China awards its largest high-speed trainsets contract worth $1.5- billion to Bombardier''s Chinese joint venture

01 Nov 2007

New Delhi: Bombardier Transportation''s Chinese joint venture, Bombardier Sifang Power (Qingdao) Transportation Ltd. (BSP), has received the largest single order for rail passenger cars placed at a time in Chinese rail history, valued at approximately €1 billion ($1.5 billion).

Bombardier''s share of the contract is valued at approximately €413 million or $596 million.

First deliveries of the new trains are scheduled for February 2009. Delivery of the final train is expected August 2010.

The order was placed by Chinese ministry of railways (MOR) for 40, 16-car high-speed trainsets comprising 640 cars.

BSP is a joint venture between Bombardier Transportation, Power Corporation of Canada and China South Locomotive and Rolling Stock Industry (Group) Corporation.

The contract was signed during a ceremony yesterday in the presence of Zhang Shuguang, deputy chief engineer of MOR and director general of Transportation Bureau and Laurent Beaudoin, chairman and CEO, Bombardier Inc.

Bombardier Transportation president Andre Navarri said the contract further strengthens Bombardier''s presence in the high-speed rail market and underscores its leadership in China.

"It is always good news to sign a contract of this magnitude, " said Navarri, "but especially when the order is based on a customer''s prior positive experience with our products and trust in our technology leadership. China is one of the most important rail markets in the world, and we are pleased to be continuing our positive relationship wth the MOR."

The new electric-multiple-unit (EMU) trainsets will be capable of speeds up to 250 km/h. Twenty of the EMU trains will be specially designed for overnight service and fitted with sleeping berth interiors. These trains will feature the world''s first EMU sleeper cars capable of travel up to 250 km/h and will be developed utilising core elements of the Bombardier''s Zefiro family of high-speed and very high-speed products.

The new 16 car trains (at an overall length of 430 m) represent a sophisticated mix of new modular concepts and proven technology in a unique application. The high-speed sleepers will offer overnight travellers an advanced level of comfort, convenience and trip-time efficiency in a region where long-distance train trips are common.

The remaining 20 EMU trains will be upgraded, 16-car versions of successful eight-car trains now being delivered to the MOR as part of orders placed in May 2005 and October 2004.

Bombardier''s Zefiro family of trains specifically address the need for additional flexibility in next-generation rolling stock. Zefiro train designs introduce new methods for improving operating efficiency, capacity, interoperability and true cross-border travel.

Stéphane Rambaud-Measson, president, Bombardier Transportation (main-line and metros division) said "This order is clear recognition of the high level of reliability reached by Bombardier high-speed trains already in operation in China, as well as of our ability to efficiently manage a complex localisation project in a new and very demanding market. All Chinese Bombardier high-speed trains are manufactued at our joint venture in Qingdao with very high levels of contribution from the local rail industry and its expertise."

The new high-speed EMU trains will be manufactured at BSP production facilities in Qingdao, China. BOMBARDIER MITRAC* propulsion systems for the trains will be jointly produced by Bombardier CPC Propulsion System Co. Ltd., a Bombardier joint venture based in Changzhou, and Bombardier facilities in Europe. MITRAC propulsion systems are included in more than 23,000 rail vehicles worldwide.

Jianwei Zhang, president and chief country representative, Bombardier China, said Bombardier''s growing success is based on consistent market focus and a product portfolio that is well-suited to the country''s vibrant transit sector. "Bombardier has a long-term commitment to this market, " said Zhang. "We offer one of the broadest product portfolios in the world and that is apparent in the spread of contracts we have for high-speed trains, locomotives, propulsion equipment, commuter trains, automated transit systems, metro cars, signalling systems and other products. This is a priority market, and our focus here is showing results."

Bombardier''s recent Rail Contracts in China
Other recent contracts awarded to Bombardier and its Chinese partners:

" Signalling system for high-speed rail line between Wuhan and Guangzhou (August 2007)
" Automated People Mover System for the City of Guangzhou (May 2007)
" 192 metro cars with propulsion and controls equipment for Shanghai Metro Line 7 (May 2007)
" 500 electric freight locomotives for the Ministry of Railways (February 2007)
" 306 metro cars with propulsion and controls equipment for Shanghai Metro Line 9 (Nov. 2006)
" Propulsion and controls equipment for 192 cars on Beijing Metro Line 4 (July 2006)
" 40 automated rail cars for Beijing Capital International Airport Link (March 2006)

Including its three joint ventures, the $14.8 billion revenue Bombardier currently employs 2,500 people in China. In addition to its rail transportation operations, Bombardier is also the number one supplier to the Chinese regional aircraft market with an installed base of more than 30 aircraft in operation with six airlines. It is the top-ranked supplier of business aircraft to China as well. Bombardier''s longstanding business relationship with China began 50 years ago.

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