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Zhao Jialian and Zeng Hao, secretary-generals of the China Coal Economic Research Association, both told The Paper that with this reduction in railway freight rates, the cost of transporting high-quality coal from Inner Mongolia, Shanxi and other places to coastal areas will be significantly higher than the cost of importing overseas coal to coastal areas. Reducing coal consumption will also help bring into play the advantages of western coal.
China Railway Corporation stated in the "Notice" that it will focus on coal and smelting materials and resolutely achieve a stop and rebound in freight volume by expanding the railway bureau's independent authority to adjust freight rates. It is understood that railway freight volume has been gradually declining in the past two years. In 2019, the country's railways completed a cumulative freight volume of .
"China Railway Corporation's Third Quarter Audit Report" shows that in the first three quarters, China Railway Corporation's total revenue in the first three quarters was 0.3 billion yuan and net profit was 300 million yuan, a year-on-year decrease of 0.3 billion yuan compared with the same period last year. Caixin previously reported that in the first three quarters, China Railway's total transportation revenue totaled .
Coal, which accounts for more than half of railway freight volume, has seen a sharp decline in freight volume due to the market downturn in the past two years.