Official: Railway sector debt 'controllable'

　　The debt level of China's railway sector is "secure, reasonable and controllable," said Li Jun, an official with the Ministry of Railways, responding to recent reports claiming that the railway sector faces over 1 trillion yuan (147.61 billion U.S. dollars) of debts.

　　Li disclosed that the ratio of debts to assets in the country's railway sector was 52 percent by the end of 2009, much lower than those of many overseas railway operators.

　　"China's large population, rapid urbanization and stable economic development will ensure the sustainable development of the country's high-speed railway networks," Li said.

　　In the first seven months of 2010, investment in the railway transportation sector increased 21.5 percent year on year to 290.5 billion yuan, indicating that China has entered the climax of railway construction and technology equipment production.

　　The Shanghai-Nanjing high-speed railway, with a maximum speed of over 300 kilometers per hour, has caused public concern over ticket pricing and its efficiency since it was put into operation in July.

　　Li responded that the ticket pricing was the decision by the high-speed railway operators based on operation costs, affordability and the price levels of other means of transportation. He added that "the utilization rates of high-speed railway lines are generally high, and they enjoy relatively large advantages in pricing."

　　"After China's high-speed railway networks are finished in 2012, the transportation capability and efficiency will witness a great leap forward," he predicted.

　　By People's Daily Online