Chinese train manufacturer CSR has sparked a dispute between fellow state-owned companies after winning two contracts in Argentina. The clash reflects the impact of the changing domestic environment on the industry, Guangzhou's 21st Century Business Herald reports.
CSR made an announcement on May 27 regarding deals it recently signed, including a 2.26 billion yuan (US$368.5 million) contract to supply trains to Argentina, which was signed on May 23.
The deal was another victory for CSR, which was already criticized by other Chinese train manufacturers for using questionable practices to win a major contract in Argentina at the end of last year, the newspaper said.
Citing a report by the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, the newspaper said that the recent dispute over contracts originated from a train accident and subsequent political scandals in the South American country.
Argentina decided to upgrade its railway network and inter-city train system after an accident killed 51 people in the capital of Buenos Aires on Feb. 22, 2012. The accident was considered the country's worst during the last 82 years.
The Argentine government further announced a review on ongoing negotiations related to supply contracts for the upgrade, because several scandals involving graft allegations against transportation officials had surfaced.
One of the contracts affected, the newspaper said, was worth US$514 million and was later awarded to CSR, which approached the Argentine government through its Qingdao-based subsidiary at the end of last year. CSR's price quote was much lower than those of the rivals, who entered the bid before the review.
CSR proposed an offer price of US$1.27 million per car, while prices offered by companies including France's Alstom and China CNR stood at above US$2 million per car.
CSR's low prices also led Argentina to halt negotiations with all other Chinese train manufacturers, as the country become suspicious about the pricing of other Chinese companies.
Such results, along with the fact that CSR did not notified its plan to bid to the chamber as required, led to a complaint filed to the industry body by competing firms. The chamber's expert board ruled at the end of March that CSR should voluntarily withdraw from the Argentine market for a year.
CSR apparently does not intend to follow the decision, as it proposed a price that was even lower — US$1.05 million per car — to win the May 23 contract.
The newspaper also pointed out that CSR had broken the rules established by China's now defunct Ministry of Railways, by moving into the fast-growing Argentine market, which was assigned to China's CNR.
The intense competition in the overseas market, the newspaper said, is likely caused by declining domestic sales of Chinese state-owned train makers.
As China has stopped ordering new trains since 2009, an analyst said it was expected that CSR and China CNR would have no domestic orders after they completed the delivery of trains under existing contracts in March and June, respectively.
This was followed by a call in January seeking other expressions of interest, which attracted another 12 companies, online magazine Revista Ferroviaria reported. The companies are Empresa Global de Projetos, Construtora Andrade Gutierrez, Planos Engenharia, Socicam Administração, Projetos e Representações, Construcap-CCPS Engenharia e Comércio, CR Almeida Engenharia de Obras, KPMG Structured Finance, Mitsui & Co Brasil, Construtora Ferreira Guedes, Prointec, Samsung C&T do Brasil Construtora, and Contern Construções e Comércio.
Being administered through the state's transport secretary and its PPP management council, the project involves preparing studies for a 35-year concession, which will involve building railways, implementing control systems, purchasing rolling stock and operating and maintaining the system. Set to last six months, the studies involve preparing engineering designs and a remuneration model for the concession, which includes carrying out evaluations for passenger demand and financial viability, as well as those addressing operations and legal aspects.
www.railwaybrazil.com | CSR Sifang Co. said Saturday that the company has obtained a contract worth over 3.4 billion yuan (539.68 million U.S. dollars) to supply electric multiple unit (EMU) train sets for Argentina.
The deal represents CSR's single largest rail equipment order in South America, the company said in a statement filed to the Shanghai Stock Exchange. CSR Sifang is expected to deliver the first batch of train sets in May 2014, with the remainder to be delivered in six months.
The EMU train sets will be used on the Sarmiento and Mitre train routes in Buenos Aires, the statement said.CSR Sifang, based in the port city of Qingdao, is a subsidiary of China South Locomotive and Rolling Stock Corporation, the country's biggest train maker.
CSR's overseas orders increased substantially in 2012, as overseas demand for its products outstripped domestic demand. The total value of its overseas orders surged 148 percent year on year in 2012.
"This country is changing. It's renovating its motor fleet for a more powerful one. As a ministry, we have to respond to this context, retaking a central role in planning, a task that we have delayed for years. In order to recuperate and strengthen that role, we're launching the biggest transformation process since the creation of MTT (Ministry of Transportation), back in 1974," MTT minister Pedro Pablo Errázuriz said.
