Rail management must improve efficiency
By Xiao Xin (China Daily)
Updated: 2004-07-30 10:08

President Hu Jintao and Premier Wen Jiabao have reportedly ordered railway authorities to do their utmost to ensure adequate coal supply for power plants to ease the current power shortage.

The hot economy, though gradually cooling thanks to regulatory measures, is still eating up enormous amounts of energy.

The seasonal increase in consumption during the sizzling days of summer is also a factor behind the power crisis.

The railway department's failure to muster more cars to transport fuel to the power plants has exacerbated the crisis.

It is not that we do not have coal to fuel power production, but we have trouble facilitating its transportation.

The irony is that after the top authorities stepped in, the railway department somehow managed to find extra cars.

It is reported that since July 19, 5,000 extra rail cars have been operating every day to carry an additional 300,000 tons of coal, which has significantly eased the fuel shortage in power plants.

Managerial loopholes are obvious in this situation.

People often blame inadequate investment in railway facilities for the transport deficiency.

It is true. The meagre input of 50 billion yuan (US$6 billion) every year is far from enough to cater to increasing market demand.

The recent incident, however, reveals some other shortcomings.

The Ministry of Railways officials admit that unscientific carriage distribution is "a major cause" of the current chaos, according to 21st Century Business Herald.

Some transport capacity has been planned for those areas where there is not much need.

In the current macroeconomic regulation, areas producing steel and aluminium, major contributors to the overheated economy, have seen decreased demand for transportation. This part of capacity can be replanned for other areas.

The fact the railway authorities can manage to find an extra 5,000 cars shows if management is improved, the transportation problem can be solved - at least temporarily.

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