China CSR and CNR won almost all the contracts for latest CNY 60 BILLION tender .(It was planned that among the bidders for the tenders will be only China-based train makers which have licenses for manufacturing high-speed trains)
•Last month, the China Railway Corporation (CRC) opened its first bidding for nearly CNY 60 billion worth of passenger cars, freight cars, locomotives, and multiple units after a two-year suspension since the ‘7.23 train crash incident’ two years ago. This is the first train tender ever released since the reorganization of China’s Ministry of Railways and the establishment of the CRC in this March.
•Peoples close to the CRC said that the preliminary bidding results have come out, with China CSR Corp. (01766: HKG; 601766: SHA) and China CNR Co. (601299: SHA) as the biggest winners.
•A person familiar with the matter unveiled that a majority of the bidding trains this time need to be delivered within this year, indicating that revenues derived from the new orders will be included in the winners’ financial results for 2013.
•According to the plan set in early 2013, the CRC will purchase trains worth CNY 107 billion this year, up 18.9 percent from the previous year. Industry insiders revealed that the CRC will start the second large-scale train procurement later in 2013, with the delivery expected to be completed next year.
Railway traffic during China's seven-day National Day holiday hit record highs with over 70 million passengers, statistics from the China Railway Corporation showed on Monday.
Shanghai Securities News reported China Railway has recently announced tender results of the 250km rail motor coach. CSR was awarded the entire tender of 91 x 250km motor coaches, settling down the first large-scale tender of China Railway.
The report cited people close to China Railway that the tender involved 795 high-power motor coaches, 159 railways, approx. 29,000 trucks and 726 passenger vehicles, totaling RMB50 billion. The tender was eventually shared by CSR and CNR, giants of the railway industry in China.
An insider pointed out that the tender will impose tremendous effects on the business results of CSR and CNR in the next period, since motor coaches are products with highest margins.
