Gega, a local Nagqu herdsman, often tried to start businesses but always failed. "The bad transportation conditions held me back," said Gega. But his yogurt business has begun to see considerable development. "The opening of the Qinghai-Tibet Railway makes my business much easier," he said.

He said 1 kg of yogurt used to sell for 15 yuan ($2.2) but has now climbed to 70 yuan ($10.25) per kg since the railway went into operation because more inland businessmen are coming to purchase the high-quality yogurt.

"I can earn more than 10,000 yuan ($1,464) each month from my business," said Gega.

Gega now makes contact with more local and visiting consumers. He has started to get business cards printed in both Mandarin and Tibetan.

"If foreign consumers come to buy my yogurt one day, I will also print English business cards," he said.

Economic boom

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 10 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) to 0.12 yuan ($0.018).

"Shippers of 1 ton of goods can save more than 500 yuan ($73.21) 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), accounting for 98 percent of the total annual output in Damxung. Output in 2009 is expected to reach 500 million yuan ($73.21 million), said Fu.