Journalist | Tang Jun
According to Qilu Evening News, on the morning of October 10, Shandong Railway Investment Group signed an agreement with China Gold Capital and Agricultural Bank to transfer 7.1568% of the shares of Jinan-Qinghai High-speed Railway and introduce 2.386 billion yuan of strategic investment funds. Among them, China Gold Capital invested 1.386 billion yuan and Agricultural Bank invested 1 billion yuan.
The actual investment of CICC is invested by CICC’s China-Gold High-Speed Rail Investment Fund, which includes $200 million from the Kuwait Investment Authority. The Kuwait Investment Authority (KIA) is Kuwait’s National Sovereign Fund, which was established in 1953 and manages about $600 billion. This investment has also become the first foreign investment in China’s high-speed railway.
Jinan-Qinghai high-speed railway is an important part of the national “eight horizontal and eight vertical” high-speed trunk line network. It was officially opened on December 26, 2018. The main line is 308 kilometers long. Its design speed is 350 kilometers per hour. Its initial operation speed is 250-300 kilometers per hour. At present, it sends 20,000 passengers per day. Jinan and Qingdao have opened Jiaoji Passenger Dedicated Line in 2008, with a design speed of 250 kilometers per hour.
In 2013, the State Council issued the opinions on reforming the railway investment and financing system and accelerating the railway construction, which mentioned to promote the reform of the railway investment and financing system, raise construction funds in multiple ways and channels, release the ownership and operation rights of inter city railway, city (suburb) railway, resource development Railway and branch railway from local government and social capital, and encourage social capital. Investment in railway construction.
Jinan-Qinghai high-speed railway has become the first high-speed railway in China to be built mainly by local investment, but the financing of Jinan-Qinghai high-speed railway is not smooth. According to the feasibility study report of the project approved by the national development and Reform Commission, the total investment of Jiqing high-speed railway is about 59.98 billion yuan, accounting for 50% of the total investment, with Shandong Province accounting for 80% of the total investment, and China Railway Corporation (now China Railway Group) accounting for 20%.
According to Caixin, for the Jinan-Qinghai high-speed railway project, China Railway was only willing to invest 10% at the beginning. Shandong Province, in order to lobby for an increase in the proportion of its investment, the governor of Shandong Province went to Beijing several times for consultation, and finally increased the proportion by another 10%.
In July 2014, Qilu Evening News reported that Shandong Province would take 20% of its own 80% shares and introduce foreign capital. In early 2015, Interface News had learned from people familiar with the situation that Temasek Company of Singapore wanted to take part in the Jinan-Qinghai high-speed railway, but the transaction was not completed.
Before CICC capital and Agricultural Bank of China became shareholders, Jiqing high speed railway had six shareholders, namely Shandong Railway Investment Holding Group Co., Ltd., China Railway Development Fund Co., Ltd., China Construction Shandong Investment Co., Ltd., CRRC Qingdao Sifang locomotive and rolling stock Co., Ltd., China Development Fund Co., Ltd. and China Railway Construction Engineering Group Co., Ltd., with Shandong as the controlling shareholder. Tietong Group.
On October 10, the Jinan-Qinghai high-speed railway finally introduced foreign capital. However, Zhao Jian, a professor at Beijing Jiaotong University, told Interface News that the introduction of foreign capital has not really changed the mode of railway investment and financing. The Kuwait Investment Authority has not participated in the construction and operation of the railway, and the investment of $200 million is not large and has no voice. “The actual significance of the Kuwaiti Investment Authority’s share is not so great, but more symbolic.” Zhao Jian said.
At present, there are 75 pairs of one-way daily multiple units from Jinan to Qingdao. Zhao Jian believes that the 75 pairs of trains should be allocated between Jiaoji passenger dedicated railway and Jinan-Qinghai high-speed railway, and there is also a diversion of general-speed railway. The profit expectation of Jinan-Qinghai high-speed railway is not clear.
In recent years, China Railway Group has repeatedly mentioned the need to reform the investment and financing system and encourage social capital to invest in road construction. At present, two railways are controlled by private capital, namely, Hangzhou-Shaotai Railway and Hangzhou-Wenzhou Railway. Geely and Tencent have entered the WiFi industry of EMUs and Shunfeng has entered the railway freight industry.
The listing of Beijing-Shanghai high-speed railway is also under way. CITIC Construction Investment Securities has submitted three reports to the Securities Regulatory Commission on the guidance of the listing of Beijing-Shanghai High-speed Railway Company, which is expected to complete the acceptance of guidance in 2019.
Journalist | Tang Jun