SHANGHAI, May 3 (Xinhuanet) -- By the year 2015, Shanghai's output in the train track transport related industry is expected to reach 10 billion yuan (about 1.25 billion U.S. dollars), according to an official from the local government.

Backed by an investment of 250 million yuan (about 31.25 million U.S. dollars), the Shanghai Electric Corp, Shanghai Industry Investment Co, Ltd, and the Shanghai International CreditInvestment Co. Ltd have jointly set up a new company to produce train cars for train track transportation and other accessory equipment.

As a new industry in China, manufacturing of train cars and track equipment is of great potential, according to Jiang Yiren, chairman of the local committee of the Chinese Political Consultative Conference (CPPCC). He predicted that the output in this sector will reach 3.75 billion yuan (about 0.469 billion U.S.dollars) in the next two years in the city.

The first homemade light rail train car rolled off the line last year in Shanghai. Currently, the Shanghai Electric Corp is doing research on technologies concerning the power system, environmental control system and other accessory equipment.

Shanghai, China's economic center, now has 65 kilometers of urban railways. In the next four years, the city plans to invest 70 billion yuan (about 8.75 billion U.S. dollars) to extend the track length to 233 kilometers.

In addition, according to Jiang, the city is considering a complete urban rail transport network made up of 11 subways and 10light railways in its long-term blueprint, with total track lengthof 780 kilometers.

According to China's plan, in the tenth five-year-plan period (2001-2005), the country will invest 800 billion yuan (about 100 billion U.S. dollars) into urban communication, of which, one fourth will flow into railway construction, such as light railwaysand subways.