Since early May this year, many Chinese coal producers have been suffering from electricity power restrictions due to the government's power rationing measures. Given the current high transportation charges and freight capacity shortages, these producers have started to appeal to the Chinese government to abolish the railway construction fund for coal transportation.
As an executive of one coal company commented, the railway construction fund for coal transportation which has existed for many years has been placing a heavy burden on domestic coal producers. The revenues of the fund, which was founded in 1991, mainly come from transportation charges. In 2010, the fund's total revenues amounted to RMB 61.7 billion ($9.5 billion).