Chinese state-owned railway giant goes into business
Updated: 2013-03-18 09:39
BEIJING -- The China Railway Corporation, which will take over the commercial functions of the former Ministry of Railways (MOR), went into business on Sunday.
The company announced its arrival via Sina Weibo, the Chinese equivalent of Twitter, two days after receiving approval from the State Council, China's cabinet.
The company will conduct business operations that were previously conducted by the now-defunct MOR, while the newly formed State Railways Administration will handle the MOR's administrative responsibilities.
With registered capital of 1.04 trillion yuan ($165.73 billion), the China Railway Corporation will take over all of the MOR's related assets, liabilities and personnel, as well as shoulder the responsibility of running trains for public welfare, according to a statement posted on the government website.
The wholly state-owned enterprise is administered by the central government and supervised by the Ministry of Transport, the statement said.
The move was made as part of the government's efforts to restructure its cabinet, as well as eliminate a previous situation in which the MOR played roles as both market participant and regulator in the railway sector.
The company is expected to address the MOR's high remaining debt and improve the country's massive railway network.