No.403issue(2012.12.14) |
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China Focus: Rail investment back on trackA white-collar worker surnamed Shi is among millions of Chinese eagerly awaiting the launch of a high-speed railway linking the cities of Beijing and Wuhan. "The new line will cut travel time from Beijing to Shijiazhuang, my hometown, to just 50 minutes from two-and-a-half hours," Shi said. The railway, which is expected to start operation at the end of December, is part of broader government efforts to build a high-speed passenger rail network by 2015 to tackle gridlock and drive economic growth. Government-led investment has proven to be an effective way to bolster the economy amid slowdowns. In 2009, when the financial crisis raged, the government succeeded in prompting instant and rapid economic growth by introducing massive investment projects. "The country intends to boost economic growth by stepping up investment amid the current slowdown and the rail sector is worth investing in," said Zhao Jian, an economics professor at Peking University. Recent data from the Ministry of Railways supports Zhao's view. During the first 11 months of the year, fixed-asset investment in railways, including railway infrastructure investment and train purchases, totaled 506.97 billion yuan (81.1 billion U.S. dollars), up 3.1 percent year on year, the ministry said Tuesday. After years of explosive growth, railway construction stagnated following a train crash in the city of Wenzhou that left 40 people dead and hundreds injured in July 2011. But the government has picked up the pace in recent months, with railway infrastructure spending surging 142 percent year on year to reach 70.1 billion yuan in November. "Approvals of several inter-city rail projects were the main reason behind the large amount of rail infrastructure investment seen in recent months," said Shen Zhengyuan, an analyst at CIConsulting. The government has approved a series of infrastructure projects worth more than 1 trillion yuan since September to reinvigorate economic growth, which slowed for a seventh straight quarter to 7.4 percent from July to September. Wang Mengshu, an academic at the Chinese Academy of Engineering, said he expects the rail investment boom to continue in 2013. "The government may keep its railway investment target unchanged at 630 billion yuan next year," he said. According to the 12th five-year plan for railway development, China will invest 2.3 trillion yuan in railway infrastructure during the 2011-2015 period. China will have around 120,000 km of railway in operation, including 40,000 km of high-speed railway, by the end of 2015. The country's railway network will feature four east-west lines and four north-south lines by the end of the same year, according to the plan. However, a lack of funds has been a persistent problem for the Ministry of Railways, especially when it is struggling to cope with rising operating costs and mounting debts. The ministry's debt-to-asset ratio climbed to 61.81 percent at the of September, official data showed. The ministry's after-tax losses stood at 8.54 billion yuan during the first nine months of the year, compared with annual profits of 15 million yuan in 2010 and 31 million yuan in 2011, respectively. By the end of September, the ministry's total assets totaled 4.3 trillion yuan and its debts amounted to 2.66 trillion yuan. However, analysts said the ministry's debt levels will drop as the high-speed rail network takes shape. "High-speed rail investment has a long payback period. The high debt-to-asset ratio will fall accordingly after the ministry's high-speed rail projects generate stable returns," according to Shen.
Mongolia wants no rail link with China for security?The width ensures that the rails cannot connect to China's, which are 85 mm closer together. So at the border, either the train undercarriages will need to be changed or the coal transferred to trucks, adding costs in delivering the fuel to Mongolia's biggest customer. When it comes to China, Mongolia will only go so far and no further. Mr BattsengelGotov CEO of Mongolian Mining Corporation said that "This is a political decision. In the world's rush to get rich off China, Mongolia works mightily to ensure that Chinese investment does not become Chinese dominance. It's a balancing act shared by many countries, especially on China's periphery.” Fully 90% of Mongolia's exports coal, copper, cashmere and livestock go to China which in turn sends machinery, appliances and other consumer goods that account for a third of Mongolian imports. The rising trade with China now amounts to three fourths of Mongolia's economy, one of the highest ratios in the world. Coal country is where Mongolia's balancing act is put to the test. Chinese demand for copper and especially coal has propelled the Mongolian economy to one of the world's fastest growing, making some wealthy and driving down poverty in a still poor country. Tsogttsetsii, the county seat closest to Mongolia Mining Corporation's coal mine and the planned railroad, bursts with activity. A new airport and apartment complexes rise out of the empty, tawny Gobi. It's worth noting that physical cutoff can never ensure security in a real sense. Under the context of globalization, no country can afford to isalote itself from its neighbors, especially for Mongolia, whose economy is highly dependent on trade with China.
