The interior regions of the People’s Republic of China (PRC) have not benefited as much from economic growth and reforms as the east coast. In fact, the gap in economic and social development had been increasing in the years leading to the project appraisal in 2005. Inadequate transport infrastructure and high logistics costs were among the key constraints.
To address the situation, the Government of the PRC has increased its investment in transport infrastructure since 1996. In 2004, it adopted the new Railroad Development Plan that would, up to 2020, expand the country’s railway network, with priority given to unserved and less developed areas. To more efficiently utilize the sector’s comparative advantage in transporting people and goods over medium to long distances, the plan has called for separating passenger and freight traffic in heavily trafficked corridors. The Zhengzhou−Xi’an Railway (ZXR) Project, financed by ADB with a loan of $400 million approved in September 2005, evolved within this context.
The project was to establish the first of the 8 passenger−dedicated lines (PDL) in the PRC. It would connect the poor western and southeastern parts of Henan and Shaanxi and run parallel to the already existing Longhai line. By freeing capacity on the Longhai line, which then had the highest transport density among PRC railways, it was expected to increase train speed, support the growth of freight and container traffic, and stimulate tourism and related industries.
The project’s key outputs were completed in July 2009. These included the 459.53-kilometers (km) of double-track electrified standard gauge ZXR; bridges and tunnels; automatic block control systems; a centralized traffic control system; and equipment and facilities for power supply, signaling, a management information system, and telecommunication. A modern train reservation and ticketing system, which links the ZXR trains with the national train reservation systems, was also installed. 8 passenger and 1 passing stations were built.
Trains were initially operated at 350 kilometer per hour (km/h), but after the Wenzhou train accident, the operational speed was reduced to 310 km/h. Following integrated testing and commissioning, the ZXR line began commercial operations in February 2010. The designed speed of 350 km/h was subsequently achieved, and as of mid-2017, 56 pairs of passenger trains per day were operating on the line.
ZXR’s successful operation has reduced travel costs and time and supported freight traffic growth on the Longhai line. Overall, it facilitated industrial development, tourism growth, employment generation, and poverty reduction.
While implementation was mostly ahead of schedule, the loan closing date was extended twice, as requested by the government. After the 2011 Wenzhou rail accident, the Ministry of Railways (MOR) decided to further review and revise the technical safety criteria and conduct dynamic stability testing of the delivered equipment. A second extension was needed to finalize the technical specifications of important rescue and restoration equipment.
The project cost at completion was $6,898.81 million, 67% higher than the appraisal estimate. Despite the tremendous cost overrun, ADB financing totaled $392.39 million, well within the approved loan amount.
ADB’s East Asia Department rated the project successful. The MOR was the executing agency; the the Zhengzhou–Xi’an Passenger Dedicated Railway Line Company, was the implementing agency.
