In a recent development, the "mother-in-law" has finally been removed, allowing the "wife-in-law" to take control. On August 11, the Chongqing Municipal Development and Reform Commission and the Municipal Rail Group jointly announced that the feasibility study for the Chongqing Orbital Loop Project has been successfully completed. The project is expected to start construction by the end of this year and enter trial operation in 2018. This marks the first rail transit project initiated by Chongqing independently after the national approval of derailment rail transit projects. With an estimated total investment of 31.418 billion yuan, the project represents a major step forward in the city's transportation infrastructure.
Additionally, the feasibility study report for the northern extension of Chongqing Light Rail Line 3 was also approved. The project will begin construction in 2013 with a planned construction period of 30 months. Compared to the orbital loop line, this project has a much lower budget, approximately 4.1 billion yuan, but still requires significant financial commitment.
These two urban rail projects reflect the broader trend of local governments increasing their investments in transportation infrastructure following the decentralization of approval authority by the National Development and Reform Commission. According to reports, more than ten cities have recently approved applications for urban rail projects. In Zhuhai, the budget for the first phase of the Tram Line 1 supporting project has been approved, with an estimated cost of 850 million yuan.
In the northwest region, Gansu Province has also taken steps forward. On August 7, the Gansu Provincial Development and Reform Commission approved the feasibility study for the first phase of Lanzhou Urban Rail Transit Line 1, with a total investment of 18.943 billion yuan. Cities like Hangzhou, Wuhan, and Changsha are also planning or preparing to launch new rail projects.
This surge in urban rail construction is closely tied to national policies and macroeconomic strategies. The State Council emphasized the importance of strengthening urban infrastructure during its meeting on July 31, highlighting that such efforts can stimulate investment and consumption while improving the city's overall capacity. Similarly, the Ministry of Transport has identified urban rail transit as one of its key priorities for the second half of the year.
Academician Wang Mengshu noted that many cities are currently focused on building subways and urban rail systems. According to estimates from Huamao Kun, chief engineer of the former Ministry of Railways, there are now 36 cities approved for rail transit construction, with China’s rail mileage expected to reach nearly 6,000 kilometers by 2020, requiring an investment of up to 4 trillion yuan.
However, challenges remain. Zhao Jian, a professor at Beijing Jiaotong University, pointed out that while the current conditions for approving rail projects may be outdated, the rush to expand urban rail construction could lead to financial risks. He emphasized that urban rail should primarily rely on public finance and avoid over-reliance on private capital, which could increase debt burdens.
Despite these concerns, the industry continues to grow. CNR Group, a major player in rail vehicle manufacturing, has expanded into the urban rail sector, participating in projects through various financing models such as BT and PPP. While these models help meet immediate needs, they often shift financial responsibilities onto local governments.
Zhao Jian stressed that public transport should not exceed 0.9% of a city’s GDP, as this is a sustainable threshold. Many cities, however, have exceeded this limit, leading to financial strain and increased debt. As the country moves forward with its urban rail expansion, balancing growth with fiscal responsibility remains a critical challenge.
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