China plans to build a railway linking the port of Dalian with Russia, the latest project to help pump new life into its dilapidated north-east, the China Daily said on Wednesday.
The 1,380-km (840-mile) railway will hug the coastline of Liaoning province and the border with North Korea before ending at Suifenhe, not far from the Russian port city of Vladivostok, the newspaper said.
"Most of the places the railway runs through boast quite rich and varied resources, such as lumber and minerals, but with lagging economies," it said.
China is trying to revive the downtrodden region, dubbed the "rust belt" for its run-down factories, by pumping in funds to set up new industries and tap natural resources.
Local industry, once the crown jewel of China's centrally planned economy, collapsed during more than two decades of market reforms and the region now grapples with frequent protests by laid-off workers. On Tuesday, state media said the area, home to 110 million people, would receive around $7.4 billion for dozens of projects including petrochemicals and raw materials ventures as well as a new bank.
"The shortage of efficient transportation lines to the outside world has been a long-existing problem for those inland and remote areas which have long needed a shot in the arm to boost trade and economic lustre," the newspaper said.
China has also been seeking stronger trade ties with Russia. In January to November of 2003, the latest period for which data is available, China exported $5.4 billion worth of goods to Russia, up 68 percent from a year earlier.
Imports from Russia rose an annual 16.5 percent in the period to $8.9 billion.
Russia's state-owned railways company said last month it would be able to ship 240,000 barrels, or 12 million tonnes, a day of crude from oil giant YUKOS to China by 2006. YUKOS has been seeking to build a pipeline to China but the Russian government has yet to make a final decision.
The planned railway would take 15 years to complete and would link 10 major cities and bring improved transport to 18 million people, the newspaper said.