China signals reform of rail system

“‘The large railway system is critical to China’s economy—and will become even more so with the economy’s shift from coastal areas inland,’ said Gerald Ollivier, senior transport specialist with the World Bank, adding that the current multiplicity of roles at the ministry creates ‘some conflicting objectives’.

Splitting it up into parts — which could eventually entail setting up several regional rail companies — could intensify competition and improve fundraising among Chinese rail companies, which could help reduce China’s relatively high rail costs and fuel the system’s continued build out. It could also create additional business for international companies that supply parts and know-how for China’s rail ambitions.”

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