Guangzhou-Shenzhen Superhighway
GuangzhouShenzhen Superhighway
Background The Guangzhou‐Shenzhen Superhighway is one of the busiest expressways in China directly connecting Guangzhou, Dongguan, Shenzhen and Hong Kong through Huanggang Border Crossing, the largest freight land border in Asia. Being the major artery in PRD east bank, daily traffic and revenue increased 10‐fold ever since its operation in 1994.
How is this astonishing accomplishment possible? This is a result of 3 main growth drivers described as C.A.R.
Growth Drivers – CAR C – Car growth In 2010, more than 18 millions cars were sold in China. After surpassing both Germany and Japan in becoming no. 2 in the world car sales market in 2006, China beat US and became no.1 in 2009. Guangdong is currently ranking among the top 3 car sellers in China. The car population in Guangdong is more than 8 million, Guangzhou and Shenzhen each has over 1 million cars, while Dongguan has approximately over 700k cars. The abundant amount of cars allows plenty of traffic on our roads. In particular, Class 1 small cars on GS Superhighway recorded historical high daily traffic and toll revenue in first half of fiscal year 2011.
Apr 2011
Page 1 of 4
GuangzhouShenzhen Superhighway
A – Amazingly strong GDP growth of Guangdong
Robust car growth has been underpinned by the strong GDP growth. It is proved that there is a strong positive correlation between the traffic on GS Superhighway and GDP growth of Guangdong. Given the sustainable stable growth of the PRC economy, it is believed that Guangdong’s GDP growth will continue to play an important role. This, in turn, will fortify the traffic growth on our roads.
R – Resilience of import and export The global economic downturn is the cause for the slump of Guangdong imports and exports. However, given the resilient import and export, this is expected to bring more trucks onto our road. In addition to the 3 existing growth drivers, the authorities in PRC and HK are actively considering to grant short‐term one‐off cross‐border licenses to HK registered private cars at Shenzhen Bay Port in 2010. Surprisingly, only 7% of all licensed vehicles in HK have cross‐border licenses, thus this arrangement will surely be beneficial to GS Superhighway.
Apr 2011
Page 2 of 4
GuangzhouShenzhen Superhighway
Capacity To us, this success is just the beginning. The GS Superhighway still has plenty of room to grow. Along the 123km main alignment, only 2 very short distance sections are near the peak on one to two days occasionally. Hezhou‐Fuyong and Wudianmei‐ Taiping are boosted by the proximity to Shenzhen Airport and their busy lateral connected roads such as Jihe expressway, Changhu expressway and Humen Bridge. Traffic continues to grow in these 2 sections as well as other non‐peak sections. In normal weekdays, traffic flow is high in the AM peak and PM peak hours, non‐peak hours and weekend hours are still underutilized. To meet increasing demands, GS Superhighway is undergoing the feasibility study to expand from 6 lanes to 10 lanes.
Competition In this challenging world, it’s hard not to have competitions. In our case, we do have a few indirect competitors. The Coastal Expressway starts and ends at outer Guangzhou and western Shenzhen while GS Superhighway leads to populous downtown areas. This gives an illusion of being shorter. Moreover, there is solely one side of catchment area for Coastal Expressway and it mainly serves trucks with coastal ports as their destinations and vehicles which travel the full distance. However, vehicles which travel the full length only account for less than 10% of total traffic on the GS Superhighway. Proposed earliest partial completion will be by the middle of 2011 and earliest full completion will be by the end of 2012. According to the situation on their sites, the very time consuming construction of a number of cross‐river bridges and land acquisition and site clearance issues at Guangzhou and Dongguan would be their big challenges for completion as scheduled. Moreover, car population in Guangdong is expected to maintain a healthy growth. This will lay down the demand for road usage and thus traffic growth on the GS Superhighway. There is a misconception that the Coastal Expressway is shorter than the GS Superhighway. In fact, the 89km Coastal Expressway is only the middle part of the routing between HK and Guangzhou. If we include the connecting roads, it should be around 116km long, which is comparable to the GS Superhighway. Apr 2011
Page 3 of 4
GuangzhouShenzhen Superhighway
Some people are concerned that the proposed Guangzhou‐Shenzhen‐HK Express Railway would post a new competition. In fact, it serves a completely different market, mostly passengers without cars. Since railway operates at a fixed schedule and it is not door‐to‐door, it is not in direct competition with GS Superhighway. For the past 15 years, growing tracks (from only 1 track to 4 tracks now) and services of the Guangzhou‐Shenzhen railway did not affect our traffic increase at all.
Ending Great results won’t stop us from improving. For 10 years, Hopewell strives to improve The GS Superhighway and will continually construct a better future.
