At
the press conference sponsored by the State Council Information
Office on October 18, 2002, Fu Zhihuan, minister of railways,
introduced China's railways' construction and development.
He also answered questions from the press.
Fu Zhihuan, Minister of Railways
October 18, 2002
The Chinese government attaches great importance to the
infrastructure construction including the railway and takes
the transportation and communication as the strategic key
points of the national economic development. Since the 15th
Party Congress the railway has accelerated the reform and
development and caused great changes in the railway system.
Railways are displaying an unprecedent new image. It can
be said that the past few years is the best period of all
in the development history of the Chinese Railways.
1. Keep speeding up railway construction and achieve great
new historical development.
In 1998, after the CPC central committee made the significant
strategic decision of accelerating the infrastructure construction,
driving the development of national economy, the MOR grasped
the opportunity and made a master deployment of developing
railways through the century. A new railway construction
surge in large scale was started and many new records of
railway construction were made.
From 1998 to 2001, the average annual investment in railway
construction exceeded RMB 54 billion, the biggest investment
ever and lasting the longest time since the founding of
the People¡¯s Republic of China. It is a period of time that
has seen the most projects started and completed. In the
above 4 years we started 39 large- and medium-sized projects
and completed and put into operation38, completed 4933km
of track laying on new lines, increased the route length
of 4,030 km, produced 4,103 km of double track and electrified
4,848km of track. By the end of 2001, the route length of
the Chinese Railways was over 70,000km, of which 23,000
km double tracked, accounting for 38.3% of the total railways;
17,000 km of electrified, accounting for 28.6% of the total,
realizing the cross-century five-year construction objective
ahead of the schedule. By the end of 2001, the route length
of Chinese Railways ranked No.3 in the world, the route
length of double tracks and electrified ranked No 1 in Asia.
Beijing-Guangzhou, Harbin-Dalian, Chengdu-Kunming lines
are completely electrified. A group of key projects of double
track such as Baoji-Chengdu, Shilichong-Liupanshui, Heze-Yanzhou-Rizhao,
and new railway lines like Jinhua-Wenzhou, Daxian-Chengdu
Railway, Shenmu-Yan¡¯an railway were put into production.
These projects have made contributions to sustainable and
rapid development of national economy.
In the trans-century railway construction, the MOR has
accelerated railway construction in the west region, studied
and prepared a specified program for the railway construction
in the west region, and earmarked RMB 140 billion for the
western railway capital construction investment, which accounted
for 52% of the total investment planned in the railway construction.
It is that expected 3,670km new lines shall be constructed,
1250km of existing lines shall be double tracked, 510km
of existing lines shall be electrified. By the end of 2001,
the route length in 12 provinces, cities directly affiliated
to the central government, and autonomous regions was 25,900
km, accounting for 37% of the national total. By 2005, the
railway network in the west region will reach 27,500km of
route length, over 2,000km more than that at the end of
Ninth Five-Year. The Qingzang Railway, a symbol project
of developing the west region, is going on smoothly since
the construction started in June 29, 2001. The quality of
the construction is in good condition. At the same time,
progress has been made in ecological environment protection,
reservation of water and soil, wild animal protection and
labor and health security. By the end of this September,
RMB 5.96 billion investment has been completed. The Golmud
to Mount Kunlun section started track laying this June 29.
So far 97.3 km of track was laid. It is expected that track
laying shall be completed within this year. Engineering
work of the Mount Kunlun to Mount Tanggula section on perma-frost
earth has started comprehensively. The pass rate of construction
of foundation, bridges and coverts is 100%. The excellence
rate is above 90%. In the process of design and construction,
various environment measures have been implemented. At the
same time, human-orientation principle, the life and labor
protection of working staff are highly attentioned. The
three level medical care securement system is improved.
No casualties of plateau disease take place.
With four years of construction and upgrading, Chinese
Railways have marched up to a new step in terms of quantity
as well as equipment level. The railway network scale is
further expanded, the structure optimized, quality improved
significantly, tension of densely used main corridors greatly
alleviated. The ¡°bottleneck¡± of railways constraining development
of national economy for a long time is basically broken.
The situation that railway transport productivity not adaptable
to social and economic development is changed.
2. Implementation of speed increase strategy has seen significant
achievements.
