The main gate of the Ministry of Railway [file photo]

China plans to dismantle the Ministry of Railways into administrative and commercial arms, according to a report delivered by State Councilor Ma Kai to the annual session of the country's top legislature on Sunday. [More about the plan]

The proposed state railway administration, to be supervised by the Ministry of Transport, will run the existing Railway Ministry's administrative functions, says the report on the State Council institutional reform and transformation of government functions.

The proposed China Railway Corporation will run the existing Railway Ministry's commercial functions, the report says.

The state railway administration will be responsible for establishing railway technology standards, and supervising railway work safety, transport service quality and railway project quality, the report says.

The China Railway Corporation will be responsible for railway transportation dispatch and command, freight and passenger transport business management and railway construction, the report says.

"In order to fully play the overall advantages and integration efficiency of various transport means, it is necessary to separate the administrative function from the commercial function of the existing Railway Ministry," reads the report.

As the railway has undertaken many public functions and its development is at an important period, the government will continue to support the railway construction, accelerate the reforms in railway investment, financing and pricing, and establish a sound transport subsidy system, the report says.

Meanwhile, the government will continue to deepen the railway corporate reform and establish a modern corporate system, the report says.