China keen to win rail contractsWith the time for bidding for Thailand's high-speed train projects growing closer, China is aggressively lobbying the government to select its train and construction technology. Chinese authorities claim their products could save substantial costs. Chinese Deputy Railways Minister Lu Chunfang yesterday told Prime Minister Yingluck Shinawatra that its construction costs average only US$20 million per kilometre compared with $81 million in Japan and $50 million in Germany. Government spokesman Tosaporn Serirak yesterday said China has also convinced the government of its advanced construction technology and safety measures. It is also committed to hiring Thai workers to handle the construction. Mr Lu was quoted as saying China has long and vast experience in high-speed train construction that prevents accidents. Its systems run in different temperature areas and landscapes. According to China's proposals, Thailand's system could be developed with two levels of speed - 300 kph and 250 kph - and fares. Tickets for the faster trains would cost about 2.50 baht per person per km, while those for the slower train would be 2.10 baht per person per km. Thailand and China signed a memorandum of understanding on April 15 to conduct a feasibility study for the Bangkok-Chiang Mai and Bangkok-Nong Khai high-speed rail links. Transport Minister Chatchart Sithipan and Mr Lu met on Thursday at the second meeting of the joint steering committee for rail development. Mr Chatchart said China has shown its intention to invest, particularly in the 615-km Bangkok-Nong Khai route. That route could be used to transport goods, while China would later build a railway to link it with Dawei port in Myanmar. The route is a strategic rail link in the Mekong subregion, as it can link Laos, Chon Buri's Laem Chabang Port, Cambodia and Myanmar. The government plans to open international bidding early next year on the first phase of the high-speed rail project.
China pitches Ayutthaya as first high speed rail stopChinese government officials advising Thailand on the development of its high-speed train network have suggested that it begin with a 54km route linking Bangkok and Ayutthaya. Transport Minister Chadchat Sittipunt met recently with Chinese officials who advised him on the network. They suggested that the Bangkok-Ayutthaya route be a good starting point as it would fall in line with the government's push to have the ancient capital serve as host for the 2020 World Expo, Mr Chadchat said on Friday. Thailand is competing with other countries to host the expo following the success of the Kingdom's pavilion at this year's World Expo in South Korea. The route proposed by the Chinese officials would terminate at Phachi station in Ayutthaya. The government has been studying setting up potential long-haul high-speed lines from Bangkok to Chiang Mai and Bangkok to Nong Khai. These were tabled at a recent meeting between Thai and Chinese officials. The Bangkok-Chiang Mai route initially was set to use trains that travelled between 250- 300kph. However, the Chinese team studying high-speed rail development in Thailand suggested that faster trains travelling at 300kph would be more appropriate for the route, even though they would cost 20 billion baht more. They reasoned that higher fares could be charged for the faster trains. Costs for the construction of this route are estimated to be about 300 billion baht. The 615km Bangkok-Nong Khai route is estimated to cost about 298 billion baht. The construction of the line is also aimed at facilitating freight transportation linking Thailand, Laos as well as China. China is interested in bidding for the two projects and is ready to compete against other countries to build the high-speed train system. Officials from the country said it can build the system for 460 million baht per kilometre, Mr Chadchat said. A round of bidding is expected to take place next year, Chula Sukmanop, chief of the Office of Transport and Traffic Policy and Planning, said.
Bombardier forms China joint venture companyBombardier Transportation and Shanghai Shentong Metro Group Co., Ltd. Friday announced the formation of a joint venture company, Shentong Bombardier (Shanghai) Rail Transit Vehicle Maintenance Company Ltd. The joint venture will focus on the repair and maintenance of urban public transit vehicles in China, offering customers the services of daily maintenance, intermediate repairs, overhauls, refurbishment, and technical consultation. The joint venture intends to leverage each company's expertise 'in terms of technologies, equipment, and businesses to deliver high quality, reliable trains that are safe to operate," Bombardier said. "It will harness Bombardier's global capability in providing whole life services for metros in which its state-of-the-art technologies will reduce down times and extend the life of the Chinese operator's fleets." Jianwei Zhang, president of Bombardier China, said: "This joint venture for metro cars maintenance marks a new milestone for Bombardier Transportation business in China. Through its participation in a number of railway projects in China, by successfully providing rail vehicles, signaling, propulsion, locomotives, light rail transit and automated people movers, Bombardier has earned an excellent reputation and has gained a great understanding of the specific needs of the Chinese rail market." Said Bombardier Transportation President Services Laurent Troger, "Today's announcement underlines our long standing relationship with Shanghai Shentong. Bombardier looks forward to a mutually beneficial partnership that will provide world class services to our customers in China. We are committed to making this collaboration a great success as part of Bombardier's overall strategy of working in partnership to develop China's rapidly expanding rail network." The strategic partnership also will deliver a new level of after-market service and support in the region.
