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Business

Railway

Railway Segment

By making full use of the integrated transportation system consisting of self-owned railways and ports, the Group solved the universal problem of transportation bottleneck that other domestic coal producers may face, which let the Group enjoy a unique competitiveness in the coal industry. Based on the 5 interconnected self-owned railways, not only can the Group continuously transport coal to ports and sell to markets all over China and other countries and regions but also have sufficient room to adjust the sales volume of coal so as to get more market share within coastal regions and provide customers with steady and sufficient coal products. In 2009, the turnover of self-owned railway transportation of the Company was 138.2 billion tonne km (2008: 123.3 billion tonne km), representing a year-on-year increase of 12.1%. The turnover of self-owned railway transportation accounted for 77.2% of the total turnover, which was lower than 81.4% recorded in 2008.

 

In 2009, through careful organization and scientific management, the Company achieved positive results in both railway business and capacity expansion projects and the Company successfully commissioned trains with 10,000 tonnes loading capacity, which further highlighted the “lifeline” of China Shenhua. Shenshuo Railway completed the revamp of Shenmu North Railway Station. Shuohuang Railway broke new record in daily transition of full trains and monthly transportation volume since commencement of operation. Baoshen Railway increased the volume of Shenhua coal at its northern outward line by 44.7% year-on-year. Dazhun Railway launched train operations detouring Huzhun line and promoted the building of additional rail line and technological upgrade, setting the country’s new transportation volume record for single-line electrified railways. The Company also succeeded in developing reverse trains transportation which completed transportation volume of 1.4 million tonnes and gained RMB70 million in revenues, thus creating a new profit generator.

 

railwary

Year Transportation turnover of total railways (Billion tonne kilometers) Transportation turnover of self-owned railways(Billion tonne kilometers)

2006

——

99.0

2007

141.8

116.7

2008

151.4

123.3

2009

179.0

138.2

2010

192.1

150.3

2011

212.1

162.3

2012

226.2

176.2

2013

——

211.6

 

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