China's national railway - estimates an operating loss of $800 million in 1994 - Brief Article

Railway Age, August, 1994

CHINA's NATIONAL RAILWAY is anticipating an operating loss of over $800 million this year, blamed partially on tight state controls on passenger fares and freight rates. The Ministry of Railways says it plans to increase revenues by expanding what it terms are "related businesses," and also plans to sell or lease equipment and facilities to private investors or individual sectors of the railway in the future.

China's government is also looking to attract foreign companies to form joint operating ventures. It says that management will be allowed to set freight rates outside of present state-imposed limits, and will be able to profit from related real-estate agreements. China's present regionalized railway management structure is now being reconfigured into self-sufficient corporations, each with greater responsibility for expenditures and profits. Additionally, the Ministry of Railways is currently formulating a proposal to create an independent arm for rail tourism, as well create autonomous freight transport companies.