China pushes rail technology to the world
By Jeremy Koh
POSTED: 15 Jan 2015 19:03
China is striving to become the go-to provider for high-speed rail technology around the world.
BEIJING: China was once a massive importer of rail technology, but it has been striving to become the world's go-to provider of high-speed rail, with proposals for lines across the world.
Chinese Premier Li Keqiang has emerged as the country's top salesman for what Beijing dubbed "The New Silk Road". In Bangkok recently, the premier proposed a high-speed line linking China, Thailand and Singapore. He has also pitched for business in Britain, Russia, India and Africa.
China is also reportedly planning to tender again for Mexico's US$4.4 billion high-speed rail project. Mexican regulators abruptly cancelled its win last year amid heated debate over the bidding process. This time around, analysts said Beijing's odds look even better.
"If we only look at the merits of the bidding and the qualifications, rather than be distracted by ideological or political considerations, the Chinese company will stand a very good chance,” said Victor Gao, director of China National Association of International Studies.
China's two largest rail companies, CNR Corp and China CSR, have agreed to merge and experts said leading suppliers Siemens and Bombardier will have to double down to protect their market share.
“China now has already accumulated so much capacity and so much technical know-how to build a railway system in China and such division into two companies no longer serve the commercial purposes,” said Mr Gao. “This kind of vicious cycle of competition between the two is actually not healthy, not only in the Chinese market, but also globally when they look for other assignments in other parts of the world."
China has had more success bidding for projects in developing economies in South America and Africa, where easy financing packages are part of the lure. But China had also won a multimillion-dollar contract to supply cars to Boston's subway system, the first such deal for a Chinese firm.
"In a way, Beijing believes in the high-speed rail in the sense that it does work quite well so far in the Chinese context,” said Gerald Ollivier, senior infrastructure specialist at World Bank. “It's also an opportunity to create linkages with other countries in the way that creates opportunities for integration, cooperation, and it's quite an effective way for China to advance some of the very advanced technology that they have developed and provide them to the rest of the world."
China has also been pressing on with an expansion of its network at home. By the end of this year, its high-speed rail line is expected to reach 18,000 kilometres, nearly double what it had just two years ago.
- CNA/xq
http://www.channelnewsasia.com/news/business/china-pushes-rail/1592416.html
