Coming to a Boston Subway Near You: Made-in-China Trains

Discussion in 'China' started by CCP, Oct 24, 2014.

  1. CCP

    CCP Senior Member Senior Member

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    Coming to a Boston Subway Near You: Made-in-China Trains - Bloomberg
    Boston transport authorities awarded China CNR Corp. (6199) a $567 million contract to supply trains for the city’s subway system, the first deal of its kind for a Chinese company in the U.S.

    The deal would put CNR’s products in all of the world’s six continents, the company said in a statement today. The proposal is for CNR to supply 284 cars for the Boston subway’s orange and red lines, with an option for 58 more, according to the Massachusetts Department of Transportation’s website.

    The deal breaks new ground for Chinese train makers whose overseas push, backed by Premier Li Keqiang, has been mostly limited to developing markets. Fellow state-owned CSR Corp. (1766) plans to bid for rail projects in California, though no contracts have been signed.

    “It’s symbolic because the U.S. market is very difficult to break into,” said Lawrence Li, a Shanghai-based analyst at UOB-Kay Hian Investment Co. (UOBK)

    CNR climbed to a record in Hong Kong and rose 5.3 percent to its highest close since July 2011 in Shanghai trading.

    CNR equipment will replace 32-year-old cars on the orange line and 44-year-old cars on the red line, which connects Cambridge to downtown Boston. Delivery of the cars will begin in 2018 and finish in 2021, the Massachusetts Bay Transportation Authority said in an Oct. 21 statement on its website.

    CNR will dedicate two manufacturing lines at a Chinese facility and build a 150,000 square-foot facility in Springfield, Mass. to assemble the vehicles, according to the statement.

    CNR offered the cheapest price among five bidders and a little more than half of Bombardier Inc. (BBD/B)’s bid. The other bidders were South Korea’s Hyundai Rotem Co. (064350), Japan’s Kawasaki Rail Car and CSR Qingdao Sifang.

    To contact Bloomberg News staff for this story: Clement Tan in Hong Kong at [email protected]; Li Liu in Beijing at [email protected]

    To contact the editors responsible for this story: Anand Krishnamoorthy at [email protected] Nicholas Wadhams, Young-Sam Cho
     
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  3. W.G.Ewald

    W.G.Ewald Defence Professionals/ DFI member of 2 Defence Professionals

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  4. W.G.Ewald

    W.G.Ewald Defence Professionals/ DFI member of 2 Defence Professionals

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    Will the new cars mean a fare increase?

     
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  5. pmaitra

    pmaitra Moderator Moderator

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    @CCP, good luck dealing with the potentially feuding politicians. I hope this deal does not end up like the Talgo fiasco.
     
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  6. CCP

    CCP Senior Member Senior Member

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    "Boston transport authorities awarded China CNR Corp. "

    What to do with feuding politicians at this stage?
     
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  7. pmaitra

    pmaitra Moderator Moderator

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    Nothing to do with feuding politicians at this stage. Talgo was also awarded, what have you. I am saying "potentially" feuding politicians. I have no ill will against that Chinese train.
     
  8. CCP

    CCP Senior Member Senior Member

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    "Walker won and trains lost. He quickly moved to kill the Milwaukee to Madison part of the project, but he claimed to support upgrades to the Hiawatha line. Meanwhile, Talgo was already well along in the construction of two sets of trains to serve that line. In fact, the state has already paid Talgo $40 million for those trains, and it paid another $12 million to other vendors, for a total cost so far of $52 million."

    The Chinese company also received its payment.
     
    Last edited: Oct 24, 2014
  9. pmaitra

    pmaitra Moderator Moderator

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    The original contract with Talgo was for 20 years. You are correct about the Chinese company having received its payment. Again, I am not saying anything has happened. That is why I used the word "potentially."
     
  10. W.G.Ewald

    W.G.Ewald Defence Professionals/ DFI member of 2 Defence Professionals

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    The article from Wisconsin is so bleak because the newspapers hate Governor Scott Walker.

    Also the MTA has been around for over 100 years. Building cars in Springfield will be great news for Massachusetts.
     

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