Shandong Province to Build RMB150 Billion Railway Network

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Feb. 9 – Shandong Province has announced a seven-year plan for a high-speed intra-province railway system of 14 railroads that will connect 17 cities, including Qingdao, Yantai, Jinan, Rizhao, Linyi and Weihai.

The railway plan will cost a total 150 billion yuan with 70 percent of the amount to be shouldered by the Ministry of Railways and the rest to be funded locally.

The railways will be build as part of China’s economic stimulus package and should result to a total of 3,800 kilometers of railways with 2,200 kilometers of newly built railways and 1,600 kilometers of double-track railways and upgraded electrified railways.

Once operational, the railway network will form a “One-Hour Living Circle” across the province, Fei Yunliang, director of Shandong Development and Reform Commission, told the
21st Century Business Herald.

As one of China’s top heavy industry bases, the province is an ideal base for the manufacturing industry, including steel, machinery, petrochemical and automotive.

Shandong’s full potential has been held back by its local railway system that limits transportation volume and strains the highway transportation system despite having expressway networks considered of high-quality among Chinese provinces.

“The project will upgrade the region’s railroad network, combining Shandong’s economic development into the Binhai New Area, Pearl River Delta and Yangtze River Delta. And, it will be connected with numerous cities in western China, better showing its power as an important transportation hub,” Fei added.

Shandong is the second richest province in China and benefits from neighboring South Korean and Japanese investments.

Its most prosperous area is the Shandong Peninsula, where the city of Qingdao is home to two of the most well-known brand names of China: Tsingtao Beer and Haier. Dongying’s oil fields and petroleum industries also form an important component of the province’s economy.

A more detailed look at the investment climate of Shandong Province is provided by the China Briefing Regional Business Guide to Beijing and Northeast China. The book can be ordered from the China Briefing Bookstore, priced US$25 plus p&p.

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2 thoughts on “Shandong Province to Build RMB150 Billion Railway Network

    jeromeD says:

    Does Dezen Shira have an office in Shandong Province or any plans to open one there?

    Editor says:


    Dezan Shira does not presently have an office in Shandong Province, the area is serviced jointly by the Beijing office ( and the Dalian office (


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