Tokyo pulls out all stops in tussle for high-speed train projects
It faces stiff competition from China in the bid to supply systems to Singapore, Malaysia, Thailand and Vietnam
By Anthony
[email protected]
28 Oct5:50 AM
Tokyo
JAPAN and China, along with several European countries, are tussling to sell high-speed rail (HSR) systems around the world but the main focus at present is on winning a contract to supply an HSR link between Singapore and Malaysia because of the high stakes this could involve for future systems.
Japan has submitted proposals for the Singapore-Kuala Lumpur corridor and is also interested in supplying HSR systems to Thailand and Vietnam, although it could face tough competition from China, which Japanese officials say is eager to supply much more extensive HSR networks linking several Asean countries, including Singapore and Malaysia, with Chinese networks.
Singapore Prime Minister Lee Hsien Loong and his Malaysian counterpart Najib Razak agreed last year to pursue a high speed rail link between their two countries. Malaysia has completed (although not yet published) a feasibility study on the project while such a study is still in process of being completed on the Singapore side, Tokyo officials say.
Malaysian media reports have suggested that the project could cost around RM40 billion (S$15.58 billion) but much higher financial, and even strategic stakes, could be involved if an integrated high speed rail system were eventually to be built linking not only Singapore and Malaysia but also Thailand and Vietnam.
Competition between Japan and China is also being extended to the US where Japan has submitted an "expression of interest" in California's US$68 billion HSR project, where Tangshan Railway (part of China's CNR Corporation) has submitted a similar expression of interest in conjunction with Sun Group USA, reports say.
Japan is, meanwhile, bidding independently to supply a so-called Maglev (magnetic levitation) super high-speed rail system to link New York and Washington DC - a project that US President Barack Obama and Japanese Prime Minister Shinzo Abe had discussed during a recent telephone conversation.
Elsewhere, Japan is focusing on seven possible HSR corridors in India, among which the proposed Mumbai-Ahmedabad project appears to be the "most promising" at present, and is also interested in HSR projects in Brazil, with which Tokyo has close links, an official in the Ministry of Land, Infrastructure, Transport and Tourism told The Business Times.
Japan has been a pioneer in high-speed rail technology since it launched the Shinkansen or "bullet train" system linking Tokyo and Osaka at the time of the 1964 Olympic Games. Since then, Japan has built 2,400 kilometres of track specially dedicated to Shinkansen or express trains which are among the safest and most reliable in the world
Shinkansen systems have not been a major export prospect for Japan until recently, however, with the Taiwan High Speed Rail being the first Shinkansen to be deployed overseas. That situation is being revolutionised now as HSR systems spread beyond Europe, where firms such as Siemens of Germany and Alsthom of France dominate local markets.
Using what Japanese officials say is a combination of Japanese and European technology, China is building vast HSR networks in its own country and competing aggressively to sell these in markets as far apart as Asean and the Americas. Sales efforts are backed by China's huge foreign exchange reserves.
Japanese manufacturing giants such as Mitsubishi, Sumitomo, Hitachi, Toshiba and a host of other names less known internationally and which up until now have focused only on supplying hardware and software for domestic Shinkansen systems are now entering the global market for high speed rail systems, at times in consortiums.
To enable them to compete better internationally in HSR systems (as well in mass-transit, airports and other areas), Japan last week launched the Japan Overseas Investment Corporation or Join, a central government-funded entity with the Japan Bank for International Cooperation (JBIC) and the Japan International Cooperation Agency (JICA) among its partners.
The launch coincided with Japan hosting a High Speed Rail Conference in Tokyo, staged by the International High Speed Rail Association , the Central Japan Railway Company and others with over 300 people from 11 countries gathering to discuss the future of a mode of transport which is increasingly rivalling domestic and international air and road networks.
Japan's Shinkansen system is virtually saturated now after 50 years of operation and Japanese makers of rail and signalling systems, rolling stock and other equipment are being forced increasingly to focus more on overseas markets where HSR systems are only just taking root, speakers at the Tokyo meeting pointed out.
With its dedicated tracks - serving only high speed trains of over 300 km/h - the Shinkansen system is deemed to be ultra safe (there have been zero fatalities or even injuries so far involving Shinkansen) and punctual to the point where the average delay per train is under one minute.
But Japanese officials including Masafumi Shukuri, chairman of the International High-speed Rail Association, acknowledged at last week's conference that HSR systems overseas would need to compete on other grounds in addition to safety and reliability. That is one reason why Join has been launched.
"We hope that potential customers will evaluate safety as well as cost," one government official told BT.
Mr Abe has become a vocal and international advocate of Japanese high-speed rail systems, including pushing to Mr Obama the idea of a Washington-New York link utilising the Superconducting Maglev technology pioneered by Japan, which will form the basis of a link between Tokyo and Nagoya in 2027.
http://www.businesstimes.com.sg/gov...stops-in-tussle-for-high-speed-train-projects