Data is not comparable with previous years. WB - World Bank - SIMA[4] User charges collected trough tolls[5] Data on public expenditures on local currency calculated based on the exchange rate provided

Source

1,062,641361,035607,63593,791

SourceNon-Classified

YearTotal Vehicles

Road User Charges

Vehicle Fleet Motor VehiclesPassenger Trucks

Road Network - Technical Classification Roads & Highways Total Roads & Highways

YearExpressways First Class Second Class Third & Fourth

SourceNational or Interstate

Provincial or Regional

County or District

Village and Town or Local

Other or Special Purpose

Public Expenditure Transport Mode

Road Network - Functional Classification (Administrative)

Source

Road Accidents Statistics

Roads & Highways

Total Expenditure

Year

Total Roads & Highways

Year

Version: March 1, 2004CHINA: TRANSPORT SECTOR MEASURES

Terrain Type

Climate Zone

Passenger-km Evolution

1,383

2,4162,613

3,546

4,533

4,969

129 179 165 172 101 8240 117 230

681971

1,269

7,806

6,657

4,603

2,620

1,725

730

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

1980 1985 1990 1995 2000 2002

Year

(100

mill

ion

pass

enge

r-km

)

RailwaysHighwaysWaterwaysAviation

Modal Split 1980 Modal Split 2002

H55%

W1%

A9%

R35%

R60%

A2%

H32% W

6%

H: HIGHWAYS R: RAILWAYS W:WATERWAYS A:AVIATION

China’s highway passenger traffic surpassed railway passenger traffic beginning in 1990 when both modes experienced roughly the same traffic volume. Highway traffic grew more aggressively primarily because of its flexible networks and faster construction growth rates. If this trend continues, which is very likely, the 1980 modal split of railways and highways will reverse before 2005—the share of highways will reach 60 percent and the share of railways will fall below 32 percent. Passenger traffic on waterways and aviation face opposite projections. While waterway transport volumes are shrinking, the aviation sector is increasing its share substantially. Source: China Statistical Yearbook 2003. National Bureau of Statistics of China.

Freight Ton-Km Evolution

5,717

8,126

10,622

13,663

15,516

764

1,903

3,358

4,695

6,1296,783

1,516

2,319

3,478

5,266

7,120

8,253

1 4 8 22 50 52

12,870

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

1980 1985 1990 1995 2000 2002

Year

(100

mill

ion

ton-

km)

RailwaysHighwaysWaterwaysAviation

Modal Split 1980 Modal Split 2002

R51%

W27%

H22%

A0.17%

R71%

H10%

W19%

A0.02%

H: HIGHWAYS R: RAILWAYS W:WATERWAYS A:AVIATION China’s rail system has dominated the nation’s freight transport market in ton-km for years and will likely continue to do so given the size of its operations and lower costs. The nation’s rail freight in ton-km almost tripled from 1980 to 2002. But the railways’ share of the market has consistently dropped in favor of highways and waterways, which increased their shares by 12 percent and 8 percent, respectively, over the last two decades. This trend is partly explained by China’s rapidly growing road network, which carried about nine times more freight in 2002 than in 1980, and by more efficient use of existing inland waterways, which carried more than five times 1980’s volume in 2002. The aviation sector, even though it has dramatically increased its volume from 100 million ton-km to 5.2 billion ton-km, carries less than 1 percent of China’s total freight. Source: China Statistical Yearbook 2003. National Bureau of Statistics of China.

• Data excludes petroleum and gas pipelines • Waterways data excludes ocean shipping. • Domestic waterways freight estimated at an average of 30% of the total.

Country Name China China China ChinaYear 1980 1990 2000 2002

1980 1990 2000 2002Percentage Urban Population % 19.39% 26.41% 36.22% 39.09%Percentage Rural Population % 80.61% 73.59% 63.78% 60.91%Average Household Size person 3.65Average Urban Household Size person 3.17Average Rural Household Size person 4.04Population Density people per km2 133.83

1979-2002 1990-2002 1998-2002Population Growth (average per year) % 1.2% 1.0% 0.8%Average Annual Urban Population Growth % 4.6% 4.2% 4.9%Average Annual Rural Population Growth % … -0.5% -1.5%

1980 1990 2000 2002Annual GDP Growth 7.9% 7.9%GNI per Capita US$/capita 840 950Country Classification - Income Group Level Low Income

