China's railway sector expects to become profitable by further developing subsidiary sectors, including real estate, tourism and construction.

At a recent work conference, Sheng Guangzu, vice minister of railways, said that the measure will help optimize the original structure and improve the sector's efficiency.

China's railway sector, long operated in the planned economy, has suffered heavy losses since 1994, with the total loss hitting 15.6 billion yuan in 1997, according to Sheng.

Sheng said the country's railway departments plan to set up a nationwide cargo transport service network, taking advantage of the current railway network.

Meanwhile, more railway tour routes will be added, he said.

Statistics show that the country's railway enterprises have covered more than 10 subsidiary sectors, such as cargo transport service, storage, advertising and real estate, and earned a total profit of 25.8 billion yuan since the 1980s.