Chinese railways to carry more thermal coal

BEIJING - China's railway authority said Sunday it will enhance the support for thermal coal transportation this year in an effort to ensure coal supply to the country's power companies.

The Ministry of Railways said it will arrange more transportation capacity for thermal coal this year than that for 2012.

The ministry has always prioritized thermal coal transportation in the past, as railways play a significant role in carrying thermal coal around the country due to lower cost and less pollution than other transportation modes.

The ministry said that coal reserves in 363 major power plants around the country had maintained at a level that could last for more than 26 days last year.

China's State Council, or the cabinet, issued a guideline in December 2012 to let the market decide thermal coal prices instead of implementing prices set by the government beginning 2013. Coal miners and power companies will be allowed to negotiate thermal coal prices on their own.

The MOR said the thermal coal reform is conducive not only to the sound development of the coal and power sectors, but also to promoting railway transportation companies to become more market-oriented.

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