Fifty-four officials have been punished for design flaws and mismanagement that led to a disastrous high-speed train crash killing 40 passengers on July 23.

The State Council, or China's cabinet, announced Wednesday that the crash near the east city of Wenzhou was caused by a series of flaws in train operation control system and inadequate emergency response from railway authorities.

Former Railway Minister Liu Zhijun and former Deputy Chief Railway Engineer Zhang Shuguang, both of whom had been investigated for "severe violation of discipline" before the accident, were among the 54 punished.

Liu and Zhang, together with Ma Cheng, former chairman of board at China Railway Signal and Communication Corp. (CRSC) which is the producer of the railway signaling system, were mainly responsible for the crash, the State Council said.

On July 23, a high-speed train rammed into a stalled train, leaving 40 people dead and 172 injured.

A lightning strike caused train D3115 lose power and a signaling failure led train D301 to hit D3115, according to a final investigation report.

Management failures

The probe, which lasted more than 180 days, found that besides major design flaws, there had been relaxed safety controls and poor emergency response to equipment failure.

Police and prosecutors independently investigated into whether the accident constituted a crime, the State Council said.

The accident has exposed that the Ministry of Railways (MOR) and the Shanghai Railway Bureau had failed to act properly after the accident and were unable to disclose relevant information on issues of social concern, leaving a negative social influence, the report said.

The CRSC did not fulfill its responsibility, as the chaotic management at its research institute has caused the design flaws and major safety loopholes, it said.

The MOR said it would pay 915,000 yuan ($145,007) in compensation for each victim of the high-speed train crash, but it has not yet reached agreements with families of three foreign victims.

The July accident has caused public fury and discontent over reckless growth and ignorance of safety management.

The final report, available at the website of State Administration of Work Safety,(www.chinasafety.gov.cn), has responded to key public concern with detailed record of the accident, including why large truck cranes were used to remove the carriages and how the train wreckage was dealt with.

"No one ordered a cessation during the rescue," the report said.

But it has remained a question whether the investigation result can satisfy the long-anticipating public, as among the three primarily responsible people, two have already been sacked before the accident, and Ma died of a heart attack during investigation.

Ministry overhaul

Besides the punished ones, Railway Minister Sheng Guangzu is also required to make a thorough self-criticism and present it to the State Council.

At an MOR conference after the State Council meeting, Sheng said the July train crash has exposed weak links in railway safety management and taught a serious lesson.

Sheng expressed deep condolences to victims of the accident and apologies to the injured.

The State Council has also concluded a safety overhaul on high-speed rail links and ongoing railway projects that were launched after the accident, and announced measures to fix safety loopholes exposed during the inspection.

The MOR has urged the local units to moderately slow high-speed trains at newly-opened links, complete emergency response plans, recall equipment with hidden dangers, and enhance work-safety training.

The ministry has been acting as both the regulator and operator of the country's railway system since its establishment.

Investment slowdown

Railway construction has nearly halted since the July crash, as the government has decided to slow the development of high-speed rail lines and put speed limits on the existing express ways.

Railway infrastructure investment has shrank to only 469 billion yuan ($74 billion) this year, a marked decrease from over 700 billion yuan ($110 billion) in 2010, according to statistics released by a railway conference last Friday.

The sector has been hit hard in the second half of 2011, after the government tightened liquidity control, and the deadly train collision eroded investors' confidence and limited the ministry's ability to borrow money or sell bonds.

Railway investment is expected to further slow down next year, as the country only plans to invest 400 billion yuan ($63 billion) in railway infrastructure construction.

However, the State Council reaffirmed that high-speed railway development is "the right direction" as it helps improve public transportation and gives a boost to economic growth, and it will be promoted in a "scientific, safe and sustainable way."

Minister Sheng said last week that future railroad construction should be promoted "scientifically and orderly," and he admitted that it would be an arduous task to ensure quality and safety of railway projects amid massive ongoing construction.

(Xinhua News Agency December 29, 2011)