BEIJING, Aug. 21 (AP) -- China will introduce legislation and other measures to attract foreign and domestic investment in the country's 2 trillion yuan (US$250 billion; €195 billion) railway expansion, a newspaper reported Monday.

The Railways Ministry plans to allow investors greater control over the pricing of ticket and freight charges, the China Daily quoted ministry spokesman Wang Yongping as saying.

Wang said the government would also introduce greater transparency in the railway construction and transport industry, the report said.

The ministry is drafting new regulations on railway construction, passenger travel and freight that it hopes will help safeguard private interests, it also said.

But Wang said the ministry will continue to retain complete control over railway network schedules.

"Keeping the railway network as a whole and centralizing timetables will be the prerequisite and base for our reforms," Wang said.

Wang said the ministry has so far promoted 43 projects to investors _ including passenger lines connecting provincial capitals.

The government plans to expand the rail system to 100,000 kilometers (62,500 miles) by 2020, from the 73,000 kilometers (45,600 miles) in service at the end of 2003.

China said in 2004 its massive railways will start allowing private investment, ending the state's monopoly in the industry to help finance its expansion.

The changes are part of broad reforms for the rail, posts and road transport systems aimed at introducing greater competition and efficiency into those industries.