China's high-speed rail goes global in 2014
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ahojunk
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From China Daily USA
Chinese firms win $274m Argentina railway contract
Updated: 2014-12-22 04:29
By Zhang Yuchen in Beijing (China Daily Latin America)
Inter-city bullet trains made by China's CSR Qingdao Sifang Co Ltd are put into operation in Buenos Aires, Argentina, on July 22. They are the first batch of trains from China's biggest train export deal. Jiang Chao / Xinhua
A leading Chinese railway company said on Dec 15 that it had won a 1.7 billion yuan ($274 million) contract from the government of Argentina.
CSR Corp. Ltd. said on its website that it will provide 80 locomotives and 2,000 freight rail cars for a railway renovation project in the Latin American country.
The train-maker said it has been supplying trains and other rail products to Argentina since 2006. In 2013, it won two orders worth about $1 billion together from the country to supply inter-city trains.
It is just another win for the Chinese firm. In November, the company signed China’s largest single overseas construction deal with Nigeria, a deal valued at $12 billion. Despite the scrapping of bidding in early November for a $3.75 billion project by the Mexican government, the Chinese company has shown its interest in bidding again.
Chinese railway manufacturers have been stretching their muscle overseas with Chinese Premier Li Keqiang often promoting "high-speed railway diplomacy" during overseas trips.
A leading Chinese railway manufacturer, China Railway Construction Corp., along with its consortium, is expected to win the bid to build a high-speed railway from Kuala Lumpur to Singapore. It will be the first high-speed rail in Southeast Asia and will reduce the journey overland between the two neighbors to 90 minutes from around six hours.
In addition, during his visit to Europe, Premier Li on Dec 17 announced agreements with Hungary, Serbia and Macedonia to build a land-sea express route by expanding the Budapest-Belgrade rail line to Skopje, the capital of Macedonia; Athens and the major container port of Piraeus in Greece. The agreement follows the China-Thailand high-speed railway cooperative program that Thailand has approved.
In the first nine months of 2014, CRCC inked 115 billion yuan in overseas contracts, accounting for one-fifth of new deals over that period. The equivalent proportion in 2013 was 6 percent.
By the end of 2013, China had a high-speed train network of more than 10,000 kilometers, the world's largest, which connected many major cities making travel and freight transport much faster and more convenient. By the end of 2015, the high-speed rail network is expected to reach 19,000 km.
China estimates it will build its fastest trains and rails at a cost of $17 million to $21 million per kilometer. In Europe, the range of costs is from about $25 million to $39 million, and the estimated cost in California is up to $52 million, according to the World Bank report.
According to a Xinhua report from October, CSR and China CNR Corp. Ltd., another prominent Chinese railway manufacturer, are in merger talks that, if successful, would greatly increase China’s global railway presence.
zhangyuchen@chinadaily.com.cn
.
Chinese firms win $274m Argentina railway contract
Updated: 2014-12-22 04:29
By Zhang Yuchen in Beijing (China Daily Latin America)
Inter-city bullet trains made by China's CSR Qingdao Sifang Co Ltd are put into operation in Buenos Aires, Argentina, on July 22. They are the first batch of trains from China's biggest train export deal. Jiang Chao / Xinhua
A leading Chinese railway company said on Dec 15 that it had won a 1.7 billion yuan ($274 million) contract from the government of Argentina.
CSR Corp. Ltd. said on its website that it will provide 80 locomotives and 2,000 freight rail cars for a railway renovation project in the Latin American country.
The train-maker said it has been supplying trains and other rail products to Argentina since 2006. In 2013, it won two orders worth about $1 billion together from the country to supply inter-city trains.
It is just another win for the Chinese firm. In November, the company signed China’s largest single overseas construction deal with Nigeria, a deal valued at $12 billion. Despite the scrapping of bidding in early November for a $3.75 billion project by the Mexican government, the Chinese company has shown its interest in bidding again.
Chinese railway manufacturers have been stretching their muscle overseas with Chinese Premier Li Keqiang often promoting "high-speed railway diplomacy" during overseas trips.