Apr 2011
Page 4 of 4
Background The Guangzhou‐Shenzhen Superhighway is one of the busiest expressways in China directly connecting Guangzhou, Dongguan, Shenzhen and Hong Kong through Huanggang Border Crossing, the largest freight land border in Asia. Being the major artery in PRD east bank, daily traffic and revenue increased 10‐fold ever since its operation in 1994.
How is this astonishing accomplishment possible? This is a result of 3 main growth drivers described as C.A.R.
Growth Drivers – CAR C – Car growth In 2010, more than 18 millions cars were sold in China. After surpassing both Germany and Japan in becoming no. 2 in the world car sales market in 2006, China beat US and became no.1 in 2009. Guangdong is currently ranking among the top 3 car sellers in China. The car population in Guangdong is more than 8 million, Guangzhou and Shenzhen each has over 1 million cars, while Dongguan has approximately over 700k cars. The abundant amount of cars allows plenty of traffic on our roads. In particular, Class 1 small cars on GS Superhighway recorded historical high daily traffic and toll revenue in first half of fiscal year 2011.
Apr 2011
Page 1 of 4
GuangzhouShenzhen Superhighway
A – Amazingly strong GDP growth of Guangdong
Robust car growth has been underpinned by the strong GDP growth. It is proved that there is a strong positive correlation between the traffic on GS Superhighway and GDP growth of Guangdong. Given the sustainable stable growth of the PRC economy, it is believed that Guangdong’s GDP growth will continue to play an important role. This, in turn, will fortify the traffic growth on our roads.
R – Resilience of import and export The global economic downturn is the cause for the slump of Guangdong imports and exports. However, given the resilient import and export, this is expected to bring more trucks onto our road. In addition to the 3 existing growth drivers, the authorities in PRC and HK are actively considering to grant short‐term one‐off cross‐border licenses to HK registered private cars at Shenzhen Bay Port in 2010. Surprisingly, only 7% of all licensed vehicles in HK have cross‐border licenses, thus this arrangement will surely be beneficial to GS Superhighway.
Apr 2011
Page 2 of 4
GuangzhouShenzhen Superhighway
Capacity To us, this success is just the beginning. The GS Superhighway still has plenty of room to grow. Along the 123km main alignment, only 2 very short distance sections are near the peak on one to two days occasionally. Hezhou‐Fuyong and Wudianmei‐ Taiping are boosted by the proximity to Shenzhen Airport and their busy lateral connected roads such as Jihe expressway, Changhu expressway and Humen Bridge. Traffic continues to grow in these 2 sections as well as other non‐peak sections. In normal weekdays, traffic flow is high in the AM peak and PM peak hours, non‐peak hours and weekend hours are still underutilized. To meet increasing demands, GS Superhighway is undergoing the feasibility study to expand from 6 lanes to 10 lanes.
Competition In this challenging world, it’s hard not to have competitions. In our case, we do have a few indirect competitors. The Coastal Expressway starts and ends at outer Guangzhou and western Shenzhen while GS Superhighway leads to populous downtown areas. This gives an illusion of being shorter. Moreover, there is solely one side of catchment area for Coastal Expressway and it mainly serves trucks with coastal ports as their destinations and vehicles which travel the full distance. However, vehicles which travel the full length only account for less than 10% of total traffic on the GS Superhighway. Proposed earliest partial completion will be by the middle of 2011 and earliest full completion will be by the end of 2012. According to the situation on their sites, the very time consuming construction of a number of cross‐river bridges and land acquisition and site clearance issues at Guangzhou and Dongguan would be their big challenges for completion as scheduled. Moreover, car population in Guangdong is expected to maintain a healthy growth. This will lay down the demand for road usage and thus traffic growth on the GS Superhighway. There is a misconception that the Coastal Expressway is shorter than the GS Superhighway. In fact, the 89km Coastal Expressway is only the middle part of the routing between HK and Guangzhou. If we include the connecting roads, it should be around 116km long, which is comparable to the GS Superhighway. Apr 2011
Page 3 of 4
GuangzhouShenzhen Superhighway
Some people are concerned that the proposed Guangzhou‐Shenzhen‐HK Express Railway would post a new competition. In fact, it serves a completely different market, mostly passengers without cars. Since railway operates at a fixed schedule and it is not door‐to‐door, it is not in direct competition with GS Superhighway. For the past 15 years, growing tracks (from only 1 track to 4 tracks now) and services of the Guangzhou‐Shenzhen railway did not affect our traffic increase at all.
Ending Great results won’t stop us from improving. For 10 years, Hopewell strives to improve The GS Superhighway and will continually construct a better future.
Apr 2011
Page 4 of 4
