Country to spend less on railways next year

BEIJING - The railway ministry cut its construction spending for next year but will not stop investing in the rail sector, said a top railway official.

The Ministry of Railways plans to invest 500 billion yuan ($79 billion) on fixed assets next year, including 400 billion yuan for railway construction, Minister of Railways Sheng Guangzu told the annual railway working conference on Friday.

Rail construction spending is down from an expected 469 billion yuan this year and is a sharp drop from 709 billion yuan in 2010.