Plan to break up China's Ministry of Railways has met 'no resistance'

The central government's plan to break up the Ministry of Railways has not met resistance within the department, Railways Minister Sheng Guangzu said yesterday in the highest-level comment on the subject to date.

The ministry would be restructured to split its dual role as both industry supervisor and railways operator, Sheng said on the sidelines of the National People's Congress meeting. "There was no resistance within the ministry [about the overhaul]," Sheng said, declining to disclose more details of the restructuring.

His remarks follow widespread speculation that the scandal-plagued ministry, one of the last legacies of China's planned economy, would spin off operational units while merging its railways watchdog function into another ministry to form a so-called super ministry.

"I'm in favour of forming a super ministry," Sheng said. "It would boost the development of railways."

Streamlining of the ministry is part of a push by the Communist Party to create super ministries to cut red tape.

Rumours suggest its regulatory functions will be absorbed by the Ministry of Transport, which oversees roads, airports and ports, while the operation of its rail business would be transferred to a separate company.