Chinese Railways Try Contracts with Private Managers to Improve Revenues

A team leader on the Harbin- Yimianpo Railway in China's Helongjiang Province has become the first person in China to manage a passenger train by beating out two rivals in public bidding.

Tang Qiuye signed a 15-month contract with the Harbin Railway Bureau on September 30 and has been managing the train safely for a month, training staff members and paying salaries.

The move is part of China's effort to improve its railways which for decades have been a State monopoly and which, because of the rapid development of aviation and highways, have lost an increasing number of customers.

The situation called for reforms and many provinces have begun considering ways to improve railway management to sharpen their competitive edge. According to Tang's contract, he has to pay the bureau 1.4 million yuan (172,000 US dollars) in 15 months starting October 1 this year, a 10 percent increase for the railway.

He says he's under great pressure. The contract allows him to hire or fire logistical staff, and for the last 22 days, the train has earned more than the expected amount and passengers say that the service has greatly improved.

Tang's success has promoted the Harbin Railways Bureau to consider contracts on two other trains, officials here told Xinhua. (Xinhua)

China's First Electric Railway Line

XI'AN, November 1 (Xinhua) -- China's first electric railway line, which runs from Baoji in Shaanxi Province to Chengdu in Sichuan Province, has carried nearly 200 million passengers and transported 400 million tons of freight over the past four decades.

The 668-km Baoji-Chengdu railway line started in 1958 and was completed in 1961. The project cost 30 million yuan.

China's electric railway lines now total 13,000 km in length. In 1999 China plans to spend at least 55 billion yuan in railway construction. (Xinhua)


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