MOR planning to hike freight rates

The Ministry of Railways (MOR) is expected to adjust nationwide freight prices soon, with the market anticipating an increase of 50 percent to 0.17 yuan ($0.027) per ton per kilometer, the Oriental Morning Post reported Tuesday.

China Railway Tielong Container Logistics Co said Tuesday in a statement filed to the Shanghai Stock Exchange that it had received a notice of the price adjustment from the MOR Monday that did not set out specific details. The report was also verified by domestic railway operator Guangshen Railway Co in an announcement posted on the Shanghai Stock Exchange Tuesday.

Calls to the MOR remained unanswered by press time.

Railway freight prices have been raised eight times since 2003. The most recent hike occurred in May 2012, when the MOR ordered a 9.5 percent increase to 0.1151 yuan per ton per kilometer.

Tielong predicted that the current price adjustment will not have a large impact on its profits, given that its railway freight transportation is not a major part of its business. Guangshen said it could not predict the effects, but revealed that 9.44 percent of its total income came from freight transport in 2011.

Shares of Guangshen saw a 5.66 percent increase at closing time Tuesday.

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