China gives bullet-train contract to Japan
Report: Kawasaki Heavy to lead $12 billion project
Updated: 10:43 a.m. ET Aug. 30, 2004BEIJING - A consortium of Japanese firms
led by Kawasaki Heavy Industries Ltd. won a $12 billion contract to provide
high-speed trains to China, Xinhua news agency said on Monday.
The report did not give the exact terms of the contract, which aims to double
speeds on five lines in eastern China to 120 miles per hour.
The lines, including one between Beijing and the northeastern industrial city
of Shenyang and another from Qingdao to Jinan in eastern Shandong province,
stretch more than 1,200 miles.
Details were muddied by other reports and by Kawasaki Heavy itself, which said
a deal had not yet been signed.
Kawasaki Heavy, Chinese train maker Nanche Sifang Locomotive and five other
Japanese companies had been bidding on the deal by pitching East Japan Railway
Co.‘s newest "Hayate" bullet train, which can hit speeds of up to 168 mph.
The five other companies in the Japanese consortium are Mitsubishi Corp.,
Hitachi Ltd., Mitsubishi Electric Corp., Itochu Corp. and Marubeni Corp.
On Sunday, Xinhua said the contract had been awarded to three groups, one led
by Kawasaki Heavy, another with France‘s Alstom and a third headed by Canada‘s
It gave no details, and Monday‘s report made no mention of those firms.
Asked for comment on Monday, Kawasaki Heavy said the bullet train contract had
not been signed and that the three consortiums would share the deal.
The company said details of the project, including which rail sections would
go to which companies, had yet to be decided.
China‘s push to modernise its creaking railway system, which is being
increasingly strained by breakneck economic growth, has attracted many
international firms, including Germany‘s Siemens AG.
Chinese authorities are also deliberating bids from several consortiums for a
proposed 810-mile high-speed train connecting Shanghai and Beijing, a project
potentially worth billions of dollars.
Siemens is part of the Transrapid consortium that built the world‘s first
commercial magnetic-levitation train in Shanghai, a $1.5 billion project that
began regular operation this year.
BEIJING, Aug. 30 (Xinhuaent) -- Chinese train manufacturer Nanche Sifang
Locomotive and six Japanese companies have won the bid for China‘s new bullet
The Chinese Railway Ministry‘s 12 billion US dollar project aims to double
the speed of trains on five major existing railway lines to 200 kilometers per
The five train lines, stretching over 2,000 kilometers, include one
linking Beijing and Shenyang in the province of Liaoning and another to
connect Qingdao in the coastal province of Shandong with Jinan in the same
The six Japanese companies are expected to offer a modified version of a
Japanese Shinkansen bullet train, which can run at a top speed of 275
kilometers per hour.
This would mark the first major transfer of Japan‘s Shinkansen technology