China's railways industry

CNC report from Beijing
Added On March 12, 2013

A senior Chinese official says, with the breakup of the Ministry of Railways, it'll be much easier for private capital to contribute to railway construction and operations.

This, he stresses, will help break monopoly in the industry.

It has been difficult for private capital to enter the railways industry as the existing Ministry of Railways has the functions of both a government department and an enterprise.

That's according to Wang Feng, deputy head of the State Commission Office for Public Sector Reform.

The remarks come as the State Council has just presented to the national legislature a plan to break up the Ministry of Railways.

Under it, the ministry will be dismantled into administrative and commercial arms. This, says the cabinet, will reduce bureaucracy and improve efficiency.

SOUNDBITE (CHINESE) WANG FENG, State Commission Office for Public Sector Reform:
"The introduction of private capital will bring in competition. A more diversified investment and operation structure will instill vitality to the railways industry."

Wang also stressed that the railways industry is different from other sectors. Therefore, the dispatch and command of railways must be unified and the construction of the overall network must be under integrated planning.