The hottest lake north railway investment cooperat

2022-08-12
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Hubei railway investment and Gezhouba jointly financed 30billion to Promote Railway Construction

Hubei railway investment and Gezhouba jointly financed 30billion to Promote Railway Construction

China Construction machinery information

"previously, although local governments across the country held some equity interests in trunk railways, their shareholding ratio and the long-term debt operation of the railway system did not have much direct economic benefits for provincial local governments." Some people who are concerned about railway reform admitted that for the former Hubei railway company, given the lack of revenue from railway investment, it is not conducive to the sustainable development of investment and financing in railway construction in the later stage. Now, Hubei can explore the business model of railway investment and construction by local governments through equity replacement with China Railway Corporation

On January 12, the author learned from Hubei Railway Construction Investment Group Co., Ltd. (hereinafter referred to as "Hubei railway investment") that the company signed a strategic cooperation framework agreement with China Gezhouba Group Co., Ltd. According to the contents of the public agreement, Gezhouba Group plans to invest 30billion yuan in railway project construction and development along the line from 2016 to 2020

as a pacesetter in the reform of the railway system in Hubei Province, the identity of Hubei railway investment, which was restructured from the original Hubei railway company, is different from the previous railway development, and is becoming a real investment subject for the construction and operation of railway projects

at the end of last year, Hubei railway investment group obtained more local railway assets from China Railway Corporation, a central enterprise, through the replacement of some subordinate railway equity, which was interpreted by the industry as a pilot to explore the deepening reform of China's railway system. Now, through independent selection, Hubei Railway Investment Group has selected Gezhouba, whose main business is construction engineering, as the construction and development partner, which has broadened the financing channels of railway construction

Hubei inter city railway returns to the local

compared with the railway investment and financing platforms of other provinces, Hubei railway investment took the lead in "upgrading"

in September 2014, Hubei railway investment was established with a low profile, according to a person from the Hubei state owned assets supervision and Administration Commission, The new railway investment was established on the basis of the restructuring of the former Hubei railway company "But in the Chinese market. Compared with the past, its functions and positioning have been improved.

according to the public information of the state owned assets supervision and Administration Commission of Hubei Province, Hubei railway investment will mainly participate in the construction of the provincial national railway trunk line and be responsible for the construction and operation management of the provincial intercity railway, local railway branch lines, port dredging railway, tourism Guanguang railway and other rail transit infrastructure. It is the only one in Hubei province that integrates railway investment and financing, construction, operation, development and management The registered capital of the railway construction investment company is 2billion yuan

the former Hubei railway company was founded in 1992. From the perspective of function, although it is also a provincial large-scale railway construction investment and financing platform responsible for the construction of trunk (Branch) railways in the province, it is mainly responsible for the investment and financing, construction, land acquisition and demolition, and operation management of trunk (Branch) railways in the province. "The Provincial Railway Company's more function is to cooperate with the former Ministry of Railways in land acquisition and demolition along the railway line." The above-mentioned person admitted that the local government takes this part of the demolition cost as its share capital. In the development of many railways, the shareholding ratio is not high. It only takes the capital contribution as its share capital, and there are few absolutely controlled lines

under this functional orientation, the former Hubei Provincial Railway Company has successively participated in the construction of several trunk and branch railways in the province, including the investment, financing, construction, land acquisition and demolition of 11 provincial joint-venture railways, including Beijing Kowloon Railway, Changsha Jingzhou railway, Wuhan Guangzhou railway, Wuhan Hefei railway, Wuhan Yichang railway and Shijiazhuang Wuhan railway. It has completed the main railway industry investment of 5.2 billion yuan, with a total mileage of 1163 kilometers, driving the national investment in Hubei railway of nearly 200 billion yuan. In the construction of high-speed railway lines, it holds part of the equity of Wuhan Guangzhou Passenger Railway Co., Ltd., Shanghai Hanrong Hubei Co., Ltd., Jingyue Railway Co., Ltd. and Changjing Railway Co., Ltd. through joint ventures

in 2014, the reform of China's state-owned assets system accelerated. In June of that year, Hubei Province issued the guidelines for the reform of provincial funded enterprises at the provincial meeting on deepening the reform of state-owned enterprises. Xu Kezhen, vice governor of Hubei Province, revealed at the meeting that Hubei Province will integrate Provincial Railway resources and establish Hubei railway investment. A participant revealed that the design idea for Hubei railway investment is to restructure the original Provincial Railway Company into Hubei Railway Construction Investment Group Co., Ltd. that meets the requirements of the modern enterprise system according to the "restructuring + replacement + trusteeship" mode, establish a standardized corporate governance structure of the board of directors, board of supervisors and management, and create the only provincial railway construction investment and financing platform company, To expand and strengthen the chassis of railway resources in Hubei Province

the design plan at that time also made it clear that some national railway trunk lines held by Hubei railway investment will continue to lead the global market demand, and Wuhan Railway Bureau, an enterprise directly under China Railway Corporation, will replace 50% of the equity of Hubei intercity railway company. In addition, Hubei railway investment also signed a custody agreement with Hubei United Railway Investment Co., Ltd. to trust the other 50% equity of Hubei intercity railway company held by the latter. Hubei intercity railway company is controlled by railway investment and consolidated statements

since then, Hubei railway investment was established. By the end of last year, Wuhan Railway Bureau and the company signed a partial equity replacement agreement on Hubei intercity railway. After the agreement takes effect, Hubei railway investment will control Hubei Intercity Railway Co., Ltd

