The railway ministry in China says it will sack nearly a million-and-a-half workers by the year two-thousand -- more than forty per cent of the workforce.

The railways minister, Fu Zhihuan, said the reduction was essential to ensure future profitability; he did not indicate if parts of the network itself would close down.

China's rail network lost nearly five hundred million dollars four billion yuan last year despite rapid economic expansion leading to greatly increased transport demands.

Railways are among many unprofitable state-owned industries that are shedding workers in reforms intended to make China's economy more competitive.