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More banks finance Maglev train project
( 2002-01-04 16:25 ) (8 )

Two Chinese banks will provide loans of up to five billion yuan (US$602 million) to fund a magnetic levitated (maglev) train project in Shanghai, China's commercial center.

The loans come from the Bank of China and the Agricultural Bank of China, which have lent 3 billion yuan (US$361 million) and 2 billion yuan (US$241 million) respectively to shore up the first attempt to put maglev technology into railway passenger service in China.

Other commercial banks, including the Shanghai Branch of the CITIC (China International Trust and Investment Corporation), have also financed the project in various forms.

The Maglev system uses powerful magnets to hold a train a few millimeters above the track and propel it along with little noise or vibration. Trains can run at over 400 kilometers per hour, as fast as a jetliner.

With an investment of 9 billion yuan and scheduled to open to traffic this year, the 30-kilometer line will link Pudong International Airport with the center of Shanghai.