Contents:

1 Overview of Railway Industry Development 1.1 Position of Railway Industry in National Economy 1.2 Development Status of Railway Transportation 1.2.1 Cargo Transportation Maintains Steady Increase 1.2.2 Sharp Increase of Passenger Transportation 1.2.3 Steady Increase of Passenger and Freight Traffic (Converted into Turnover Volume) 1.2.4 Transport Income Sets New Historical Record 1.2.5 Transportation Quality Increases a Lot 1.2.6 Permission for Non-Public Capitals entering into Railway Transportation 1.2.7 Problems Existed in Railway Transportation 1.3 General Status of Railway Construction 1.3.1 Rapid Development of Railway Infrastructure Construction 1.3.2 Continuous Expansion of Road Net Scales 1.3.3 Ministry of Construction and Railways Open-up Railway Construction Market Further 1.3.4 Railway Construction Lags behind Economy Development 2 Demand-Supply Analysis of China's Railway Industry 2.1 Current Status 2.1.1 Demand for Railway Transportation Increases Strongly, and Demand-Supply Gap Increases Further 2.1.2 Tense Situation of Railway Passenger Transportation 2.2 Analysis of Future Demands for Railway Transportation 2.2.1 Continuous and Rapid Development of Macro-Economy Provokes Increasing Demands for Transportation Industry 2.2.2 Transportation Situation Will Remain in Tension during The “Eleventh Five-Year” 2.2.3 Forecast of Demand Amount 2.2.4 Demand Forecast during the “Eleventh Five-Year” 2.3 Analysis of Railway Supply Capability 2.3.1 Analysis of Construction Status 2.3.2 Analysis of Transportation Capability 2.3.3 Forecast of Future Transportation Capacity 3 Analysis of Competition Situation in Railway Industry 3.1 Industry Characteristics 3.1.1 Railway Industry Belongs to “Sunrise Industry” in China 3.1.2 Obvious Scale Effect and Stable Profits 3.1.3 Obvious Regionality, i.e. Different Development Status in Different Sections 3.1.4 Prospect Forecast of Railway Transportation Industry 3.2 Analysis of Competition Situation 3.2.1 Segmentation Situation Nowadays 3.2.2 Regional Departments under Ministry of Railways, and Guangzhou Railway Group Corporation Control Road Right and Major Business 3.2.3 Obvious in Monopoly but Ambiguous in Marketability 3.2.4 Railway Transportation is one of the last industries opened-up in China's WTO Accession Agreement 3.2.5 Competition Power in Railway Industry 3.2.6 Advantages in Competition 3.3 Entry and Exit Barriers of Railway Industry 3.3.1 Entry Barriers 3.3.2 Exit Barriers 4 Analysis of Investing-Financing Status of Railway Industry 4.1 Current Investing-Financing Status of Railway Infrastructure Construction 4.1.1 Investment Scale 4.1.2 Capital Sources 4.1.3 Investors 4.1.4 Financing Measures 4.1.5 Main Income Sources 4.1.6 Return on Investment 4.2 Analysis of Investment Prospect of Railway Infrastructure Construction 4.2.1 Forecast of Total Investment Amount, 2006 4.2.2 Forecast of Investment during The “Eleventh Five year” 4.3 Investment Opportunities in Railway Industry 4.3.1 Railway Industry in China Has Long-Term Investment Value 4.3.2 Capital Gap in Railway Construction 4.3.3 Investment Opportunities in Railway Transportation 4.3.4 Manufacturing Industry of Locomotive and Rolling Stock 4.4 Investment Risks in Railway Industry 4.4.1 Problems in Investing-Financing System of Railway Construction 4.4.2 External Commercial Capital Share Is Limited 4.4.3 Be aware of Trap Effect in Investment in Railway Construction 4.4.4 Uncertainty of Reasonable Return 4.4.5 Strong Entry Barriers of Railway Construction Industry 4.4.6 Low Level of Marketization and Opening-up 4.5 Suggestions on Investment in Railway Industry 4.5.1 Share-Hold Operation in Railway Construction 4.5.2 Be Cautious in Entry into Passenger Transport and Choose Freight 4.5.3 Operation with State Owned and Foreign Capitals 4.5.4 Develop Multiple Operation through Cooperation with Railway Companies 4.5.5 Gain Investment through Carrying Capacity 5 Development Trends of Railway Industry 5.1 Great-Leap-Forward Developments Will Be Realized 5.2 Railway Marketization Reform Speeds up 5.3 Financing Channels Expand 5.4 Breakthrough of Investing-Financing Fields or Listing Road Net on Stock Market 5.5 Transition of Railway Transportation to modern Logistics 5.6 Railway Heavy-Haul Transportation Will Develop Fast 5.7 Railways Will Continue to Speed up to Strengthen Its Competition Advantages 5.8 Deepen Price Reform 5.9 High Speed Railway Will Develop Fast 6 Railway Industry and The “Eleventh Five-Year Plan” 6.1 Guidance 6.2 Major Objectives of Railway Industry in the “Eleventh Five Year Plan” 6.3 The “Eleventh Five Year” Objectives of