The implementation of speed increase is an important strategy
to improve market competibility of railways and accelerate
railway modernization. Over the years, speed increase tests
were carried out on busy lines such as Shanghai-Nanjing,
Beijing-Qinghuangdao, Shenyang-Shanhaiguan, and Zhengzhou-Wuhan.
Many test results are obtained. A set of technology adaptable
to passenger trains over 200km/h was gained. In 1997, 1998,
2000 and 2001, Chinese Railways has experienced four consecutive
large scale speed increases. Currently, a speed increase
network of ¡°four veticals and two horizontals¡± of the railways
across the country has taken shape. The track length of
speed increase railways is 13000km, covering a majority
of areas and major cities throughout the country. The speed
of trains is generally raised. The average travelling speed
of passenger trains has increased by 25% over the years
before 1997. The maximum speed of the very fast trains increased
from 120km/h to 140~200km/h. Passenger trains in the range
of 1200-1500km will depart at sunset and arrive at sunbreak,
in the range of 2000-2500km will depart and arrive the same
day, and in the range of 500km can depart at sun break and
arrive at sun set. The Chinese Railways have changed from
the very basis the situation of passenger trains wavering
at low speed operation and failing to meet the market demands.
Implementation of speed increase strategy not only brings
about historical breakthrough of train operation speed,
but also great and far reaching effect on enterprise operation
ideology, marketing system in market, transport organization
method mode, and technical innovation ability. The speed
increase drives the railway scientific and technical progress
and innovation and accelerates railway modernization progress.
After speed increase, the technical equipment level is raised
greatly, narrowing the gap of railway technology between
China and developed countries.
3. Passenger and freight traffic has gained historical
breakthrough.
Transport operation has turned loss into profit. In response
to increasingly severe competition of transport market,
Chinese Railways adjust the operation strategy in time to
meet the market demands and actively promote market-oriented
operation.
To develop marketable transport products based on market
demands. For freight traffic, special container trains,
five-specified terms of freight trains with fixed departure
and arrival, through operation line, unchanged train number
in the whole trip, fixed departure and arrival time, and
price based on car or container were operated. For passenger
traffic, the middle and long distance passenger traffic
shall be key points in development. More through passenger
trains shall be operated. The advantages of railways in
middle and long distance traffic shall be better exerted.
At the same time, short distance transport is explored with
more effort. EMUs are developed and researched. Intercity
trains are operated between big and middle size cities.
On part of Guangzhou-Shenzhen line, Shanghai-Nanjing line
and Beijing-Tianjin line, the transport shall take short
train formation and high density mode, so that to realize
public transport between cities. On Guangzhou-Shenzhen line,
101 pairs of passenger trains run on Guangzhou-Shenzhen
line per day, with an average headway of 9 min at daytime.
In preparing train working diagram and designing transport
products, we¡¯ll be stick to the principle of ¡°Passenger
first¡±, offering the best departure and arrival time to
passengers. We have run a number of ¡°hotel trains¡±, which
depart in evening and arrive in the next morning. To address
the needs of the passengers with middle and low salary for
an economical price, the operation structure of the express
trains, fast trains and ordinary passenger trains is rationally
established, thus to ensure the large proportion of ¡°green
trains¡±(ordinary passenger trains) and serve passengers
as many as possible; to meet the needs of passengers for
comfortability, large number of new type passenger trains
were purchased, leading to a large-scale upgrading of the
equipments and facilities on the trains of high standard.
At present the passenger trains equipped with air conditioning
system account for 44.4% of the passenger cars in service.
During the golden time (peak hours) passenger trains on
Beijing -Shanghai lines are dispatched one after another
consecutively. Meanwhile new types of luxurious express
trains have been put into service to improve the convenience,
rapidness and comfortability of passenger on trip.
Improving the service quality has been regarded as one
of the crucial strategies in boosting the railway core competibility.
An overall renewal and upgrading is made for the shabby
and dirty ¡°green trains¡± as well as the inter-station stops,
thus greatly improving the waiting and riding environment.
The interior furnishings of the express trains are specially
designed and the supplies are replaced. The renewal and
the upgrading work has been made in terminals, in which
the notice, guiding, information inquiry and public addressing
systems are employed by applying modern technologies such
as multi-media and electronic display, thus bettering the
service; the number of ticket selling booth increased, and
various measures are implemented including computerized
network ticketing, buying tickets at the place other than
the departure, ordering tickets online and by telephone,
as well as ticket delivered to door, which makes it quick
and convenient for the passengers to obtain tickets. Certain
trainings have been initiated to educate the employees involved
in passenger service, the consequence of which is that the
service concept is altered, the skills bettered, the service
manner and quality improved. In recent years great achievements
have been made to target such issues as sanitation environment,
treating passenger politely, water supply system, ticket
purchase system, train punctuality and complaints handling
process, as a result the service quality is guaranteed substantially.