A leading Chinese railway manufacturer, China Railway Construction Corp., along with its consortium, is expected to win the bid to build a high-speed railway from Kuala Lumpur to Singapore. It will be the first high-speed rail in Southeast Asia and will reduce the journey overland between the two neighbors to 90 minutes from around six hours.
In addition, during his visit to Europe, Premier Li on Dec 17 announced agreements with Hungary, Serbia and Macedonia to build a land-sea express route by expanding the Budapest-Belgrade rail line to Skopje, the capital of Macedonia; Athens and the major container port of Piraeus in Greece. The agreement follows the China-Thailand high-speed railway cooperative program that Thailand has approved.
In the first nine months of 2014, CRCC inked 115 billion yuan in overseas contracts, accounting for one-fifth of new deals over that period. The equivalent proportion in 2013 was 6 percent.
By the end of 2013, China had a high-speed train network of more than 10,000 kilometers, the world's largest, which connected many major cities making travel and freight transport much faster and more convenient. By the end of 2015, the high-speed rail network is expected to reach 19,000 km.
China estimates it will build its fastest trains and rails at a cost of $17 million to $21 million per kilometer. In Europe, the range of costs is from about $25 million to $39 million, and the estimated cost in California is up to $52 million, according to the World Bank report.
According to a Xinhua report from October, CSR and China CNR Corp. Ltd., another prominent Chinese railway manufacturer, are in merger talks that, if successful, would greatly increase China’s global railway presence.
zhangyuchen@chinadaily.com.cn
.
IPen
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Why didn't the Japanese company do these over the past half century?
It looks like they suddenly turn up out of nowhere to compete with China in the international market just in recent years.Moreover,some of our original technologies were bought from them.
It looks like they suddenly turn up out of nowhere to compete with China in the international market just in recent years.Moreover,some of our original technologies were bought from them.
Keel
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Chinese firm wins $567M contract to build rail cars in Springfield
November 20, 2014 9:56 am
China rail group signs $12bn Nigeria deal
http://www.ft.com/intl/cms/s/0/259e9c42-7098-11e4-8113-00144feabdc0.html#axzz3OToCrozD
China sells 10 bullet trains to Malaysia
http://news.xinhuanet.com/english/china/2013-09/21/c_132737522.htm
November 20, 2014 9:56 am
China rail group signs $12bn Nigeria deal
http://www.ft.com/intl/cms/s/0/259e9c42-7098-11e4-8113-00144feabdc0.html#axzz3OToCrozD
China sells 10 bullet trains to Malaysia
http://news.xinhuanet.com/english/china/2013-09/21/c_132737522.htm
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ahojunk
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The main reason is cost. China is able to build HSR at a cost of $17 million to $21 million per kilometer. In Europe, the range of costs is from about $25 million to $39 million, and the estimated cost in Japan is higher due to the hilly terrain and being earthquake prone.
Japan couldn't make much headway with Shinkansen in the international market because no other country can afford it at the cost required by the Japanese to build.
China is able to build HSR at a more reasonable cost now, it seems many countries are seriously looking into it.
China has published HSR design specification standards covering fundamental, technical and safety requirements in nearly 20 areas. (The potential customer knows what it is getting which helps in the sale.)
China is able to reduce the cost due to these factors:
- China digested foreign technology and then developed its indigenous technology bypassing foreign licensing cost.
- the Chinese HSR network size enable it to take advantage of economies of scale
- high degree of standardization in the build of pylons and viaducts.
- China is just good at project managing massive infrastructure projects.
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IPen
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Very good analysis!You seem quite familiar to this aspect.
IsaacNewton
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I read from somewhere that the Japanese were unhappy because China "stole" Japanese rail technology and exporting it at half-price.
ahojunk
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I just remembered that Taiwan HSR uses Shinkansen technology. Some political reasons are in play here.
Kawasaki of Japan threatened to sue but it was withdrawn. You cannot sue someone whose technology is now better than yours, can you?
