The First Private Railway In The Mainland Has Lasted For 10 Years And Has Not Yet Been Completed.

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Rochen railway, from Guangdong Luoding to Guangxi Cenxi.

In this railway, the share of state-owned capital is only 0.15%, and the remaining 99.85% shares are owned by the listed company, Tianjin Heng Heng railway Cmi Holdings Ltd (hereinafter referred to as "Guo Heng Railway", 000594.SZ).

The Heng Heng railway company is its builder, operator and owner unit.

This railway is a "private railway" worthy of the name. It is the first railway in China to respond to the Ministry of Railways's opinions on encouraging and supporting the participation of non-public sectors in railway construction and operation.

Despite the early involvement of red tape documents and public funding, its construction still suffered a series of twists and turns. The total investment of the project has been raised from the initial 993 million yuan to the current 2 billion 661 million yuan, and the completion schedule has been postponed since 2009. There is still no accurate timetable.

What is the fate of rochen railway?

Railway

3 trillion and 570 billion of the assets of the national railway system, 2 trillion and 90 billion of liabilities, about 2000000 employees, whether they can be split or privatized depends on the strength of private capital.

Similarly, the debt ratio exceeds 58%, only 40 yuan in the half year, and 30 thousand kilometers in the 9 years to build business mileage. It is not necessary to introduce private capital to complete the plan, depending on the capacity of the railway sector.

The first is the private capital railway.

In April 4, 2005, "Guangzhou daily" published: "the people's long-awaited Guangdong Luoding to Guangxi Cenxi railway has been approved by the national development and Reform Commission for approval, and the rochen railway has officially entered the stage of full implementation."

For a long time, the railway from Guangdong to Guangxi can only go along the three Mao line (Foshan Sanshui District Maoming city) to Maoming, turn to Luozhan line (Luoyang Zhanjiang) and turn north, and take a big "V" word to Guangxi Cenxi.

After the completion of the railway construction in Guangdong and ChunWan Railway Station on the three Maotai line to Guangxi Cenxi, it will become the most convenient access between the three Mao line and Luozhan line, which is more than half of the mileage saved than the current line, and its social and economic benefits are self-evident.

In February 1994, Luoding, Guangdong, began building the railway from Chun wan to Luoding (hereinafter referred to as "Chun Luo Railway"), with a total length of 62.15 km and was put into operation at the end of 2000.

This is China's first self raised by county-level cities.

But when this line is completed, it will not solve all the problems.

The 75 km gap between Luoding and Cenxi made Chun Luo Railway a "broken line".

In terms of pport volume, Luoding hopes to build a road by road and rely on the construction cost before the railway pport profits are recovered. It is difficult to further invest in the railway construction from Luoding to Cenxi.

"Getting through Rochan line and connecting the road network to revitalize the Luoding railway is the only way out."

An official of the Luoding municipal government knew about the decision of rochen railway.

In November 27, 2001, the original national development plan committee (the predecessor of the national development and Reform Commission) approved the proposal for the construction of a new Luoding Cenxi railway project and approved the total investment estimate of 993 million yuan.

The Ministry of Railways has also incorporated it into the key construction project of the "fifteen" local railway development plan.

In April 15, 2002, the people's Government of Guangdong Luoding, the Ministry of Railways of People's Republic of China and the Cenxi people's Government of the Guangxi Zhuang Autonomous Region respectively authorized: Guangdong Luoding Railway Corporation, China Railway Investment Corp, Guangxi Cenxi Railway Construction Co., Ltd., as their investment representatives, and jointly funded the establishment of China Railway (Luoding Luoding) railway limited liability company, with a registered capital of 5 million yuan.

Among them, Guangdong Luoding railway company invested 2 million 900 thousand yuan, accounting for 58%; China Railway Investment Corp invested 2 million yuan, accounting for 40%; Guangxi Cenxi Railway Construction Co., Ltd. invested 100 thousand yuan, accounting for 2% of shares.

5 million yuan, for a 1 billion yuan level railway, a drop in the bucket.

Moreover, in March 2005, when the national development and Reform Commission formally approved the construction of Rodin railway, the total investment of the project was raised to 1 billion 136 million yuan.