The national transport policy aims to lead the transport sector to long term objectives, priorities and instruments, including changes to the roads, ports and railroad sectors, the implementation of new investment plans and guidelines to improve the quality of service of public transport, among other things.
Some specific projects included in the national transport strategy include the Santiago 2025 public transport master plan, and efforts to choose the best area and type of large-scale port to construct in the country's central regions.
Both initiatives are expected to be unveiled at end-2013, when part II of the national strategy will be published, the statement reads.
Peru's private investment development agency ProInversión has kicked off the bidding process for Lima's US$5.37bn metro line 2, the agency said in an official statement.
The tender entails the financing, design, construction, rolling stock supply, operation and maintenance of 27km of the new underground line stretching east to from the Ate municipality to Callao port, with 27 stations along the way.
Total costs are estimated in the order of US$5.37bn, including an additional 8km stretch connecting Callao port with the city's international airport Jorge Chávez, which will represent the first milestone in the development of metro line 4. Spending in infrastructure and rolling stock material will make up US$2.9bn and US$871mn, respectively, while the remaining US$1.57bn will cover construction, expropriation and other risks.
The Prince of Asturias joined Prime Minister Mariano Rajoy, President of the Catalunya regional government Artur Mas and Development Minister Ana Pastor on January 8 to officially open the completed high speed line between Barcelona Sants and Figueres Vilafant. Revenue services were due to start the following day.
by Ricardo Escudero Viñas | In the coming days will be the last trip between the port of Arica in Chile and the Bolivian border for definitive railroad testing and authorization for this 206 km corridor for cargo transportation.
by Ricardo Escudero Viñas | According to “Valor Economico” large Brazilian companies which do not act directly in the railway sector has expressed interest in the new package of concessions launched by the government from 2013 onwards.
A un año de haber estrenado el Metroplús, Medellín iniciará el 2013 con la construcción del Tranvía de Ayacucho, un moderno sistema de transporte que además contará con dos cables que conectarán a dos barrios enquistados en las montañas de la comuna 8 y 9.
Con una inversión de 610.000 millones de pesosel nuevo hermano del metro contará con 12 tranvías que recorrerán 4,3 kilómetros desde el Centro hasta el centroriente de la ciudad.
English: The city of Medellín will start 2013 with the construction of the tram Ayacucho, a modern transportation system that will also have two cables that will connect two neighborhoods entrenched in the mountains of the commune 8 and 9.
English: Brado logistics will grow from 80 thousand containers transported per year to 500,000 units annually in the next five years.
A Brado Logística, subsidiária da América Latina Logística (ALL), está se preparando para chegar a 11% de participação na movimentação de carga no país até 2017. O presidente da companhia, José Luís Demeterco, disse que a Brado vai saltar de 80 mil contêineres transportados por ano para 500 mil unidades anuais nos próximos cinco anos. A empresa deve crescer 525%.
English: The National Bank for Economic and Social Development (BNDES) will finance the acquisition of 689 freight cars to VLI.
por Ricardo Escudero Viñas | O Banco Nacional de Desenvolvimento Econômico e Social (BNDES) vai financiar a aquisição de 689 vagões de carga para a VLI (Vale Logística Integrada) por valor de BRL 182 milhões.
English: ANTT (National Land Transport Agency Brazil) issued the call for tender establishing the conditions for the high-speed train between the cities of Campinas, São Paulo and Rio de Janeiro.
por Ricardo Escudero Viñas | A ANTT (Agência Nacional dos Transportes Terrestres) publicou o edital que estabelece as condições para o leilão do trem de alta velocidade entre as cidades de Campinas, São Paulo e Rio de Janeiro.
O leilão, segundo o aviso, ocorrerá no dia 19 de setembro de 2013, às 14h, na sede da Bovespa, em São Paulo, quando serão abertos os envelopes com as propostas. Para participar do leilão, os interessados devem entregar a sua proposta entre 9h e 14h do dia 13 de agosto, um mês antes.
The deadline to submit bids for a tender to supervise the contractors developing the executive project for Brazil's 35.6bn-real (US$18bn) Rio-São Paulo-Campinas bullet train project has been pushed back to May 14.
Originally set for April 23, the date had been changed to May 2 and now to May 14. Postponements were necessary to change the criteria for judging technical proposals in order to seek greater balance and efficiency for those qualifying, according to a statement from national logistics and planning group, EPL, who has launched the tender.
Due to its complexity, the project is being developed in segments by various contractors. Besides the railway, preparations must be made to implement various tunnels, bridges, train stations, train yards, and parking facilities.
Once a supervising contractor is hired, EPL estimates that executive project developers will be hired within six months and development should take about 12 months.
