China's rail equipment tech enters world hi-end markets
As the world's largest urban railway transportation construction market, China has not only become the biggest integrator of urban rail equipment, but also managed to enter its products into the markets of developed countries.
China North Railway Corporation Ltd. (CNR) will supply 626 stainless steel double-decker vehicles to Australia which is the first time China will enter the rail equipment market of developed countries.
In June, China South Locomotive & Rolling Stock Corporation Limited (CSR) ordered 14 maintenance vehicles for urban rail projects from Singapore. After Changchun Railway Vehicles Co., Ltd. (CRC)'s success in Hong Kong Metro last year, this is the second time Chinese enterprises have entered into the high-end MTR market.
We have the strength to compete with the world's top manufacturers and can make any models, said Li Jingyi, deputy general manager of CRC.
Components of China's municipal railway equipment have been exported to Denmark, Portugal, Germany, France, Italy and other developed countries. China’s manufacturing enterprises of railway equipment have become major suppliers for well-known multinational corporations such as Siemens, Alstom and so on.
On June 15, China CNR manufactured the first low-speed maglev train with full independent intellectual property rights. From now to 2015, the total investment by China on municipal railway will exceed one trillion yuan. The demand for vehicles per year will be over 3000 for a long time. China has become the largest municipal railway construction market in the world.
The technologies of network control and exchange are the core of railway vehicles, which account for one-third of the whole vehicle cost. Foreign enterprises have monopolized those technologies for long time.
At present, China has grasped all technologies for urban rail equipment, and owns core competitive strength. That gives China bargaining power on the world market.
Every 100 million yuan worth of vehicle output can push forward the 300 million to 500 million yuan industrial chain development. The industrial chain refers to more than 20 related industries like metal, wire, machining, chemical, mechanical and electrical manufacturing, and its scale will reach hundreds of billions of yuan.
