Economic Daily:
Secretary Yang, many businesses still hold that China's logistics costs are very high. What is your view? What efforts has the transport department been making to lower costs? What achievements have been made?
Yang Chuantang: Over the past few years, the Ministry of Transport has attached great importance to the development of the logistics industry and has made great progress by releasing preferential policies and implementing pilot programs. For instance, in August, the ministry released a document entitled "Several Suggestions on Accelerating Supply-side Structural Reform and Promoting Cost Reductions in the Logistics Industry." Lowering costs, both administrative and practical ones, is a daunting task. We'll make efforts in the following four aspects in the next phase: firstly, to step up logistics passage development, accelerate construction of freight hubs and logistics parks, and enhance collection and distribution functions of ports and large-scale logistics parks so as to provide a solid basis for logistics development; second, promote construction of a logistics public information platform and encourage businesses to employ advanced technologies to improve efficiency and lower costs; third, to promote multi-modal transportation, and drop-and-pull transport, and promote standardization so as to improve the level of systemization; fourth, to break down policy barriers in key sectors, develop "internet plus" transport logistics and give fresh impetus to the industry.
Bloomberg News:
My question is for National Railway Administration. Can you tell us something about the plans to improve the financial situation of National Railway Administration, such as, through land development or asset securitization? Also, are there any plans to raise ticket prices to cover the costs of freight transport? Thank you.
Yang Yudong:
The National Railway Administration, which was established after being separated from the commercial sector, is the government department responsible for the supervision and management of railway operations. During the past few years, China's railways, especially the high-speed lines, have developed fast, thanks to the smooth operation of investment and funds operation in the entire system. During the 12th Five Year Plan, we invested 3.58 trillion yuan (US$515 billion) in building railways, with a length of 30,000 kilometers. Currently, the operational mileage has reached 124,000 kilometers as the high-speed railways in particular have now surpassed 20,000 kilometers, accounting for about 65 percent of such operations in the world.
During the 13th Five Year Plan, we will continue to accelerate construction and development. We plan to invest 3.5 trillion yuan in the sector, so that, by the end of the 13th Five Year Plan, the entire rail operational mileage can reach 150,000 kilometers, including, 30,000 kilometers of high-speed lines. In doing so, we prioritize the relationship between railway investment and construction. The CPC Central Committee and the State Council attach great importance to railway construction, issuing supportive policies and dividing investments into different sections. In doing so, we encourage the introduction of diverse capital from local governments, enterprises and various entities for urban, suburban, freight and subsidiary railways, in addition to the arteries involving investment and being operated by China Railway Corporation. The categorized investments can better serve railway construction.
At the same time, the State Council has issued preferential policies to railway business entities, especially China Railway Corporation, which can make full use of designated lands for comprehensive development. China Railway Corporation has 600,000 hectares of land, among which a considerable proportion is expected for comprehensive development. Meanwhile, the profits gained from land comprehensive development will be invested in improving business efficiency or railway construction.