Fu Zhihuan, minister of railways, said at the launching ceremony that the establishment of the company, affiliated to the Guangzhou Railway Group, will have a great influence on China's reform of the railway system.

Railway passenger and cargo transport in China has long been managed by the railway department, and such a management system has lagged behind the development of the economy in China, said the minister.

The new company will be responsible for developing the railway passenger transport market within the area it operates, independently determining the number of trains and transport plans, and adjusting its transport capacity according to demand.

(Guangzhou Morning Post 12/04/2000)