Railway Reform 6.4 Direction and Policies of Railway Investing-financing Reform 6.5 The “Eleventh Five Year” Objectives of Railway Construction 6.6 Main Tasks of Railway Development 7 Analyses of Major Enterprises 7.1 Guangshen Railway Company Limited 7.1.1 Company Overview 7.1.2 Operation Status 7.1.3 Earning Capacity Will See a Big Increase 7.2 China Railway Erju Co., Ltd. 7.2.1 Company Overview 7.2.2 Operation Status 7.2.3 Problems in Operation 7.2.4 China Railway Erju, Benefits Most in The “Eleventh Five Year Plan” in Railway Construction 7.3 China Railway Tielong Container Logistics Co., Ltd. 7.3.1 Company Overview 7.3.2 Main Business 7.3.3 Operation Status 7.3.4 Development Prospects 7.4 North Landscape Architecture & Municipal Engineering Group 7.4.1 Company Overview 7.4.2 Operation Status 7.4.3 Competition Power 7.4.4 Speed up with Its Development Selected charts Demand Forecast of Railway Transportation during The “Eleventh Five Year” Comparison of Guangzhou-Shenzhen Passenger Transport between Railway and Highway Return on Railway Construction Investment Return on Railway Transportation Investment Investment Demand for Railway Infrastructure Construction, 2006 Medium-and-Long-Term Railway Network Plan Course of Railway Marketization Reform in China Measures and Performances of Expanding Financing Channels for Railway Construction The Five Times Speed up of Railway System Major Share-Holders Structure of Guangzhou-Shenzhen Railway Passenger Carrying Income and Capacity of Guangzhou-Shenzhen Railway Freight Carrying Income and Capacity of Guangzhou-Shenzhen Railway Major Share-Holders Structure of China Railway Erju Co., Ltd. Qualification of China Railway Erju Co., Ltd Major Share-Holders Structure of China Railway Tielong Container Logistics Co., Ltd. Business Structure Major Share-Holders Structure of North Landscape Architecture & Municipal Engineering Group Proportions of Turnover Volume of Freight Traffic of Different Transportation Means, 2005 Turnover Volume of Passenger Traffic of Different Transportation Means, 2005 Railway Cargo Carrying Capacity, 2001-2005 Railway Turnover Volume of Freight Traffic, 2001-2005 Structure of Freight of Railway Transportation, 2005 Passenger Carrying Capacity, 2001-2005 Railway Turnover Volume of Passenger, 2001-2005 Railway Passenger and Freight Traffic (Converted into Turnover Volume), 2001-2005 Income Increase of Railway Transportation, 2001-2005 Railway Transportation Efficiency, 2001-2005 Increase of Investment in China’s Railway Infrastructure Construction, 2001-2005 Total Length of Railways in Operation, 2001-2005 Ratio of Railway Construction Capital to Total Investment in Fixed Assets and to Transportation Investment, 2001-2005 Increase of Investment in Railway Transportation, 2001-2005 Ratio of Railway Transportation Investment to Traffic Transportation Investment, 2001-2005 Comparison of Transportation Income among Regional Departments under Ministry of Railways Ministry of Railways Owns 16 Regional Departments and 1 Group Company Operator and Business Structure of Railway Industry Market Share of Each Transportation Type in Turnover Volume of Freight Traffic, 2001-2005 Market Share of Turnover Volume of Passenger Traffic of Different Transportation Means, 2001-2005 Railway Transportation Has Price Advantage Compared with Highway Transportation Increase Speed of Railway Infrastructure Construction, 2001-2005 Proportion of Different Investors in Railway Infrastructure Construction Capital Sources of Ministry of Railways Income Sources of Railway Industry Major Financial Indexes in Railway Industry Costs Structure of Main Business in China's Railway Industry Proportion of Investors in The Total Investment in Wuhan-Guangzhou Special railway Line Course of Price Adjustment in Railway Passenger Transportation (Basic Price) Planning Diagram of Medium-And-Long-Term Railway Network Capital Structure of Guangzhou-Shenzhen Railway Line Income Structure of Guangzhou-Shenzhen Railway Line Capital Structure of China Railway Erju Co., Ltd. Structure of Income from Main Operation of China Railway Erju Co., Ltd. Regional Income from Main Operation of China Railway Erju Co., Ltd Capital Structure of China Railway Tielong Container Logistics Co., Ltd. Income and Profits of China Railway Tielong Container Logistics Co., Ltd., 2005 Capital Structure of North Landscape Architecture & Municipal Engineering Group

Companies Mentioned

- Guangshen Railway Company Limited - China Railway Erju Co., Ltd. - China Railway Tielong Container Logistics Co., Ltd. - North Landscape Architecture & Municipal Engineering Group