CRC on track for new man­age­ment mod­els

China Daily (Canada) - - VIEWS - By ZHONGNAN Zhongnan@chi­nadaily. com.cn

China Rail­way Corp, the world’s big­gest rail­way op­er­a­tor by rail length, will carry out a mixed own­er­ship re­form this year to ex­plore new man­age­ment mod­els fea­tur­ing cap­i­tal use rather than ba­sic op­er­a­tion, a lead­ing ex­ec­u­tive said.

Lu Dongfu, gen­eral man­ager of CRC, said the group will fo­cus on eight main tasks. These in­clude de­vel­op­ing both high-speed and reg­u­lar rail­ways, es­tab­lish­ing rail de­vel­op­ment funds and new com­pa­nies to carry out rail-re­lated busi­nesses, and seek­ing the list­ing of its qual­i­fied as­sets on do­mes­tic stock mar­kets.

“CRC will work with both pri­vate and State-owned com­pa­nies to form joint ven­tures to sup­port mixed own­er­ship re­form, and will ac­cel­er­ate the pace of as­set-backed se­cu­ri­ti­za­tion and eq­uity fi­nanc­ing in the rail­way sec­tor,” Lu said.

All the ef­forts aim to meet China’s goal to ex­tend the length of do­mes­tic rail­way net­work, as well as win more rail­way projects in the global mar­ket. It is crit­i­cal to deepen in­vest­ment and fi­nanc­ing re­form for rail­way-re­lated busi­nesses, the Min­istry of Trans­port said onWed­nes­day.

The rail­way sec­tor has been se­lected as one of the seven pilot in­dus­tries for mixed own­er­ship re­form of Sta­te­owned en­ter­prises this year. Oth­ers in­clude the power, en­ergy, civil avi­a­tion, telecom­mu­ni­ca­tions and de­fense sec­tors, ac­cord­ing to theN­ational De­vel­op­ment and Re­form Com­mis­sion, the na­tion’s top eco­nomic reg­u­la­tor.

China’s rail­way net­work reached 124,000 kilo­me­ters by the end of 2016, in­clud­ing more than 22,000 km of high­speed rail­ways.

“The se­cu­ri­ti­za­tion of pop­u­lar high-speed rail ser­vice lines be­tween Bei­jing and Shang­hai or Wuhan and Guangzhou has been talked about many times within CRC and re­lated gov­ern­ment branches, and they will be hot can­di­dates to become listed com­pa­nies once the re­forms are deep­ened,” said Wang Qing, a rail trans­porta­tion re­searcher at the NDRC.

High-speed rail ser­vices be­tween Shang­hai and Bei­jing re­ported net prof­its of 6.58 bil­lion yuan ($946 mil­lion) in 2015, while the ma­jor­ity of high-speed rail­way op­er­a­tors con­tin­ued to strug­gle to make earn­ings, data from Bei­jingShang­haiHigh-Speed Rail­way Co show.

CRC plans to of­fer more pol­icy sup­port to its lo­cal man­age­ment branches, un­der the pub­lic-pri­vate part­ner­ship man­age­ment model to de­velop land de­vel­op­ing pro­grams such as in­dus­trial and com­mer­cial real es­tate projects.

ZOU HONG / CHINA DAILY

An at­ten­dant looks out a train sta­tion in Guan­ling, Guizhou prov­ince. Guan­lin is one of the sta­tions on the Shang­hai-Kun­ming high-speed rail­way.

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