China approves urban rail projects worth $43.3b for Shanghai

China has approved urban rail projects worth 298.35 billion yuan ($43.3 billion) for Shanghai, the National Development and Reform Commission said in a statement on Wednesday.

The projects, covering six subway lines and three inter-city railways, are estimated to have a total length of 286.1 kilometers and the construction work is expected to be completed by 2023.

By 2035, the total length of urban rail transit network in Shanghai will reach 2,200 kilometers, out of which the length of subway lines will be 1,043 kilometers and that belonging to city railway will be 1,157 kilometers.

The preliminary estimate of funds toward this project amounts to 298.35 billion yuan, 45 percent of which will be afforded by local government's financial funds while the rest will be raised in other ways including loans from domestic banks.

More than half of the trips on motorized transport modes are on public transportation in Shanghai, while the rail transport accounts for 60 percent of public transit.

"China has been increasing the number of new subway projects and upgrading the old lines, which greatly boosts our domestic sales," said Chen Fei, manager at Kunshan Alex Railway Fastening, that makes track fasteners for subway projects in Suzhou, Shanghai, and Shenzhen.

"Previously most of our products were exported to the US and Europe, but the infrastructure rebound amid the China-US trade war makes our domestic sales grow."