"14th Five-Year Plan" Transportation Investment Exceeds 1.5 Trillion, Guangxi Cement Still Depends on Infrastructure

"The recent decline in cement prices is mainly due to the intensification of the contradiction between supply and demand caused by the game between new and old production capacity in the regional market, and the demand for cement in Guangxi will continue to decline, but infrastructure is expected to provide strong support." Talking about the cement market in Guangxi, a leading local enterprise said.

According to its introduction, Guangxi is an economically underdeveloped area, the proportion of real estate and rural market is relatively low, coupled with the current downward pressure on the real estate industry, resulting in a further reduction in the proportion. At present, the demand for infrastructure construction in Guangxi cement market accounts for more than 60%, and the rural market and the real estate market each account for 20%.

The 14th Five-Year Plan for the Development of Comprehensive Transportation in Guangxi points out that around the development goals and key construction tasks during the 14th Five-Year Plan period, the investment scale of comprehensive transportation in Guangxi during the 14th Five-Year Plan period is planned to exceed 1.5 trillion yuan, an increase of about 150% over the investment of 600 billion yuan during the 13th Five-Year Plan period.

Of which: railway (including urban rail transit), with an estimated investment of about 300 billion yuan; highway, with an estimated investment of more than 1.1 trillion yuan; water transport, with an estimated investment of about 100 billion yuan; civil aviation, with an estimated investment of about 20 billion yuan; postal services, with an estimated investment of about 6 billion yuan.

The above-mentioned enterprises pointed out that the huge potential of infrastructure construction in Guangxi, coupled with the complex terrain, the high ratio of bridges to tunnels and the large amount of cement consumption, will provide strong support for the demand for cement in the "post-real estate" era. However, the company also pointed out that the issue of capital will be the key to the effective implementation of infrastructure projects.