CHINA'S Ministry of Railways handled more than 182 million tonnes of cargo in May, an increase of 5.4 per cent over the same month last year, according to Xinhua news agency.

During the same month, the Ministry reported that 99,158 freight cars were deployed to carry cargo each day throughout China, a rise of nearly four per cent over May 2003.

The report pointed out that the country's railway system was facing increasing pressure for freight services, especially in northwest China, because of the growing demand for energy and raw material brought about by the fast growth in the economy.

Xinhua said statistics showed that the railway authority in Lanzhou handled more than 28 million tonnes of cargo in the first five months of 2004, an increase 1.93 million tonnes over the same period last year. The report said the railway authority in Lanzhou was only capable of meeting one-third of the present rail freight demand in the area by providing three thousand freight trains daily.

Meanwhile, the ministry has warned against overcharging shippers of essential state commodities, according to Xinhua news.

This follows growing demand and intense competition for such services as a result of sharp increases in the output of essential commodities in the first five months of the year.

The report pointed out that during the five-month period, the railway handled 48.21 million tonnes of essential foodstuffs, nearly 15 per cent more than in the same period last year. The transport of oil also increased by 12 per cent to 49.06 million tonnes.