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By Samuel R. Avro on Dec 7, 2008 with no responses

China Invests $22 Billion on Coal Region Railroads

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A worker watches as coal bound for power plants is shoveled onto trucks at a mine in China.

A worker watches as coal bound for power plants is shoveled onto trucks at a mine in China.

China plans to invest $22 billion in its northern coal-rich Shanxi Province by 2015, according to officials from the Ministry of Railways and the province. The upgrades are aimed at easing congestion and promoting growth in the region which accounts for a third of China’s coal output.

The communist country is in the midst of a railway boom, with Shanxi expected to add another 2,000 kilometers of railroad track by 2015.

China relies on coal to generate three-quarters of its electricity needs.

According to Xinhua News Agency, the Secretary of the Shanxi provincial committee of the Communist Party of China, said the projects would play a positive role in boosting domestic demand amid the global financial crisis.

Zhang Baoshun said the province’s coal could be shipped directly to coastal ports in Shandong Province with the construction of a railway in the mid-southern part of Shanxi.