Coal traffic represents a major part (over 60 percent) of total traffic. A Coal Transport Study done in 1992, established that the PRC’s economic growth has been severely hampered by shortages of coal and electricity. This study identified railways as the predominant mode of transport for moving coal; by comparison, trucking was inefficient for long distance transport of bulk coal. The expansion of railway capacity was determined to be the most important measure for solving transport bottlenecks related to energy shortages. This study has been the basis for long-term investment planning in the related fields of coal production, transport, and electric power. Based on this study, the Government has planned systematic optimization of the production and transportation of coal and electric power production during the Ninth and Tenth FYPs. The Project railway is a key investment for mitigating bottlenecks in the transport of coal during the Ninth FYP.