Western media no longer harp on this issue any more, but now more on praising the Chinese HSR network and rightly so.
The facts are:-
- Many new HSR lines were opened last December, I have lost count.
- By the end 2014, it has more than 15,000 km of high-speed rail. UBS’s research reports that “China has the largest high-speed rail network in the world, with a total of more than 20,000+ kilometers [12,400+ miles] high-speed passenger-dedicated lines scheduled to be operational by end-2015.”
- China possesses very comprehensive technology for HSR systems, very cost-competitive, excellent integration capability, experience in all climate conditions/ terrains, the longest operating HSR route, the fastest HSR operating speeds and the largest HSR network.
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China offer a reasonable cost for a good enough high-speed railway so they win in such these developing countries. By the way, I am glad that people in the world, especially in poor countries, now have a chance to enjoy a modern transportation, their life will be even better than before. Thank you China.
Lack of strategic depth on our part. Nevertheless, we wish the best and auspicious success to our friends in China !
TaiShang
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CHINA’S HIGH-SPEED RAIL: RAPID GROWTH OF NEW TRAVEL OPTION
China has the world’s largest and still expanding high-speed rail (HSR) network, but whether ridership would materialize has been the subject of much debate.
A new World Bank paper finds initial traffic volumes are promising, with traffic growing from 128 million trips in 2008 to 672 million trips in 2013 and over 2.9 billion passengers having taken a high speed train trip between April 2007 and October 1, 2014.
The paper underlines that the circumstances in China in terms of long distances, high population density, well interspaced large cities, and its economic rebalancing strategies are propitious for the long-term success of HSR. By focusing on understanding and addressing passenger needs, as well as efficient and effective operation, traffic can be expected to continue rapid growth over the coming two decades.
The paper titled High-Speed Railways in China: A Look at Traffic looks at China’ s HSR traffic in a global perspective and presents case studies of one of the country’s busiest routes and a relatively lightly used intercity route to illustrate how passengers have responded to new HSR services.
China has over 12,000 kilometers of passenger-dedicated high-speed rail in operation. In the summer 2014, China Railways was running over 1,330 pairs of high-speed trains a day on both this dedicated network and on upgraded conventional lines. More lines are being built and upgraded to connect all cities of more than 500,000 people through rapid rail by 2015.
In 2013, China’s high-speed rail lines carried more passenger-kilometers (214 billion) than the rest of the world combined, about 2.5 times the volume in Japan and four times the volume in France. Traffic densities of 22.5 million[1] in 2013 compare favorably to levels reached by Japan and France at the same stage of development.
The paper examines who is using HSR, whether the service has benefitted ordinary citizens, and how it has affected personal mobility by using survey data collected from passengers along the Changchun-Jilin and Tianjin-Jinan corridors. The survey was carried out by the World Bank, China Railway Corporation and the Third Railway Survey and Design Institute.
Survey findings indicate that a large proportion of high-speed train passengers are between the ages of 25 and 55, with many using the HSR for business travel. A broad range of travelers of different income levels choose HSR for its comfort, convenience, safety and punctuality over existing alternatives. The survey found that the average income of high-speed train passengers was 35-50 percent higher than that of conventional train passengers. The majority of surveyed passengers (50 to 70 percent of users in the two case studies) reported income of less than RMB5,000 per month. Users perceive HSR as facilitating reunions with family and friends, tourism, and access to job opportunities. High-speed rail also has had a marked impact on local businesses and personal mobility of their employees.
“Understanding and addressing passenger needs are critical to achieving the full impact of the high-speed rail network. While initial results are encouraging, high-speed rail remains a major investment that requires high traffic density to be justified economically and financially,” said Gerald Ollivier, a World Bank Senior Transport Specialist and co-author of the paper.
“This can be achieved by working closely with cities to develop areas around stations in a way that leverages the gain in accessibility that high speed rail provides. It also important to optimize train frequencies and city pairing, introduce flexible ticket prices reflecting peak and off-peak periods, and introduce convenient e-ticketing services. By focusing on these aspects, and on the efficient and effective operation of the network, high-speed rail in China can continue to experience substantial growth for many years to come,” he added.