1980-1990 1990-2000Average Annual GDP Growth % 10.1% 10.3%

China China China China1980 1990 2000 2002

Modal Split Passenger Traffic [passenger-km]Highways market share % 32.0% 46.6% 55.3% 55.3%Railways market share % 60.6% 46.4% 37.0% 35.2%Waterways market share % 5.7% 2.9% 0.8% 0.6%Aviation market share % 1.7% 4.1% 7.9% 9.0%

[1] Modal Split Freight Traffic [ton-km]Highways market share % 9.6% 19.2% 22.7% 22.2%Railways market share % 71.5% 60.8% 50.7% 50.7%

[2] Waterways market share % 19.0% 19.9% 26.4% 27.0%Aviation market share % 0.02% 0.05% 0.19% 0.17%

China China China China1990 1995 2000 2002

Transport network includes (roads & highways, railways and waterways)Transport network density in terms of land area km/ 1,000 km2 124.54 138.29 165.73 204.07Transport network density in terms of total population km/ 1,000 people 1.05 1.10 1.26 1.52Road DensityRoad density in terms of land area km/ 1,000 km2 107 121 146 184Road density in terms of total population km/ 1,000 people 0.90 0.96 1.11 1.37Rail DensityRail density in terms of land area km/ 1,000 km2 6.02 6.22 7.16 7.49Rail density in terms of total population km/ 1,000 people 0.05 0.05 0.05 0.06Waterways DensityWaterways density in terms of land area km/ 1,000 km2 11.38 11.52 12.43 12.67Waterways density in terms of total population km/ 1,000 people 0.10 0.09 0.09 0.09Motorization and NMTNumber of motor vehicles per household vehicles/100 households 1.9 3.2 4.5 5.7Number of motor vehicles per thousand people vehicles/1,000 people 4.6 8.3 12.4 16.0Number of motorcycles per householdNumber of bicycles per household

China China China China1980 1990 1997 2002

Fuel PriceGasoline (Super/Regular) US$ cent per liter 25 33Diesel Oil US$ cent per liter 22Transport Freight CostAverage [or range] trucking cost per ton-km U$ cent per ton-km 4 - 6

[3] Average [or range] train cost per ton-km U$ cent per ton-km 1.1 - 2.3Average [or range] waterways cost per ton-km U$ cent per ton-kmAverage [or range] air cost per ton-km U$ cent per ton-kmTransport Passenger Cost

[4] Average [or range] bus cost per passenger-km U$ cent per pass-km 3[3] Average [or range] train cost per passenger-km U$ cent per pass-km 1.45

Average [or range] air cost per passenger-km U$ cent per pass-km

China China China China1980 1990 1997 [5] 2002

National Road Network Condition% of roads in good condition of national network %% of roads in fair (regular) condition of national network %% of roads in poor condition of national network %National Road Network QualityPaved Roads as proportion of national road network % 83%

[5] Expressways/Motorways as proportion of national road network % 3% 20%National Railway Network QualityDouble-tracking rails as proportion of national rail network % 32.07%Electrified rails as proportion of national rail network %Road Safety

[6] Number of accidents in terms of motor vehicles accidents/10,000 veh 499 393 377[6] Number of fatalities in terms of motor vehicles fatalities/10,000 veh 132.2 100 60 53[6] Number of injuries in terms of motor vehicles injuries/10,000 veh 489.9 305 267 274[6] Number of accidents in terms of population accidents/100,000 people 23 49 60[6] Number of fatalities in terms of population fatalities/100,000 people 2.2 4.7 7.4 8.5[6] Number of injuries in terms of population injuries/100,000 people 8 14 33 44

China China China China1980 1990 2000 2002

Expenditure on transport as share of GDP[7] Expenditure on transport capital investment as share of GDP % 2.54% 2.54%

Expenditure on transport maintenance as share of GDP %Expenditure on highways as share of GDP % 1.47% 1.58%Expenditure on railways as share of GDP % 0.75% 0.68%Expenditure on waterways as share of GDP % 0.05% 0.05%Expenditure on aviation as share of GDP % 0.23% 0.19%Ratio road user charges & capital expenditure highways % 1.20

[1] It excludes petroleum and gas pipelines and ocean shipping[2] It includes only domestic inland waterway and excludes ocean shipping[3] Source: National Railway Project 2001[4] It refers to intercity travel costs[5] The indicator for expressways under 1997 is actually 1996.[6] The indicator 1990 uses for fatalities and injuries for 1991 and number of vehicles and population from 1990 [7] The total capital investment in transport includes "other transport investments", therefore the sum does not add up.

