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Consultancy Study on Social, Economic and Political Developments in Pan-Pearl River Delta Region

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Consultancy Study on Social, Economic and Political Developments in Pan-Pearl River Delta Region CONSULTANCY STUDY ON SOCIAL, ECONOMIC AND POLITICAL DEVELOPMENTS IN PAN-PEARL RIVER DELTA REGION SECOND MONTHLY REPORT COVERING FUJIAN, JIANGXI, HUNAN AND HAINAN June 2006 Table of Contents I. Executive Summary i II. Topical Analysis 1 Development of Transport Infrastructure in Pan-PRD: Opportunities and Challenges for Hong Kong 1 y Pan-PRD Increases Investment in Transport Infrastructure 2 y Pan-PRD Plans to Accelerate Development of Highway and Waterway Transport 4 y The Four South-Eastern Provinces Build Inter-Province and Intra- Province Expressway Networks in Priority 12 y The Four South-Eastern Provinces Accelerate the Construction of Waterways of the Ports 21 y Pan-PRD will Build a Batch of Large Cross-regional Railway Corridors 26 y Pan-PRD Strengthens Construction of Airports and Cooperation between Airports 31 y Fujian, Guangdong and Jiangxi will Build a Five-Hour Traffic Circle 36 y Opportunities and Challenges for Hong Kong in the Development of the Transport Infrastructure in Pan-PRD 38 III. Trends and Updates on the Four-Eastern Provinces 45 y Fujian Invests 54.4 Billion in the Development and Reconstruction of the Power Grid 46 y Five Major Industrial Districts and 17 Industrial Clusters in Xiamen 51 y Jiangxi Makes Great Efforts in Developing Foreign Trade 54 y Three Parties of Jiangxi Government, Banks and Enterprises Create Ways of Financing 58 y Hunan to Add One Hundred National-Grade Tourist Attractions within Five Years 61 y Seven Major Million-Yuan IT Projects in Hunan 64 y Hainan and Yunnan Aggressively Expand Scope for Cooperation in Tourism 67 y Hainan Dedicates to Build Five Major Autonomous Innovation Platforms in Technology 70 y Memorabilia of Pan-PRD Regional Cooperation 75 IV. Data and Trends 81 y Fujian 82 y Jiangxi 83 y Hunan 84 y Hainan 85 y Major Economic Indicators of Nine Pan-PRD Provinces/Region (Jan-Mar 2006) 86 y Nine Pan-PRD Provinces/Region: 10-Year Economic Trend (1996-2005) 87 y Nine Pan-PRD Provinces/Region: Statistics at a Glance (2005) 88 V. English-Chinese Glossary of Terms 90 Tables Table 1: Foci of Construction of Regional Expressway Network before Year 2010 7 Table 2: Layout Plan of Hub Cities of Regional Highway Transport 7 Table 3: Layout Plan for the Regional Coastal Ports by Level of Port 10 Table 4: Mileage of Four South-Eastern Provinces of the Pan-PRD Region in Year 2005 13 Table 5: Fujian will Build Two Vertical and Four Horizontal Expressways during the Period of the 11th Five-Year Plan 15 Table 6: Hunan will Build Three Vertical and Six Horizontal Expressways during the Period of the 11th Five-Year Plan 17 Table 7: Jiangxi will Build Three Vertical and Four Horizontal Expressways during the Period of the 11th Five-Year Plan 18 Table 8: Throughputs of the Planned Major Ports of Fujian in Year 2010 22 Table 9: Major Transportation Statistics of the Pan-PRD Provinces/Region (Year 2004) 44 Table 10: Ten Backbone Projects of the Fujian Provincial Electric Company during the Period of the 11th Five-Year Plan 48 Table 11: The Five Major Industrial Districts of Xiamen’s Industry during the Period of 11th Five-Year Plan 51 Table 12: Xiamen Actively Develops 17 Industry Clusters 52 Table 13: Hainan will Construct Five Major Independently Innovative Technology Platforms during the Period of the 11th Five-Year Plan 72 Figures Figure 1: Growth Trend of Societal Fixed Assets Investment of the Pan-PRD Region (1990-2005) 2 Figure 2: Layout Plan of Expressway Network of the Pan-PRD Region 8 Figure 3: Layout Plan of Waterways of the Pan-PRD Region 9 Figure 4: Diagram Showing Railways Coming Out of Guangdong Province 30 Figure 5: Diagram Showing the Xia(men) – Shen(zhen) Railway and Other South- Eastern Railways 30 EXECUTIVE SUMMARY 1. In early March 2006, China promulgated a topical plan on transport infrastructure in Pan-PRD, namely, the Planning Outline on Highway and Waterway Infrastructure for Regional Cooperation in Pan-PRD. The Planning Outline proposed that the Pan-PRD regional cooperation in transport infrastructure would focus on the construction of highway and waterway infrastructure, with inter-regional highways and waterways, and highways connecting the coastal ports and highway land ports with the hinterland with a view to reducing intra-regional transportation time and distance; strengthening links between highways and waterways, and other transport means, and developing a highly efficient transport service system that would provide concrete protection to the regional cooperation of Pan-PRD. To strengthen the connections within the region and neighbouring regions, Pan-PRD would focus on improving communications on the development of highways and waterways with ASEAN member countries, Hong Kong, Macao, amongst the nine PPRD provinces/region, and other provinces/region in the Mainland. 