This paper is part of the China Transport Note Series produced by the World Bank in Beijing to share experience about the transformation of the Chinese transport sector. The World Bank has supported six railway projects with design speeds ranging from 200 km/h to 350 km/h in China.
[1] Passenger-kilometers per kilometer of line.
China has the world’s largest and still expanding high-speed rail (HSR) network, but whether ridership would materialize has been the subject of much debate.
A new World Bank paper finds initial traffic volumes are promising, with traffic growing from 128 million trips in 2008 to 672 million trips in 2013 and over 2.9 billion passengers having taken a high speed train trip between April 2007 and October 1, 2014.
The paper underlines that the circumstances in China in terms of long distances, high population density, well interspaced large cities, and its economic rebalancing strategies are propitious for the long-term success of HSR. By focusing on understanding and addressing passenger needs, as well as efficient and effective operation, traffic can be expected to continue rapid growth over the coming two decades.
The paper titled High-Speed Railways in China: A Look at Traffic looks at China’ s HSR traffic in a global perspective and presents case studies of one of the country’s busiest routes and a relatively lightly used intercity route to illustrate how passengers have responded to new HSR services.
China has over 12,000 kilometers of passenger-dedicated high-speed rail in operation. In the summer 2014, China Railways was running over 1,330 pairs of high-speed trains a day on both this dedicated network and on upgraded conventional lines. More lines are being built and upgraded to connect all cities of more than 500,000 people through rapid rail by 2015.
In 2013, China’s high-speed rail lines carried more passenger-kilometers (214 billion) than the rest of the world combined, about 2.5 times the volume in Japan and four times the volume in France. Traffic densities of 22.5 million[1] in 2013 compare favorably to levels reached by Japan and France at the same stage of development.
The paper examines who is using HSR, whether the service has benefitted ordinary citizens, and how it has affected personal mobility by using survey data collected from passengers along the Changchun-Jilin and Tianjin-Jinan corridors. The survey was carried out by the World Bank, China Railway Corporation and the Third Railway Survey and Design Institute.
Survey findings indicate that a large proportion of high-speed train passengers are between the ages of 25 and 55, with many using the HSR for business travel. A broad range of travelers of different income levels choose HSR for its comfort, convenience, safety and punctuality over existing alternatives. The survey found that the average income of high-speed train passengers was 35-50 percent higher than that of conventional train passengers. The majority of surveyed passengers (50 to 70 percent of users in the two case studies) reported income of less than RMB5,000 per month. Users perceive HSR as facilitating reunions with family and friends, tourism, and access to job opportunities. High-speed rail also has had a marked impact on local businesses and personal mobility of their employees.
“Understanding and addressing passenger needs are critical to achieving the full impact of the high-speed rail network. While initial results are encouraging, high-speed rail remains a major investment that requires high traffic density to be justified economically and financially,” said Gerald Ollivier, a World Bank Senior Transport Specialist and co-author of the paper.
“This can be achieved by working closely with cities to develop areas around stations in a way that leverages the gain in accessibility that high speed rail provides. It also important to optimize train frequencies and city pairing, introduce flexible ticket prices reflecting peak and off-peak periods, and introduce convenient e-ticketing services. By focusing on these aspects, and on the efficient and effective operation of the network, high-speed rail in China can continue to experience substantial growth for many years to come,” he added.
This paper is part of the China Transport Note Series produced by the World Bank in Beijing to share experience about the transformation of the Chinese transport sector. The World Bank has supported six railway projects with design speeds ranging from 200 km/h to 350 km/h in China.
[1] Passenger-kilometers per kilometer of line.
cirr
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China's railway construction drive continues
Source:Xinhua Published: 2015-1-9 23:49:16
China will maintain the scale and intensity of railway construction in 2015 and more lines will be put into operation, an official said on Friday.
