The Rail Market in China - 2014

THE RAIL MARKET IN CHINA - 2014

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BROOKS MARKET INTELLIGENCE REPORTS, VISIT US AT WWW.BROOKSREPORTS.COM CONTENTS

INTRODUCTION 5 1. PUBLIC RAILWAY SYSTEMS Background 6 General information 6 China Railway Corporation organisation 8 Joint-venture railways 9 Local railways 11 Traffic: public railways 11 Public railway planning 12 Public railway investment and funding 12 Infrastructure development 13 High-speed passenger lines 14 High-standard mixed traffic lines 15 General mixed traffic lines 15 Heavy-haul coal lines 15 Infrastructure elements 16 Viaducts and major bridges 16 Tunnels 17 Track-work 17 Electrification 18 Signalling and communications 18 Rolling stock 19 Electric locomotives 19 Diesel locomotives 20 EMUs 21 DMUs 22 Passenger coaches 23 Freight wagons 24 Container / intermodal transport 25 International border crossings 26 New line design and construction 26 2. INDUSTRIAL RAILWAY SYSTEMS 27 3. URBAN RAILWAY SYSTEMS 28 Background 28 Metro and monorail systems 29 Beijing 29 Chongqing 29 Guangzhou and Foshan 30 Shanghai 30 Shenzhen 31 Tianjin 32 Other metro systems 33 Suppliers 34 Engineering and design 34

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 3 Light rail systems 34 Changchun 34 Dalian 35 Nanjing 35 Shenyang 35 Suzhou 35 Systems under construction or planned 36 Suppliers 37 4. RAIL INDUSTRY MANUFACTURING 38 5. CHINA’S RAIL INDUSTRY EXPORTS 42

China has seen remarkable and ongoing rapid development of its public railway system over the 30 years since the early 1980s, and expansion and extensive upgrading is continuing at great pace.

Thirty years ago the country’s rail network was technically not up to the standards found in Western Europe, North America and Japan, but in many respects China has now become a leader in railway development. Its public railways are now the world’s most intensively used, the network now has the longest high-speed passenger rail system and the greatest length of electrified main line railway. China has also become a major exporter of railway equipment and materials.

The country’s public railway system is characterised by the high intensity of both freight and passenger traffic levels on its main lines, a feature that has presented many challenges not encountered to the same degree elsewhere.

China is largely self-sufficient as far as railway planning, design and construction and the supply of materials and equipment are concerned. Foreign specialist technology and expertise though are drawn in where China’s own railway industries are lacking in knowledge or equipment, particularly where a new area of railway knowledge is entered into. Examples of this include dedicated high-speed passenger railways and mechanised track maintenance.

Urban railway system development in China began in earnest in the early 1990s to cope with rapid urbanisation and since then has been as impressive as the development of the national network. It started with metro systems in a few major cities and spread steadily to most large conurbations throughout the country. More recently several cities have begun to develop new and upgraded modern tramway or light rail systems.

As well as an extensive and intensively used public railway network, China also has many industrial systems serving mines, steelworks, smelters and other industries. Some are significant in size, with large fleets of locomotives and extensive track lengths.

Apart from key network and traffic figures, statistics covering China’s public railways are not readily available publically. It will be noted that many statistics in this document are estimates and these are based on information obtained from industry journals and their websites, Internet websites dedicated to Chinese railway matters and the personal knowledge of the contributors to this document. Similarly, much of the information regarding urban systems has been obtained from industry journals and Internet websites, as well as from operators’ own material.

April 2014

BACKGROUND

Until March 2013 the key government entity involved in public railways in China was the now defunct Ministry of Railways (MoR). Pressure to reform the MoR had built-up due to factors such as its severe debt situation, a serious accident involving two high-speed trains at Wenzhou in 2011 and concerns about fraud and corruption within the ministry. The Chinese government took the decision to disband the MoR and split its functions between a new regulatory railway section (National Railway Administration) within the Ministry of Transport and a new organisation called the China Railway Corporation (CR). The CR was formally founded on 14 March 2013, taking over the commercial and operations functions of the MoR and leaving regulatory activities such as service quality, setting and monitoring technical and safety standards and aspects of new infrastructure project supervision to the new administration within the Ministry of Transport.

China has three main categories of public non-urban railways; in addition public services are operated over some of the larger industrial systems. Of the three categories the main national railway system makes up the principal one covering much of the countrywide rail network. The second most important category comprises the joint-venture railways. This form of ownership, which generally involved the MoR as an important shareholder, was first introduced in the late 1980s to facilitate access to additional sources of funding. The joint- venture form of ownership has since been widely used. The third category, which is a minor one that has existed for many years, comprises local railways which with a few exceptions are lightly trafficked, low-standard short lines. The local railway category includes some of the few remaining 762 mm gauge public railways in China. The MoR or its government successor entities are generally not involved in the ownership of this category of railway.

