Rail giant CRRC looks to branch out in US
Rail giant CRRC looks to branch out in US
Updated: 2016-04-13 11:24
By Hezi Jiang in New York(China Daily USA)
China Railway Rolling Stock Corp (CRRC) said it is interested in manufacturing vehicles for all forms of rail transportation in the US, from subway cars to trains, from freight wagons to high-speed locomotives.
The company is bidding for a double-decker train contract in Philadelphia, CRRC Vice-President Yu Weiping told China Daily on Monday in New York. He also mentioned a bid for a subway project in Los Angeles during an interview with Bloomberg.
Yu's comments came after the company won a $1.3 billion contract last month to supply up to 846 new railcars for the Chicago Transit Authority (CTA) - the largest railcar purchase in CTA's history. The prototype cars are scheduled for delivery in 2019, and are expected to be in service the following year.
Rail giant CRRC looks to branch out in US
Yu said the two sides are finalizing the deal, and along with the order, CRRC will build a new railcar-assembly facility in the Windy City, generating about 170 jobs.
It will be CRRC's second facility in the US. Construction began on the first 220,000-square-foot manufacturing plant in Springfield, Massachusetts, last September, and according to Yu, the work has been going smoothly, with completion scheduled for fall 2017. The first cars are expected to be delivered to Boston in 2018.
"We expand globally, and we operate locally," said Yu. "These local investments help us to adapt faster and establish relationships.
"The two facilities in Springfield and Chicago will provide about 300 direct jobs, and more indirect ones throughout the supply chain," he said.
CRRC also has taken a minority stake in a joint venture to manufacture freight wagons in Wilmington, North Carolina.
The company is also involved in a high-speed rail project between Los Angeles and Las Vegas, announced before President Xi Jinping's state visit last September.
"The US will certainly have more and more high-speed rails," said Yu. He believes a high-speed rail between Boston and Washington DC through New York City is much needed, and the line would be profitable.
"CRRC now has a presence in 101 countries around the world," he said. "The US is one of our major markets."
When asked about CRRC's ultimate goal in the US market, Yu responded, "Like when one needs a car ride, he thinks of Uber. When he needs to take public transportation, he thinks of CRRC."
Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, said that every country is working hard to improve their economic conditions through measures such as construction of infrastructure, which gives companies like CRRC business opportunities.
Zhou said expanding of equipment manufacturing overseas is China's goal and high-speed train fits into that strategy.
"China's companies should strengthen their advantages, the government should not take care of everything and let the market decide," he said.
Du Xiaoying contributed to this story.
hezijiang@chinadailyusa.com
http://usa.chinadaily.com.cn/epaper/2016-04/13/content_24500710.htm
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