China, Argentina sign $10 billion railway deals

Discussion in 'Economics' started by ASusilovic, Jul 22, 2010.

  1. BEIJING - China and Argentina signed railway deals totaling $10 billion on Tuesday, amid efforts by Beijing to forge stronger commercial ties with Latin America.

    Twelve agreements were reached between the two countries during Argentine President Cristina Fernandez de Kirchner's five-day visit to China. Six deals were inked at noon, witnessed by Kirchner and Chinese Vice-Premier Hui Liangyu. The rest of the agreements were signed later in the day following talks between Kirchner and her Chinese counterpart Hu Jintao.

    The 10 railway projects - ranging from two to five years - include the purchase of Chinese railway technology and investments in Argentina's rail line electrification projects, Argentine Transport Minister Juan Pablo Schiavi told AFP.

    Other deals cover areas like infrastructure, fishery, energy, and plant quarantine.

    The two countries agreed to collaborate in light rail and subway construction in Argentina. China will also provide export credit to Argentina for purchases of locomotives.

    At least three contracts focus on a $2.5 billion rail renovation project in Argentina's capital Buenos Aires. It requires the Argentine government to purchase materials and technologies for improving railway networks from two Chinese companies: China Northern Railway (CNR) and China Southern Railway (CSR).

    During the talks, Hu and Kirchner also expressed wishes to push forward stronger trade ties.

    China has become an increasingly important global player in the rail sector as its railway-related exports have been rising fast in the past years.

    CSR, one of China's two major railway equipment manufacturers, said it signed contracts to export products worth $1.2 billion in 2009 alone, compared to less than $59 million in 2001.

    "The exported products are high-end and more developed countries are on our client list," said a source from the corporation, who required anonymity.

    CSR, which provides 70 percent of China's bullet trains in operation, is now exploring the markets of developed countries. Last year, it started exporting rapid transit vehicles and freight wagons to Singapore and Australia.

    Analysts also expect high-speed railway related technologies and equipment to be the highlight of China's rail export in the future.

    Yang Hao, professor in railway transport with Beijing Jiaotong University, said that compared to countries like Germany, France and Japan, China may not be able to excel in a single technology, but its advantage lies in "assembly" - absorbing advanced single technologies and bringing them together in one railway project.

    To that effect, the Ministry of Railways has introduced high-speed train technologies from France, Germany and Japan in the past years, while making its own innovations.

    "Absorbing others' strong points adds to China's competitiveness in the sector, in addition to other advantages such as lower construction cost and a shorter construction period," he said.

    In China, it usually takes three to four years to build a high-speed railway. At least 10,000 km of high-speed rail line is now under construction.

    As a newcomer in the high-speed railway market, China still has to learn to better meet the needs of potential clients, Yang said.

    Earlier reports said the ministry wants to export China's high-speed railway technology to North America, Europe and Latin America.

    Wang Zhiguo, vice-minister of railways, said in March that China's State-owned companies are already building high-speed lines in Turkey and Venezuela. Many countries, including the United States, Russia, Brazil and Saudi Arabia, have also expressed interest.

    LOL ! South American infrastructure policy made in China. When will the Western world finally understand that "outsourcing" the industrial base to China is leading to undesirably consequences ? Is there any politician with vision who understands what´s going on ?:confused:
  2. BVM88


    When politicians wake up to what's going on, it'll be way too late to do anything about it. China now has new factories, western technology, and in time all the R&D expertise to develop all its own stuff without western input. All handed to them on a silver platter.

    China will quietly continue to expand its consumer base and acquire more western technology, whilst we continue to hollow out our industrial base. When they're ready they'll give the West, including its multi-nationals, the shaft. 50 years from now it may well be Westerners who are shoeless and poverty stricken, having long since lost even basic skills like making clothes and shoes, but unable to afford the high quality and expensive products that will be produced by China then.
  3. BVM88


  4. <p>
    why not? the chinese are now masters in rail technology. China already has the world’s longest high-speed rail (HSR) network with about 6,920 km (4,300 mi.) These lines include upgraded conventional lines, high-speed passenger designated lines (PDLs), and the world’s first high-speed commercial magnetic levitation (maglev) line. China is currently the first and only country in the world that has high-speed trains which run at operational speed of 350 km/h (217 mph) or above in regular commercial services.
    </p><img style="cursor: -moz-zoom-in;" alt="" src="" width="852" height="585" />
  5. zdreg


    the US and Europe are in a death spiral because of government pension costs and higher taxes. Argentina went through this cycle years ago. a left wing US president is the final nail.
  6. There are studies by Chinese engineers on train from London to Beijing in 48 hours and maglev trains running in a vacuum tube (6000km/h?) between China to U.S. via/under Bering Sea
  7. Aug. 24 (Bloomberg) -- China Railway Group Ltd., the world’s second-largest publicly traded heavy construction company, said it is in talks with South Africa’s government for a $30 billion high-speed rail project between Johannesburg and the eastern port city of Durban.

    Discussions are at an early stage and no funding is in place, China Railway Chairman Li Changjin said in an interview in Beijing today. China Railway has signed an agreement with Standard Bank Group, Ltd., Africa’s biggest lender, Li said.

    Warren B. and China love railways...
  8. Those are just dreams which cannot be achieved.
  9. That is similar to selling 100 Airbus A380 jumbo planes. Each Airbus A380 plane costs $300 million approximately.
  10. When that happens I will emigrate to China, Just like my parents emigrated from Cuba to the United States.
    #10     Aug 25, 2010