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Railway freight prices to increase: report

By Zheng Yangpeng | chinadaily.com.cn | Updated: 2013-02-20 17:07

China's railway freight prices will be raised by 13 percent, the National Business Daily reported on Tuesday.

Railway freight prices will be adjusted by 0.015 yuan (0.23 cents) to 0.13 yuan a ton per kilometer, the newspaper said, citing a statement issued by the National Development and Reform Commission and the Ministry of Railways.

According to an estimate from industry observers, every 0.01 yuan increase in prices could bring an additional 20 billion yuan ($3.21 billion) in annual revenue for the railway system. According to that estimate, the latest price adjustment could contribute an additional 30 billion yuan in revenue for China's railways.

Analysts said that even though the price hike is reasonable and will bring more revenue for the Railway Ministry, it is unlikely to raise the ministry's debt-paying ability. The ministry's asset-liability ratio now stands at 61 percent.

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