The Migration of Railway Freight Transport from Command Economy to Market Economy: The Case of China.

Abstract

In recent years, the Chinese railways freight transport has been facing great challenges from the transport market and economic expansion. The total freight volume has been increasing. But the market share of railway freight has decreased greatly, especially since the beginning of migration from command economy to market economy. In this paper, we make some insight into five aspects. Firstly, the historical and current situation of freight transport in China and the relationship between economic development and freight transport is analysed. Secondly, the market structure of freight. Thirdly, the causes resulting in the loss of market share of Chinese Railways are discussed in detail. Fourthly, the current measures taken by the railway to restore its capability of competition and their effects are introduced. Finally, the future prospect of Chinese Railways is put forward. It is concluded that Chinese Railways has not yet adapted sufficiently to new economic conditions; although in recent years progress has been made, further change will be needed