1. The Present and Prospect for Chinese Railways Transit Transport Vice President: Lin Zhonghong Economic & Planning Research Institute Chinese Railways April, 2005

2. CONTENT Present Situation Issues and Prospects

3. Manzhouli Port Erlian Port Arlashankou Port Southwest Port Main Inland Railway Ports of Chinese Railways Suifenhe Port

4. Present SituationOverview From 1999 to 2004, total import & export freight volume for railway border stations have reached 145.51 million tons, an average increase of 23% annually. In 2004, the import freight volume reaches 32.73 million tons, 87% of which is petroleum, lumber, chemical fertilizer and pesticides, metallic ores and iron & steel.

5. Present SituationOverview Changing wheel sets is the major operation mode for passenger transportation at these border stations. For freight transportation, there are different modes due to different commodities. Chinese Railways has already noticed to put capitals into building wheel-sets changing depot at border stations in order to improve the capacity of transit transport and transshipment efficiency.

6. Present Situation Achievements in 2004 Manzhouli Port: 14.62 million tons fulfilled, an annual increase of 21.9%. Since 1984, labor and mechanism transshipment yards have been built, electric interlocking has been practiced for arrival- departure yards. The International waiting hall has been rebuilt; New standard gauge yard, broad gauge receiving yard, container storage yard, customs inspection yard and relevant outbuildings have been built.

7. Present Situation Achievements in 2004 Suifenhe Port: 7.13 million tons fulfilled, an annual increase of 21%. The carrying capacity of standard gauge receiving- departure lines: 38 trains per day, 29.7 trains for broad gauge. The maximum transshipment capacity for freight import will reach 7.45 million tons.

8. Present Situation Achievements in 2004 Erlian Port: 6.25 million tons fulfilled, an average rise of 32.5%. Newly-building wheel sets storage, transshipment lines and international waiting hall; Rebuilding receiving-departure yards of broad gauge and standard gauge, which has been put into operation in July, 2004. The construction of wheel sets storage is basically finished. After reconstruction, designed transshipment capacity will be increased by 5 million tons.Total designed capacity will be 10 million tons.

9. Present Situation Achievements in 2004 Alashankou Port: 9.2 million tons, an annual increase of 24%. In 2003, receiving-departure yard of broad gauge was rebuilt; 12 receiving-departure lines of standard gauge have been newly laid; Combined inspection building has been completed; Shunting lines have been extended. Annual designed transit capacity will arrive at 10 million tons.

10. Issues and Prospects Issues Existed Still being lack of station-yard capacity. Both backwards of technology & equipments and long–time transshipment. Management of information system having been lagging behind. Not coordinated well with custom inspection and quarantine departments.

11. Issues and Prospects Ports Strategic Target in 2010 The Ministry of Chinese Railways brings forward the strategic target for transit transportation on the Railway Ports Conference held in 2004 in order to meet requirements of new position and solve the problems. By 2010: 80 million tons of transit volume will be implemented by four main railway inland ports, in which: 60 million tons at China-Russia ports and 20 million tons at China- Kazakhstan port.

12. Issues and ProspectsMeasures Standardizing the management of transit transportation; Perfecting the mechanism of cooperation; Reducing operation cost and strengthening transport organization; Speeding up the application of management information system ; Establishing reasonable mode of transit transportation; Realizing data communication through computer network and sharing of information step by step.

13. Issues and Prospects Main Projects For Enlarging Corridor Capacity Double Track, Finished Double Track, under construction Electrification under construction Double Track, Considering Dedicated Passenger Line New Line Southwest Corridors XianZhengzhou Jiayuguan Wuwei Lanzhou Jinghe Huoerguosi Alashankou Jining Erlian Manzhouli Hailarer

14. Issues and ProspectsProspects The developing trend of world globalization, region economy cooperation and collectivization will promote opening-up and development for all countries and regions along the Land-Bridge. It is also the stronger desire for all countries along land-bridge to develop transportation for Europe-Asia Continual Bridge. The foundation of regular meeting of Asia-European leaders and relevant cooperation mechanism as well as the establishment of Shanghai Cooperation Organization provide excellent political bases and organization of cooperation for driving the development and construction of new Land Bridge.

15. Issues and ProspectsProspects Rapid development of information economy established on the base of Internet and high-tech industrialization will bring about a bright future for new Asia-Europe Land-bridge. Getting along with all countries, Chinese Railways would make great efforts to increase traffic volume, improve service quality of transit transport and promote economy prosperity.