2. Currently, highway networks in the nine Pan-PRD provinces/region are 737 591 km long in total. The overall highway network density is 36.8 km/100 km2, which nearly doubles the national average. By 2010, expressway networks in the nine Pan-PRD provinces/region would reach 25 000 km, accounting for 38.5% of the national total of 65 000 km. Highway networks in the four south-eastern provinces (Fujian, Jiangxi, Hunan, Hainan) have been relatively more developed, with highway network density being higher than that of the four south-western provinces (Guangxi, Yunnan, Guizhou, Sichuan) by 13 km/100 km2. Expressways of the four south-eastern provinces account for 2% of the total highway length, doubling that of the four south- western provinces. 3. With the signing of the Pan-Pearl River Delta Regional Cooperation Framework Agreement in 2004, the construction of trans-city highway networks has become an important issue for regional economic development. In future, the four south-eastern provinces would focus on building highway systems, developing expressway connection with neighbouring provinces and cities, and strengthening expressway connection within the concerned provinces. During the period of the 11th Five-Year Plan, Fujian would focus on constructing east-westward highways that connect its coastal ports with the middle and western provinces, in order to expand the hinterland of the ports in the Economic Zone on the West Coast of the Taiwan Strait. Hunan would focus on speeding up the construction of important trunk highways and travel i highways, and developing highway connections with its neighbouring provinces. Jiangxi would focus on developing its highway and expressway networks, developing Nanchang city as a hub for cities within the province, as well as a hub for Jiangxi and its neighbouring provinces. Hainan would focus on developing exit highways for the developed districts of the province such as the economic development zones, ports, and tourism districts, with a view to attracting large-scale investment projects with good transport facilities. 4. Construction of ports and water channels is another important task of infrastructure development of the four south-eastern provinces. During the period of the 11th Five- Year Plan, the Xiamen and Fuzhou Ports of Fujian would be developed into ports with a cargo throughput of over 100 million gross tons. Fujian would also construct a comprehensive transport system around its ports. Fujian’s ports in the Economic Zone on the West Coast of the Taiwan Strait would be gradually developed into international and modernised port clusters which connect the two sides of the Taiwan Strait, extend their hinterland into the middle provinces, and promote the opening up of China to the world. Hunan would focus on upgrading river channels, and develop a modernised inland river transport system that links directly to the Yangtze River, with Lake Dongting as the centre, the Xiangjiang and Yuanshui Rivers as the main channels, and the Changsha and the Yueyang Ports as hubs. Jiangxi would increase investment in inland waterway construction, focus on boosting shipment in the Yangtze River and Lake Boyang, and develop a waterway network that links directly with the Yangtze River, with the Jiu River as the lead, and Lake Boyang waterway as the main channel. Hainan would increase investment and speed up construction of port facilities, and would make great effort in constructing port clusters with a total cargo throughput of over 100 million gross tons in year 2010. The Haikou Port, the major port of Hainan, and three other important local ports would be developed into a considerable scale. 5. According to the Ministry of Railways, China would develop a series of trans-regional railways in Pan-PRD during the period of the 11th Five-Year Plan. Railway construction projects going through the four south-eastern provinces include the Luoyang-Zhanjiang railway line connecting the southern areas with the northern areas, the Xiangtang-Meizhouwan railway line connecting the south-eastern coastal areas with the middle and western areas, the Zhejiang-Jiangxi railway line, the Ningbo- Wenzhou-Fuzhou-Xiamen-Shenzhen, and the Tongling-Jiujiang express railway lines connecting the YRD and PRD. Plans of railway connection between Guangdong and other Pan-PRD provinces/region are particularly important for the integration of Hong Kong into the Pan-PRD railway network. According to the Proposed Plan for ii Guangdong’s Railway Construction, Guangdong would speed up the construction of railways which connect with neighbouring provinces and enhance the capacity of railway connections with other Pan-PRD provinces/region. By 2020, the number of Guangdong’s railway lines leading to neighbouring provinces would be increased to 12, among which three railway lines are leading to the four south-eastern provinces of Pan-PRD, including the Wuhan-Guangzhou passenger railway line connecting Guangdong with middle and northern China, as well as with Hong Kong and Macao; the south-eastern coastal passenger railway line connecting railway lines along the eastern coast; and the Ganzhou-Shaoguan railway line which is a transport short cut between southern and south-eastern China, connecting the two trunk railway lines of Beijing-Kowloon and Beijing-Guangzhou.
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