Rail can deliver but it must be profitable
Updated: 2013-07-29 20:46
The rail system has racked up huge debt and it must slow down to be more efficient and profitable, said an article in the Southern Metropolis Daily (excerpts below).
In the past 10 years, under former railway minister Liu Zhijun, who was sentenced to death, with a reprieve, for corruption and abuse of power, rail construction outpaced economic growth.
Raising rail prices without slowing the construction speed will not help pay back the 2.84 trillion yuan ($451 billion) debt, which keeps surging.
Liu's case proves the serious and systematic corruption of the rail system increases hugely the construction and operation cost.
Increasing the price of rail transport will not necessarily bring more profit as road and air are already capable competitors.
The rail system can deliver but it must be on track with profitable policies.