Railways operator will no longer be its own regulator

The national railways operator would no longer be its own regulator under the much-anticipated plan to dissolve the scandal-plagued Railways Ministry.

Under the proposal released by the State Council yesterday, day-to-day operations and the planning of future railways would be spun off to a new China Railway Corporation, while regulatory oversight would be handed over to an expanded Transport Ministry.

In addition, a new vice-ministerial-level agency, the State Railway Administration, would be established under the ministry to oversee railway safety, service quality and other issues.

Railways Minister Sheng Guangzu said yesterday that he "had no regrets" being the last person in that post, and no one would be laid off because of the restructuring. "The ministry staff are all supportive of the revamp plan," he said.

Sheng was appointed in February 2011 after his predecessor, Liu Zhijun , was ousted amid corruption allegations.

Wang Feng, an official in the Communist Party office involved in drafting the reform proposal, said the new structure was intended to fund the debt-laden railway sector better and boost safety supervision.