BEIJING -- China plans to dismantle the Ministry of Railways into administrative and commercial arms to reduce bureaucracy and improve railway service efficiency, a top Chinese official said Sunday.

The existing Railways Ministry, which is both a policy-maker and a service provider, has long been criticized for bureaucracy and unpleasant services.

The proposed state railways administration, to be supervised by the Ministry of Transport, will fulfill the existing Railways Ministry's administrative functions, according to a report delivered by State Councilor Ma Kai to the annual session of the country's top legislature on Sunday.

The proposed China railway corporation will carry out the existing Railways Ministry's commercial functions, Ma said in the report on the institutional reform of the State Council, China's cabinet.

The state railways administration will be responsible for establishing railway technology standards and supervising railway work safety, transport service quality and railway project quality, Ma said.

The China railway corporation will be responsible for railway transportation dispatch and command, freight and passenger transport business management and railway construction, Ma said.

After the department restructuring, China's transportation capabilities will be greatly enhanced through the integration and overall planning of various transport means, including rail, road, shipping and aviation, Minister of Railways Sheng Guangzu told media on Sunday morning.