THE first joint venture railway in China, Jinhua-Wenzhou railway, built by the Ministry of Railways, Zhejiang province, local governments and a Hong Kong investor, will be upgraded to high-speed rail link, Logistics Week reported.

After the upgrade has been finished, the travel time will be shortened to two hours from Hanzhou to Wenzhou, and one hour from Wenzhou to Jinhua.

The upgrade project, costing CNY18 billion (US$2.6 billion) and lasting four years, is jointly invested by Ministry of Railways and Zhejiang government. The railway covers a distance of 188.3 kilometres and will allow speeds of 200 kilometres per hour after completion.

Zhejiang governor Lu Zushan said the upgrade is significant as Jinhua-Wenzhou railway is a major rail line connecting Zhejiang hinterland to the coastal region.

The railway's cargo volume has hit 21 million tonnes annually, far surpassing its designed capacity of 10 million tonnes, said Provincial Railway Investment Group president Yu Jianer.

The Jinhua-Wenzhou railway opened to traffic in June 1998 with a factual average speed of 70 kilometres per hour. It has been one of the most profitable joint-venture railways in China.