The National Development and Reform Commission announced in August 28th, "Analysis of Operation of the Coal Industry in the First Half of the Year and Prediction in the Second Half of the Year," that since this year, the production and transportation of coal has required rapid growth, and the supply and demand of coal have been generally balanced and tend to be relaxed. However, due to the bottleneck of railway transport, the country’s coal production capacity of over 200 million tons last year failed to come out. This year’s situation is still continuing.

The National Development and Reform Commission also pointed out the opposite situation: Coal mines with relatively good transport conditions have not only limited production capacity, but also exceeded the designed capacity. Last year, the country’s super capacity production reached 123 million tons, resulting in overcapacity and coal production. Supercapacity production coexists. Therefore, while actively responding to excess production capacity and controlling the production of super capacity, it is necessary to vigorously promote the construction of foreign transport channels in the major coal-producing regions.

The analysis pointed out that in the first half of the year, the national railway had completed a total shipment of 599 million tons of coal, an increase of 10.1% year-on-year, and 3.8 percentage points higher than last year, still lower than the growth in coal production and coal demand. The pattern of railway transportation restricting coal supply has eased, and it is expected that the degree of restraint on coal supply by railway transportation in the second half of the year is expected to be further reduced. However, the basic pattern of restricting coal supply by railway transportation cannot be fundamentally changed.

Zhang Jianping, deputy director of the Planning Department of the Ministry of Railways, recently stated that in order to prevent the railway from becoming a bottleneck restricting the production and consumption of coal, the railway is currently considering to continue to improve the coal transportation capacity of the railway. It is expected that the railway will transport 1.5 billion tons of coal by the year 2010. The railways in China were further modified and expanded on the basis of the final capacity of 1.8 billion tons of railway transportation.

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