China simplifies rail freight procedures as reform begins
China Railway aims to simplify procedures for customers and improve service, three months after Beijing eliminated the Railways Ministry
The central government plans to reform its railway freight industry to boost efficiency and drive down costs in the fragmented logistics sector.
The reforms, which took effect on Saturday, are expected to simplify railway freight procedures and provide customers with better service.
The move is the first of a series of measures planned by China Railway Corp for the next few years as it faces pressure to boost demand for railway freight services and turn itself into an efficient and profitable business.
The mainland is investing in high-speed railway networks. It will spend up to 1.9 trillion yuan (HK$2.4 trillion) on high-speed railways in the five years to 2015. The railway freight business, however, is shrinking.
Ministry of Transport statistics show railway freight volume dropped 0.7 per cent to 3.9 billion tonnes last year because of economic weakness and less demand for coal. The trend continued this year, with freight traffic falling 0.8 per cent in the first quarter.
"We must turn from being a bulk-goods-focused transport service provider to being a full-service logistics provider," Sheng Guangzu, a general manager at China Railway, said last month.
Railway freight services on the mainland are notorious for their complicated application procedures, long waiting times and inefficiency.