China's railways transported more than 1.095 billion passengers during the first seven months of this year, up 12.2 percent from a year earlier, the Ministry of Railways said Sunday.

In July alone, the number of passengers who traveled by railways was 180 million, up 13.5 percent year-on-year, the ministry said in a statement on its website, citing a report.

The statement said the ministry faces severe challenges in meeting its full-year target of passenger transportation this year. The ministry announced in January that it aimed to send 1.9 billion passengers in 2011, up 13 percent from a year earlier.

Meanwhile, the railways also transported 2.273 billion metric tons of goods from January to July, up 7.9 percent year-on-year, the statement said, adding July's freight volume rose 6 percent to 326 million metric tons.