The Chinese public railway system has seen rapid growth in traffic as the economy has expanded. However, at the same time China has placed great importance on developing a high-standard highway and expressway network in the country. This has allowed rapid growth of competing long-distance road-based freight and passenger options. While freight traffic on the railway network has grown substantially, rail’s share of the country’s total freight market has fallen to around 25% from around 50% 25 years ago. Pressure to increase rail freight tariffs to more market-related levels may see this trend continue.

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 6 GENERAL INFORMATION Route lengths 60-100 route-km 1,520 mm and dual 1,520 mm/1,435 mm gauge (at national border crossings with Russia and Kazakhstan)

100,000 route-km 1,435 mm gauge

650 route-km 1,000 mm gauge (Kunming to Vietnamese border in Yunnan Province) 300-400 route-km 762 mm gauge (various local railways)

Total – National railways: 89,000 route-km Total – Joint-venture railways: 9,000 route-km Total – Local railways: 4,000 route-km

Overall total: Approximately 102,000 route-km at end of 2012, with considerable new line construction in progress.

(Route lengths are approximate as at end 2012.)

Multiple track Double track: Approximately 40,000 route-km, of which about 800 route-km are on joint-venture railways. (Estimates as at end 2012). Triple and quadruple track: On only a small number of important lines, e.g. Guangzhou-Shenzhen and Beijing-Tianjin. Short lengths elsewhere at junctions, etc. Electrification 25 kV AC 50 HZ: Approximately 50,000 route-km, of which about 900 route-km are on joint-venture railways. (Estimates as at end 2012).

1.5 kV DC: Restricted to some industrial and mining railway systems. Locomotive/EMU/DMU Electric locomotives: 10,000 (all 1,435 mm gauge) fleet Diesel locomotives: 10,000 (most 1,435 mm gauge, some 1,520 mm and 1,000 mm gauges)

EMU cars (high-speed): 8,500 (all 1,435 mm gauge)

DMU cars: 250 (all 1,435 mm gauge)

Of the above approximately 400 electric and 700 diesel locomotives are joint-venture railway-owned and approximately 200 diesel locomotives are local railway-owned.

(Estimated fleets as at end 2012.) Rolling stock Freight wagons: 640,000

Passenger coaches (excluding EMU/DMU cars): 53,000

(NB: Estimated fleets as at end 2012)

Staff 2,050,000

CR headquarters 10 Fuxingmen Road, Haidan District, Beijing 100844

CR website www.china-railway.com.cn

Railway network map Map in Chinese showing existing and planned railway lines available from the CR website.

CHINA RAILWAY CORPORATION ORGANISATION During early 2013 the Chinese national railways underwent a major organisational change in its top structures. The MoR (Ministry of Railways) was disbanded and commercial, operational, infrastructure maintenance and other functions were taken over by the new China Railway Corporation (CR) formally established on 14 March 2013. CR has been placed initially under the control of the Ministry of Finance. The Minister of Railways, Sheng Guangzu, was appointed as the General Manager of CR.

Regulatory and administrative functions relating to the national railway system, such as service quality, technical and safety standards and aspects of new infrastructure project supervision now fall under the new National Railways Administration within the Ministry of Transport.

The government has indicated that the restructuring will not result in any changes to China’s massive rail investment programme. CR will be empowered to adopt more customer- and market-orientated policies and the rail industry is to be further opened to private investment. These reforms may include adoption of higher, more market-related freight tariffs.

At this stage only broad details of the changes are known, and given the size of the national railways it is expected to be some time before the precise responsibilities of the two new bodies and ownership of subsidiary organisations becomes clear. In the short term no major changes are expected in broad policy and planning.

The national railway system is divided geographically into 18 railway bureaux and semi-autonomous railway companies that operate passenger and freight services over the respective networks:

■■ Harbin Railway Bureau (Northeast China – Heilongjiang Province and Inner Mongolia Autonomous Region (AR)) ■■ Shenyang Railway Bureau (Northeast China – Jilin and Liaoning Provinces and Inner Mongolia AR) ■■ Beijing Railway Bureau (North China – Hebei Province, Beijing and Tianjin Municipalities) ■■ Taiyuan Railway Bureau (North China – Shanxi Province) ■■ Hohhot Railway Bureau (North China – Inner Mongolia AR) ■■ Zhengzhou Railway Bureau (Central China – Henan Province) ■■ Wuhan Railway Bureau (Central China – Hubei and Henan Provinces) ■■ Xi’an Railway Bureau (Central China – Shaanxi and Sichuan Provinces) ■■ Jinan Railway Bureau (East China – Shandong Province) ■■ Shanghai Railway Bureau (East China – Jiangsu, Anhui and Zhejiang Provinces, Shanghai Municipality) ■■ Nanchang Railway Bureau (Southeast China – Jiangxi and Fujian Provinces) ■■ Guangzhou Railway Group Co Ltd (Southeast China – Guangdong and Hunan Provinces, Hainan Island) ■■ Nanning Railway Bureau (South China – Guangxi AR )

