China to dismantle Railways Ministry

Ministry hit by debt, scandal

While Chinese people enjoy the world's fastest train in operation, the robust development of railway construction has also brought huge debts.

The ministry's debt-to-asset ratio climbed to 61.81 percent at the end of September 2012, according to official data. The ministry's total assets amounted to 4.3 trillion yuan ($684.7 billion), and its debts amounted to 2.66 trillion yuan at that time.

With a length of over 9,300 km by the end of last year, China has the world's largest high-speed rail network in operation. It plans to have 18,000 km of high-speed lines in operation by 2015.

To achieve this goal, China will invest 2.3 trillion yuan in railway infrastructure during the 2011-2015 period, according to the 12th five-year plan for railway development.

With regards to its huge debts, Sheng Guangzu said the dismantling of the Railways Ministry will not affect railway construction investment.

Sheng said the debts of the Railways Ministry will be divided according to whether they are public or commercial. The debts will be properly reviewed and handled by relevant departments.

As the railway has undertaken many public functions and its development is at an important stage, the government will continue to support railway construction, accelerate reforms in railway investment, financing and pricing, and establish a sound transport subsidy system, Ma Kai said Sunday.