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Shenhua Zhunchi railway officially opens

17 Sep 2015

Zhunchi railway, a coal dedicated rail line jointly built by Shenhua Group and a Shanxi-based private firm, was fully opened on September 15, further boosting China’s coal transport capacity, Shenhua said in its website.

It has been completed construction in late September last year, and cost 13.18 billion yuan ($2.06 billion).

The 179.862-km railway, operated by Shenhua Zhunchi railway Co., Ltd., links Waixigou Station of the Datong-Zhunger railway in Inner Mongolia autonomous region and Shenchi South Station of the Shuozhou-Huanghua railway in northern Shanxi province.

Transport capacity of the Zhunchi railway is expected to reach 100 million tonnes annually in the short term and 200 million tonnes in the long run.

Together with other railways owned by Shenhua (e.g. Ganqimaodu-Wanshuiquan railway, Shenmu-Baotou railway, Daliuta-Shuozhou railway), the railway will help moving coal from coal-rich Shaanxi, Shanxi, Inner Mongolia and even from Mongolia to coastal ports in northern China and then down to end users in the south.

Freight rate of the rail line will be determined independently by the operator, its customers and investors, according to a statement released by the National Development and Reform Commission on April 1, 2014.

It is the first rail line in China to implement market-oriented pricing as the government attempts to loosen control over railway freight rate.

Shenhua Zhunchi Railway Co., Ltd. was jointly established by China Shenhua Energy Co., Ltd., which holds an 85% stake, and Shanxi Jiaochangping Energy Industry Group, which owns the rest 15% stake.

source: http://en.sxcoal.com