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Construction on Tibet's biggest logistics center to be completed next year

December 1, 2008

Xinhua (People's Republic of China)
November 27, 2008

LHASA, Nov. 29 (Xinhua) -- Workers will complete building of the
biggest logistics center in southwest China's Tibet Autonomous Region
on June 30 next year after 21 months of construction, a project
engineer has said.

The logistics center, covering 533 hectares, is located next to a
railway station at an altitude of 4,500 meters in Nagqu Township of
Nagqu County in northern Tibet. It is about 300 km northeast ofthe
regional capital Lhasa.

The project is expected to further exploit the potential of the
Qinghai-Tibet Railway that opened on July 1, 2006 and boost the
region's economic development, said Song Jinlun, the project's deputy
chief engineer.

Construction on the logistics center was started on September 28 last
year with a planned cost of almost 1.5 billion yuan (220 million U.S. dollars).

It was scheduled to be finished within 15 months, but the
construction was affected by a riot in Lhasa in March, a major
earthquake in the neighboring Sichuan Province in May and rare
snowstorms in Nagqu last month, Song said. Therefore the project will
be prolonged by about six months.

"So far we have invested 1.12 billion yuan into the project. The
construction is going on smoothly," he said.

The center is expected to handle 2.23 million tonnes of cargo by 2015
and 3.1 million tonnes by 2020, including raw minerals, local herbs,
construction materials and commodity goods, local officials have said.

Tibet's economy has been growing at an annual rate of 12 percent or
more over the past seven years, and the Qinghai-Tibet Railway is
believed to have played a great role in boosting the region's
development since its opening two years ago.

In 2007, the region's gross domestic product (GDP) was 34.2 billion
yuan, about 12,000 yuan per capita -- double the 2002 figure. The per
capita net income of farmers and herdsmen posted double-digit growth
for the fifth consecutive year and reached 2,788 yuan in 2007.
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