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Railway reform in China

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  • Jian >Hong Wu
  • Chris Nash

Abstract

The purpose of this paper is to consider the current situation of Chinese Railways (CR), the progress of reforms to date, and possible future developments. The first section describes the current problems of CR as a vast organization subject to strong central control, facing enormous and rapidly growing demands which it is unable to satisfy. Comparisons are drawn between CR and those of India, Japan, North America and Western Europe. The progress of reform in CR to date, and in particular the Economic Contract Responsibility System instituted in the late 1980s and the development of joint venture companies to build new lines, are then described. In the following section the key reform models found in other countries- deregulation and privatization of vertically integrated regional companies; separation of infrastructure from operations with open access and/or franchising competitors; or reorganization on the basis of business sectors- are briefly considered. None is fully suitable for China, but it is suggested that a combination of sectorization, more commercial independence, further development of joint public/private partnerships and more contracting out, is the most likely way forward.

Suggested Citation

  • Jian >Hong Wu & Chris Nash, 2000. "Railway reform in China," Transport Reviews, Taylor & Francis Journals, vol. 20(1), pages 25-48, January.
    • Handle: RePEc:taf:transr:v:20:y:2000:i:1:p:25-48
    DOI: 10.1080/014416400295329
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    Cited by:

    1. Linna Li & Becky P.Y. Loo, 2017. "Railway Development And Air Patronage In China, 1993–2012: Implications For Low‐Carbon Transport," Journal of Regional Science, Wiley Blackwell, vol. 57(3), pages 507-522, June.
    2. Ruhe Xie & Haibo Chen & Chris Nash, 2002. "Migration of railway freight transport from command economy to market economy: The case of China," Transport Reviews, Taylor & Francis Journals, vol. 22(2), pages 159-177, January.
    3. Weiya Chen & Yongzhuo Yu & Xiaoping Fang & Ziyue Yuan & Shiying Tong, 2023. "Using Mixed Methods to Identify Evaluation Indicators for Green Railway Transportation Operations in China," Sustainability, MDPI, vol. 15(24), pages 1-20, December.
    4. Rong, Zhang & Bouf, Dominique, 2005. "How can competition be introduced into Chinese railways?," Transport Policy, Elsevier, vol. 12(4), pages 345-352, July.
    5. Yu, Kemei & Wu, Jianhong & Wang, Kun & Zhang, Anming & Zheng, Shiyuan & Wang, Yixiao & Li, Hongchang, 2023. "Restructuring Chinese railways from a cost-efficient perspective—A hedonic cost function analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 177(C).
    6. Wang, Cong & Yang, Hangjun & Yuan, Hang, 2018. "The impact of railway reform on corporate export: The case of China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 627-647.
    7. Chris Nash, 2011. "Competition and Regulation in Rail Transport," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 33, Edward Elgar Publishing.
    8. Li, Hongchang & Yu, Kemei & Wang, Kun & Zhang, Anming, 2019. "Market power and its determinants in the Chinese railway industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 120(C), pages 261-276.
    9. Wang, Manyu & Huang, Ying & An, Zidong & Wei, Chu, 2023. "Reforming the world's largest heating system: Quasi-experimental evidence from China," Energy Economics, Elsevier, vol. 117(C).
    10. Wang, Y.F. & Li, K.P. & Xu, X.M. & Zhang, Y.R., 2014. "Transport energy consumption and saving in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 641-655.
    11. Kang, Zhaoxia & Nash, Chris A. & Smith, Andrew S.J. & Wu, Jianhong, 2021. "Railway access charges in China: A comparison with Europe and Japan," Transport Policy, Elsevier, vol. 108(C), pages 11-20.
    12. Cui, Shana & Pittman, Russell & Zhao, Jian, 2018. "Restructuring the Chinese Freight Railway: Two Scenarios," MPRA Paper 88407, University Library of Munich, Germany.
    13. Russell Pittman, 2002. "Chinese Railway Reform and Competition: Vertical or Horizontal Restructuring?," Development and Comp Systems 0204004, University Library of Munich, Germany.

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