Asia’s infrastructure boom is helping to keep things moving

It's all about infrastructure spending in Asia at the moment, with many economies in the region expanding their investment in transport, communication and energy projects to put them on a sounder footing and to keep growth on track.

The topic has been in the headlines since Beijing announced that 57 countries had signed up to be charter members of the China-backed Asian Infrastructure Investment Bank (AIIB).

China has allotted €46.5 billion for the bank and €37 billion for the Silk Road infrastructure fund.

During President Xi Jinping's recent visit to Pakistan, the focus was on the China-Pakistan Economic Corridor (CPEC), a combination of transport and energy projects in a 3,000-kilometre corridor that stretches all the way from the western Xinjiang region to the Chinese-funded Gwadar Port on the Arabian Sea.

“We need to form a ‘1 plus 4’ co-operation structure with the economic corridor at the centre, and Gwadar Port, energy, infrastructure and industrial co-operation being the four key areas to drive development across Pakistan and deliver tangible benefits to its people,” Mr Xi said ahead of the visit.

China sees Pakistan as a key part of efforts to access the Indian Ocean over land to boost trade with Europe, Africa and the Middle East using the CPEC. Along with China's Silk Road Economic Belt and 21st Century Maritime Silk Road, the initiatives form a key part of China's efforts to expand its influence in the region and boost infrastructure.

The official line in China is that there will be no big infrastructure projects to kick-start the economy similar to the ones introduced in 2009 after the global financial crisis, but in reality there are measures being introduced.

Last week Chinese premier Li Keqiang, who is responsible for boosting the economy, urged local officials to speed up the process of carrying out risk assessment on big development projects and avoid bureaucratic delays.

He said the slow pace of approvals was holding back economic progress in China, where the economy grew 7 per cent in the first three months of 2015, the slowest rate since 2009. He is also opening the door to more private investment in infrastructure.

After a meeting of the state council, China's cabinet, last week, Mr Li said private investment in areas such as transportation, energy, water and environmental protection can improve public services. He said there would be subsidies, with streamlined approval procedures and that financial institutions would offer loans of up to 30 years.

Some of these projects have a big regional focus.

South Korea's Daily Economic Report said a proposed high-speed rail link connecting Beijing with Seoul could be a reality by 2030, running through North Korea. Other reports say the 1,700km journey, which would take six hours, could be up and running within five years.

The rail connection would run from Seoul through the North Korean cities of Pyongyang and Sinuiju, connecting with China’s existing high-speed network to Beijing, starting from the Yalu river.

Japan is also spending on infrastructure. This week, Japan's magnetic levitation train broke its own world speed record, hitting 603km/h in a test run near Mount Fuji. The maglev service, which uses electrically charged magnets to lift and move carriages above a rail track, is expected to run between Tokyo and Negoya by 2027.

The 280km journey will only take 40 minutes, less than half what it currently takes. It is not cheap, with estimates putting the cost at €95 billion.