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 8 ■■ Chengdu Railway Bureau (Southwest China – Sichuan and Guizhou Provinces and Chongqing Municipality) ■■ Kunming Railway Bureau (Southwest China – Yunnan Province) ■■ Lanzhou Railway Bureau (West China – Gansu Province, Ningxia AR) ■■ Urumqi Railway Bureau (West China – Xinjiang AR) ■■ Qinghai-Xizang Railway Group Co Ltd (West China – Qinghai Province, Xizang (Tibet) AR)

There are also three specialised companies active in the freight and parcels sectors of the rail market:

■■ China Railway Special Cargo Service Co Ltd (CRSCS) ■■ China Railway Express Co Ltd (CRE) ■■ China Railway Container Transport Co Ltd (CRCT)

JOINT-VENTURE RAILWAYS In addition to the 18 national railway bureau and group companies listed above there are now numerous joint-venture railways which generally are considered part of the national system. The joint-venture model was introduced in the late 1980s to open up additional funding sources for the expansion of the railway network. Initially such railways were required to have the MoR as the majority shareholder (>50%), with lesser shareholdings from the provinces through which the new lines were to pass. The joint-venture requirements have been steadily reformed and today foreign interests, mining and power companies and other parties may also participate. The minimum required shareholding from the relevant successor organisation to the MoR has also been reduced significantly. Many of the new joint-venture railways have coal mining and power generation companies as major shareholders.

There are now around 40 operational joint-venture railways in China, with several more under construction. The total route length of those that are operational is in the region of 9,000 route-km or roughly 10% of the length of the public railway network. In total the joint-venture railways have around 400 electric and 700 diesel locomotives in service. Most of these are acquired new from Chinese suppliers but in the case of diesel locomotives second-hand units surplus to CR requirements are also obtained. In some cases locomotives are provided by the CR railway bureau involved in the particular joint-venture. Many of the joint-venture railways also have their own rolling stock fleets, in a few cases including passenger vehicles. Most of this rolling stock is permitted to run on the main national system, and CR vehicles are permitted to run over the joint-venture lines.

While most of the joint-venture railways fall into the secondary main line category, several can now be considered major main lines, in particular where the primary traffic is coal. Of particular note are the joint-venture railways in which the Shenhua Group Corp Ltd, China’s largest coal mining group and one of the world’s largest, is involved.

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 9 At present the Shenhua Group has significant shareholdings in around 10 joint- venture railways. These include the Baotou-Shenmu Railway Company, the Shenmu-Shuozhou Railway Branch Company, the Shuozhou-Huanghua Railway Company, the Zhunger- Datong Railway Company, the Ganquan Railway Company, the Xinzhun Railway Company and the Zhunchi Railway Company. The group also owns the Shenhua Rail Maintenance Branch Company. At the end of 2012 the group was involved in joint-venture lines totalling almost 1,800 route-km, with another around 300 route-km under construction. Together these railways own around 36,000 freight wagons and employ close to 30,000 people.

Shenhua websites: www.shenhuagroup.com.cn; www.shenhuagroup.com.cn/ cs/sh_en/PAGE1382682985077/sh_en_ED.html

Of the joint-venture railways in which Shenhua are involved the most important are the Shenmu-Shuozhuo and Shuozhuo-Huanghua lines. These two are in effect one line linking the coal mining areas in the Shenmu and Shuozhou areas in Shanxi and Shaanxi Provinces with the east coast ports at Huanghua and Tianjin. This forms a 930 km double-track heavy-haul electrified line that transports in excess of 200 million tonnes of coal per year in trains of up to 200 wagons. Research, which includes studies aimed at increasing the maximum axle-load to 30 tonnes, is being undertaken to boost the carrying capacity of this line, now one of China’s busiest. Around 400 electric locomotives are in use on it and the companies are actively engaged in developing traction designs to suit their own specific needs.

A major joint-venture railway of a different nature is the Jitong Railway, a 940 km diagonal single-track line through central Inner Mongolia linking the cities of Jining (near Hohhot in Inner Mongolia) and Tongliao to the northeast. The main partners in this railway are the Inner Mongolian government and CR through its adjoining railway bureaux. The line was opened in the mid-1990s and has since been steadily improved to increase carrying capacity. It serves as a direct route between northeast China and the industrial and mining heart of Inner Mongolia to the west, and allows traffic to avoid the congested network around Beijing. Several other coal mining-related joint-venture railways have been constructed to connect to the Jitong railway. It now has a fleet of around 150 diesel locomotives including a small number of 145 km/hr passenger units.

Address: Jitong Railway Company, 56 Bei Yuan Road, Hohhot 010010, Inner Mongolia, P R China.

