Increase in Freight Price of Yingkou Freight Company

The State Development and Reform Commission issued the Notice on the Issues Relevant to the Adjustment of Railway Freight Prices. Since February 15, 2014, Yingkou Freight Transport has changed the railway freight rate from the government pricing to the government guiding price. After adjustment, the freight rate of the business line with unified freight rate will be increased by 1.5 minutes per ton kilometer on the basis of the current average of 0.13 yuan per ton kilometer.

This is a continuation of last year's price increase track, last year also increased by 1.5 cents/ton kilometers in February. For railway companies, the price increase is pie falling from the sky. Statistics show that the revenue of Daqin Railway is expected to increase by about 4.3 billion yuan, and pie is not small.

Over-reliance on debt to develop railways makes the development model unsustainable. Introducing civilian capital to develop railways is an important choice to improve the ownership structure and financing mode, which is in line with the state-owned enterprise reform strategy, and also conducive to the completion of the "glorious and arduous" task of 120 million yuan. However, attracting private capital into railways will force railways to improve their profitability. This will speed up the reform of Railways in terms of "price" and relax price control, which is a key step in the market-oriented transformation of railways.

The State Development and Reform Commission issued the Notice on the Issues Relevant to the Adjustment of Railway Freight Prices. Since February 15, 2014, Yingkou Freight Transport has changed the railway freight rate from the government pricing to the government guiding price. After adjustment, the freight rate of the business line with unified freight rate will be increased by 1.5 minutes per ton kilometer on the basis of the current average of 0.13 yuan per ton kilometer.

This is a continuation of last year's price increase track, last year also increased by 1.5 cents/ton kilometers in February. For railway companies, the price increase is pie falling from the sky. Statistics show that the revenue of Daqin Railway is expected to increase by about 4.3 billion yuan, and pie is not small.

Over-reliance on debt to develop railways makes the development model unsustainable. Introducing civilian capital to develop railways is an important choice to improve the ownership structure and financing mode, which is in line with the state-owned enterprise reform strategy, and also conducive to the completion of the "glorious and arduous" task of 120 million yuan. However, attracting private capital into railways will force railways to improve their profitability. This will speed up the reform of Railways in terms of "price" and relax price control, which is a key step in the market-oriented transformation of railways.