BEIJING • China Railway Corp formed a cargo venture with express delivery company SF Holding Co as part of the nation’s efforts to draw in private enterprises to bolster state firms’ competitiveness.
Cargo subsidiary China Railway Express Co will hold a 55% stake, while SF, the country’s biggest parcel-delivery company, will own the rest of the venture, the national railway operator said in a statement yesterday. SF and China Railway won’t own shares in each other.
The pact with SF is part of China’s efforts to let railways account for a larger share of cargo transportation to combat road-traffic pollution, and would help the rail operator meet a goal of increasing cargo shipments by 30% by 2020.
This is China Railway’s second tie-up with a private company following the sale of a stake in a unit offering WiFi on bullet trains to Tencent Holdings Ltd and Geely Automobile Holdings Ltd in June.
SF and China Railway’s venture, based in the southern city of Shenzhen, will offer cargo shipments by bullet and express trains.
China Railway, which operates the count ry’s 127,000km network, including 25,000km of high-speed rail, also plans to sell as much as 10 billion yuan (RM6.17 billion) of properties and a stake in a railway operator in Hainan province this year.
China has urged other transportation and logistics firms including airlines to carry out mixed-ownership reform, meaning the sale of stakes in group-related firms to private firms.