China forays into Malaysia’s high-speed rail market

China forays into Malaysia’s high-speed rail market :China’s two leading high-speed rail equipment manufacturers, CSR and China CNR, both of which are state-owned, have forayed into the Malaysian market, marking a major achievement in the overseas initiative of the nation’s high-speed rail industry, according to Shanghai’s National Business Daily.

On Nov. 30, CSR Zhuahou Electric Locomotive rolled out an extra high-speed locomotive intended for service in Kuala Lumpur, several days after CNR inked an agreement with ERL, a Malaysian airport express transport firm, for the procurement of 24 locomotives.

Industry insiders regard the two deals as prelude to the vast opportunities associated with China’s ambitious new “Silk Road” economic project calling for the establishment of a convenient inland and maritime transportation link between China and neighboring Asian nations.

National Business Daily reports that since entry into the Malaysian market in 2010, CSR Zhuahou Electric Locomotive has landed six orders totaling 8 billion yuan (US$1.3 billion) in value, including supplying 98 locomotives, as part of Malaysia’s rail project.

The extra high-speed locomotives developed by CSR Zhuahou Electric Locomotive will speed along the airport express route at 160 km/h following their delivery starting in late May 2016.

The Malaysian deals represent another major inroad for China’s rail industry into the Southeast Asian market, following the signing of a supply agreement by CNR Changchun Railway Vehicles to the BTS subway project of Bangkok, which was followed by an order for train coaches placed by State Railway of Thailand in October this year.

A China CNR official said that the Malaysian deals are the epitome of the vast business opportunities for the Chinese rail industry, to be opened up by the “21st Century Maritime Silk Road” project, just rolled out by the Chinese government, notably the Indian market which has huge demand for rail transport.

The Indian government is planning the construction of a high-speed railway at cost of US$32.5 billion, which will be the second longest high-speed railway in the world behind the Beijing-Guangzhou line in China. Meanwhile, the Thai government has just approved project for constructing two high-speed railways with a total length of 354 kilometers, scheduled for completion in 2020.

China forays into Malaysia's high-speed rail market

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