By Caijing staff reporter Zhao Hejuan

From Caijing Online

The Shanghai government has secretly prepared for construction of the controversial Shanghai-Hangzhou magnetic levitation (maglev) railway, a source close to the project told Caijing.

Members of the local government, urban planning institutions and other parties convened on Dec. 17 to coordinate work on an underground segment of the railway, according to official documents obtained by Caijing.

Progress has been kept secret due to its sensitivity, the source said. The Shanghai government’s information office said, “The project is still under feasibility study by experts. No further information can be provided at this time.”

The project, shelved in 2007 under massive public opposition due to concern about radiation, is pending approval by the central government. But it has a good chance of getting a green light from decision-makers in Beijing at a time when the country is in search of public works projects to stimulate the economy, said the source, who participated in the meeting.

At the meeting, discussion focused on a new subterranean segment designed to address public concern.

But opposition now comes from inside the government. Opponents say the railway will be redundant because the function it was originally designed to perform will be served by an extension of the Shanghai subway, now under construction, and the Shanghai-Hangzhou high-speed passenger rail, which has won approval.

Wei Lehan, the lead magnetic scientist at the Shanghai Science Academy, told Caijing that danger of fire increases significantly if a maglev train runs underground. He also said the maglev cannot run as fast underground, compromising its main advantage, speed.

Eight Shanghai companies, including steel-maker Baosteel (600019.SH), and auto-maker Shanghai Automotive Industry Corp., formed a consortium to build and operate a demonstration line between the Pudong airport and a suburban area. But this demonstration line has always been in the red, which has also raised doubts about the project’s commercial viability.