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Rail bureaus renamed in restructure

By Luo Wangshu | China Daily | Updated: 2017-11-20 07:10

Party leadership reinforced as new decision-making process begins

Eighteen regional railway bureaus administered by China Railway Corp finalized name changes on Sunday as they registered as limited companies - the latest step in the corporation's structural reform.

Registrations were completed earlier with provincial-level industrial and commercial departments.

With the name change, Beijing Railway Bureau has become China Railway Beijing Group Co Ltd, for example.

The move is part of national railway operator CRC's reform to further optimize its resources, turn a bigger profit and reduce debt. The corporation will be the sole investor in the limited companies.

CRC will exercise the responsibilities of the investor, without setting up a board of shareholders, according to a company statement on Sunday.

"The new companies will establish committees of the Communist Party of China, boards of directors, levels of management and boards of supervisors," CRC said. "Party committees will play a leadership role, directors will make decisions, managers will run and operate the company and supervisors will oversee it."

"The limited companies will adhere to the leadership of the Party. Discussion in the Party committee will be completed before the board of directors and managers make decisions," it said.

Members of the Party committee can take positions as directors, managers or supervisors, and vice versa.

Guo Zhuxue, the former Beijing Railway Bureau chief, is now president of Beijing Group Co Ltd, according to the National Enterprise Credit Information Publicity System. Wang Qiurong, president of Jinan Group Co Ltd, was previously head of publicity for CRC.

The administrative organs of CRC have been streamlined and staff members have been reduced, the company's statement said.

CRC was established in 2013 with registered capital of 1.03 trillion yuan ($155.4 billion) to take over the commercial duties of the now defunct Ministry of Railways. The ministry was estimated to be 2.6 trillion yuan in debt.

At the same time, the 18 regional bureaus, which operate sections of the railway network and were previously part of provincial-level governments, became commercial entities under CRC's administration.

The railway reform has been deepened and has stimulated market vitality, the company said. China has invested 625.64 billion yuan in railways this year, as of October. The annual goal is to invest 800 billion yuan, according to CRC.

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