The development of the Yunnan Province rail network is part of the policy to boost growth and reduce poverty. The project is located in the northwest of the province, in an area which has significant development potential due to its tourism and natural resources.
The project comprised the following components:
- The construction of a 167 km-long single-track line with a standard gauge between Dali and Lijiang (civil engineering and construction of the equipped track);
- The procurement of rolling stock and maintenance equipment;
- The construction of four stations (Hongshan, Shangcun, Heqing and Lijiang), loading facilities, and a station for containers in Lijiang, seven stops, and works to increase the capacity of existing facilities;
- The procurement and installation of signaling and communication equipment;
- The procurement and installation of a computerized management system for the operation of the line;
- The acquisition of land and compensation;
- The detailed studies and supervision;
- An institutional support component for the operator of the line.
The Dali-Lijiang line is connected to a rail route which runs to the provincial capital Kunming and continues towards Vietnam in the South and Sichuan (Chengdu) in the North. It also links two tourist destinations of national interest in an area which currently attracts 5 to 6 million tourists a year. The project, which has led to an increase in freight and passenger traffic between Dali and Lijiang, should help increase per capita income, reduce poverty, and create jobs in all the economic sectors of the area.