China will increase the amount of track beneath its cities to more than 3,000 kilometers by 2015 from 940 kilometers at the end of 2009, Li Guoyong, deputy head of industrials at the National Development and Reform Commission, said at a rail conference in Shanghai Thursday.

The world?s third-largest economy is boosting spending on public transportation as the government seeks to curb traffic congestion and vehicle-related pollution by persuading urban commuters to leave cars at home. Subway expansion will also benefit appliance manufacturers, including Haier Group Corp., that supply equipment for the trains and stations, as well as boosting demand for aluminum and steel.

China, which has subways in Beijing, Shanghai, Wuhan, and seven other cities, has approved another 25 metro systems, NDRC?s Li said. The country plans to expand its subway networks to 1,400 kilometers this year, spending 200 billion yuan to put trains in Shenyang, Liaoning province, and Chengdu, Sichuan province, he said.

The country ranks second worldwide in miles of track, including both subways and inter-city trains, according to H&Z Industrial Media Group.

Source : Konaxis

The automated stainless steel trains will arrive for testing in May.

These are the first trains of their kind to be exported from China. Qian Houkuan, the director of information and technology at CSR Nanjing Puzhen Rolling Stock Works, said that these subway trains are wider than 3 meters and have greater passenger capacity than other models. Each 3.2-meter compartment can carry 72 more people than the 3-meter trains used in China, which carry 228 people per compartment, Qian said.

Furthermore, these trains, specially designed for local conditions, can operate at temperatures up to 55 degrees and in 100% humidity. They can travel at speeds of up to 80 km per hour.

CSR Nanjing Puzhen Rolling Stock Works inked the $100million deal in Mumbai in May 2008. It is the biggest contract for subway trains ever inked by a Chinese firm.

Source : Konaxis

DeLuca said China had great growth opportunity and targeted 500 stores in the next 5 years, with 35 to 50 set to open in the coming year.

He added that Subway was looking particularly at second tier Chinese cities for expansion as major ones such as Beijing and Shanghai had already built a good foundation.

DeLuca said Subway’s growth in China was in the early stages of development with awareness for products still quite low.

A standard subway sandwich costs around 20 yuan ($2.93) compared with 6 yuan for a cheeseburger at McDonalds. Subway, one of the largest fast-food chains in the world, has 150 stores in China compared with McDonald’s, which has more than 2,000.

“We have a very different business model to McDonalds. We make smaller stores and tend to put a lot more of them around,” said DeLuca.

Subway’s emphasis on fresh eating and lots of vegetables will help the franchise chain grow as the Chinese consumer looks for healthier options, DeLuca said.

Subway’s China stores account for 0.5 percent of Subway’s global network of 32,000 stores with markets such as the United States, Canada, Australia and the UK making up the bulk of revenue.

As Subway expands into China’s different provinces, it plans to localize the menu to suit local palates.

David Keir, Subway’s development agent in Shanghai, said Subway was doing trial research, testing sandwiches such as Beijing roast duck and local sauces like “hot spicy Sichuan sauce.”

DeLuca said it would continue to use its franchise model in China, which has failed to take off for other large fast food chains.

Source : Konaxis