Freight Transportation into the Ministry of Railways to increase revenue

In order to ensure the smooth flow of the “three west” (Shanxi, Shaanxi, Inner Mongolia West) coal-to-sales corridors, the Ministry of Railways has recently formulated the incremental freight transportation plans for the Houyue, Shitai and Fungsha third-tier freight lines. Million tons, the total annual traffic volume of nearly 400 million tons, close to the coal transportation artery 450 million tons of large Qinhuangdao scheduled traffic volume. According to reports, the above plan was formally implemented on February 5.

The Ministry of Railways stated that this move was aimed at "meeting market demand and doing a good job of increasing revenue and revenue this year." This year, the Ministry of Railways officially entered the peak period of debt repayment, in addition to raising huge amounts of money for railway construction, it also needs to raise funds to repay a large amount of due debts. As the freight forwarding is the main source of profit for the Ministry of Railways, some experts said that The freight reform and the corresponding increase in traffic volume can ease the tension in railway financing.

The Ministry of Railways said that the current macroeconomic stabilization and warming trend of the country is evident, and the demand for bulk material transportation has rebounded sharply. In response, the railway department has conducted long-term investigations, held many seminars and communicated with the relevant railway bureaus, and based on Hou Yue (Homa-Moon Hill), Shi Tai, Feng Sha Da (Fengtai-Shacheng) - Datong) The third line is one of the key points of the increase in freight transportation for the entire year this year. It has optimized the transport organization and eventually formed a "three-line" freight transportation incremental program.

According to the program arrangement, the Houyue Line has a transportation capacity of 193.4 million tons, an increase of 17 million tons over the previous year; the Shi-tai Line has an increase of 15.02 million tons over the previous year, and the annual traffic volume of 118.8 million tons; the Fengsha Line is relatively high. The annual increase of 15 million tons is expected to achieve 87 million tons of transport volume throughout the year. This third line increased capacity to 47 million tons.

As one of the busiest routes in the world, the Daqin Railway has undertaken nearly one-fifth of the country's coal transportation volume, and has played an important role in China's West-Coal East Transportation and Northern Coal Transportation. Due to the slowdown of economic growth, sluggish coal demand, and large impact of imported coal on the domestic market, in 2012, the Datong Line actually completed 4.2588 million tons in the year, 14.28 million tons less than the same period of last year. According to a report from the Ministry of Railways, according to changes in traffic flow routes, the Ministry of Railways will simultaneously optimize and optimize the transportation organization plan for the Daqin Line. In 2013, the Daqin Line transported 450 million tons, an increase of 24.11 million tons over the previous year.

In China's coal transportation channel, the growth of the “three west” coal outflows mainly depends on the lines of Daqin, Fengsha, Houyue and Shitai. Some experts have analyzed that with the increase of the traffic volume of these lines, the saturation status of the “three West” coal transportation channels will be eased, which is also of great significance to the promotion of regional economic development.

In 2012, total railway operating revenues totaled 975.2 billion yuan, a year-on-year increase of 15%, but the profitability was not good. At present, the 2012 annual report of the Ministry of Railways has not yet been announced, but according to its three quarterly reports, the Ministry of Railways has total assets of 4.3 trillion yuan and liabilities of 2.66 trillion yuan, and the asset-liability ratio is 61.81%. Statistics show that the current stock of railway construction bonds is 631.5 billion yuan, and the annual interest payment pressure is nearly 30 billion yuan.

Expected to ease the pressure on debt At present, the large number of high-speed railways opening operations has brought heavy financial pressure to the bureaux, and freight has become one of the few sources of income growth for the Ministry of Railways. According to Minister of Railways Sheng Guangzu, in 2013, it is necessary to vigorously implement the freight organization reform and push the railway to go all-round to the market. Focusing on online acceptance, physical cargo transportation and full logistics services, we will promote the reform of freight organization and ensure a major breakthrough in the development of the freight market.

Cai Jianming, a research fellow in the investment industry of China Investment Advisors Co., Ltd., said that the full range of railway freight transportation to the market means that the following reforms will involve the commercialization of freight rates, separation of passengers and cargo, and so on. “The arrival of the peak of debt repayment is a major test for the Ministry of Railways. The huge amount of construction and debt financing pressure will force the Ministry of Railways to carry out in-depth and comprehensive reforms. Adjusting cargo capacity and increasing prices can also increase railway revenues and ease the Ministry of Railways. Debt pressure."

Recently, some media quoted sources from the Ministry of Railways saying that in 2013, not only rail freight prices are expected to increase further, but passenger fares that have not been adjusted for 18 years may also be raised. However, industry analysts believe that due to the sensitivity of passenger fare increases may affect low-income people, so freight adjustment may become a priority.

Li Hongchang, deputy director of the Institute of Transportation Economics Theory and Policy at Beijing Jiaotong University, said that the current rail freight price is only 1 ton per kilometer, while the road freight rate is between 2 and 5 hairs, and there is still room for price increases.

For the Ministry of Railways, which is "thirsty for money," a 1-cent-for-dollar cargo price increase may generate additional revenue of over 20 billion yuan, which is undoubtedly a huge temptation. In addition, due to the current railway wagon tension, supply and demand imbalance, to the dispatching department in the wagon allocation "for rent-seeking" space. Li Hongchang believes that through price adjustment, it is not just a question of rising prices. This kind of price mechanism can play a better role in the allocation of resources and allow the Ministry of Railways' value-added business revenue to become more open and transparent.