"Railway construction, particularly in China's central and western regions, is a strategic move in response to the economic 'new normal'," said Lu Dongfu, director of the National Railway Administration (NRA).
Railway spending is of great significance to stabilizing economic growth, adjusting structure and improving people's livelihoods, he said.
The director said several thousands of kilometers of track will come into operation in 2015.
China has more than 110,000 kilometers of railways and over 15,000 kilometers of them are high-speed. China is now preparing to sell equipment and technology to foreign markets.
Rail cooperation with India, Kyrgyzstan, Laos, Mongolia, Russia, Thailand, the United States, Uzbekistan and European countries, progressed in 2014.
The NRA in December unveiled China's first design specification standards for high-speed rail links. From Feb. 1, the specifications will lay a solid foundation for railway enterprises to explore the overseas market.
Source:Xinhua Published: 2015-1-9 23:49:16
China will maintain the scale and intensity of railway construction in 2015 and more lines will be put into operation, an official said on Friday.
"Railway construction, particularly in China's central and western regions, is a strategic move in response to the economic 'new normal'," said Lu Dongfu, director of the National Railway Administration (NRA).
Railway spending is of great significance to stabilizing economic growth, adjusting structure and improving people's livelihoods, he said.
The director said several thousands of kilometers of track will come into operation in 2015.
China has more than 110,000 kilometers of railways and over 15,000 kilometers of them are high-speed. China is now preparing to sell equipment and technology to foreign markets.
Rail cooperation with India, Kyrgyzstan, Laos, Mongolia, Russia, Thailand, the United States, Uzbekistan and European countries, progressed in 2014.
The NRA in December unveiled China's first design specification standards for high-speed rail links. From Feb. 1, the specifications will lay a solid foundation for railway enterprises to explore the overseas market.
ahojunk
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Rail merger set for antitrust reviews - Headlines, features, photo and videos from ecns.cn|china|news|chinanews|ecns|cns
Rail merger set for antitrust reviews
2015-01-15 08:27 China Daily Web Editor: Qin Dexing
Models of CNR Corp Ltd's high-speed trains on display at a railway technology and equipment expo in Beijing. The planned merger of CSR Corp and CNR Corp is subject to antitrust reviews by other governments. [Photo/China Daily]
The merger of China's two biggest rolling stock producers faces intense antitrust scrutiny around the world, analysts said, with the combination of CSR Corp Ltd and CNR Corp Ltd likely to create the globe's largest trainmaker by sales.
The German Federal Cartel Office, for example, said on its website that the agency received a notification of the merger on Jan 5.
The two companies may have submitted pre-merger notifications to more international antitrust agencies and the case may need to be reviewed by more countries as the size of the deal will affect related markets, said analysts. Neither company could be reached for comment.
The merger will create a company with about $31 billion in revenue, which exceeds the three largest Western players' revenues combined, said a Moody's Investors Service Inc report. CNR generated 96.8 billion yuan ($15.4 billion) of revenue in 2013, while CSR reported sales of 96.5 billion yuan.
By comparison, the revenue of Germany-based Siemens AG totaled $9.2 billion in its most recent fiscal year. Canada-based Bombardier Inc reported $8.8 billion of sales and the figure for France-based Alstom's transportation equipment division stood at $7.5 billion.
The two Chinese companies have won contracts for regional and commuter trains in Southeast Asia and other emerging markets in recent years, said Zou Jiming, a Shanghai-based analyst at Moody's.
CNR won a $570 million contract to supply passenger cars to Boston's subway system last year, Chinese manufacturers' first US rolling stock order.
Both companies have yet to win rolling stock contracts in the European market since the region has mature manufacturers and stringent requirements for market entry. Asian players such as Japan-based Hitachi Ltd's Hitachi Rail and South Korea-based Hyundai Motor Co's Hyundai Rotem have been able to gain a slice of the market, according to analysts.
Deng Zhisong, an antitrust attorney with Beijing-based Dacheng Law Office, said that an international merger needs to be studied case-by-case and countries will reach different antitrust conclusions about one transaction.
