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Migration of railway freight transport from command economy to market economy: The case of China

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  • Ruhe Xie
  • Haibo Chen
  • Chris Nash

Abstract

In recent years, Chinese railway freight transport has been facing great challenges from transport market reformation and economic expansion. Although the total volume of railway freight has been increasing, its market share has decreased greatly, especially at the beginning of migration from command economy to market economy. This paper considers four aspects believed to be responsible for the loss of the railway freight market share. First, we review the history and current situation of the Chinese railway freight transport and study the relationship between economic development and freight transport in China. Second, the causes resulting in the loss of the market share of railway freight are analysed in detail. Third, the current measures taken by Chinese Railways (CR) to restore its competitiveness are discussed. The effects of these measures on railway traffic volume, market share and productivity are also studied. Finally, the way forward for the future of CR is discussed. It is concluded that CR has not yet adapted sufficiently to new economic conditions, although in recent years progress has been made. Further reform will be needed.

Suggested Citation

  • Ruhe Xie & Haibo Chen & Chris Nash, 2002. "Migration of railway freight transport from command economy to market economy: The case of China," Transport Reviews, Taylor & Francis Journals, vol. 22(2), pages 159-177, January.
    • Handle: RePEc:taf:transr:v:22:y:2002:i:2:p:159-177
    DOI: 10.1080/01441640110090973
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    References listed on IDEAS

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    1. G. Harris, 1999. "Competitive strategies for railways in the UK: A corporate perspective," Transport Reviews, Taylor & Francis Journals, vol. 19(2), pages 191-202, January.
    2. Jian >Hong Wu & Chris Nash, 2000. "Railway reform in China," Transport Reviews, Taylor & Francis Journals, vol. 20(1), pages 25-48, January.
    3. Fumitoshi Mizutani, 1999. "An assessment of the Japan Railway companies since privatization: Performance, local rail service and debts," Transport Reviews, Taylor & Francis Journals, vol. 19(2), pages 117-139, January.
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    Cited by:

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    2. Rong, Zhang & Bouf, Dominique, 2005. "How can competition be introduced into Chinese railways?," Transport Policy, Elsevier, vol. 12(4), pages 345-352, July.
    3. Abida Naurin & Shahbaz Gul, 2023. "The Impact of Railway Development on Economic Growth through CPEC," PIDE-Working Papers 2023:5, Pakistan Institute of Development Economics.
    4. Bai, Xuejie & Jin, Zeng & Chiu, Yung-Ho, 2021. "Performance evaluation of China's railway passenger transportation sector," Research in Transportation Economics, Elsevier, vol. 90(C).
    5. Pittman, Russell, 2011. "Risk-averse restructuring of freight railways in China," Utilities Policy, Elsevier, vol. 19(3), pages 152-160.
    6. Cui, Shana & Pittman, Russell & Zhao, Jian, 2018. "Restructuring the Chinese Freight Railway: Two Scenarios," MPRA Paper 88407, University Library of Munich, Germany.

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