To modify those suitable railway branch lines into norma-tive companies and to set up normative company-mode enterprises(hereinafter branch line company) is the need of pushing forward rail-way branch line reform, realizing separation of mainline and branchline and speeding up the reform of railway transport mechanism.

The paper expounds the feasibility of trying out share-holding system in railway branch lines from several aspects, and analyses the advantages of setting up the Xiaoyong Railway Limited Company by the Hangzhou Railway Sub-administration.

However, it is still an important subject of heavy duty transportation to be discussed if the through freight heavy duty train originated from the loading point can be launched along the branch lines of mining area that connect to these truck lines.