Metalnewsnet 20 Apr:

AFP reported that once a gold mine for a select few foreign railway construction companies, China is now looking to compete with the global conglomerates that helped build its rail lines in the first place.

Chinese firms are already building high speed rail links in Turkey and Venezuela, but the railways ministry has said it wants to export Chinese technology to North and South America as well as Europe.

In Saudi Arabia, the German giant Siemens is said to have forged an alliance with a Chinese consortium for a high speed rail link between the holy cities of Medina and Mecca after realizing it could lose the tender to the consortium.

The move highlights the emergence of Chinese firms as major players on the railway scene, helped along by government financial support.

Mr Ren Xianfang analyst at IHS Global Insight said foreign companies are not just competing with individual Chinese firms they are coming up against a Chinese government eager to develop its rail sector and pouring money into state firms to do it. He said that but on a stand alone basis, domestic firms in China are obviously still not in the same league as their overseas peers.

The vastness of China owns rail ambition is another asset. The government plans 120,000 kilometers of track by 2020 up from 86,000 kilometers now and more than 40% of it would be high speed links.

In December, China inaugurated the fastest high speed railway in the world between Wuhan in the center of the country and southern Guangzhou. Thanks to foreign technology transfers its average speed is 350 kilometers an hour.

Mr Frederic Campagnac founder of consulting firm Clevy China, which specializes in the transport and construction sectors said "In a few years half of the world high speed mileage will be in China."

He said that "They are also building the most rolling stock at the moment, a sector that is not entirely automated and requires a qualified workforce. China is acquiring know how fast."

According to a source working for a European railway firm who asked not to be named, the Chinese still need foreigners for high speed railways.

The source said in Chinese foreign teams such as the alliance in Saudi Arabia, one can imagine that China brings low cost production for mechanical parts, and Siemens contributes high technology and the high end image.

(Sourced from AFP)