Moody's expects China's transportation 5-yr plan to drive infrastructure investment, sustainable development

BEIJING, Feb. 5 (Xinhua) -- China's recent five-year plan on improving its transportation networks will drive infrastructure investment and facilitate sustainable development, global rating agency Moody's said.

The plan, released last month, outlined major targets for transportation network development in the 14th Five-Year Plan period (2021-2025), including expanding high-speed railways, more new energy buses, and an intelligent and green transformation.

"We expect the plan will become a blueprint for China's future infrastructure development and foster infrastructure investment over the five-year period between 2021-25," a report from Moody's Investors Service said.

The plan also provides targets associated with environmental, social, and governance (ESG) considerations, reflecting China's focus on sustainable and quality development for the transportation sector, according to the report.

Moody's believes multiple measures in the plan, such as improving the logistics, developing green infrastructure, and a leveling of capital spending for operators, are credit positive to enterprises in the sector.

"The development focus of the sector will shift to quality from quantity, which will improve the sustainability of infrastructure assets," the report said.

In a breakdown of major targets in the plan, China's high-speed railways will stretch to a total length of 50,000 kilometers in 2025, up from 38,000 kilometers in 2020; the number of civil airports will increase to more than 270, up from 241; 72 percent of buses in cities will run on new energy, an improvement from 66.2 percent; the carbon dioxide emission intensity will be decreased by 5 percent.

The main goal is to achieve integrated development in 2025, with tangible breakthroughs in the intelligent and green transformation of the transportation system, the plan said.