The Qinghai-Tibet Railway has played a crucial role in stimulating the economic development of Tibet and become an important channel for passenger and cargo flow to move between inland cities.

Statistics provided by the Beijing-based China Tibetology Research Center (CTRC) show that the Qinghai-Tibet Railway had carried almost 14 million passengers and 63 million tons of cargo by the end of May.

Tibet Glacier Mineral Water Co. Ltd. is an enterprise located in Lhasa's Damxung County. It is planning to expand production and has started to construct new infrastructure.

General Manager Fu Lin said the company found its water source ten years ago but did not exploit it because of undeveloped transportation. The company was set up in October 2005 just before the railway started operating. It began producing its brand of mineral water, 5100, in 2006.

"The annual mineral water resources here are 3.6 million tons, while 1.2 million tons can be tapped. Without the Qinghai-Tibet Railway, there would be no 5100 Mineral Water," said Fu. He said the company's annual output in 2006 was only 4,000 tons but reached 50,000 tons in 2008 because of the railway. He said annual output in 2009 could reach 120,000 tons.

"We are planning a third production line. After it is put into operation, our total capacity will be able to reach 300,000 tons," said Fu.

According to CTRC, the cost of both passenger and goods transport has been greatly reduced with the completion of the railway. The cost per ton-km has been reduced from 0.38 yuan (0.056 U.S. dollars) to 0.12 yuan (0.018 U.S. dollars).

"Shippers of 1 ton of goods can save more than 500 yuan (73.21 U.S. dollars) in transportation costs from Lhasa to Xining," said Fu. "Our products are delivered to other inland cities over the railway."

By 2010, it is projected that 2.8 million tons of cargo will be carried to and from Tibet, with over 75 percent of that being carried by the railway.

The transport cost reduction has improved the competitiveness of Tibetan products and promoted the development of Tibetan industries. Today, many Tibetan products, including mineral water, beers and yak milk, are crowding into Chinese markets thanks to the railway.

Damxung County used to be a poverty-stricken area lacking any industry. But the establishment of the Tibet Glacier Mineral Water Co. improved local people's lives.

In 2008, the company's output was valued at nearly 300 million yuan (43.92 million U.S. dollars), accounting for 98 percent of the total annual output in Damxung. Output in 2009 is expected to reach 500 million yuan (73.21 million U.S. dollars), said Fu.

He said the company has 230 staff members, with over 95 percent being local Tibetans. Lobsang, a 24-year-old, has been working with the company since it started operations. Her five-member family's annual income used to be 1,000 yuan (146.41 U.S. dollars). Since she started working with the company, her yearly income alone can reach up to 40,000 yuan (5,857 U.S. dollars). "Today, I can easily pay my brother's and sister's studying fees," she said.

Statistics from CTRC show that Tibet's gross domestic product growth in 2007 and 2008 was 14 percent and 10.1 percent, respectively.

Also since the Qinghai-Tibet Railway began operating, many world-known corporations have invested in Tibet, said Dorbyge, Director of the Tibet Investment Promotion Bureau.

Tibet Glacier Mineral Water Co. Ltd. is invested by a Hong Kong company, with Carlsberg International and China International Trade and Investment Corp. as business partners, according to Dorbyge.

Besides, those corporations include China Minmetals Corp., a large group dealing worldwide in development, production, trading and operation for metals and minerals, and China Metallurgical Group Corp., a leading multidisciplinary multinational company that is well-known for its rewarding experience and strengths in scientific research, industrial engineering practice and international trading capabilities, said Dorbyge.

Between 2002 and 2008, Tibet attracted about 16.2 billion yuan (2.37 billion U.S. dollars) of investment. The operation of the Qinghai-Tibet Railway has boosted Tibet's regional ties, promoted its structural adjustment and helped it develop.