Shanghai: China Railway Corporation, China’s railway construction firms and vehicle manufacturing companies have set up a company together in the United States.
The new company, China Railway International (US) Group with initial assets of US$10 million, will serve as a platform for exchange and cooperation among railway-related businesses in China, a company spokesperson told.
He said that with 24% of the shares, CRC is the holding company of the new firm. CRC and its subsidiary, China Railway Eryuan Engineering Group Company, made a combined investment of US$2.4 million.
CRRC Corporation, a state-owned rolling stock manufacturer, has been closely following the CRC’s efforts to branch out, a CRRC source said. The source said the establishment of the new company can be seen as a prelude to the Chinese railway sector’s attempt to bid for a California high-speed rail project.
Stressing that the United States will be a major market for CRRC Corporation, the source said the company has been paying special attention to the opening of bids for high-speed rail, railway and urban light rail projects in the United States, hoping to explore the great potential of that market.
Before the merger of China CNR Corporation and CSR Corporation into CRRC on June 1, 2015, CSR last October submitted a letter of intent to the California High Speed Rail Authority to bid for the project, which will operate trains at a maximum speed of 350 kilometers per hour, the source said.
CRC hopes to take the lead in coordinating the efforts of railway-related businesses to explore overseas markets. A company spokesperson said CRC will establish a mechanism to integrate its management, research and resources.