Rail reforms will increase China's transport costs
China's rail capacity is not available to all coal producers in a transparent manner. State-owned enterprises and large coal producers have preference over smaller miners and private operators, who need to rely on the road network. Road is currently a viable option for coal transport up to 400 kilometres for small miners who do not own rail lines and/or could not access rail capacity without paying an unofficial agency fee. For SOE companies that can obtain rail quotas, rail is typically...