Brazil: Chinese group interested in high-speed train to be built in Brazil.

17 February 2009

Sao Paulo, Brazil, 17 Feb – China Railway Materials (CRM) intends to bid in the public tender for Brazil’s first high-speed train said chairman of Ipanema Investimentos, Joao Viana in Sao Paulo, that represents the Chinese company in Brazil.

China is building a high speed rail link between Beijing and Shanghai, a project with 1318km and costing an estimated US$31 billion, the state-owned Chinese company being a conglomerate that builds and operates railway lines.

Joao Viana told newspaper Valor Economico that the big advantage of CRM’s proposal would be the price, though he said that one of the main challenges to overcome would be the stigma associated with Chinese products.

CRM’s business in Brazil has been limited until now to the sale of 900 wagons and two engines to the Vale mine in 2004 and 2005.

The chairman of Ipanema Investimentos emphasized that CRM is prepared to set up a factory in Brazil to produce the equipment to built the train though it is not interested in remaining to co-manage the project.

“We will see how the contract specifications look,” said Viana, adding that the Chinese trains could run the Rio de Janeiro-Sao Paulo line in less than an hour and 30 minutes, able to reach 365km an hour.

The Valor Economico confirmed that companies from Germany, France, Italy, Japan and South Korea had already expressed an interest in the venture. (macauhub)