Does ground-breaking China-Czech Republic train signal new era in railway transport?
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Amtrak looks to new NEC trainsetsIn testimony Dec. 13 before the House Transportation & Infrastructure Committee, Amtrak President and CEO Joe Boardman said the company “is advancing plans to acquire new next- generation high-speed trainsets and ending its plans to purchase 40 additional high-speed passenger cars to add to the existing Acela Express fleet, in order to better meet strong and growing ridership demand on the Northeast Corridor.” process that will replace the existing 20 Acela Express trainsets and procure additional trainsets to expand seating capacity and provide for more frequent high-speed service on the NEC,” Boardman said. “Moving directly to new high-speed trainsets is the best option to create more seating capacity, permit higher speeds, and maximize customer comfort, all while improving equipment reliability and reducing operating costs. The previous plan to add 40 new passenger cars with newer technology to the older Acela trainsets was a stop-gap measure, posed technical challenges, and was determined not to be cost effective and insufficient to handle new ridership growth projections” Boardman said that, in the past two years, “Amtrak has moved forward a number of major proposals designed to address the NEC’s growth and development needs. First is the NEC Upgrade Program to bring the corridor up to a state of good repair, add additional capacity to allow limited service growth, and make targeted trip-time improvements for all existing intercity, commuter, and freight services. Among the elements is the Gateway Program to build vital track, tunnel, and station capacity into the heart of Manhattan to support Amtrak and commuter rail growth. "Second is the next-generation high-speed rail program to provide America’s economic, political, and cultural capitals in the Northeast with the world-class 220 mph high-speed service the region deserves. With possible operating profits over a billion dollars annually and ridership well into 40 million riders a year upon full buildout, Amtrak expects that private capital, probably in the form of a public-private partnership, could play a significant role in this project.” Boardman noted that Amtrak’s proposals are detailed in the Amtrak Vision for the Northeast Corridor 2012 Update Report. Boardman said that “only after the public sector has allocated significant funding and committed itself to a project of this magnitude that the private sector is willing to enter the deal and deliver value for money. Once these services are generate revenue streams, these projects can and will attract private funding that can help repay initial capital costs.” The hearing—the final full T&I Committee hearing of the 112th Congress—was led by outgoing Chairman John Mica (R-Fla.), who over the years has been one of Amtrak’s harshest critics, as well as a critic of the Obama Adminstration’s high speed rail program. Mica, using oft- repeated rhetoric, issued a statement following the hearing in which he said that “NEC high-speed rail development has had a problematic history and it has been a squandered asset for too long. In fact, Committee Republicans highlighted the underutilization of the NEC in their ‘Sitting On Our Assets’ report in October 2010. Amtrak’s acquisition and use of the Acela has been plagued with problems, and while true high-speed rail averages a minimum of 110 miles per hour, Acela averages only 83 miles per hour between D.C. and New York and only 72 miles per hour between New York and Boston. High-speed rail in the NEC makes sense if done properly. There has been some recent progress. The NEC was finally designated a high- speed corridor, an environmental review is under way, and the NEC Advisory Commission is moving forward in its planning. However, Amtrak’s $151 billion, 30-year plan is simply too much money and too long, and we must bring in the private sector if NEC high-speed rail is going to become a reality.” Continuing on his private-sector-funding push, Mica (misnaming New York’s Grand Central Terminal), touted, “I began my Chairmanship this Congress with a hearing in Grand Central Station on the need for private sector involvement in developing Northeast Corridor high- speed rail, and with today’s final scheduled Full Committee hearing of the Congress, we’ll examine the issue again nearly two years later. While I have been a vocal critic of Amtrak, I am also a strong proponent of high-speed rail, passenger rail, and transit. But we have to ensure that any rail development or project makes sense, in places where there is the greatest need and at the lowest possible cost to the taxpayers.”
