Xi'an Railway group has reduced rail costs by 20-26 percent for cargoes departing from some parts of Shaanxi to encourage more domestic industrial activity and cut coal logistics costs.
The discount took effect on 4 April and was intended to help market participants adjust to the more challenging economic climate as the coronavirus pandemic takes its toll on global demand for Chinese manufactured products.
Xi'an Railway is a regional operator with lines connecting Shaanxi province with coal-consuming provinces. Although its discounts do not apply nationally, the move is expected to set the tone for other regional railway networks to offer similar incentives.
These discounts apply from 6 March to 30 June, state-owned China Railway said when it granted the relief of nearly four months to boost the country's industrial recovery from the coronavirus outbreak.
Any further industrial recovery in China must be supported by a corresponding demand for its manufactured products and exports. Although China said it has largely brought the outbreak under control, large parts of the world are still struggling with the pandemic and the lack of global demand for Chinese exports is weighing on industrial demand for coal.
