Minister of Railways Fu Zhihuan announced on January 7 that China's railway sector has become loss-free one year ahead of schedule.

The country's railway system carried 976 million passengers and1.57 billion tons of cargo in 1999, with total income up 8.3 percent year on year to 99.8 billion yuan, said Fu at a national railway work conference held here today.

Industrial enterprises as well as material supply and construction firms within the sector, which eliminated losses in 1998, also registered a significant profit increase in 1999, according to Fu.

The railway sector, which used to be considered "the last stronghold of the planning economy," was known for low-efficient operational and management systems as China transformed into a market economy.

The rail enterprises had been suffering losses since 1994, and by the end of 1997 these losses amounted to 15.6 billion yuan.

In early 1998, the industry decided to change this picture within three years.

Analysts here point out that the success of the sector, which was able to end its losses as the textile industry had done, will positively push forward the goal of seeing all large and medium-sized state-owned enterprises turn losses into profit.

Official statistics show that China poured 57 billion yuan into railway construction in 1999 to build 1,087 km of new lines and 1,041 km of double tracks.

In addition, 1,040 km of new lines, 1,293 km of double tracks, and 607 km of electrified railway were put into operation.