On some of the trains with high standard, ¡°no-disturbance
service¡± and ¡°service specially designed for different individuals¡±
are launched, which satisfy the passengers better.
The successful implementation of the market orientation
operation strategy has spurred a large-scale growth in passengers
and freight generated. The number of passengers carried
has stopped decreasing and turned to increasing. The number
of through passengers carried witnesses a large-scale increase
and the passenger km is also developing steadily. The freight
transport has also seen the continuous breakthroughs and
the transport revenue reached the historical high. In 2001
the passengers generated were 1.02 billion, the through
passengers 290 million, and the passenger km was 476.7 billion
p-km, representing an increase of 11%, 33% and 31% respectively
compared to that of 1997; the freight moved amounted to
1.79 billion tons, the freight ton km was 1425 billion t-km,
representing an increase of 10% and 9% over that of 1997.
At present the passenger km and freight ton km by rails
account for 36.3% and 54.6% respectively (excluding ocean
shipping) of the total in society. In 2001 the freight carried
by rails ranked the first and the freight ton km the second
in the world; the number of passenger carried ranked the
fourth and the passenger km the first. The Chinese Railways
completed a converted turnover of 1,934 billion t-km with
its 70 thousand km route length, only next to that of the
presiding railways of the United States (2,150 billion t-km
with 270 thousand km of route length). Now China becomes
one of the countries shouldering the largest railway transport
task, enjoying the fastest growing traffic and the highest
transport efficiency. In the same year the revenue made
in the railway sector was RMB 134.6 billion, representing
a growth of 59.9%, RMB 50.4 billion more in sum than that
of 1997. In 1999 the railway sector accomplished its goal
of turning the deficit industry into a profitable industry
one year ahead of the schedule, thus completely altering
the deficit predicament it had been in for a consecutive
five years. 2000 and 2001 saw an even better transport operation
and consolidated and expanded what had been achieved over
the past years.
4. The railway reform is progressing with steady steps
and significant achievements.
The railway sector has explored different reform solutions
in line with the actual Chinese Railway environment and
centered on the policy of separating the government from
enterprises, society from enterprises and quasi-government
from enterprises¡± and the work of downsizing the employment
as well as increasing the profit in order to accelerate
the overall reform process in an orderly way and lay a strong
basis for the coming railway restructure.
The 14 railway administrations carried out on full scale
the asset operation responsibility system to fulfill the
goal of turning deficits to profits by taking such measures
as clarifying the operation rights and responsibilities
of the enterprises, bringing forward the function transferring
of MOR, establishing the central market role of the railway
administration and speeding up the transformation of the
enterprise operation mechanism. From 2001 an important reform
was made within the transport financial system to separate
the accounting of the passenger, the freight and the network.
Passenger transport is allowed to obtain revenue from the
market. This has completely broken the traditional ¡°Sharing
Rice from the Same Big Pot¡± accounting system and igniting
the internal motivation of enterprises to strengthen the
operation and management.
Advance the practice of separating the core business from
the non-core business, separating the trunk lines from branch
lines, and downsizing the transportation body. The non-transportation
units engaged in manufacturing and supporting business,
loading and unloading, house construction and life logistics
have been separated from the core transportation business;
the asset property right has been clarified and the accounting
system standardized between the railway diversified economy
enterprises and transportation enterprises, fully initiating
the ¡°the separation of enterprises, accounting system and
working staff¡± and forming a new railway structure characterized
by diversified economy. Railway communications business
has been spun off from all railway administrations and restructured
as Railway Communication Corporation Limited. 100 railway
branch lines have carried out ¡°separate accounting and separate
performance evaluation¡±. Many solutions have been taken
to deepen the branch line reform, which had played an important
role in turning the branch lines into profitable ones. The
transport organisation and enterprise structure have been
in constant optimization to downsize the transportation
body. Since 1996 while the national railway operation mileage
increased over 4000 km, the 14 railway sub-administrations
on the contrary have been cut off from the railway sector,
representing a decrease of one quarter from the total sum;
373 depots under the direct management of the railway administrations
has been removed, a decrease of one fifth.
