Sino Japanese high-speed rail competition intensified

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Sino Japanese high-speed rail competition intensified

2017-01-09 23:15:29 270 ℃

For the upcoming tender new high-speed rail, widely considered the most intense competition will occur between China and japan. Compared with the Japanese government's desire to promote high-speed rail overseas, the willingness of Japanese companies to participate is not so positive

"Finance" reporter Jiang Wei Wen Yuan \/ snow \/ edit

Along with Malaysia and Singapore in December 2016 signed a bilateral agreement on high-speed railway, a new high-speed rail around the war in full swing in 2017.

A new high-speed rail connecting Singapore and Malaysia, capital of Kuala Lumpur, a total length of 350 km, the design speed of 300 kilometers, plans to put into use in December 31, 2026.

In mid December 2016, Prime Minister Naguib of Malaysia and Singapore's prime minister, Li Xianlong, witnessed the signing of the agreement in Malaysia's administrative capital, Putrajaya. "I look forward to coming to Putrajaya for the first time in ten years." Li Xianlong said.

In late December, Limited by Share Ltd (hereinafter referred to as the Chinese railway signal and communication China general) chairman Zhou Zhiliang said the company has been set up and China Zhongche railway and other services and infrastructure providers consortium preparing to bid for a new high-speed rail project.

According to the plan, a new high-speed rail will start bidding in the fourth quarter of 2017. In the past few years, there have been multinational enterprises expressed willingness to participate in the construction of the railway market in Asia, there have been several confrontation Chinese and Japan will once again become the main competitors, other potential competitors include South Korea, Germany, France, etc..

The new front -- a new high-speed rail

As part of the Malaysia economic development plan, Malaysia raised six years ago in the construction of new high-speed rail claims. In February 2013, Singapore and the Malaysia government announced the launch of a new high-speed rail project. At that time the two sides had opened in 2020 as the goal, but given the size and complexity of the project, the target time was delayed.

July 2016, Singapore and Malaysia signed a memorandum of understanding, consensus on the initial details. The final agreement signed in December confirmed the technical, safety requirements, financing, procurement, regulatory framework and customs, immigration and quarantine arrangements. Li Xianlong said that this is a complex project, but both sides have a strong political will to promote the project.

A new high-speed rail will be the first cross-border high-speed rail routes in Southeast asia. The project is expected to cost $15 billion. After the completion of the trip to the capital of Kuala Lumpur and Singapore, the time will be reduced from the current four or five hours to drive the car to 90 minutes to.

The planned route is 15 km in Singapore, the remaining 335 km in Malaysia, a viaduct across the Johore Strait will connect the two high-speed rail lines. Along the 8 sites, 7 of which are located in Malaysia Province, Muar, Yisigandabudili, Batu Pahat, Ayer, Furong, Putrajaya and Kuala Lumpur bliss. Singapore terminus located at Jurong East, located in the business district will become the second Singapore Jurong Lake district.

According to the "financial" reporter, a new high-speed rail will provide three kinds of services, which are direct service, and from Singapore and Kuala Lumpur from Singapore and Yisigandabudili the shuttle service to and from the territory of Malaysia and Kuala Lumpur Yisigandabudili service. In Singapore Jurong East Station and Malaysia station, Kuala Lumpur station will be equipped with Yisigandabudili tariffs, immigration and quarantine facilities, passengers only one customs clearance.

For Malaysia, the significance of the railway will go beyond the traffic engineering itself, it will create opportunities for the development of towns along the Malaysia. "It's not just the building of a railroad, but the transformation of the southern corridor of the country into an economic engine." Malaysia high speed rail company (MyHSR) CEO Mohamed Nor said.

For example, he said, the railway is similar to the British high-speed rail project 2, through the promotion of the development of the central region of the economy to achieve balanced growth in various regions.

According to the plan, the two sides will determine the Malaysia joint development partners earlier in 2017 (JDP), to provide suggestions for the operation of the project, technology and procurement. The two countries will also set up a bilateral committee composed of senior government officials to oversee the project.

Mohamed Nor said, the bidding documents will be issued in the fourth quarter of 2017, the company will participate in the bidding for a year to submit documents, followed by Singapore and Malaysia were evaluated.

Li Xianlong said recently that several of the world's high-speed rail systems are lobbying for the contract, including Japan, South Korea and china. "Each has its advantages, and it is a very difficult decision to evaluate the bidders and decide which is best," he said." Li Xianlong said.

Singapore and Malaysia have to consider

Sai Hamid, chairman of the Malaysia land transport committee had revealed that the issue of information in the external consultation stage, there are 98 companies submitted to the Macedonian side on the implementation of the project proposal. Although many people expressed interest to a new high-speed rail, but it is widely believed that the most intense competition will occur between China and Japan, Chinese enterprise is the biggest competitor in the Japanese consortium consisting of the East Japan Railway, Sumitomo, Hitachi etc..

"Singapore Straits Times" reported earlier, Singapore in favor of Japanese companies with rich experience in vehicle and signal system; and the need to bear most of the costs of Malaysia are more inclined to china.

