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China's Highway Network Construction Benefits Power Facilities Industry
In recent years, Dai Dongchang, the chief planner of the Ministry of Transport, highlighted at a press conference for the National Highway Network Planning (2013-2030) that the national highway network has reached 78.5% completion and is expected to be largely finished by the end of the 12th Five-Year Plan period. This ambitious infrastructure development not only reflects China's commitment to improving its transportation system but also underscores the broader economic impact of such large-scale projects.
Infrastructure development, including expressway construction, is known for its significant multiplier effect. It stimulates overall social demand and boosts national income many times over the initial investment. A well-developed infrastructure is a key factor in ensuring long-term sustainable growth for any country or region.
According to the "National Highway Network Planning (2013-2030)," China plans to invest 4.7 trillion yuan over the next decade to build a national highway network totaling 400,000 kilometers by 2030. This includes approximately 265,000 kilometers of ordinary national roads—more than double the original plan—and around 118,000 kilometers of highways, an increase of 33,000 kilometers. Such an extensive network will have a positive ripple effect on various industries, particularly those related to power facilities.
For instance, once these roads are completed, lighting systems will be essential, driving growth in the LED industry. Recently, Taiwan Kangshu signed an agreement with Dongguan branch and Shengmao Optoelectronics, a leader in traffic signs and LED street lamps. They plan to establish a joint venture to target the mainland Chinese market for LED street lamps and outdoor lighting, aiming for several billion yuan in revenue. The potential output and market outlook could be more than 100 times the current level. Additionally, the installation of LED street lights will increase demand for wire and cable, prompting upgrades in the power grid.
With technological advancements, smart grids are becoming increasingly popular. China aims to fully implement smart grid construction between 2016 and 2020, with the goal of building a unified and strong smart grid. This will enhance resource allocation, safety, efficiency, and user interaction. As smart grids become more widespread, road-related power systems will also transition to smart technology. The timeline aligns with the completion of the 12th Five-Year Plan, laying a solid foundation for future power facility projects.
Moreover, the expansion of highway networks will significantly boost sales of low-voltage electrical equipment. As expressways develop, more bridges and tunnels rely on electricity, especially high-power fans in tunnels and elevators in bridges, which can cause power quality issues. To ensure safe operations, real-time monitoring of the power grid is necessary, requiring intelligent low-voltage devices and solutions. For example, embedded systems are being used to design and apply low-speed highway low-voltage measurement and control devices.
In summary, the growth in highway mileage in China will lead to increased sales in related power industries. This reflects the continuous improvement of China’s transport infrastructure and the government’s emphasis on building a strong and people-centered nation. It is a crucial step toward creating a beautiful and sustainable China.