The railway structure adjustment and reform has promoted
streamlining of enterprises and increase of the efficiency.
Since 1997 while absorbing 200 thousand employees into the
industry according to the policy regulation, the railway
sector at the same time has greatly cut the size of the
railway employees and staff engaged in transportation business
by implementing the new labor employment standard, downsizing
non-production employees, shunting personnel through many
other channels. By the end of 2001 the total number of railway
employee were 2.485 million, 857 thousand personnel cut
from the original 3.342 million personnel in 1997. Now the
employees engaged in the transportation sector are 1.452
million and 446 thousand are cut. The initiation of these
measures has advanced the productivity. Meanwhile the work
of downsizing employees to other work fields and more jobs
were created for those laid-off workers. Now 270 thousand
core business personnel have been assigned new jobs after
being laid off from the traditional system by developing
the railway diversified economy.
Promote the progress of separating government from enterprises.
We should wait no time to study the railway system reform
solutions. The structure reform of MOR headquarters was
completed successfully in 1998, the direct consequence of
which is that the governmental functions and responsibilities
were strengthened and 51% of the office employees were cut
from the structure; year 2000 witnessed five companies including
Railway Engineering, Railway Construction, LORIC, Communication
and Signalling and CCECC spun from MOR and 10 universities
for general education, some professional schools, technical
schools, and school for continuous study transferred to
the Ministry of Education or local governments, nearly 800
thousand personnel spun off. All these measures have proven
to be a great step in promoting the practice of separating
the government from enterprises and altering the traditional
industry system. In accordance with the policy put forward
by the central government to ¡°break the industry monopoly
and introduce the competition mechanism by separating government
from enterprises and enterprise restructuring¡±, MOR has
undertaken great efforts to organise a task force to study
and set up railway management mechanism reform. Overall
concept of the reform is established, many options have
been demonstrated, analysed and compared from different
levels, so that the research work is deepened and reform
solution improved. Meanwhile passenger transport companies
were set up by incorporating with the transport financial
system reform and carrying out the passenger transport reform
in an orderly way, which have provided a good channel to
restructure transport enterprise, to address the tough problems
and accumulate practice and experience.
5. Advance the practice of opening the railway sector to
the outside world and step on higher and larger platform.
In recent years the link between the Chinese Railways and
international railways has been strengthened and the exchange
of economy and technology between the Chinese and international
railways intensified.
International transport has been continuously growing.
The organisation work concerning international freight transport
has been emphasized with favorable policies provided to
port transport in terms of transport capacity allocation.
Scheduled container trains have been operated to link Beijing
with Moscow and Wenzhou with Moscow. Meanwhile the container
transport of China-Russia and China-Kazakhstan, and international
container transport service across borders between Liangyungang-Alataw
and Tianjin-Erenhot were launched, bringing forth a breakthrough
in terms of international container transportation. The
port freight carried for export and import from 1998 to
2001 amounted to 85.85 million tons with an annual growth
of 20%.
Foreign economy and trade also see rapid growth. The foreign
economy and trade business were actively developed to expand
the international market from all respects. Since 1998,
the total business contract including international contract,
labor service and design and consultancy service has amounted
to US$ 3 billion and the turnover gained was US$1.5 billion.
The rolling stocks and parts produced by China have been
exported to dozens of countries.
Utilisation of foreign capital is increasing continuously.
Since 1998, the new loan agreements signed have been US$1.23
billion. By utilising foreign capital, we introduce advanced
technology and management at the same time when we introduce
overseas advanced equipment. This has played an important
role in promoting railway scientific and technical progress,
improving technical and management level. More direct investment
from foreign investors is introduced, overseas advanced
technology and management experience have been introduced.
A group of joint ventures of Chinese companies and foreign
companies have been established. So far, over 200 joint
ventures and investment of US$ 200 million are introduced.
6. Actively implement the strategy of building a prosperous
railway on advanced technology. Technical innovations have
made great achievements.
Over the years, MOR has strengthened the innovation projects
which are of strategic, overall and key importance for the
railway development. The MOR has organised actively the
tackling of scientific and technical difficulties and independent
innovation in informationization, speed increase of existing
lines and high-speed technology, and train safe operation
assurance system, industrial technical equipment, and very
difficult construction technique, etc. A group of applicable
technology and equipment adaptable have been developed.
