China is to allow the market to decide rail freight prices, the country’s top economic planning body said Tuesday.
Freight prices on the Zhunchi Railway, linking Inner-Mongolia Autonomous Region and Shanxi Province in north China, will be determined independently by operators, customers and investors, said the National Development and Reform Commission (NDRC) in a statement.
This is the first time China has opened up prices of rail transportation, said the NDRC.
The 180-kilometer railway, which is under construction and scheduled to begin operations in the first half of this year, will mainly carry coal.
Shi Lixin of the NDRC’s Institute of Economic System and Management called the move a “milestone” in railway reform, with a positive and far-reaching impact on the investment and financial reform of China’s railways.