Version: March 1, 2004

FISCAL COST

Population

ACCESS

AFFORDABILITY

CHINA: TRANSPORT SECTOR INDICATORS

Basic Statistics

QUALITY

Period

MARKET CONTEXT

Lower Middle Income

Period

Jinhua

Baoji

JiujiangHuangshi

Chenglingji

Zhicheng

Qiqihar

Jilin

Jiamusi

Heihe

Yibin

Ankang

Anqing

Tongling

Yuxikou

WuhuWuxiZhangjiagang

Zhenjiang

Yantai

Huocheng

Kuytun

Dahuangshan

Turpan

Tanggu

Lianyuang

Jining

Manzhouli

Tongjiang

Suifenhe

Dandong

Nantong

Xinxiang Kaifeng

Xuzhou

Shantou

ZhanjiangBeihai

Hengyang

Foshan

Ningbo

Sanmenxia

LuoyangWeinan

Tongguan

Xiamen

WuzhouGuxian

Guxian

Qinhuangdao

Yingkou

N E I M O N G O L

NINGXIA

CHON

GQIN

G

BEIJING

TIANJIN

SHANGHAI

X I N J I A N G

Q I N G H A I

X I Z A N G

S I C H U A N

G A N S U

S H A A N X I

S H A N X I

H E N A N

G U I Z H O U

Y U N N A N

G U A N G X I

H U N A N

H U B E I

G U A N G D O N G

H E B E I

S H A N D O N G

JIANGSU

A N H U I

Z H E J I A N G

J I A N G X I

HONG KONG

F U J I A N

TAIWAN

HAINAN

LIAONING

J I L I N

H E I L O N G J I A N G

YINCHUAN

HAIKOU

Jiujiang

Foshan

Zhuhai

Baoji

Shiyan

Enshi

Fuyang

Xichang

Baoshan

Dali

Yibin

Lanping

Guilin

Wuzhou

HechiShuiren

Panshihua

Xiangfan

Yantai

Qingdao

Lianyuang

Dezhou

Pi Xian

Zibo

Linyi

Zhanjiang

Sanya

Xiamen

Laizhou

Ningbo

Nantong

Wenzhou

Shaoxing

Jinhua

Anqing

Zhouzhou

Taihe

Ganzhou

Xiaogan

Zhicheng

Huoerguosi

Salimu

Dahuangshan

Altay

UsuKuitun

KuqaAksu

KashiKorla

Ruoqiang

Turpan

Hami

Jiayaguan

Ankang

Nanyang

Xinyang

Zhumadian

Golmud

Gyegu

Ejin Qi

Manzhouli Tonjiang

Suifenhe

Siping

Tongliao

Yuanbaoshan

Jining

Laoyemiao Qinhuangdao

Aihun

Ruili

Erlianhaote

Hekou

XINING

HEFEI

KUNMING

LHASA

NANNING

HOHHOT

Xuzhou

Wuxi

Suzhou

Tangshan

Baotou

Luoyang

Xinxiang

Kaifeng

Shangatou

Qiqihar

Benxi

PingdingshanLiaoyang

Liuzhou

Huangshi

Jinzhou Yinkou

Fuxin

Dandong

Hengyang

Hegang

Handan

Mudanjiang

Baoding

Anyang

Changzhou

Bengbu

Wuhu

Jiamusi

Xiangtan

BEIJING

WUHAN

SHANGHAISHANGHAI

SHENYANG FUSHUN

ANSHAN

DATONG

HARBIN

GUANGZHOU

TIANJIN

XI'AN

CHONGQING

CHENGDU

CHANGCHUNJILIN

TAIYUAN

NANJING

JINAN

DALIAN

KOWLOON

SHENZHEN

LANZHOU

ZHENGZHOU

CHANGSHA

HANGZHOU

SHIJIAZHUANG

GUIYANG

NANCHANG

FUZHOU

URUMQI

YINCHUAN

HAIKOU

Jiujiang

Foshan

Zhuhai

Baoji

Shiyan

Enshi

Fuyang

Xichang

Baoshan

Dali

Yibin

Lanping

Guilin

Wuzhou

HechiShuiren

Panshihua

Xiangfan

Yantai

Qingdao

Lianyuang

Dezhou

Pi Xian

Zibo

Linyi

Zhanjiang

Sanya

Xiamen

Laizhou

Ningbo

Nantong

Wenzhou

Shaoxing

Jinhua

Anqing

Zhouzhou

