Tired of .ying between Shanghai and Beijing? A new high-speed rail link could provide weary commuters with a welcome alternative on the well-trodden business route. Plans for the new US$12 billion track have yet to be of.cially announced, although it's believed construction of a new fast line between Shanghai and Nanjing could soon be underway, possibly forming an initial part of the complete 1,300-kilometer link between the capital and Shanghai.

Experts predict that the new railway line would cut travel time from 12 hours to less than five hours - making the new link potentially quicker than .ying, when you consider the amount of time it takes to get to the airport and check-in.

So are airlines worried about the prospect of customers being literally brought back down to earth, onto good-old fashioned trains on this busy and popular business route? Not at all, says Kai Wang, public relations officer for Air China, one of the main carriers between the two cities. Wang believes increasing demand for air travel between Beijing and Shanghai means there is ample room for added competition, and a new rail link would only increase the options for business travel between the two centers. “So far there has been no government announcement on a start date for construction of the new high speed railway, and we haven't carried out any impact studies as yet," says Wang. "but we don't believe there will be any big impact on our route. Business between the two cities is huge. Ten years ago there were only six or seven flights a day between Shanghai and Beijing. Now there are more than 40.”

The ever-increasing demand for air travel in China, explains Wang, means Air China is looking forward to a bright future in transportation. "we expect our annual growth rate to exceed 10 percent annually. Around two years ago, we had 10,000 travelers .ying with us every month. Now that .gure has risen to more than 50,000.”

Chugging along

British businessman Gordon Lunan is a frequent .yer between Shanghai and Beijing who feels that if the price and timing were right, he would de.nitely turn to high-speed train travel between China's two premier cities. "I hate going to airports - I don't like planes as they are constantly delayed," says Lunan, who works with an education company that helps Chinese students gain admittance to foreign universities. "I much prefer rail travel; its more comfortable and pleasant. If a new high-speed link between Shanghai and Beijing could get me there in about the same time, then I would take the train.”

But Lunan said that hospitality on trains would have to improve if a new service was to woo business travelers away from the airlines. "They'd have to do better than the old dofu on a stick stuff. I'd like to see a business class service available, similar to those operating in Europe.”

The original 1,462 kilometer long Beijing-Shanghai railway line was originally constructed in 1908. However, if plans for a new railway come to fruition then the route could be reduced by around 150 kilometers by cutting out some of the larger bends and taking a more direct route, thanks to modern engineering. The new line would run parallel to the old one for the most part, with the original line possibly being used for more freight.

The plans come during a period of intensive infrastructure investment in China. According to Xinhua, the state news agency, China will invest RMB100 billion (US$12 billion) in railway construction this year, almost double the amount spent last year. Altogether 58 new rail projects will be launched in 2005, while work continues on 48 projects started in 2004. These schemes will see the construction of 714 kilometers of new lines, 523 kilometers of double track lines and 875 kilometers of electric rail routes.

Although the government has yet to announce an of.cial start date for the project, which was included in the country's 10th Five-Year Plan (2001-2005), German, Japanese and French companies, among others, are already .ghting for the right to build the 1,300-kilometer line. According to the China Daily, Maglev technology has been ruled out for .nancial reasons. An exorbitant RMB9.2 billion (US$1.1 billion) was spent building Shanghai's Maglev line from the Pudong suburbs to the international airport.

Germany's Siemens is closely involved in the bidding. Unlike its rivals, Siemens is already well established in the Chinese market, with around 40 manufacturing centers across the country, including a railway signaling system joint venture. The German firm also has links with Zhuzhou Locomotive Works in Hunan province, central China, one of the country's largest locomotive manufacturers.

The choice the Chinese government faces in deciding who will construct the railway is riddled with political and economic intrigue. The new line will most likely be built using the latest wheel-on-track technology, such as that used by France's 88 Alstom on the TGV in France, and the Shinkansen Bullet Trains in Japan. China simply does not have the facilities to put a long-distance Maglev into operation, whereas the conventional railway technology industry in China, which employs at least 3 million people in 36 plants nationwide, is adequately equipped for installing wheel-on-track technology.

There is a chance that Japan could be awarded the contract, despite continuing tensions between the neighboring countries. But, some insiders believe China is holding out on announcing a winner for the lucrative project in order to have Japan give as cheap as possible a quote for installing its Shinkansen bullet train technology. In other words, taking a pragmatic approach and putting national sensitivities to one side and getting the best technology for the cheapest price. Other critics feel the Chinese government might seek to score political points by awarding the contract to France or Germany, thus giving Japan a slap on the wrists for its reluctance to face up to its history.

It wouldn't be the first time that Japan's wartime history has cost it a lucrative contract. Back in 1993, Tokyo lost out on an award to build bullet trains for Korea, after a diplomatic row in which Seoul demanded an apology for similar World War II atrocities committed by Japan.

But all this might come to nothing if another overseas issue comes into play. Awarding France the railway contract would see Paris continue to use its in.uence within the European Union to lift an arms embargo against China - much to the dismay of the US. Therefore, a German contract award would possibility be the safest choice with regard to international relations - but the above does illustrate that when it comes to doing business in China, you might have your best offer turned down for economic or social reasons completely out of your control.

No matter who builds the line, China needs an updated link between its capital city and its largest commercial metropolis, and it needs overseas capital to make this happen. But until the Ministry of Railways gives the signal, the Beijing to Shanghai express is still stuck at platform one.