Abstract: The transport capacity of the railway system in BAOSTEEL was evaluated based on a thorough investigation on the carrying capacities of the sub-systems, such as locomotive, arrival- departure tracks, and loading-unloading of products and coke. The investigation shows that the subsystems of locomotive and arrival-departure tracks form the bottleneck of the railway system, the annual transportation capacities ofwhich are 2. 91million tand 2. 96million ,t respectively. Adding a locomotive and a arrival-departure track will raise the annual carrying capacities of the two limiting subsystems to4. 39million tand 3. 56million ,t respectively, tomeetthe demandsofcarrying capacity by 2009.