Premier Li points way for railways reform

Premier outlines new methods, quicker construction in key areas

Premier Li Keqiang called on Wednesday for reform of funding methods for railways and for accelerated rail construction in central and western regions.

Experts said the measures are part of efforts to stabilize economic growth, which slowed to 7.5 percent in the second quarter, and will help China's industrial sector amid the economic slowdown.

The railway construction market will be "fully opened" through reform, and the building of rail facilities in less-developed areas will be emphasized, Li said at an executive meeting of the State Council, China's cabinet.

"This will usher in balanced development among different regions, as well as steady advancement of urbanization," he said.

The premier called for multiple fundraising sources for railway construction, including a greater role for private capital and the establishment of a railway development fund.

Intercity railways' ownership and management rights will be open to private and local investors, Li said, while calling for rail projects under construction to be completed on schedule.

The reform move follows the establishment of the China Railway Corp in March, after a separation of the now-defunct ministry of railways' government and enterprise functions.

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