Railway companies on track to haul the world

Two bullet trains at a CRRC Qingdao Sifang Co Ltd factory in Qingdao. [Photo provided to China Daily]

Even though China is a latecomer to the field in comparison with its German and French rivals, Yu said its rail equipment companies have thrived, thanks to cost advantages, reasonable delivery times and flexible financing models.

CSR Sifang America JV, a CRRC subsidiary, secured a $1.3-billion deal from the Chicago Transit Authority this month to supply up to 846 metro vehicles to the city. This is the biggest railcar purchase in the agency's history.

CSR Sifang America JV is a joint venture of Qingdao-based CRRC Qingdao Sifang Co Ltd and Chicago-based CSR America. Another CRRC subsidiary is currently building trains in Massachusetts currently after sealing a deal with the Massachusetts Bay Transportation Authority to supply 284 railcars to the Boston transit system.

"This deal represents another major breakthrough for the Chinese railway vehicles in the North American market," said Wang Mengshu, an academician at the Chinese Academy of Engineering.

Wang said it certainly will arouse the interest of more countries, which are keen to put their economic growth on a firmer footing through efficient transportation systems and regional connectivity.

Under the deal, the 7000 series railcars will be assembled at a purpose-built plant in Chicago, to replace the 2600 series manufactured in the 1980s.

CTA started procurement for the 7000 series deal in 2013, but the bidding gained little interest and a revised tender was launched in 2014.

CRRC set a $1.3-billion offer for 846 railcars, about $226 million lower than the bid made by its rival, Canada's Bombardier Inc. Its $632-million base order comprises 400 cars with options for a further 446 vehicles.

CTA said this purchase will give the city one of the youngest rail fleets in the US, with the average age of a railcar dropping from 26 years in 2011 to 13 years once all the railcars are delivered, as well as saving $7 million a year in maintenance service.

The Chinese government announced in September that a 370-kilometer high-speed railway project between Las Vegas and Los Angeles will be built by a joint venture involving Chinese rail companies, including China Railway Construction Corp, China Railway Corp, as well as XpressWest Enterprises, a US passenger rail service provider.

The construction work between Nevada and California is expected to start as early as this September, and the estimated investment for the project is $12.7 billion.

Wang Yongzhi, chief information officer of CRRC, said the Belt and Road Initiative will also help China export more high-speed rail technologies and related products to a number of lucrative markets during the 13th Five-Year Plan.

The trade-and-infrastructure network, proposed by the Chinese government in 2013, envisions a Silk Road Economic Belt and a 21st Century Maritime Silk Road, covering about 4.4 billion people in more than 60 countries and regions in Asia, Europe and Africa.

CRRC is also preparing to export bullet trains for a high-speed rail project in Russia that would connect Moscow to Kazan. The length of the line is expected to be about 770 kilometers and will run through seven Russian regions with a total population of more than 25 million.

"Because most countries along the initiative (footprint), especially Central Asia, Southeast Asia, the Middle East and eastern Europe, are planning to build high-speed rail lines or upgrade their existing railway systems, they are willing to acquire technological support from China to assist in the daily operations, maintenance, staff training and other services," said Wang.