Workers lay railway tracks near a new railway station in Shanghai, China, on Monday, March 1, 2010. China is spending 5 trillion yuan ($732 billion) on new railways by 2020. (BLOOMBERG)

BEIJING, March 3 (AFP) – The operator of a high-speed railway linking Shanghai and Beijing is planning a stock market listing this year to help it cover the project's massive costs, state media reported.

Beijing-Shanghai High-Speed Railway Co. Ltd., indirectly owned by China's Ministry of Railways, hopes to raise 30-50 billion yuan ($4.4-7.3 billion) with the move, the China Daily said, citing an unnamed ministry source.

The report did not specify where the company hoped to list.

Work on the 1,318-kilometer (819-mile) high-speed line started in April 2008 with a planned investment of 220.9 billion yuan and so far nearly 122.4 billion yuan has been spent on it, the report said.

Once operational in 2012 it is expected to double the capacity the current line carries to 80 million passengers a year and cut travel time to about five hours from 12.

Railway projects in China are mostly financed through government funds and bonds issued by the railways ministry. But the ministry is exploring alternative ways to raise money and ease the financial burden, the report said.

It is preparing the listing proposal and has submitted it to key government departments for review, it said.

The IPO plan also has to be approved by the State Council as the project is still under construction and the firm, set up in late 2007, is yet to meet a regulatory requirement for three consecutive years of profit, it said.

China has been investing heavily to expand its transportation network in a bid to drive growth in related industries as well as the overall economy.

The country will invest about two trillion yuan this year in the transport sector, including roads and waterways, the China Business News said Monday, citing Guo Xiaobei, a senior researcher with the National Development and Reform Commission, the country's top economic planner.

Last year, investment in the sector reached two trillion yuan, up 80 percent from 2008, the report said.