There Is No Suspense About The Liberalization Of Railway Management Rights; &Nbsp Is Limited; The Degree Is Limited And The Core Of The System Is Not Touched.

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The draft seeks to delineate the power and profit boundaries between the Ministry of Railways and its railway administrations and joint ventures.

An informed source from the Ministry of Railways told reporters that despite the "power to what extent, what level" high level is still under discussion, but the local railway bureau autonomy.

If the reform is carried out, the railway business environment that has long been dead is expected to be loosened. The Railway Bureau or joint venture company will be allowed to participate in the real estate development and advertising management rights along the railway line, and will retain a considerable proportion of the revenue from it.

However, "the two most important powers of cost, revenue liquidation and traffic dispatching are expected to remain firmly seized by the Ministry of railways."

The people familiar with the matter said that the reform of the Ministry of Railways was initially characterized as "moderate adjustment". "Inappropriate reform of decentralization may lead to chaos."

At present, the Ministry of Railways has solicited opinions on how to decentralization to the Railway Bureau.

Not long ago, the ministry organized a demonstration meeting among senior and senior officials.

The State Council has not heard the formal feedback from the State Council on this reform.

Since 1980s, the "big package" and the whole road economic contract system have been separated from the responsibility system of the assets management and the separation of the road network. As an attempt every time from closed system to open system, the reform topics of the Ministry of railways have attracted much attention, and it has been lost because of repeated stagnation.

For the decentralization reform, industry insiders say that because the reform still does not touch the core of the system of "integration of government and enterprises", until the real market players are not established, "the current reform is only fine tuning".

The reporter learned that in the opinion of the Ministry of Railways on the decentralization reform, the Railway Bureau, which is relatively profitable, expects that the revenue of the road department can be largely left behind when the way of obtaining funds for operation remains unchanged, and the Ministry of Railways only extracts the number of points symbolically.

The former sources said that although this part of the creative income settlement has not been reached by consensus, it will surely tilt the local road in the future.

At present, there are 18 railway bureaux and 2 railway companies throughout the country.

For a long time, the local railway bureau has been vertically managed by the Ministry of railways. It is responsible for implementing a series of plans of the Ministry of Railways and has no right to operate independently.

Under the current system, the Ministry of Railways implements the management of the two lines of revenue and expenditure to the local railway administration. All the revenues of the railway administration are turned over to the Ministry of Railways and incorporated into the Ministry of railways. The Ministry of Railways redistribute the operating funds and income and profit indicators of the bureaus according to their liquidation system.

As a matter of fact, because of the difference in the area between the 18 railway bureaus, there is a big difference between passenger and freight volume. This "big pot" mode has actually compensated the loss of the Railway Bureau in the western region and other areas by using the profit from the roads in the developed areas, but it has also restricted the enthusiasm of the Railway Bureau.

In a closed railway system, this mode of liquidation is similar to the "pfer payment" in the industry.

The bigger controversy is that for the Ministry of railways, the specific liquidation method, even within the railway system, is not clear enough. Close to the Ministry of Railways' railway system, one is because of the complexity of the liquidation itself, and the two reason is the lack of pparency in liquidation.

Therefore, when the Ministry of Railways tries to reform spontaneously and consider how to mobilize the enthusiasm of local road administrations, how to coordinate income sharing has become a barrier.

The foregoing sources believe that it is not expected that the liquidation system will undergo major changes in a short period of time. The main demand of the railway bureau is only a large portion of the creative revenue, and there is no expectation of changes in the main business liquidation rules.

If the entire railway reform has not yet been fully promoted, the normal operation of the roads in less developed areas may be difficult to guarantee once the cost accounting and income sharing are completely decentralization.

"The overall reform of liquidation must be supported at a higher level, and the state must have matching subsidy programs."

If the ability of "pfer payment" within the railway system is declining, the national finance should try to provide subsidies, the source said.

From this level, the Ministry of railways can not accomplish this reform alone.

In addition to the right to liquidation, the right of dispatching has always been an independent power of the Railway Bureau and the joint venture railway.

At present, the passenger ticket price is entirely led by the Ministry of railways. When the passenger train is opened, the railway department must report it to the Ministry of railways.

"Even if we use the new liquidation method, the Ministry of railways can still control how many cars you have, how many trains you run, and the joint-venture railways and even the listed railways have no premium capability."

A joint venture railway official said.

Market information said that the power allocation scheme under discussion will remain unchanged in the Ministry of railways, but the opening of trains between municipalities and counties within the jurisdiction of each Railway Bureau will be decided by the Railway Bureau.

In addition, if there is a sharp increase in passenger traffic, the two bureaus will be able to open their own columns if they reach an agreement.

The train price will be increased by the local railway bureau.

However, some people in the railway system hint that in fact, in some districts, there is no longer strict regulation of trains between cities and counties.

On the whole, he said, the joint venture is expected to gain more benefits from decentralization reform.

With the reduction of administrative intervention and the promotion of corporate governance, a relatively reasonable profit is retained, and the joint venture will have greater power.

