Title: TRANSITION TO A MARKET ECONOMY BRINGS TOUGH CHALLENGES
Abstract: Until 1981, China's rail network was operated by the Ministry of Railways (MOR) and planners determined which passenger and freight services would be provided and at what tariffs. Between 1981 and 1986, MOR began a transition in which it retained part of its net income and government paid less of MOR's investment. In 1986, the Economic Contract Responsibility System (ECRS) was established. MOR decentralized partial power to its Regional Railway Administrations. MOR is essentially the only railway in the world that has expanded its network in the last 20 years. The growth has been self-financed. Traffic density and productivity are compared with those of other countries. Rapid economic growth in the 1990s resulted in growing competition from road and air. Planned changes include separating railway from government, separating operations from infrastructure; commercialising the rail operators and establishing regulatory oversight. The problems involved in restructuring the railways are discussed.
Publication Year: 2003
Publication Date: 2003-02-01
Language: en
Type: article
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