CRRC Puzhen Bombardier Transportation Systems Ltd, a joint venture between Canada's Bombardier Transportation and China Railway Rolling Stock Corp, announced on Monday that it will supply monorail platforms and 240 cars to Wuhu in East China's Anhui province.
The total contract is valued at 1.79 billion yuan ($270 million). The company will provide the Bombardier Innovia Monorail 300 platform, along with the 240 trains to its client in Wuhu.
Bombardier owns a 50 percent stake in this joint venture, which is consolidated by Bombardier Transportation's partner CRRC Nanjing Puzhen Ltd.
The trains will be used in Wuhu's Line 1 and phase one of Line 2 in 2020. They will be the city's first two monorail lines, which will form the rail transportation backbone of the city. PBTS' scope under this contract will comprise the design, supply, Line 1 installation with 28 six-car trains and Line 2's phase one installation with 18 four-car trains.
Zhang Jianwei, president of Bombardier China, said medium capacity monorails are a highly-efficient and environmentally-friendly alternative to metros and Bombardier's experience, having delivered monorail technology for over 20 years including operating and maintaining these systems, was the core reason why Wuhu chose the products from the joint venture.
"This choice will ensure that Wuhu gets a green transportation system that better serves its passengers," he said.
"The sealing of the deal shows that Chinese market has become more open to foreign businesses and is gaining the latest technology to support its own public service ability, as well as industrial upgrading," said Li Guanghui, vice-president of the Chinese Academy of International Trade and Economic Cooperation in Beijing.
Since the Montreal-based manufacturer first entered China's rail transportation market, it has delivered more than 30,000 rail vehicles, locomotives and propulsion systems in China. These include more than 3,500 high-speed rail cars and intercity passenger-train cars, 580 electric locomotives and over 2,000 metro cars.
Bombardier supplies automated people mover systems to four major Chinese cities including Beijing, Shanghai and Guangzhou. It has delivered tram cars to Nanjing and Suzhou in Jiangsu province.
It is the only foreign company in China that has joint ventures to produce whole rail vehicles, including high-speed passenger trains, metro cars, monorail trains, and automated people movers.
Eager to enhance the country's profile as a top FDI destination, the central government called in July to ease the entry restrictions and share ratio limitations on foreign investment in areas such as transportation, architecture, accounting, commerce and logistics, e-commerce and the traditional manufacturing and service sectors.