"Although the key powers are still impossible to devolve, the Railway Bureau will consider more about the Railway Bureau's opinions."

He mentioned that when Liu Zhijun was in office, the purchase rights of some equipment and other materials recovered from the railway bureau may also be delegated again.

Dispute on railway system reform

One of the people interviewed by the railway system described Sheng Guangzu's attempt to decentralization as a small step in trying to reform.

"Just a tentative fine tuning."

He said that although the direction of the reform of the whole railway system has been clear, the path of reform has not yet been clearly stated.

Reporters learned that the "separation of network operation" or "integration of network and pportation" has been discussed many times, and it has been mentioned again in the context of the restarting of the railway system reform.

Those who have been interviewed by the railway system believe that if the separation of network operation and pport is divided into line companies and pport companies, the line companies will still maintain the monopoly pattern, and only form a competition at the level of pport companies.

European Railways mostly adopt such a mode of "network pport separation", and the construction of road network will involve large amount of government subsidies.

He said that the next step in the railway reform will be the integration of the 18 railway bureaus and the high-speed rail companies after the discussion on the network pport relationship.

According to the research on railway system reform commissioned by the development and Reform Commission of Beijing Jiaotong University in 2007, the Ministry of Railways is separated from the real administrative enterprises. On this basis, the existing 18 railway bureaus (companies) are reorganized into three major regional railway companies in the north, central and southern regions.

After the division of the three major regional companies, we should carry out the reform of the separation of network and pportation within the company, carry out modular reorganization according to the business nature, establish independent accounting branches or subsidiaries of road network companies, freight companies, passenger pport companies, locomotive traction, station services, etc., and establish reasonable mutual clearing prices and establish internal market trading relations.

At the same time, each regional railway company has set up a unified dispatching command center.

Xu Jie, a senior analyst at Orient Securities, pointed out in his report that according to the analysis of the construction of the four state-level railway pportation hubs in Beijing, Shanghai, Guangzhou and Wuhan, it is possible to divide the four regional group companies with the four railway bureaus as the center, so as to realize the integration of passenger and freight separation and network operation, and to maintain the integrity of the main railway line.

The regional dispatching power may be put to the group company, but the final unified dispatching authority is still retained in the Ministry of railways.

The above-mentioned railway system personages said that when the integration of the Railway Bureau was pushed forward, it was necessary to consider the formulation of the rules of liquidation between the various regional groups, who would formulate, and who would liquidate.

He mentioned that one of the models that could be referred to was that the United States adopted a joint venture of several major regional groups to set up a specialized Clearing Corp, which could be publicly and pparently liquidated. It could also set up a joint venture vehicle company to provide vehicle procurement services and rental services to companies.

He said that several future regional companies will be self financing and form corporate governance, and assets and creditor's rights will be thoroughly sorted out so that several companies will be able to travel lightly.

"Similar to PetroChina (11.91, -0.20, -1.65%), Sinopec's reform."

The "deepening of the reform of state-owned enterprises" in the outline of the Twelfth Five Year Plan for the development of People's Republic of China's national economy and social development has been clearly put forward: "promote the structural reform of Railways and salt industry, separate government from enterprises and separate government assets."

But it did not mention how to push forward the railway system reform.

In the past 8 years, the Ministry of Railways has basically followed the "development precedence over reform" theory. Although the reform of railway investment and financing system has been pushed forward, the Railway Sub Bureau and the withdrawal and merger of stations have been abolish.

"Development oriented reform" has become "only development without reform", and the reform roadmap has been stranded repeatedly.

According to the foregoing personages, the decision makers did not think that the Ministry of Railways could complete the reform voluntarily. Previous studies on the railway system reform were mainly led by the national development and Reform Commission, and were handed over to Beijing Jiaotong University and other institutions.

Dong Fang, the party secretary of the Comprehensive Transportation Research Institute of the national development and Reform Commission, told reporters in April 12th that the current reform of the railway system must be led by a higher level of leadership, and that the reform of railway enterprises will be discussed in the light of the two reforms of the separation of government and enterprises and the establishment of a major traffic management organization.

"The reform of railway system must have top-level design, which is top-down."

Dong Yan believes that the current discussion of the Ministry of Railways on decentralization of power to the railway bureau is actually a bottom-up reform idea. Transport capacity, pit rights and pricing rights are not suitable for decentralization at present, and the liquidation authority should be more discreet. "In the case of the eastern railway passenger volume and cargo volume saturation, the volume of western traffic is relatively insufficient, the decentralization of proceeds sharing right is very easy."

Shuai Bin, vice president of traffic Portage College of Southwest Jiao Tong University, said that the reform of the liquidation system must be coordinated with the whole railway system reform before it can be effectively promoted. "The first step in China's railway reform is not to discuss how to delegate power to the Railway Bureau, but to focus on how to break the current system of integration of government and enterprises."

"Top-down reform will be a painful pformation, and bottom-up change is a gradual adjustment, with a longer cycle, but easy to accept."

He analyzed that the current discussion of decentralization is also easy to create contradictions on the railway system.