In some important core technical fields, self intellectual
property has been gained. A railway transport mode, railway
technical equipment of different levels and grades with
the consideration of train speed, density and weight has
been gradually explored and taken shape. A technical system
satisfying Chinese Railways network development comprehensively
shall be built up. A railway technical innovation way in
conformity with world railway technical development and
adaptable to situation in China, with special characteristics,
shall be initiated.
Informationization also had a big development. TMIS is
basically set up. Computerised management has been widely
adopted for preparing train working diagram, traffic plan
adjustment and freight car management. Ticketing and booking
in the whole system is basically set up and the service
of buying tickets at places other than departure is expanded
gradually. TMIS has made breakthroughs and efficiency is
greatly improved. The further improved finance management
system and settlement system have facilitated the transport
finance system reform and enterprise management informationization.
Office information system of all railways has achieved on-line
operation between MOR headquarters and railway administrations.
E-administration and E-business system construction has
started. Digital transmission network, SPC and DTS are basically
established, meeting various demands on the major trunk
lines. Automation for signalling equipment has been improved
and shift frequency automatic blocking system with our own
intellectual property right has been successfully developed.
Railway equipment has been improved to a higher level.
Loco and car industry is taking the breakthrough of core
technology as key products, developing its own system integration
ability. A series of ¡°Zhonghua¡± speed increase locomotives,
passenger cars and EMUs have been produced. The industry
is capable of producing 250km/h trains. The maximum speed
of trial run is 270km/h. Upgrading of traction power has
made great progress. EMUs of 160km/h and electric loco of
200km/h with our own intellectual property right have been
successfully developed. The large power and brand electric
loco by mass production has started, meeting the speed increase
and heavy haul demand. The safety appliances have been improved
greatly. Radio, cab signal and train monitoring and recording
system are widely used and computerised interlocking is
in use. Axle temperature alarming device is widely used
on passenger trains. The infrared hot box monitoring system
has been networked. Technology plays an important role in
the safe operation of railways.
The railway construction technology in China is among the
best in the world. The advanced technologies of comprehensive
survey, aviation survey, remote sensing and GPS are widely
used, improving the efficiency and quality of survey and
design. In railway construction, railway works in difficult
mountainous areas and construction of rapid railways are
key projects, . Many technical difficulties in the works
of roadbed, tunnels and bridges have been addressed. Railway
trunk lines in difficult areas like Neijiang-Kunming line,
Xi¡¯an -Ankang trunk line , and world level projects like
Qinling Tunnel as well as Wuhu Yantze River Bridge were
built up. The Qinghai- Tibet Railway going through plateau
of permafrost is under construction. The Qinhuangdao-Shenyang
dedicated passenger service line is about to be completed,
representing the most advanced fast speed equipment. The
designed speed is over 200km/h. A construction force with
overall technology and strong ability adaptable to development
is formed up in the process of railway development construction.
Technical standards and specifications adaptable to Chinese
context for systematic construction technology promotes
the improvement of the railway construction technology and
the overall quality.
7. Main railway tasks in the Tenth Five-Year plan period.
In the Tenth Five-year Plan period, we shall further develop
railway construction, improve the backbone of the network.
Improve the quality of main lines in some regions and expand
the scale of railway network in the west region. Key construction
works shall be ¡°8 verticals and 8 horizontals¡± with high
standards, high quality and large capacity, which play backbone
functions in the national transport network. By 2005, the
route length of CR shall be about 75,000 km, in which, 25,000
km shall be double-tracked, 20,000 km be electrified. Further
implement the market-oriented management strategy, and be
stick to the orientation of the market, adjustment of the
transportation structure and improving the traffic organisation
and marketing. Improve transport quality and strengthen
competitive ability; further increase speed with much efforts,
making the total track length of speed increase up to 16,000km
and meeting various demands of both passenger and market
at different levels. Further increase transport efficiency
and investment returns; and overcome the system barriers
hindering railway development. Establish the management
system and operational system adapt to the market economy
development. Further implement the strategy of building
a prosperous railway on advanced technology. We shall persist
in the combination of self-innovation and introduction of
advanced technology from foreign countries, and the combination
of high new technology and practical technology, marching
on a way of developing technical innovation with CR characteristics.