"Given the size of the transaction, the process might be very time-consuming, but I think the results would be relatively optimistic," said Deng.
For the US and European markets, where the rail and mass transit industries have become highly concentrated, new suppliers like the Chinese companies with cost advantages will be beneficial for full competition.
That is not considered a negative factor by local regulators, so they might also obtain clearance in these markets, said an analyst who declined to be identified due to the sensitivity of the issue.
Huang Yong, deputy head of the expert advisory group of the State Council's Anti-monopoly Committee, said it is difficult to forecast the results of these reviews.
The analytical methods adopted by antitrust agencies are very complex, and they conduct a thorough study of companies' shares in each market segment, such as light rail, subways, high-speed systems, commuter services and locomotives, Huang said.
This case should also be reviewed by China's antitrust agencies, said analysts.
.
Rail merger set for antitrust reviews
2015-01-15 08:27 China Daily Web Editor: Qin Dexing
Models of CNR Corp Ltd's high-speed trains on display at a railway technology and equipment expo in Beijing. The planned merger of CSR Corp and CNR Corp is subject to antitrust reviews by other governments. [Photo/China Daily]
The merger of China's two biggest rolling stock producers faces intense antitrust scrutiny around the world, analysts said, with the combination of CSR Corp Ltd and CNR Corp Ltd likely to create the globe's largest trainmaker by sales.
The German Federal Cartel Office, for example, said on its website that the agency received a notification of the merger on Jan 5.
The two companies may have submitted pre-merger notifications to more international antitrust agencies and the case may need to be reviewed by more countries as the size of the deal will affect related markets, said analysts. Neither company could be reached for comment.
The merger will create a company with about $31 billion in revenue, which exceeds the three largest Western players' revenues combined, said a Moody's Investors Service Inc report. CNR generated 96.8 billion yuan ($15.4 billion) of revenue in 2013, while CSR reported sales of 96.5 billion yuan.
By comparison, the revenue of Germany-based Siemens AG totaled $9.2 billion in its most recent fiscal year. Canada-based Bombardier Inc reported $8.8 billion of sales and the figure for France-based Alstom's transportation equipment division stood at $7.5 billion.
The two Chinese companies have won contracts for regional and commuter trains in Southeast Asia and other emerging markets in recent years, said Zou Jiming, a Shanghai-based analyst at Moody's.
CNR won a $570 million contract to supply passenger cars to Boston's subway system last year, Chinese manufacturers' first US rolling stock order.
Both companies have yet to win rolling stock contracts in the European market since the region has mature manufacturers and stringent requirements for market entry. Asian players such as Japan-based Hitachi Ltd's Hitachi Rail and South Korea-based Hyundai Motor Co's Hyundai Rotem have been able to gain a slice of the market, according to analysts.
Deng Zhisong, an antitrust attorney with Beijing-based Dacheng Law Office, said that an international merger needs to be studied case-by-case and countries will reach different antitrust conclusions about one transaction.
"Given the size of the transaction, the process might be very time-consuming, but I think the results would be relatively optimistic," said Deng.
For the US and European markets, where the rail and mass transit industries have become highly concentrated, new suppliers like the Chinese companies with cost advantages will be beneficial for full competition.
That is not considered a negative factor by local regulators, so they might also obtain clearance in these markets, said an analyst who declined to be identified due to the sensitivity of the issue.
Huang Yong, deputy head of the expert advisory group of the State Council's Anti-monopoly Committee, said it is difficult to forecast the results of these reviews.
The analytical methods adopted by antitrust agencies are very complex, and they conduct a thorough study of companies' shares in each market segment, such as light rail, subways, high-speed systems, commuter services and locomotives, Huang said.
This case should also be reviewed by China's antitrust agencies, said analysts.
.
Europeans becoming worried that united Chinese companies can eventually put them our of business.
Now they are using anti trust laws against them. But I don't see what can be done because the merger is done under China's business laws.