Although there is no limit on the amount of participants in concessions, subcontractors are not allowed. A tender budget has not been stipulated as bidding is being conducted by way of the federal government's differentiated contracting system RDC.
www.railwaybrazil.com | Argentina's government has taken over the management of the run down Belgrano Cargas freight rail line by ousting concessionaire Soesa. "An important investment in new train cars" comes next, President Cristina Fernández de Kirchner said while announcing a government resolution that makes the takeover official. "If we don't integrate production with logistics, we are going to lose competitiveness."
The move puts an end to weeks of uncertainty over the future of Belgrano Cargas.Once the backbone of the country's freight rail transport - with a network of over 10,000km throughout the country's fertile northeastern provinces and some 4Mt/y of goods handled - the Belgrano Cargas has been steadily deteriorating over the last two decades, to the point that it transported less than 369,000t in the first six months of 2012. Today, trucks get the lion's share in the local freight transport market, making the country in one of the region's most expensive in terms of logistics costs.
Southeastern Brazil's São Paulo state is seeking expressions of interest for the preparation of an BRL 18.5bn-real (USD 9.26bn) public-private-partnership (PPP) to build and operate a passenger railway network of some 431km, the state announced in its official gazette Diário Oficial.
The call, being carried out through the state's transport secretary and its PPP management council, involves preparing studies for a 35-year concession, which will involve building railways, implementing control systems, purchasing rolling stock and operating and maintaining the system.
Set to last six months, the studies involve preparing engineering designs and a remuneration model for the concession, which include carrying out evaluations for passenger demand and financial viability, as well as those addressing operation and legal aspects.
Interested parties have until February 8 to express their interest. Once a plan is eventually selected, the responsible company will be compensated BRL 5.2mn according to the announcement.
by Ricardo Escudero Viñas | The city hall of Rio de Janeiro informed that the opening of bid proposals for Porto Maravilha tender was delayed from January 10 to January 29 due giving more time for participants for the elaboration of proposals.
This is a light rail transit project of 30 km and 42 stations valued BRL 1.1 bn, financed 50% by federal government by the country's growth acceleration plan, PAC.
The Brazilian MPE (Assemblies and Special Projects) in collaboration with Malaysian Scomi, is investing in the fast growing monorail market in Brazil. At the end of January will be opened the first factory in Rio de Janeiro, which will produce 24 trains for Line 17 (Gold) of the São Paulo Metro.
By Ricardo Escudero Viñas | ADIF, the manager of the entire railway infrastructure of Spain, signed a contract for the supply of electricity to its network which is generated by 100% from renewable sources. Clean power supply to ADIF is made by Acciona and Enérgya VM Gestión.
English: New EMUs recently acquired to the Chinese manufacturer CNR will replace La Brugeoise units. The Line A of the metro will be out of service during 15 days to 2 months due the introduction of the new rolling stock.
English: Technical consulting division of Metro de Madrid has nearly multiplied by three annual revenues in 2012 in consulting engineering, operation, architecture and training. Most of the demand for consulting services comes from the Latin American countries, given the heavy investment in the region in transport infrastructure.
por Ricardo Escudero Viñas | La división de consultoría técnica del Metro de Madrid casi ha triplicado su facturación anual de 2012 en consultoría de ingeniería, operación, arquitectura y formación. La previsión eran EUR 7M pero lo realmente facturado han sido EUR 20M.
La mayor parte de la demanda por los servicios de consultoría proviene de los países de Iberoamérica, dado la fuerte inversión que esta región está realizando en infraestructuras de transporte.
English: The Brazilian mining company Vale will start in March improvement works and construction of railway infrastructure between Malagüe and the port of Bahia Blanca.
por Ricardo Escudero Viñas | La empresa minera brasileña Vale comenzará en marzo los trabajos de mejoramiento y construcción de la infraestructura ferroviaria entre Malagüe en la provincia de Mendoza (donde se encuentra la planta de extracción de potasio) y el puerto de Bahía Blanca.
English: ADIF SE has decided to launch a call for tender for the renovation of the rail infrastructure 400 km (Buenos Aires - Mar del Plata) and 300 km (Buenos Aires – Rosario).
por Ricardo Escudero Viñas | Crónica Ferroviaria informa que el Ministerio del Interior y Transportes por medio del operador de infraestructuras ferroviarias argentino ADIF SE, ha decidido lanzar un llamado a licitación para la renovación de la infraestructura de vía de los ramales ferroviarios Buenos Aires – Mar del Plata de 400 km y Buenos Aires – Rosario 300 km.