Railway ministry reports net loss of 8.54b yuan
|November 12, 2012||Posted by Ocean Shipping Communication China under Railway News||
China’s Ministry of Railways has recorded a net loss of nearly 8.54 billion (US$1.37 billion) as of September 30, its financial report revealed.
Analysts found the ministry’s debts accrued to 2,660.7 billion yuan while its debt-asset ratio went up to 61.81 percent.
Railway officials blamed their worsening finance on the operating losses of most of its high-speed railways already in service.
Only a small number of short- and medium-range lines serving well-developed regions, such as Beijing-Tianjin, Beijing-Shanghai and Beijing-Nanjing railways, are capable of making some profits, they said.
Despite the losses, the ministry is still determined to expand the nation’s express rail network. China CNR, the leading train producer, said yesterday it has signed 13 new contracts worth 7.2 billion yuan in value and 70 percent of the money will come from the ministry.
Source: Shanghai Daily