A Japanese insider told the financial reporter, said the prime minister's official residence on the promotion of high-speed rail exports eager. In fact, Japanese Prime Minister Abe Shinzo has been the railway and its related equipment overseas as an important pillar of Japan's growth strategy.

During his visit to Japan in November last year, Mr. Abe Shinzo said he was looking forward to a new high-speed rail line between Malaysia and Singapore, with the adoption of the Shinkansen model in japan. Naguib said in an interview with Japanese media, security is the top priority, but as far as Malaysia's largest infrastructure projects, the cost is also critical.

During the first ten days of his visit to Japan, Naguib visited china. During his visit, he had to take the Beijing Tianjin intercity high-speed rail to Beijing and Tianjin, field trips railway operations. Lu Dongfu, general manager of China Railway Corporation, introduced the development of China's high-speed rail to Mr. Naguib.

Wang Mengshu, deputy chief engineer of China Railway Group Limited, financial reporter said that compared to Japanese companies, Chinese enterprises in the construction period, the cost advantage is obvious.

Last May, when he was general manager of China railway company shengguag Chinese their collar railway delegation visited Malaysia and singapore. Visit along with his car, including representatives of China China Chinese through the railway construction, etc. Chinese enterprises and banks. Sheng Guangzu said in Kuala Lumpur, China's high-speed rail technology, equipment, price advantage, security is guaranteed.

China has one step ahead. December 2015, China Railway and Malaysia, according to the Sea Holding Co., Ltd. formed an affiliation, the acquisition of a 60% stake in the Malaysian city center project in Kuala Lumpur. Malaysia city will be a new high-speed rail terminus is located in Kuala Lumpur.

Informed sources said the Japanese side, and the Japanese government to promote high-speed rail overseas eager, compared to the willingness of Japanese companies will not be so active. One reason is that the rate of return of high-speed rail overseas is not high. China seems to take some subsidies, although Japan will also use preferential loans to reduce the risk faced by enterprises, but rely on the government to support enterprises are usually not sustainable, this is why Japanese companies although not negative but also not so eager to participate in."

Malaysia railway operators will face fierce competition from other modes of transportation, many Budget airline company have between Singapore to Kuala Lumpur route service.

Nanyang Technology University Singapore s. Rajaratnam School of International Studies in a research report pointed out that in July last year, the current day between Singapore and Kuala Lumpur have 45 flights. If high-speed rail pricing is too high will not attract passengers, the price is too low to recover the cost. The city is of vital importance to the development prospects in the new high-speed rail stations along the line.

This is the advantage of Japanese companies, Japanese companies have rich experience in railway development. But in Indonesia new million high-speed rail project competition, China also emphasized its development along the ability, the proposal submitted by the 30% of the profits from the development along, while Japan in line the development pattern of no specific estimates, failed to reflect the advantages of japan.

Old rivals in the Asian Railway Market

China and Japan have had a fight in the Asian high-speed rail market. In 2015, China's high-speed rail became the final winner in the competition between Indonesia and japan. From the capital Jakarta to Indonesia Bandung high-speed rail project will use China technology, China standard and Chinese equipment, become Chinese high iron whole go out of the first single.

However, Japan did not give up the Indonesian market, still in Jakarta and Indonesia, the second largest city of Surabaya Railway High-speed plan to maintain consultations with indonesia. In the new million high-speed rail project after the defeat, the Japanese government and enterprises to strengthen cooperation, the official public one form to strengthen efforts to promote the new route.

December 2015, India and Japan signed a $12 billion high-speed rail agreement. India will use the Japanese Shinkansen technology to build a railway linking Mumbai and Ahmedabad, which will be the first high-speed rail in India. Railway is expected to total length of 505 km, after the completion of the two places will be reduced from seven or eight hours to two hours.

On the other hand, China Railway Third Survey and Design Institute Group Co., Ltd. is a joint venture with local enterprises in India launched a feasibility study of New Delhi to Mumbai high-speed railway. China Zhongche first railway factory in India was officially put into operation in the summer of last year.

The Prime Minister of India after Modi came to power in 2014, the India railway upgrade plan, including the construction of 5847 kilometers of diamond quadrilateral high-speed rail network, connecting the four most populous city in New Delhi, Mumbai, Calcutta and chennai.

In Thailand, South East Asia, Japan and China have launched different sections of railway planning and construction. From Bangkok to Chiang Mai railway will introduce Japan's Shinkansen, the feasibility study has been started, is expected to start in 2018.

Bangkok to Nakhon Ratchasima Kh railway will be used as the first stage of Sino Thai railway project to start construction early this year, is scheduled to be completed in three years. The entire route is Bangkok corridor line will implement the construction in the next five years. Extended to Nongkhai railway will be connected with the old railway, the Laos boten and China Mohan, arrived in Kunming. In December 25, 2016, Chinese Laos railway groundbreaking ceremony was held in Luang Prabang in northern laos.

Wang Mengshu said that the Sino Thai railway in northern Thailand will be connected with being built in the old railway, Thailand and Malaysia has been on the Bangkok - Kuala Lumpur railway cooperation agreement, the future will be connected with Malaysia and Singapore, constitute an important part of the trans Asian railway.

This article is published in the January 9, 2017 issue of "finance" magazine)