BEIJING -- China's railways carried 196.34 million passengers in July, marking a 10.1 percent year-on-year rise spurred by the country's transportation reform, the State-owned China Railway Corporation (CRC) said Monday.

The passenger volume in July also posted a 10.4 percent rise, or an increment of 18.46 million passengers, from June, according to the CRC.

Meanwhile, over 259.72 million tons of cargo were transported via the country's railways, marking a year-on-year rise of 6.39 million tons, or 2.5 percent.

The increases in both passengers and cargo in July can be attributed to cargo transportation reform, rising demand for coal, petroleum and grain, and the summer travel peak season, according to CRC.

As part of the cabinet restructuring plan in March, the Chinese government approved the establishment of the CRC to perform the commercial functions of the defunct Ministry of Railways.