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Simons (Siemens) has given up the bid for Saudi Arabia, Mecca to Medina 7 billion U.S. dollars high-speed rail project trains and equipment supply contract and instead join a consortium led by Chinese companies join hands with them bid for the project.
With China's railway manufacturers continue to enhance the global competitiveness of the signal to highlight, Siemens abandoned its cooperation with the Saudi Bin Laden Group (Saudi Binladin Group) to form a consortium to tender.
According to an informed source said, Siemens has been converted to join the Chinese state-owned China South Locomotive Co., Ltd. (China South Locomotive & Rolling Stock Corporation) led bid for Al-Haramain high-speed rail project two contracts team.
Siemens will supply the Chinese consortium to provide signals and suitably equipped. The consortium also includes the China Railway Construction Corporation (China Railway Construction Corp) with the Beijing Railway Bureau (Beijing Railway Administration).
This 450 km long railway line through the Jeddah Islamic Port to connect the two holy places, and the annual pilgrimage to ease traffic congestion during the situation. There will be 250 thousand people during a pilgrimage to Mecca.
Chinese bid was considered the team leader - the same as the state-owned enterprises China Railway Construction Corporation, the project last year to win a 1.8 billion U.S. dollars in construction contracts, the consortium members.
A person participating in the project, said: "Siemens realized that as long as China's participation in the tender, himself is unlikely to bid, so they decided to join the Chinese team, rather than his own bid for a home to cooperate with the Chinese rival."
An informed source said that France's Alstom (Alstom), South Korea's Hyundai Motor Company (Hyundai) and Samsung (Samsung) have also bid for Al-Haramain two contracts for the projects. Siemens said that as the bid under way, it can not make a comment on the project.
The final bid for the project set for May 1.
For decades, high-speed railway industry has to Europe, Japan and North America dominated by a few enterprises, and they will mostly focus on the market in their area.
And now, while high-speed rail projects around the world is witnessing rapid growth, the Chinese state-owned railway construction company's rapid rise to the German Siemens (Siemens), France's Alstom (Alstom), Canada's Bombardier (Bombardier), and Japan Kawasaki Heavy Industries (Kawasaki) the dominant position of such enterprises pose a serious threat.
"Chinese companies are changing the pattern of the global railway market, both because of their considerable size of domestic markets but also because they began to participate in international tenders, while the latter is a new phenomenon," Alston Asia-Pacific managing director Dominique Pouliquen • (Dominique Pouliquen) said.
While Chinese companies have just boarded the global stage, but also in quality and technology behind European rivals, but they also have some significant advantages.
"Price is their most competitive advantage, and they are very organized, but also has a Chinese state-owned banks financial support," Pouliquen said.
"They offer a package of programs to the world usually include both technical solutions also covers the financing options, it is very easy for governments decided to adopt their products." Directly owned railway companies in China more than China's Ministry of Railways will co-ordinate their bids are usually Therefore, the Chinese between enterprises do not compete with each other. Ministry of Railways will also come up with a huge increase in China's market access rights of an attractive prospect to encourage foreign-funded enterprises joined the consortium.
Analysts say Chinese companies have been very actively involved in the Middle East and Latin America, the project bidding. They will also be targeting a number of projects in Australia and the United States and has made considerable progress in the Asian region, in Thailand and Hong Kong to obtain the contract.
Eager to go to the world of China's railway industry was almost overnight rise. Consulting firm Lloyd's Register Rail (Asia) (Lloyd's Register Rail (Asia)) Managing Director, Ian • Carmichael (Iain Carmichael) said that, just three years ago, Chinese enterprises do not have the national railway system in a number of components required technologies, such as signal systems, and high-speed rail technology.
"But as Chinese companies access to these technologies, the relationship has shifted. Now the Chinese occupied the upper hand, If you want to compete on European companies must work together."
Restrictions on Chinese exports of railway rolling stock capacity of the main factors, Chinese companies are trying to catch up with the growth in domestic orders - China is now the world's largest rail market.
"Some major manufacturers this year, intends to triple output, we see high-speed rail subway system, and there are a huge expansion," Carmichael said.
According to McKinsey (McKinsey) predicted that China's railway equipment (including vehicles, parts, and signal systems and other equipment) market size will be from 2004 to 2008 an average 10 billion U.S. dollars, based on an increase of 4 times - in 2009 to 2013 to reach an annual average of more than 50 billion U.S. dollars.
This year, the total expenditure in the global railway equipment, China is expected to account for more than half.
The Chinese government in the next five years, at least 30,000 kilometers new railway, most of them high-speed rail. China is expected to soon overtake Russia to become second only to the size of rail infrastructure in the United States, the world's second largest country.
After the outbreak of the financial crisis, in order to help boost the economy, China's railway expansion has been accelerated. Many of the projects target completion date from early 2020 until 2015.
China's railway market size and position to a certain extent, explains why the European and international rail equipment suppliers competing with the Chinese state-owned manufacturers in China and abroad to cooperate.
However, cooperation has a price.
"European manufacturers have complained that their rights under [Beijing's] request the transfer of technology to Chinese enterprises, and now Chinese companies are making use of their technology with them on the international market, even in Europe, the local market launched a price war," Hong Kong Transport International (Transport International) executives Qi Ouyang Chun (Evan Auyang) said
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