In order to make up for the increase in transportation costs, the National Development and Reform Commission and the Ministry of Railways decided to adjust railway freight rates from May 20, 2012. The average freight rate of goods increased by 1 cent per ton-km, or an increase of 9.5%.

It is understood that the last time the railway adjusted the freight rate for April 1, 2011, the national freight rate for a unified rail freight increased by 0.2 cents per ton-kilometer, from 10.31 cents per ton-kilometer to 10.51 cents. However, the rate of increase in this tariff was significantly higher than in the past. “We have received a notification from the Ministry of Railways to adjust the tariff and have already implemented the new tariff.” A person from the Diversified Economic Management Department of the Jinan Railway Bureau told the China Securities Journal.

It is understood that the freight price adjustment includes the adjustment of the freight price of 7 freights for the whole vehicle, of which the base price for coal freight 1 is raised from 10.80 yuan/ton to 12.20 yuan, and the base price 2 is raised from 0.0553 yuan/ton to 0.0629 yuan/ton Ton. The current freight rates for Daqin, Fengsha, Jingyuan and Jingqin are unchanged.

Fertilizer transport prices have also been adjusted. It is understood that the Ministry of Railways will adjust the rate of fertilizer fertilization for the implementation of the “Notice on Relevant Matters Concerning Explicit Tariff Rates for Agricultural Fertilizer Railways,” Article 2 of the “Line Fertilizer Fertilizer Tariff”, from “0.0726 Yuan” to “0.0826 Yuan per ton-kilometer”. "The other national railway business lines and Sino-Taiwan joint-venture railway fertilizer tariffs are now at 0.0726 yuan per ton-km, adjusted to 0.0826 yuan.

It is understood that in addition to the limited financing channels, due to rising costs and other factors, the Ministry of Railways' own operating conditions tend to deteriorate. According to the Ministry of Railways' first-quarter audit report issued by the Shanghai Clearing House, the Ministry of Railways had a loss of 6.977 billion yuan in the first quarter.

Analysts in the industry generally believe that this increase in freight prices will have substantial benefits for railway transport companies. The Datong-Qinhuangdao Railway announced on the 22nd that after preliminary estimation, due to the impact of the increase in freight rates, it is expected that the company’s operating income will increase by approximately RMB 800 million in 2012. According to the 2011 annual report of Daqin Railway, Daqin Railway achieved a total operating profit of 45.407 billion yuan in 2011. This increase in transportation revenue accounted for about 1.7% of operating profit last year.

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