The much-anticipated Shenzhen-Xiamen railway, scheduled to be completed in 2010, will help form an economic sphere with Shenzhen, Hong Kong, Xiamen and Zhangzhou as the key cities, media reports said.

The 30 billion yuan (US$3.6 billion) rail link will also bring closer together China's two most developed regions: the Pearl River Delta area and the Yangtze River Delta area, according to the reports.

A section of the 12,000km passenger railway network ratified by the State Council, the 535km cross-province railway linking Shenzhen and Xiamen, would also be significant for the national defense system, an official with the Ministry of Railways said. Xiamen is a special coastal economic zone in East China's Fujian Province.

Mayors from eight cities in Guangdong and Fujian provinces met in Shenzhen Wednesday to discuss the cost and a construction timetable for the railway. The mayors agreed to start preliminary land acquisition in 2005 and have the construction started in 2006.

Besides Xiamen and Zhangzhou in Fujian Province, the railway will also pass through six cities in Guangdong Province: Shenzhen, Chaozhou, Shantou, Jieyang, Shanwei and Huizhou.

Upon completion, it will take only nine hours to travel by train from Shenzhen to Shanghai and three hours from Shenzhen to Xiamen. The train will travel at a speed of more than 200 kilometers per hour.

"The Xiamen-Shenzhen railway is of the utmost importance to Xiamen's economy. We will build a rail terminal, a railway-port transport system and a logistics center for the line," said Zhang Changping, mayor of Xiamen.

"Chaozhou is an underdeveloped area in Guangdong Province. This railway is very important to us. It will help raise our city's competitiveness," said Luo Wenzhi, mayor of Chaozhou City in eastern Guangdong.

According to a Memorandum of Understanding (MOU) signed by the eight mayors, a stock-holding will be established to carry out the construction work.

Li Miaojuan, an official of the Guangdong Provincial Development and Reform Commission, said the railway would help integrate the cities it links. The eight cities represent an area of 43,000 square kilometers, a population of nearly 31 million and a current gross domestic product of nearly 629 billion yuan.

Xiamen and Zhangzhou are Fujian Province's most dynamic cities. Their combined population and GDP are respectively 17 percent and 26 percent of the province. The six Guangdong cities account for 27 percent of the province's population and 37 percent of its GDP.

The major cities along this line are native land of many Chinese living in Taiwan, Hong Kong, Macao and many foreign countries. They have long been China's key areas attracting investment from Taiwan and the overseas Chinese population. Li said the Shenzhen-Xiamen Railway would mean a big improvement in the investment environment in these areas and attract more investment.

Experts say the Shenzhen-Xiamen Railway will mean a big push for development in port business, mining and tourism in the cities it passes through.

The railway will generally be along the coast between Shenzhen and Xiamen. Xiamen, Zhangzhou, Shantou and Shenzhen each has a port business as a mainstay industry. So far, the ports in Shenzhen handle more than 100 million tons of goods each and the city is ranked the fourth largest port in the world. In 2002, Xiamen was ranked the seventh largest port in China in terms of goods handled.

The cities are also home to a rich pool of mineral reserves. Zhangzhou leads China in its vast reserves of quartz, granite and kaolin. Chaozhou and Shantou are rich in silver, lead, tin and porcelain clay.

The cities are also regarded as tourist destinations with potential.

According to a report in the Daily Sunshine, investment in the Shenzhen-Xiamen Railway will come from both the Central Government with the eight cities contributing equal shares.

A coordination office for the project has been set up at the Shenzhen Municipal Bureau of Communications.

Quotes from some mayors:

He Jinlong, mayor of Zhangzhou:

"Zhangzhou will work in accordance with the requirements in the MOU. It will immediately start clearing space for construction. We will try to finish the clearing before 2005 to lay a good foundation for the construction."

Huang Zhiguang, mayor of Shantou (eastern Guangdong):

"As one of China's 20 port terminals, Shantou lacks a good railway network. The Xiamen-Shenzhen Railway is of great importance to Shantou's economic development. We shall immediately begin planning to decide the route the railway will take. We will also immediately start clearing space to lay a good foundation for the construction."

Chen Hongping, acting mayor of Jieyang (eastern Guangdong):

"Jieyang hopes the railway can be finished as early as possible. The city of Jieyang will provide all the support it can to its construction. And we will make sure we will overcome difficulties."

Wang Menghui, mayor of Shanwei (eastern Guangdong):

"The Xiamen-Shenzhen Railway will put an end to the history that Shanwei has no railway. The city will take every possible measure to help push its construction through."

Huang Yebin, mayor of Huizhou (eastern Guangdong):

"The railway is costly in terms of building funds and compensation fees to those whose homes will be removed from the construction site. The city of Huizhou will finish site preparation next year. The city will also build a terminal station to help its economic development."

Editor: Catherine