China Railway Group, the largest railway and highway builder in China has announced a build-transfer deal with the Shenzen Metro Company for the city's No. 5 subway line worth RMB9.5bn ($13.9bn).
The value of the contract accounts for 5.26% of China Railway's operating revenue in 2007 under Chinese accounting standards, according to the company's filing with the Shanghai Stock Exchange.
The No. 5 Metro line starts west at Qianhaiwan of the Nanshan District and ends at the transfer station with the planned No. 14 rail transit line in the west, traversing the old and new areas of the Bao'an District, Xili, Longhua, Buji, Huangbeiling of the Luohu District, the Nanshan District, the Bao'an District, the Longgang District and the Luohu District.
The Metro line will form nine transfer stations with other operated and planned rail transit lines, four of which will be hub stations.
The deal, which is expected to boost the companies profitability accounts for 5.26% of China Railway's operating revenue in 2007 under Chinese accounting standards, according to the company's filing with the Shanghai Stock Exchange.
China Railway said the final contract price will be determined by Shenzhen municipal government, adding the project is expected to be completed within 42 months.
In addition, the railway and highway builder last week announced that its subsidiaries had secured five construction contracts worth RMB3.067bn in total, which is equivalent to 1.71% of its operating revenues last year, according to reports.
China has more than 75,000km railway, of which two thirds, plus 95% of electrisation lines, are built by China Railway. The company expects to generate RMB210bn ($30.6bn) of revenue in 2008, up 16% from a year earlier.
By Daniel Garrun