A new major joint-venture railway now under construction will extend for a distance of roughly 1,700 km from the coal mining area of Ordos in Inner Mongolia and Shaanxi to Jiangxi Province in the south of China. This will allow coal to be transported directly to the rapidly developing southeast coastal region. CR will invest only 20% of the shareholding, with the remainder coming from local governments along the route and various mining and energy companies.

Only a small number of the joint-venture railways have been described here. These lines are increasing in number and importance, and with the reforms that have been introduced are increasingly autonomous and worth taking note of.

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 10 LOCAL RAILWAYS Local railways are generally built and operated by local authorities to encourage and support regional economic development. Although a few have been recently constructed, most have been in existence for many years. The local railway category includes a small number of 762 mm gauge lines that primarily serve mining and quarrying entities.

At present between 60 and 70 local railways are understood to be in existence in China. Although most are minor in nature, a few are significant operations. One of these is the Tianjin Local Railway, a network of lines serving the southeast industrial areas of Tianjin and the southern part of Tianjin’s Tanggu port, with connections to various CR lines as well as to the Shenmu-Huanghua coal joint-venture railway to the south of Tianjin. The Tianjin Local Railway has a fleet of around 15 modern Chinese main-line diesel locomotives.

A further example of a major local railway is the Bei’an-Heihe Local Railway in the far north of Heilongjiang Province. This 300 km line serves the city of Heihe on the border with Russia, and freight and passenger trains are operated between here and Longzhen near Bei’an to the south, where traffic is exchanged with CR.

TRAFFIC: PUBLIC RAILWAYS The table below shows the passenger and freight traffic figures for the public railways in China for the calendar years 2008-2012. The figures given are in millions.

2008 2009 2010 2011 2012 Passenger journeys 1,462 1,525 1,676 1,862 1,893 Passenger-km 773,915 787,889 876,218 966,129 981,233 Freight tonnes 3,304 3,320 3,629 3,932 3,904 Freight tonne-km 2,511,000 2,494,000 2,733,000 2,946,579 2,918,709

The above figures are for the entire public rail network and include traffic on the joint-venture and local railways.

For comparison purposes the equivalent figures for 2012 for the joint-venture and local railways are given on the facing page. Again these are in millions:

Joint-venture railways 2012 Local railways 2012 Passenger journeys 8.9 5.8 Passenger-km 2,150 690 Freight tonnes 440 230 Freight tonne-km 183,040 13,620

The rapid growth in traffic levels evident from the above figures is set to continue, in particular as far as passenger and coal traffic are concerned. Coal makes up around 60% of freight traffic on the public rail network.

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 11 PUBLIC RAILWAY PLANNING Broad public railway planning in China is formally set by the government through Five-Year Plans developed until now by the now disbanded MoR. The most recent Five-Year Plan is the 12th, covering the period from 2011 to 2015. In this the MoR set a target for expanding the public rail network to 120,000 route-km by 2015. To achieve this, more than USD 80 billion would need to be invested each year in railway construction; in addition large quantities of rolling stock and other equipment would need to be acquired.

While it appears unlikely that the 12th Five-Year Plan target for new construction will be fully met due to slower economic conditions and the aftermath of the Wenzhou high-speed train accident in 2011, it is evident that the Chinese government intends to continue with planning for rapid expansion of the rail network. Earlier government announcements indicated that the target for 2020 is to have an operational network in excess of 120,000 route-km, of which around 17,000 route-km would be high-speed passenger routes. There would be 60% of lines electrified and 50% of the network would be double-track.

PUBLIC RAILWAY INVESTMENT AND FUNDING The expansion of China’s public railway system and in particular the construction of the extensive capital-intensive high-speed passenger network had by the end of 2012 created a huge debt burden for the MoR. At that time the ministry was reported to be in debt to the extent of around CNY 2.7 trillion or USD 450 billion, with a debt-to-asset ratio of around 60%. The extent of this debt is believed to be in part what has led to the recent restructuring reforms in which the MoR has been replaced by the new China Railway Corporation (CR) and a railway regulatory body within the Ministry of Transport.

A government announcement in 2012 indicated that the railway industry among others had been identified for further opening up to private investment. Such investment would be permitted to participate in construction of new railways, including key passenger lines. More construction and equipment procurement would be put out on a competitive tendering basis.

In recent years private funding in new railway construction in China has been limited mainly to Chinese companies owning factories, plants and industrial parks that would be served by the new line concerned. Generally these lines have been short and minor in nature, and in most cases there has also been funding from state-owned entities.

One element of railway development that has seen significant amounts of non-MoR investment in recent years has been the joint-venture sector and in particular new lines to transport thermal coal to power stations. Investors in these include mining and power generation interests while the required MoR/ CR contributions have been greatly reduced.

