Faced with a funding gap of Rmb250 billion (US$31 billion), China plans to introduce new legislation to allow foreign and domestic investors to invest in building another 100,000km of railway tracks by 2020.
The Ministry of Railways is hoping to attract more foreigners to invest in the railroad network by allowing, for the first time, greater control over ticket pricing and freight charges. However, the ministry will continue to retain complete control over railway network schedules.
Private investment will end the state's monopoly in the industry and will help improve transparency in the railway construction and transport industry. The changes are part of broad reforms of the rail, post and road transport systems aimed at introducing greater competition and efficiency into those industries.