Taihe

Ganzhou

Xiaogan

Zhicheng

Huoerguosi

Salimu

Dahuangshan

Altay

UsuKuitun

KuqaAksu

KashiKorla

Ruoqiang

Turpan

Hami

Jiayaguan

Ankang

Nanyang

Xinyang

Zhumadian

Golmud

Gyegu

Ejin Qi

Manzhouli Tonjiang

Suifenhe

Siping

Tongliao

Yuanbaoshan

Jining

Laoyemiao Qinhuangdao

Aihun

Ruili

Erlianhaote

Hekou

XINING

HEFEI

KUNMING

LHASA

NANNING

HOHHOT

Xuzhou

Wuxi

Suzhou

Tangshan

Baotou

Luoyang

Xinxiang

Kaifeng

Shangatou

Qiqihar

Benxi

PingdingshanLiaoyang

Liuzhou

Huangshi

Jinzhou Yinkou

Fuxin

Dandong

Hengyang

Hegang

Handan

Mudanjiang

Baoding

Anyang

Changzhou

Bengbu

Wuhu

Jiamusi

Xiangtan

BEIJING

WUHAN

SHANGHAI

SHENYANG FUSHUN

ANSHAN

DATONG

HARBIN

GUANGZHOU

TIANJIN

XI'AN

CHONGQING

CHENGDU

CHANGCHUNJILIN

TAIYUAN

NANJING

JINAN

DALIAN

KOWLOON

SHENZHEN

LANZHOU

ZHENGZHOU

CHANGSHA

HANGZHOU

SHIJIAZHUANG

GUIYANG

NANCHANG

FUZHOU

URUMQI

20°N

24°N

28°N

32°N

36°N

40°N

44°N

124°120°116°112°108°

M O N G O L I A

K A Z A K H S T A N

R U S S I A N F E D E R A T I O N

DEM.PEOPLE'SREP. OFKOREA

REP. OFKOREA

JAPAN

PHILIPPINES

VIETNAM

THAILAND

MYA

NM

AR

LAO PEOPLE'SDEM. REP.

KYRGYZREPUBLIC

UZBEKISTAN

TAJIKISTAN

Sea ofJapan

YellowSea

EastChinaSea

Bo Hai

T

T

T

T

T

NATIONAL TRUNK HIGHWAY SYSTEM:

EXISTING EXPRESSWAY

EXPRESSWAY UNDER CONSTRUCTION

EXISTING NATIONAL ROAD

WORLD BANK PROJECT (ONGOING OR COMPLETED)

WORLD BANK PROJECT (UNDER PREPARATION OR PROPOSED)

NATIONAL RAILWAY SYSTEM:

EXISTING

ELECTRIFICATION

PLANNED

WORLD BANK PROJECT (ONGOING OR COMPLETED)

WORLD BANK PROJECT (UNDER PREPARATION OR PROPOSED)

NATIONAL WATERWAYS SYSTEM:

MAJOR NAVIGABLE WATERWAYS

RIVER PORTS

SEA PORTS

WORLD BANK FINANCED SEA PORTS

MAJOR RIVERS

OTHER RIVERS

CONTAINER TRANSPORT SYSTEM:

MAJOR CONTAINER HANDLING STATIONS

STATIONS HANDLING 40-FT. CONTAINERS

WORLD BANK URBAN TRANSPORT PROJECTS:

ONGOING OR COMPLETED

UNDER PREPARATION OR PROPOSED

UNDER PREPARATION OR PROPOSED WITH A LARGE TRANSPORT COMPONENT

JINAN

Yantai

Handan

T

This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other informationshown on this map do not imply, on the part of The World BankGroup, any judgment on the legal status of any territory, or anyendorsement or acceptance of such boundaries.

0 100 200

0 100 200 300 Miles

300 Kilometers

CHINATRANSPORT

INFRASTRUCTURE

IBRD 32873FEBRUARY 2004

INTERNATIONAL AIRPORTS

OTHER AIRPORTS

CITIES WITH POPULATION > 1 MILLION

CITIES WITH POPULATION 500,000 - 1 MILLION

OTHER SELECTED CITIES

PROVINCE CAPITALS

NATIONAL CAPITAL

PROVINCE BOUNDARIES

INTERNATIONAL BOUNDARIES

CHINA