The Chairman of CR, previously the Minister of Railways, has indicated that the restructuring of the top level railway structures will have minimal impact on the 12th Five-Year investment plan for the sector covering 2011 to 2015. Investment expenditure during this period has been projected to total CNY 2.3 trillion or USD 385 billion.

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 12 INFRASTRUCTURE DEVELOPMENT While there is much fluctuation from year to year, China is currently commissioning around 3,000 route-km of new railways annually in addition to carrying out extensive upgrading work on existing lines through alignment improvement, double-tracking and electrification. Of the 3,000 route-km, around 1,000 are made up of new dedicated passenger high-speed (PDL) lines, with the remainder generally being new general traffic or secondary main lines.

To assist with boosting freight train capacities, China has steadily been increasing the maximum axle-load and maximum speed for freight rolling stock. The present maximum freight wagon axle-load for lines other than heavy-haul lines is 23 tonnes, while for heavy-haul lines it is 25 tonnes with research being carried out to increase this to 30 tonnes in certain cases. With few exceptions all new freight rolling stock now has a maximum design speed of 120 km/h.

At any one time construction is underway in China on a host of new lines and it is not the intention here to list all of these. The various main types of railway being constructed are described below with examples of each type.

New public railways in China are generally being constructed to standards permitting the following types of operations:

High-speed passenger lines (PDLs – Passenger Dedicated Lines)

■■ Intercity and regional lines for 350-380 km/h high-speed EMU operation. ■■ Intercity and regional lines for 250 km/h high-speed EMU operation. (In some cases loco-hauled passenger trains are permitted to use such lines.) ■■ Regional, metropolitan / conurbation-based networks of lines for 160-250 km/h EMU operation.

High-standard mixed traffic lines

■■ Double-track electrified lines for 200-250 km/h high-speed EMU operation, 160 km/h loco-hauled passenger operation and 120 km/h freight train operation. Included in this category is a network of lines with increased clearance standards to allow double-stack container train operation.

General mixed traffic lines

■■ Single-track (generally) non-electrified main-lines and secondary main-lines for 120 km/h passenger and freight operation. In some cases a maximum design speed of 160 km/h for passenger services is adopted.

Heavy-haul coal lines

■■ Double-track electrified lines for 120 km/h coal train operation. Possibly include provision for heavier axle-loads up to 25 tonnes at this stage.

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 13 HIGH-SPEED PASSENGER LINES By the end of 2012 China had in the space of less than 10 years commissioned the world’s longest high-speed passenger railway network. Around 8,000 route- km of high-speed lines were in operation at that time. Construction of such lines is continuing apace with a government-set target of 17,000 route-km to be in service by 2020.

Around half the 8,000 route-km of high-speed lines have been constructed to standards suitable for maximum speeds of 350-380 km/h. These are mostly in the key long-distance corridors with strong passenger demand such as Beijing-Guangzhou, Beijing-Shanghai and Harbin-Dalian. Further lines to these standards are under construction.

The remaining high-speed lines operational at the end of 2012 have maximum design speeds of 200-250 km/h and some of these see slower locomotive- hauled passenger trains in addition to the high-speed EMU services. Examples of 250 km/h lines include Shijiazhuang-Taiyuan, Changchun-Jilin and Hangzhou-Ningbo. Several more to these standards are under construction. China is also constructing high-speed regional lines serving a number of the large and rapidly growing metropolitan conurbations such as Chengdu, Zhengzhou and the Pearl River Delta centered on Guangzhou. These generally have closer station spacings and trains that provide higher standing-to-seated passenger ratios and have higher acceleration / deceleration characteristics. Examples include Chengdu-Leshan, Chengdu-Dujiangyan, Guangzhou-Zhuhai and Zhengzhou-Kaifeng.

Associated with the new high-speed passenger railways has been the construction of a number of new stations. Many of these in the major cities in particular are impressive, imposing facilities that in some respects resemble modern airport terminals. Examples include Beijing South, Guangzhou South, Wuhan, Nanjing South, Xiamen South and Shanghai Hongqiao stations.

HIGH-STANDARD MIXED TRAFFIC LINES Until the early 1990s the maximum speed of passenger trains in China was 120 km/h, with a fleet of diesel locomotives then in passenger service capable of attaining this maximum. At the same time freight trains generally did not exceed 60 to 80 km/h. From the mid-1990s, however, China began to upgrade its key double-track main lines to increase the maximum speeds of important passenger trains, first to 160 km/h and later to 200 km/h where this was possible. To enhance passenger and freight train operational compatibility where passenger services had been speeded up, improvements were made to freight rolling stock and locomotive design to permit maximum speeds up to 120 km/h.

Over time many important main lines accounting for a significant route length were upgraded to standards suitable for 160 / 200 km/h passenger and 120 km/h freight operation. These standards went on to essentially become those adopted for new high-standard mixed traffic lines in China and many of these are now in service or under construction. In some instances where high-speed EMU operation is planned together with locomotive-hauled services, it appears that maximum speeds of up to 250 km/h are also being provided for.

