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China Cancels Metro Projects, Citing High Costs

01 Feb 2003

Posted In: China

China's State Council froze all future metro projects at the end of January, citing their high cost. Subway projects in at least 20 cities across China have been suspended indefinitely -- including projects in Hangzhou, Shenyang and Shanghai.

Subway lines built over the last decade in Beijing, Shanghai and Guangzhou cost an average of US$72 million to US$96 million per kilometer. Shanghai also recently opened its US$1.6 billion magnetic levitation train, which runs from a new international airport into the city.

Despite the announcement, officials from Guangzhou told local press they intend to go forward with three remaining metro projects planned for the city. Officials claim that due to robust economic growth, the city’s own finances will be enough to complete the system.