China's plans to dismantle the Ministry of Railways into administrative and commercial arms are a bid to reduce bureaucracy and improve railway service efficiency.

Sheng Guangzu, minister of railways, is the center of media attention on Sunday after a government reshuffle plan proposes to scrap his ministry. [Photo / China Daily]

The ministry, which is both a policymaker and a service provider, has long been criticized for bureaucracy and unpleasant services.

Wang Yiming, deputy head of the Academy of Macroeconomic Research under the National Development and Reform Commission, said it was a "landmark" move.

The country has lifted the last "stronghold" blocking the railway industry's market entrance, Wang said. "It will open another door for the financing and management of the railway sector."

Railways Minister Sheng Guangzu told reporters he wasn't disappointed to be losing his position. He said that compared to the benefits as a result of railway sector reform, personal interests were of little concern.

"Whether I'm minister of railways or not does not matter," Sheng said. "The key is to develop China's railways. I'm subordinate to the needs of the national cause."

China's transport capabilities will be greatly enhanced through the integration and overall planning of various transport means, including rail, road, shipping and aviation, after the department restructuring, he said.

Meanwhile, the railway itself can give full play to its advantages in traveling long distances, transporting heavy loads and offering low carbon emissions.

Sheng said the dissolution would not affect investment in railway construction.

Wang Yukai, a professor with the Chinese Academy of Governance, said the restructuring will benefit the people. After the commercialization of the country's railways, outside pressures are likely to push down operation costs, Wang said.

A challenge for the proposed administration is how to win back people's trust in the railway system, which has been hit hard by a series of corruption and safety scandals in the past few years.

The country's former railways minister, Liu Zhijun, was expelled from the Party for corruption in May last year following a high-speed train collision that left 40 people dead and 172 injured near the eastern city of Wenzhou in 2011.

Liu accepted massive bribes and bore the major responsibility for the rampant corruption in the railways system, according to the Party's Central Commission for Discipline Inspection.

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