Management & Operations

Kawasaki, Alstom, Bombardier win China contracts

Posted on August 30, 2004

Japan’s Kawasaki Heavy Industries Ltd., France’s Alstom SA and Canada’s Bombardier Inc. won contracts to help upgrade China’s railway network.

The contracts are for modernizing a rail network that is currently running at full capacity, but is only meeting 35% of cargo demand.

China’s Ministry of Railways plans to upgrade five rail lines totaling more than 2,000 kilometers of track to increase the speeds up to 125 mph. The project is valued at an estimated 100 billion yen ($914 million).

The contracts come as good news for the three companies, who have seen lagging sales this year.

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