Slowdown in railway construction stimulates growth in the security market

The railway system is an important transportation system of the country. The railway monitoring system is a set of monitoring system that enables the railway company to realize the full-range video surveillance combined with the actual needs of the railway. With the gradual deepening of railway monitoring applications, it has become one of the key engineering areas for security applications. In 2011, the high-speed rails suffered frequent operation failures, and railway construction under construction and new projects all stalled. The decline in railway infrastructure has also stimulated the growth of the security market.

The investment in railway construction will be reduced in December 2011. The National Railway Work Conference will be held in Beijing. China’s Minister of Railway, Sheng Guangzu, stated at the meeting that according to the “Twelfth Five-Year Plan” and funding conditions, in 2012, 500 million yuan was invested in fixed assets, of which 400 billion yuan was for capital construction and 6,366 kilometers for the new line. This is a year-on-year decrease of 200 billion yuan in investment over 2011. Recently, local officials visited the Ministry of Railways in succession to fight for the local project to save the province.

According to media reports, after the catastrophic accident on the 7·23 Wenfeng Line, the State Council organized relevant experts to conduct an in-depth and thorough safety assessment and feasibility investigation of the national railway. Twenty-four projects including the Chongqing-Wanzhou Railway suffered construction delays. Some railway projects will not be put into operation during the “Twelfth Five-Year Plan” period. These projects include the Harbin-Qiqihar Passenger College, the Datong-Xi’an Railway, and the Hefei-Fuzhou Railway.

Sheng Guangzu revealed that in the past 2011, the national railway projected to complete a capital construction investment of 469 billion yuan, which is 131 billion yuan less than the original plan of 600 billion yuan.

Due to the tight funding, it has become one of the key tasks of the Ministry of Railways to increase the proportion of capital contribution by local governments in recent months. However, relative to the activeness of the Ministry of Railways, local governments are still on the sidelines. “Local governments are cautious about increasing their investment performance.” Liu Bin, a researcher at the National Development and Reform Commission’s Institute of Comprehensive Transportation, said that the construction of a railway can not bring direct benefits to the localities. First, there is no right to dispatch vehicles. The right to speak. The other is that the railway revenues are consolidated and unified, and the railways are unifiedly turned over to the Ministry of Railways. The local government does not gain any advantage, and generally only pulls peripheral economic development. "From this point of view, the benefits of 1% and 49% shareholding are the same, so who is willing to increase investment." He said.

In addition, local funding has become a consensus. All the railway construction projects participated in by the provinces have encountered difficulty in financing to varying degrees, and they are even facing pressure to pay interest on bank loans.

According to the “Beijing Morning Post” report, next year is the first year for the full implementation of the new mechanism for the new railway system. The national railway work conference was held in Beijing a few days ago. In the report made by Secretary of the Party Group and Minister Sheng Guangzu of the Ministry of Railways, “Separation of government from enterprises”, “Railway safety”, “Diversified operation” and “Combating corruption and advocating honesty” became four key words.

According to media reports, when Sheng Guangzu was interviewed at the time and talked about the scale of railway construction during the 12th Five-Year Plan period, he said that the scale of railway construction should be moderately advanced and not excessively advanced.

During the 12th Five-Year Plan period, 2.8 trillion yuan will be allocated for infrastructure construction. Compared with the “Eleventh Five-Year Plan”, the new railway line will increase by 87.5%, and the completed construction investment will increase by 41.4%.

Short-term losses will have no negative impact on long-term investment in railway construction.

The slowdown in railway construction has stimulated the growth of the security market. The gradual slowdown in the speed of railway construction in our country has become a reality.

Whether the gradual slowdown of China’s railway construction will affect the security industry closely linked to it and whether the demand in the security market will decline will it continue to affect the sustainable development of the security industry, especially whether it will have a huge impact on the field of railway security monitoring systems? These issues involve the development of some companies in the security industry and the industry, and it is worth thinking about.

Judging from the current situation, the reduction in investment will surely affect certain projects under construction or new construction. Some projects will be delayed. This will inevitably result in a decrease in the market demand for security products, and some of them will have business contacts with railway security systems. Sales will be affected. But in the long run this effect is only temporary.

The railway system is one of the major application markets for security products. As China's railway construction, and people's security requirements gradually increase. The degree of integration between the railway system and the security industry will be further deepened, and the use of security products in the railway system will reach ubiquitous levels. The application of new security products to the railway system and the upgrading of old facilities will stimulate growth in the security market.