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 14 China is reported to be planning a network of around 10,000 km of new high- standard main lines to the above standards but with suitably increased vertical clearances to permit double-stack container train operation. Several new lines that will eventually form part of this network are now in operation including the recently opened (September 2013) line of around 600 km linking the cities of Fuzhou and Putian on the coast of Fujian Province with Nanchang, the capital of Jiangxi Province. Another line of similar length and built to the same standards is due to open soon and will link Chongqing Municipality with Lanzhou, the capital city of Gansu Province. This passes through mountainous terrain and has required major engineering design as around 75% of its length is either in tunnel or on viaduct.

GENERAL MIXED TRAFFIC LINES In addition to the high-standard electrified double-track lines described above, China is also constructing many lower standard lines, many of which are non-electrified. While in most cases not as impressive from an engineering perspective as the high-standard main-lines, most of these lines would count as major new railway construction in any other country.

The general design standards used for these lines are for a 120 km/h maximum speed for passenger and freight traffic and maximum axle-loads 23-25 tonnes. In some cases a maximum speed of 160 km/h is adopted for passenger traffic. In general China does not construct railways to branch line standards, i.e. lines to lower standards than these. The minimum adopted could be categorised as secondary main line standards.

New general mixed traffic lines are being constructed in areas where the government hopes they can contribute to improving and opening up the local economy, for example in areas of western China. Many are also being constructed to facilitate access to coal resources and a number are being built as joint-venture railways. An example is a line of about 400 km from the port of Huludao in Liaoning Province via Chifeng in Inner Mongolia to the Baiyinhua coalfields near Xilinhot further west. This is now operational over the western part of its length, with the remainder still under construction.

HEAVY-HAUL COAL LINES At present in China heavy-haul train operation is applied only for coal transport and then only on two special-purpose lines for the movements from the extensive mining areas within central Inner Mongolia Autonomous Region and Shanxi and Shaanxi Provinces to the coal loading ports of Qinhuangdao, Caofeidian, Tanggu and Huanghua to the east on the Bohai Sea.

Coal accounts for more than 50% of freight traffic moved in China and in addition to volumes transported over the two dedicated heavy haul railways, large amounts are also conveyed over many mixed traffic main lines. China also transports large quantities of ore over its railway network to feed the nation’s many steelworks and smelters. Ore and coal moved over the mixed traffic network is for the most part transported in general purpose wagons within the general freight train standards and parameters set for it.

The two special purpose heavy-haul coal railways are the DaQin line and the Shenhua Shenmu-Huanghua joint-venture line. The 650 km DaQin line extends from the Datong area in Shanxi Province to Qinhuangdao port in Liaoning Province, and was the first of the two heavy-haul railways to be constructed.

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 15 A 200 km joint-venture railway to similar standards linking the DaQin line to a new coal loading facility on the coast at Caofeidian was completed several years ago. Unit coal trains of 200 25-tonne axle-load wagons and a loaded weight of 20,000 tonnes are now operated on the DaQin line, which in terms of tonnage moved has become one of the world’s busiest railways. Statistics published by China’s railway authorities in recent years indicate that in excess of 400 million tonnes of coal are being transported annually along the line, primarily for onward shipping to the economically vibrant southeastern parts of China.

The second of the heavy-haul coal railways, the Shenhua Shenmu-Huanghua line, has generally adopted similar standards to those used on the DaQin. It roughly parallels the DaQin line but is located around 150 km further south and serves coal loading ports at Huanghua and at Tanggu (near Tianjin). The Shenhua line also now operates 200 wagon trains using 25 tonne axle-load special purpose wagons. Recent statistics indicate that around 250 million tonnes of coal are being transported annually on this line and further measures to boost this such as increasing the maximum axle-load to 30 tonnes are being researched.

Several major new railways (and many lesser ones) that have been indicated as primarily for coal transport are at present under construction in China. Significant are those linking the Liuliang area in Shanxi Province with the port of Rizhao in Shandong Province (around 1,250 route-km), the Ordos region of Inner Mongolia with Caofeidian (around 650 route-km) and the Ordos area with Ji’an in Jiangxi Province (around 1,750 route-km). Several of these lines are likely to be constructed to heavy-haul standards to facilitate very high capacity railway operation.

While there are many significant coal deposits in China, the major one being exploited at present is that spanning Inner Mongolia, Shaanxi and Shanxi. Further major deposits are now being opened up further north in Inner Mongolia, close to the Mongolian border, and in the longer term Xinjiang Autonomous Region in the far west is expected to become the country’s main source of coal. There are also major coal deposits within Mongolia close to the Chinese border. The transport of coal from these areas to where it is needed for power and metallurgical purposes will almost certainly require major new rail infrastructure.

