THE acceptance of shippers' applications for buying private railcars was resumed after being suspended for nearly a year as part of the railway reforms.

Industry experts predict that this will bring about demand for around 1,000 railcars this year, valued between CNY2 billion (US$328 million) to CNY4 billion, China Securities reports.

The resumption of sales is viewed as an acceleration of separation of the commercial and administrative roles of China's railway authority, which allows shippers to make transport vehicles arrangements more freely.

Large energy resource suppliers like Sinopec and Shenhua Group have been the big applicants for their own freight trains.

By the end of this year, orders for about 1,000 freight piece of rolling stock are expected, mostly tanker and coal cars, with an average price of CNY200,000 to CNY400,000 each. These orders will bring a sales volume of CNY2 billion to CNY4 billion.

The above-mentioned person pointed out that in the past, China's railway authority has been hindering shippers from buying high-power locomotives and higher-quality trains and even stopped application for purchase of their own trains earlier this year. But as the railway reform goes on, the shippers will be given greater freedom in their decision to buy trains.

Another person from the industry thinks that the move will lower the cost of using trains for shippers and will also be good news for rolling stock manufacturers, as more orders are on the way.

China's two largest train manufacturers, CSR and CNR, is said to be bound to benefit the most from the move.

After the Chinese government dismissed the Ministry of Railways and started reform to separate its commercial and administrative functions, the effect is still not obvious. But the decision to allow shippers to order own freight trains again is considered to be another step to strengthen the functional separation.