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San Francisco, CA (PRWEB) January 06, 2013
Revenue from the Passenger Railway Transport industry in China has been increasing at an annualized rate 13.1% over the past five years to $25.4 billion in 2012, says IBISWorld. China's railway system entered a period of growth in late 2008 when the government invested heavily in railway construction to increase railway capacity and to offset the adverse effects of the global financial crisis.
This industry is subject to a medium to high concentration level, with the top four players accounting for about 58.5% of China's total railway passenger numbers in 2012. Rail transportation businesses in China are executed by 18 railway administrations (i.e. enterprises) under the control of the Ministry of Railway. The major railway administrations include those in Shanghai, Shenyang, Beijing, and Guangshou. In March 2005, the newest railway administrations Taiyuan, Xi'an and Wuhan were established.
Due to the shortage of investment on railways and the current inadequate capacity of railway transportation, private capital and foreign investment has been encouraged by the government in recent years. However, little progress has been made due to low levels of marketing within the Passenger Rail Transport industry. As further reforms are made, non-state-owned players are expected to increase in numbers, which will decrease the industry's concentration level.