INFRASTRUCTURE ELEMENTS Brief descriptions are given here of the major elements of typical railway infrastructure in China.

Viaducts and major bridges Until the development of the high-standard main lines began in China around 10 to 15 years ago, most major railway bridges over rivers and valleys were constructed largely to standard utilitarian designs consisting of precast concrete longitudinal beams of various standard spans on reinforced concrete piers.

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 16 While such designs are still used for new general mixed traffic main lines, more sophisticated viaduct forms such as those involving precast segmental decks have been adopted for the high-speed passenger and high-standard general purpose lines. Due to the high alignment standards required on these, considerable lengths of viaduct are often required across low-lying ground. Where extra long viaduct spans are required use is often made of the balanced cantilever form of construction.

Where new lines are built across China’s major rivers such as the Yellow and Yangtze, substantial bridges to special designs in most case incorporating major roads at a separate level are constructed.

TUNNELS The mountainous terrain found in many parts of China and the high design standards adopted for the country’s new railways have resulted in numerous tunnels being required. While no statistics are published, on average every year it is estimated that China commissions around 150 to 300 km of tunnels on new lines and on upgrading or doubling existing lines. Single- and double- track tunnel designs are being used and there are now tunnels of over 20 km in length. China is developing a network of lines suitable for double-stack container train operation and tunnels on these lines are likely to require provision for additional vertical clearances.

TRACKWORK For general purpose and high-standard mixed traffic lines ballasted track consisting of 60 kg/m rails on concrete sleepers with various types of elastic rail to sleeper fastenings are used. The standard for heavy-haul lines is similar except that heavier 75 kg/m rail is used in some instances, in particular for tracks on which loaded coal trains run.

China is self-sufficient in respect of rail manufacturing. Principal suppliers include the large steelworks at Anshan in Liaoning Province and at Panzhihua in Sichuan Province.

Turnouts on these lines are supported by timber or concrete bearers depending on the situation and type of turnout.

For the high-speed passenger PDL lines various forms of ballastless slab-track are used for track construction.

With the massive expansion and upgrading of the public railway system, China has steadily moved from labour-intensive track maintenance to mechanised techniques. Many new track maintenance machines such as ballast tampers, rail grinders and others produced locally and imported are introduced every year.

ELECTRIFICATION China’s public railway network makes use of the 25 kV AC 50 Hz system for electrified sections. By 1990 China had only a few electrified sections of main line and the route length under wires expanded only gradually until the early 2000s. By 2005 the network length had reached 20,000 km and since then expansion has been rapid. The overall length of the electrified network reached 48,000 km by 2012, by which stage the network had become the world’s largest. China aims to have 60% of its public rail network electrified.

For general purpose main lines China makes extensive use of standard precast concrete electrification masts planted into the railway formation. For the new high-standard and high-speed main lines more sophisticated mast and support designs have been adopted.

SIGNALLING AND COMMUNICATIONS The intensity of train operations on China’s key double-track main lines and the development of the high-speed passenger network have resulted in the adoption of sophisticated modern signalling and communications systems for much of the public rail network. It is only on a few local railways that simple long-established signalling systems remain, in some cases involving the use of semaphore signals. The main focus in China now is on the increased use of computer-aided and digital systems and on providing locomotive- and train- based systems on lines where passenger trains speeds of between 160 and 200 km/h are permitted.

GSM-R radio communications systems for train control, management and dispatch and data communication have been installed on the very high capacity heavy-haul DaQin coal line and on the line from Golmud to Lhasa in Tibet. The special requirements on the DaQin line, where 20,000 tonne trains are operated with unmanned in-train locomotives, led to the development of a system in which GSM-R and Locotrol locomotive wireless control technology are combined. An enhanced decentralised autonomous CTC system has been installed on the line for train control purposes.

On the high-speed dedicated passenger (PDL) network, lines are being equipped with a type of ETCS (European Train Control System) installed with a form of cab signalling and GSM-R radio systems are being provided. On some of the first PDLs built, contracts were awarded to Nokia Siemens Networks, Bombardier and Ansaldo, together in some cases with Chinese partners for the supply and installation of this equipment.

The intensive operations on China’s key double-track mixed traffic main lines has required trains to be run at intervals down to six or seven minutes. On these lines automatic block signalling is used.

At the end of 2013 CR and various joint-venture railways had around 11,000 electric locomotives in service. This amounted to more than half their total locomotive fleet. With the rapid expansion of the electrified network the proportion of electric locomotives in the total fleet is steadily growing. It is estimated that China places up to around 1,500 new locomotives into service on the public railways annually and of these around 80% are now electric locomotives of various types.