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Where does the money come from?

At that time, there were many projects for the Ministry of Railways to prepare for construction. There was no plan to increase the capital of rochen railway; Luoding's annual revenue was only 200 million yuan; Guangxi Cenxi also had limited financial resources.

"We have thought a lot of ways, and finally consider that we can try to realize the railway pformation through the pfer of the property rights of the existing spring Luo railway 100%, and introduce powerful companies to build the new railway."

Liang Renqiu, Minister of Propaganda Department of the Luoding municipal Party committee, said in an interview with the media that the idea of the Luoding municipal Party committee and the municipal government to pfer the spring Luo railway was first planned in January 2005.

"There are political concerns and therefore very cautious in operation.

But do not sell the Luoding railway, the two railways are only "dead".

One official of the Luoding municipal government said.

Fortunately, "political concerns" soon disappeared.

In February 25, 2005, the State Council issued a number of opinions on encouraging and supporting the development of the private sector and other non-public sectors of the economy, commonly known as "non-public 36", and put forward a series of policies and measures to promote the development of the non-public sector of the economy.

In June of that year, the Ministry of Railways responded to the "non-public 36 articles" and issued the opinions on encouraging, supporting and guiding the participation of non-public sectors in railway construction and operation.

It is stipulated that the non public capital should be encouraged to participate in the construction of the railway trunk line, railway branch line and local railway in the form of investment participation, project financing, cooperation and joint operation.

In railway freight pportation, it is permitted to establish a railway freight enterprise with non public capital holding or sole proprietorship.

Non public capital is also allowed to participate in railway passenger pport, but the joint venture of railway passenger pport company shall be controlled by state-owned capital.

Then, in July 14, 2006, the pfer of the 100% property rights of Guangdong Luoding Railway Corporation was listed on the Guangzhou property exchange, and the price was 41 million 860 thousand yuan.

Guangzhou property exchange information shows that as of December 31, 2005, the total assets of Luoding Railway Corporation were 914 million 120 thousand yuan, liabilities 792 million 840 thousand yuan (including government bonds and corporate bonds), and net assets of 41 million 858 thousand yuan.

Despite its huge liabilities, the Guangdong Luoding railway company has two railway lines on its hands - the completed spring Luo railway and the rochen railway to be built.

The pferor also made many conditions for the pferee, including: 2005, the registered capital is not less than 300 million yuan, the total assets are not less than 7 billion yuan, the asset liability ratio is not higher than 50%, the turnover is not less than 2 billion yuan, the profit after tax is not less than 250 million yuan, the credit amount of the bank is not less than 200 million yuan in 2006, the total creditor's rights and debts of the target company are enjoyed and assumed, and cooperation with China Railway (Luoding Cenxi) Railway Co., Ltd. has been completed, and the project has been opened to traffic within three years.

According to the above conditions, Shenzhen Zhongji Industrial (Group) Co., Ltd. (hereinafter referred to as "Shenzhen technology") was signed and pfered in August 22, 2006. Without any other competitors, it was directly traded at a price of 41 million 860 thousand yuan.

The Luoding Railway Corporation has been renamed Guangdong Luoding Zhongji Railway Group Co., Ltd. (hereinafter referred to as "Luoding technology"), and the nature of the enterprise has changed from state to private.

"This railway has strategic significance for communicating West Guangdong and Eastern Guangxi.

Now, I think this investor has a vision. "

Chang Xiuze, an economist who has just retired from the national development and Reform Commission's Economic Research Institute, said to China Economic Weekly.

As a matter of fact, only 3 months later, the "investor" in Chang's mouth began to pfer the shares of Chun Luo railway and rochen railway, and took over the Hongfeng industrial Limited by Share Ltd of Tianjin (hereinafter referred to as "Tianjin Hongfeng").

In November 2006, Guangdong Luoding technology Railway Group Co., Ltd. pferred the 59% stake of China Railway (Luoding) railway limited liability company to Tianjin Hongfeng at a price of 411 million yuan.

China Railway (Luoding) railway limited liability company mainly manages the completed spring Luo railway.

