China Jumps Into Mexico With $4.3 Billion Rail Deal - Bloomberg
China Railway Construction Corp. (601186) led a group that won a bid to build a $4.3 billion high-speed train line in central Mexico, marking the first large investment in transportation by a Chinese firm in the nation.
The Beijing-based company said it will turn to the Export-Import Bank of China to help finance its $2.9 billion portion of the contract. The train will initially shuttle 27,000 passengers a day between the capital and the industrial hub of Queretaro City in 58 minutes, Mexico's government said yesterday.
The announcement follows Chinese President Xi Jinping's visit to the country and Enrique Pena Nieto's trip to Beijing last year and negotiations for an infrastructure fund between the two nations. Finance Minister Luis Videgaray said in March that Chinese investment would have "huge potential" for Mexican jobs.
"This is the first time China has been interested in such a significant investment in transportation infrastructure here," Javier Gayol, a Corporativo GBM SAB analyst, said in a telephone interview in Mexico City. "It's important because you're attracting international groups with better technical knowledge of infrastructure projects to participate in Mexico. Improving competition should improve the level and quality of these projects."
China Railway Construction Corp. (601186) led a group that won a bid to build a $4.3 billion high-speed train line in central Mexico, marking the first large investment in transportation by a Chinese firm in the nation.
The Beijing-based company said it will turn to the Export-Import Bank of China to help finance its $2.9 billion portion of the contract. The train will initially shuttle 27,000 passengers a day between the capital and the industrial hub of Queretaro City in 58 minutes, Mexico's government said yesterday.
The announcement follows Chinese President Xi Jinping's visit to the country and Enrique Pena Nieto's trip to Beijing last year and negotiations for an infrastructure fund between the two nations. Finance Minister Luis Videgaray said in March that Chinese investment would have "huge potential" for Mexican jobs.
"This is the first time China has been interested in such a significant investment in transportation infrastructure here," Javier Gayol, a Corporativo GBM SAB analyst, said in a telephone interview in Mexico City. "It's important because you're attracting international groups with better technical knowledge of infrastructure projects to participate in Mexico. Improving competition should improve the level and quality of these projects."