according to the previous plan, Hubei Railway Investment Group will replace the stock rights of the completed Trunk Railways held by Hubei Province, including Wuhan Guangzhou railway, Wuhan Hefei railway, Wuhan Chengdu Railway and Wuhan Shanghai railway, with the four completed inter city railway lines in Hubei Province held by Wuhan Railway Bureau. However, some railways under construction, including Jianghan Plain freight railway, Han Shicheng intercity railway and Menghua (Mengxi central China) railway, are still managed according to the original equity ratio. Among them, Hubei railway investment holds up to 90% of the equity of Jianghan Plain freight railway. Gao Ping, deputy general manager of Hubei railway investment, also revealed at the meeting that after the equity replacement, Hubei Province will independently manage the operation of the intercity railway

as early as 2013, the State Council issued the opinions on reforming the railway investment and financing system and accelerating the promotion of railway construction. They made it clear that the shell of sunflower seeds, wheat bran and sawdust of wood were made into wood fiber powder particles, "Fully open the railway construction market and carry out classified investment and construction of new railways. Release the ownership and management rights of intercity railways, municipal (suburban) railways, resource development railways and branch railways to local governments and social capital, and encourage social capital to invest in the construction of railways."

at the signing ceremony of equity replacement on that day, Hubei railway investment made it clear that this move was based on "the gradual withdrawal of the railway corporation from local railway investment in accordance with the requirements of the state to deepen railway reform"

"although local governments across the country previously held some equity interests in trunk railways, their shareholding ratio and the long-term debt operation of the railway system did not have much direct economic benefits for local governments in all provinces." Another person who pays attention to railway reform admitted that for Hubei Province, given the lack of revenue from railway investment, it is not conducive to the sustainable development of railway construction investment and financing in the later stage. Therefore, the former Hubei railway company also made up for the risk of a single main business by entering real estate, tourism investment, financial micro loans and trade logistics outside its main business. Now it is carrying out equity replacement with the general railway administration. For it, Hubei can explore the business model of railway investment and construction by local governments

cooperative development and exploration of new financing channels

although there are policy incentives, the long investment return cycle of railway projects is still one of the obstacles to the financing of the railway system. Solving the problems of financing and debt has become a difficulty for local investment and financing platforms to explore the business model of railway construction and operation

according to the prospectus of the first phase of 2012 medium-term notes of the former Hubei railway company, as of the end of the first quarter of the year, its assets totaled 6.128 billion yuan, its liabilities totaled 3.652 billion yuan, and its debt ratio reached 59. In addition, researchers also prepared pH sensitive pur 6%。

in addition to high debt, another task faced by Hubei railway investment is the follow-up financing of the development of multiple railway lines in Hubei. According to the Hubei railway planning, Hubei railway is generally composed of passenger dedicated lines, regional intercity, high-capacity freight channels and regional railways. By 2030, 39 new railways will be built in Hubei Province, with a total length of 5230 kilometers and a total length of 9033 kilometers. Among them, there are 12 inter city railway lines to be built in Hubei Province

among the projects under construction and recently proposed projects, including Jianghan Plain freight railway, Menghua railway and Han Shicheng intercity railway. Taking the Hubei section of Menghua railway, which will be fully started in 2015, as an example, Hubei Province will cooperate in the construction of Jingzhou Yueyang section, with a total investment of 10.143 billion yuan, including 1.5 billion yuan from Hubei Province

in this situation, the newly established Hubei railway investment took the lead in launching syndicated credit financing. At the beginning of the establishment of Hubei railway investment, the Group signed strategic cooperation framework agreements with China Development Bank, industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank and Bank of communications. According to the state owned assets supervision and Administration Commission of Hubei Province, the total credit line of these five banks to Hubei railway investment reached 130billion yuan, which has also become an important source of funds for subsequent railway construction projects of Hubei railway investment

in addition, another financing channel of Hubei railway investment is cooperative development projects. Among them, the recent strategic cooperation agreement with Gezhouba Group makes it clear that the latter is the first partner of Hubei railway investment group. According to Hubei, according to the agreement signed on the same day, Gezhouba Group will integrate its internal resources, give full play to its advantages in capital and engineering construction, and participate in the investment and construction of Hubei railway passenger dedicated line, trunk and branch railway, intercity railway, tourism railway, and the comprehensive development of the above-mentioned railways by adopting EPC (general contracting), BT (construction transfer), joint venture and other modes. The first batch of cooperation projects between the two sides are Han Shi railway and Jianghan Plain freight railway

in the design scheme of Hubei railway investment, it is also planned to promote the compensation mechanism of public welfare projects, and integrate intensive resources through asset transfer, capital injection, franchise right granting, tax reduction, land collection and storage, financial discount, budget compensation and other means, hoping to achieve the balance of financing and debt repayment

"in the later stage, we may also consider setting up railway development funds, first-class land reserves along the railway and other ways to attract private capital." The above SASAC said frankly, but the railway construction has a large amount of investment and a long investment return cycle, which has limited attraction to private capital. In addition, under the current mode of separation of transportation and management, the investment cost will be increased in the later stage. For private capital, there are still concerns about the investment into the railway system. If the transportation management system can explore a reasonable distribution mechanism in the later stage, it will be more attractive to private capital, which can alleviate the financing pressure of the current local railway investment and financing platform

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