New Gensets for UP at Proviso YardUnion Pacific, which 10 years ago broke new ground in locomotive technology by working with a major supplier to develop a Genset locomotive for yard service, on Dec. 12 unveiled one of seven ultra-low-emitting locomotives (ULELs) that have been deployed at Proviso Yard, Northlake, Ill., in the greater Chicago area. powered by three 667-hp ultra-low-emission U.S. Environmental Protection Agency (EPA) off- road Tier 3-certified diesel engines that reduce NOx emissions by 80% and PM (particulate matter) by 90%, while using up to 37% less fuel compared to older switching locomotives. The fuel savings also reduces greenhouse gases up to 37%. These locomotives differ from many Genset yard locomotives in that they are six-axle, with six traction motors, rather than four-axle. The two additional traction motors give this version of the Genset switcher increased tractive effort compared to four-axle Gensets, “something that will be useful while the new locomotives are working to push railcars over the hump, where gravity then takes the cars into destination-specific tracks at the Proviso Rail Yard,” UP said. “We continue to voluntarily research and develop new technologies to reduce locomotive emissions and this latest version of the Union Pacific Genset locomotive is another end product of that hard work," said Union Pacific Senior Vice President Corporate Relations Bob Turner (pictured, with Cook County (Ill.) Board President Toni Preckwinkle. “Union Pacific is committed to preserving our environment by reducing emissions to help improve air quality and conserve fuel.” Working with National Railway Equipment Company, Union Pacific began developing a prototype Genset switcher locomotive in 2002 and today has 172 ULELs working in California, Texas, and the Chicago area. UP General Director Car and Locomotive Engineering Mike Iden led the railroad’s efforts to develop a switching locomotive that would use multiple smaller diesel/traction alternator powerplants, running in microprocessor-controlled combinations of one, two or three engines, to produce the required horsepower levels when needed. Iden’s idea was to package the diesel engine, traction alternator, and cooling system radiator in one compact, easily replaced module called a Generator Set or “Genset.” “Modern off-road diesel engines are capable of providing the lower power required by typical switching locomotives while reducing fuel consumption and, most important, exhaust emissions,” UP noted. “Several other U.S. railroads continue to follow Union Pacific’s lead and are using similar Genset switching locomotives,” UP said. “Several Genset locomotives are also in use in Canada and South America. A railroad in Germany has ordered them as well.” Since 2000, UP has invested approximately $6 billion to purchase more than 3,500 locomotives that meet EPA Tier 0, Tier 1, Tier 2, or Tier 3 emissions standards. Also since 2000, UP retired more than 2,650 older locomotives and overhauled or rebuilt nearly 4,150 locomotive diesel engines with emissions control upgrades. More than 80% of the railroad’s approximately 8,200 locomotives are certified under EPA Tier 0, Tier 1, Tier 2, or Tier 3 emissions standards. UP noted that it is “constantly developing and evaluating innovative technologies. In addition to the development and implementation of Genset locomotive technology, we evaluated experimental technology, such as the Oxicat-equipped, long-haul locomotive and the DPF (diesel particulate filter) equipped, low-horsepower yard locomotive. Initial tests showed the Oxicat reduced PM by 50%, hydrocarbons by 38% and CO (carbon monoxide) by 82%. The DPF reduced PM by more than 70% in tests. We developed a comprehensive plan to reduce unnecessary locomotive idling time, and all new locomotives have automatic stop-start equipment and older locomotives are being retrofitted with it. Locomotive shutdowns can save 15-24 gallons of fuel, per locomotive, per day. More than 70% of our locomotive fleet is equipped with this technology. We assisted in the development and testing of the first five Caterpillar-Progress Rail PR30C locomotives ever built that employ urea SCR (selective catalytic reduction) to achieve Tier 4 emissions standards. We partnered with EMD to develop, test, and deploy 25 SD59MX locomotives that are relatively low emitting despite the fact they do not use urea SCR. One of these experimental locomotives is fitted with EGR (exhaust gas recirculation), DPFs, and DOCs (diesel oxidation catalysts) to achieve emissions levels well below the Tier 3 standard. We are continuing to test a ULEL Genset locomotive that has been fitted with a Johnson Mathey DPF to further reduce PM beyond its normal low level.”