After that, Tianjin Hongfeng bought a 24.43% stake in China Railway (Luoding) railway limited liability company with a total of 163 million yuan, accounting for 83.43% of the total share.

Another 16.57% stake is held by China Railway Investment Corp.

In August 2007, Tianjin Hongfeng bought the Shenzhen intermediate technology with a price agreement of 347 million 900 thousand yuan, and a total of 99.40% stake in China Railway (Luoding Cenxi) railway limited liability company held by Luoding Zhongji.

In 2009, it increased its equity to 99.85% by increasing capital and expanding shares.

Guo Heng railway [0.00 0% shares bar Research Report] "snake swallow elephant"

Surprisingly, Tianjin Hongfeng did not have any experience in railway construction or operation.

After taking over the Chun Luo railway and rochen railway, Tianjin Hongfeng changed its name to the Heng Heng railway in April 2008.

Tianjin Hongfeng acquired 99.40% stake in China Railway (Luoding Cenxi) Railway Co., Ltd. in August 2007, and it paid 347 million 900 thousand yuan to the two pferor parties until 2009.

So, who is Tianjin Hongfeng?

Guo Heng railway website information shows that the Inner Mongolia Hongfeng industrial Limited by Share Ltd, the predecessor of the Heng Heng railway, was a joint stock pilot enterprise established on the basis of the original Linxi sugar mill and Linxi power line factory on August 1989 23, approved by Chifeng Municipal Commission for restructuring and Linxi County Government.

The company's shares were listed on the Shenzhen stock exchange in March 20, 1996 (stock short: Inner Mongolia Hongfeng, stock code: 000594).

In April 2006, the registration name of the company was changed from "Inner Mongolia Hongfeng industrial Limited by Share Ltd" to "Tianjin Hongfeng industrial Limited by Share Ltd" and in April 2008 it was changed to "Tianjin Heng Heng railway Cmi Holdings Ltd".

"In 2006, our company moved from Inner Mongolia to Tianjin.

At that time, it was a patchwork of assets, including KTV, affordable housing construction units, and industrial plant leasing businesses.

Guo Heng railway deputy general manager and Dong Mi Yan Xiao Jia told China Economic Weekly that "the company has many projects, the management is very difficult, and the allocation of funds is very unreasonable."

According to Yan Xiaojia, the reason for moving to Tianjin at that time was that Tianjin Binhai New Area promised many policies and wanted to make real estate development business in Tianjin Binhai New Area, making the main business of listed companies into real estate.

"But at that time, the management team foresaw that the real estate industry was a non sustainable development industry, and then did not do it.

Yan Xiaojia said.

After the 99.40% equity interest of the pferee China Railway (Luoding Cenxi) Railway Co., Ltd., Guo Heng railway from Luoding to Cenxi railway as the target of raising funds, reported to the SFC a private placement of shares to raise a total of over 1 billion 600 million yuan financing for railway construction financing scheme, and was approved by the SFC in August 2009.

In October 2009, Guo Heng railway issued 683 million 693 thousand and 750 shares of RMB common stock (A shares) to 9 specific objects in the form of non-public offering, and the net proceeds were 2 billion 113 million yuan.

Among them, the state Heng railway intends to invest 1 billion 445 million 900 thousand yuan for the rochen railway project. In January 10, 2007, the national development and Reform Commission agreed to adjust the total investment of the Luoding Cenxi railway investment main body and the total investment of the project, adjusting the total investment of the rochen Railway project to 1 billion 448 million yuan.

This includes the acquisition of China Railway (Luoding Cenxi) railway limited liability company 99.40% equity of 347 million 900 thousand yuan.

Referring to the assignee rochen railway, Yan Xiaojia used "snake swallow elephant" to describe it.

"As of September 30, 2009, the total share capital of the state railway was 560 million, the net assets were 977 million yuan, the total share capital was 1 billion 244 million after the public offering, and the net assets were 3 billion 90 million yuan."

Yan Xiaojia said, "at that time I went to understand that our" snake swallow elephant "situation is not very recognized.

Financing is raised by cash, and people will ask you, "why do you want to manage about 2000000000 yuan of cash with a net assets of more than 900 million and a return on assets with a very low return on assets (0.51% weighted average return on assets in 2009)?"

