Shenzhen's SF Holding forms cargo joint venture with SF China Railway

SHENZHEN's SF Holding and Beijing-based China Railway Corp have formed a cargo venture to draw in the private sector to bolster state firms' competitiveness, Bloomberg reports.

Cargo subsidiary China Railway Express will hold a 55 per cent while SF, the country's biggest parcel-delivery company, will own the rest of the venture.

The pact with SF is part of China's efforts to let railways account for a larger share of cargo transportation to counter rivals in road haulage and increase rail freight 30 per cent by 2020.

It is China Railway's second tie-up with a private firm following the sale of a stake in a unit offering wi-fi on bullet trains to Tencent Holdings and Geely Automobile Holdings in June.