Air China cooperates with high-speed railAir China Ltd will launch its joint operating agreement with the Shanghai Railway Administration on Dec 1, the latest move by a Chinese airline to make high-speed rail a partner rather than a competitor. Passengers will be able to buy high-speed rail tickets between Shanghai and four nearby cities — Suzhou, Hangzhou, Changzhou and Wuxi — when booking tickets on Air China's flights arriving or departing from one of the two airports in Shanghai. Air China is also working on connecting the railway with its international flights and exploring more junction cities, said Jin Yingjie, deputy general manager of Air China's marketing department. Air China is not the first carrier to make such a deal. China Eastern Airlines Co Ltd started to sell high-speed rail tickets at the end of April, and Hainan Airlines Co Ltd has connected its flights with the high-speed rail in Hainan province since April. The rail system's four main north-south routes, which are expected to be completed this year, will heighten competition with airlines, and the agreements may be a way for airlines to better compete, some business insiders have said.
Chun Yu to Net Lucrative Biz Opportunities in Rail Construction in ChinaChun Yu Works & Co., Ltd., one of Taiwan’s largest fastener makers by output, is poised to explore huge business opportunities in rail construction in China starting in 2013. Institutional investors pointed out that China will budget RMB530 billion (about US$88 billion) to build a total of eight more new high-speed and coastal railway lines, after completing several ones in 2012, which will become operational continually a year later. This, as part of the Chinese government’s 12th Five-year Plan, will surely trigger more market demand for fasteners to allow tremendous business chances for Taiwanese fastener makers. Among them, Chun Yu will be the biggest beneficiary of China’s high-speed rail construction plan, for this veteran maker has built a complete product lineup and sound distribution network in the country, and has obtained international certificates for its special fasteners used in high-speed railways. Prepared for the abovementioned business pie in China, Chun Yu, which has suffered a significant slowdown of contract orders like most of its peers in the fourth quarter of 2012, will see a promising outlook in 2013.
CSR Appears at Modern Railways 2012On November 27, the 11th China International Modern Railway Technology & Equipment Exhibition, Asia’s largest of its kind, kicked off in Beijing. CSR appeared with star models including higher-speed test train and CRH6 intercity EMU. CSR President Liu Hualong and Vice President Wang Jun attended the opening. CSR booth drew wide attention. Soon after attending the opening ceremony, Lu Dongfu, minister of railways and He Huawu, chief engineer of the Ministry of Railways visited CSR booth in the company of CSR President Liu Hualong and Vice President Wang Jun; Ma Yunshuang, general manager of CSR Qingdao Sifang Co., Ltd. and Xia Chunsheng, general manager of CSR Sifang Co., Ltd. CSR booth also attracted a host of journalists from the Xinhua News Agency, the China News Agency, Economic Daily and Guangming Daily. A multitude of media outlets including news covered CSR. Remarkably, CCTV News Channel preferentially introduced CRH6 intercity EMU and higher-speed test train. Higher-speed test train is a mobile high-speed train test platform for prospective researches that may be rated as a “speed explorer”. Developing the train is intended to explore the critical value of high-speed train systems at extreme speed and carry out prospective, basic and theoretical researches on the safety and reliability of high-speed train systems, structures and materials at a speed of 500km/h. CRH intercity EMU is a new means of transport developed to address the demand of China’s fast regional economic development and the rise of city agglomerations for intercity rail transit, filling a gap in the domestic field of rail passenger transport equipment. CRH6 covers 200km/h, 160km/h and 140km/h intercity models with different speeds, different marshalling forms and different passenger capacities.
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QSY Ranks among China’s Top 50 Gear ManufacturersIn late November, Qishuyan Institute Co., Ltd. QSY stood out in the selection of “Pacific Precision Forging Cup” China’s Top 50 Gear Manufactures to rank among “China’s Top 50 Gear Manufacturers & Top 10 Innovative Enterprises & Top 10 High-tech Enterprises”. Organized by the Gear Sub Association of the China General Machine Components Industry Association and the Industry and Market Research Division of the Mechanical Industry Information Research Institute, the event involves five categories--“Top 10 Influential Enterprises”, “Top 10 Innovative Enterprises”, “Top 10 High-tech Enterprises”, “Top 10 Promising Enterprises” and “Top 10 Profit-making Enterprises”. Through entry, voting, initial selection, candidate publicity and expert review, 50 enterprises made the list of “ China’s Top 50 Gear Manufacturers” eventually.
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