Yan Xiaojia believes that the company can take the state Heng railway, the "listed company" status to help.

"Before and after 2006, the construction of high speed rail reached a climax. The railway departments continuously raised bonds and issued bonds to build railways, but they still could not solve the growing demand for passenger and freight pport.

The idea of taking a local railway to do a lot of capital construction Railway trial is under such a background.

Yan Xiaojia said, "however, we have to consider one problem, namely, the pursuit of profit and the opacity of private capital.

This is not a demonstration for the first private railway.

So they put them in a listed company and use "public funds" to do so.

The system of listed companies is perfect, and the financial statements are pparent, so that we can see how much money is invested and how the fund is spent. What is the rule process? "

"Therefore, we are very supportive from the Ministry of Railways and the SFC level. Let's do it and give us enough money."

Yan Xiaojia said.

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Why is it difficult for 10 years to open to traffic?

Since 2001, the former National Development Planning Commission approved the proposal for the construction of the new Luoding Cenxi railway project. Up to now, 10 years have passed. Since the parties are "very supportive" and "give enough money", why hasn't the rochen railway still repaired yet?

In charge of the interview with China Economic Weekly, the responsible person of the basic industry department of the national development and Reform Commission said that the construction of the ROEN Cen railway was rather bumpy, and the adjustment budget had been adjusted three times.

Reporters learned in the interview that although the railway was built on the ground in Luoding, Luoding's local government had almost lost control of the rochen railway except taxes.

Ou Hongze, director of the Luoding municipal government office, told the China Economic Weekly that the long duration of the railway project was due to a period of time in the middle, which began only last year.

"It is not a complete stop, the investment is not in place, the money has been part of it, and is continuing to do."

In further cases, Hongze, Europe, is not clear. "The operation of their company is relatively small, and there is less contact with us."

The reporter asked what Department of the Luoding municipal government is in charge of rochen railway, and Hongze Europe said: "not very clear.

How to say it has been pferred to it (listed company).

China Railway Investment Corp, representing the state assets, did not increase capital after the initial investment of 2 million yuan. In the words of Yan Xiaojia, "they will not divest themselves of capital and let us continue to dilute it."

As a result, the [0.00 0% share research report of Guowen railway has no absolute right to speak in the construction of rochen railway.

Then, how can Guo Heng railway explain the current construction progress of rochen railway?

Yan Xiaojia told reporters: "I have no way to tell you exactly how many kilometers there are, and how many have failed.

Railway, as long as one centimeter is not opened to traffic, can not be completely repaired. "

He further indicated that at present, the infrastructure construction along the rochen railway, such as culverts and Luqiao, has been completed, but it has not yet been linked up.

He believes that there are two main reasons that restrict the construction progress of rochen railway.

First, the project time of rochen railway is too long from the actual construction time, and the cost of engineering materials, land acquisition compensation, labor and other costs has increased significantly.

"Knowing that it is repairing railways, farmers will not be able to afford land requisition compensation.

Faced with the current situation, we have to buy a lot of land decisively.

Because today does not accept, tomorrow will be more expensive.

This will make our project cost a certain gap. "

Second, the ROC Cen railway is the second level standard of the national railway. There are divergences between the management of the national railway and the idea of whether to raise it to a higher level.

If we improve the level of construction, the efficiency of the traffic will be improved, and the profits of the listed companies will be increased after completion, but the immediate problem is that the initial investment will also be greatly improved.

"This matter has been talked about for two years.

When the cost of capital is high, we want to build it according to the national railway grade II standard. First, we will open the car again.

This is a "tug of war". I don't think there will be any result until the opening time.

Is there a traffic schedule for rochen railway?

Yan Xiaojia said, "I have no way of saying."

At first, when Luoding sold the 100% stake in Luoding Railway Corporation, there was an additional requirement for the pferee to complete the rochen railway project in three years and open to traffic.

Now, after two degrees, is this additional condition still valid?

Will Luoding not recover the control of rocen railway?

"I have not heard of this plan."

Ou Hongze answers China Economic Weekly.