An approximate general breakdown of the public railway electric locomotive fleet as at the end of 2013 is as follows:

Type Number built Mixed traffic 100 km/h Co-Co, DC traction motors 1,680 Mixed traffic 100 km/h Bo-Bo-Bo, DC traction motors 150 Mixed traffic 100 km/h 2 x (Bo-Bo), DC traction motors 2,030 Mixed traffic 100 km/h 2 x (Co-Co), DC traction motors 340 Passenger 120 km/h Bo-Bo-Bo, DC traction motors 170 Passenger 160 km/h Bo-Bo, DC traction motors 230 Passenger 160 km/h Bo-Bo-Bo, DC traction motors 50 Passenger 160 km/h Co-Co, DC traction motors 330 Mixed traffic 120 km/h Co-Co, AC traction motors 4,320* Mixed traffic 120 km/h 2 x (Bo-Bo), AC traction motors 520* Passenger 120 km/h Co-Co, AC traction motors 940* Passenger 160 km/h Co-Co, AC traction motors 40* Approximate total 10,800 An * against a fleet total indicates that locomotives of this type are in production.

Production of high-power AC-motored electric locomotives began in earnest in China in 2006. Contracts were signed with Siemens and its partner CSR Zhuzhou, Toshiba and Bombardier and its partner CNR Dalian, and Alstom and its partner CNR Datong, and these resulted in production of a number of initial types. Further designs followed with increased local content and development of further types continues.

Testing is understood to be underway of prototypes of several new 2 x (Bo-Bo) designs and China’s first 3 x (Bo-Bo) design primarily for freight service. Designs of a 200 km/h Co-Co passenger locomotive, an electric shunting locomotive and a 2 x (Co-Co) freight unit are believed to be under investigation.

Electric locomotives for the public railway network are constructed to either a 23 or 25 tonne maximum axle-load depending on the application.

■■ CNR: Dalian, Datong and Beijing 7th February ■■ CSR: Zhuzhou and Ziyang Electric locomotive production at the CNR Beijing 7th February plant is generally of types developed at CNR Dalian, while production at CSR Ziyang is generally of types developed at CSR Zhuzhou.

Development of electric locomotive designs is undertaken at CNR Dalian, CNR Datong, CSR Zhuzhou and at research organisations associated with these works.

Acceptance testing of new electric locomotive designs is carried out at the rolling stock testing facility and circular test track in the northeastern suburbs of Beijing.

DIESEL LOCOMOTIVES At the end of 2013 CR and the various Joint-Venture and Local railways had approximately 9,600 diesel locomotives in service, with around 250 new units being put into service annually. Significant withdrawals of diesel locomotives are taking place though, and the overall size of the diesel is steadily decreasing as more traffic is handled by electric traction. An approximate breakdown of the fleet as follows:

Type Number built Mixed traffic 100-120 km/h Co-Co diesel-electric (DE), DC 4,220* traction motors Shunting / secondary duties 80-100 km/h Co-Co DE, DC 2,100* traction motors Passenger 120-160 km/h Co-Co DE, DC traction motors 1,900 Passenger 160 km/h 2 x (Co-Co) DE, DC traction motors 180 Mixed traffic 120 km/h Co-Co DE, AC traction motors 1,000* Various other types 200 Approximate total 9,600 An * against a fleet total indicates that locomotives of this type are in production.

Locomotive development in China has switched to being focused primarily on electric traction. Relatively small numbers of new high-power AC-motored diesel locomotives developed by CNR Dalian in conjunction with EMD (Electro- Motive Diesel), and by CSR Qishuyan in conjunction with General Electric, have recently been placed into service on important non-electrified CR main lines.

While DC-motored diesel locomotives are no longer being built for CR, small numbers of standard Chinese DC-motored main line and shunting types continue to be built by Chinese builders for joint-venture and local railways. Diesel locomotive development in China at present includes the refinement of the current AC-motored main line designs and development of heavy AC-motored shunting designs to meet a need for locomotives capable of efficiently dealing with the heavier freight trains now being operated.

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 20 Diesel locomotives for CR, the joint-venture and more important local railways are generally built to 23 or 25 tonnes maximum axle-load depending on the application. Locomotives supplied to many of the less important local railways are lighter and smaller industrial types. These lines often acquire locomotives secondhand from CR.

Production of diesel locomotives for CR and the joint-venture and local railways currently takes place at the following major locomotive plants:

■■ CNR: Dalian and Beijing 7th February ■■ CSR: Qishuyan and Ziyang

Development of main line and other major diesel locomotive designs is undertaken at CNR Dalian, CSR Qishuyan and at research organisations associated with these works.

Acceptance testing of major new diesel locomotive designs is carried out at the rolling stock testing facility and circular test track in the northeastern suburbs of Beijing.

EMUs Prior to the introduction in around 2006 of the first fleets of high-speed electric multiple-units (EMUs), China had placed several types of these vehicles into service. Most saw service between Guangzhou and Shenzhen in southern China, with small numbers introduced elsewhere. One or more prototypes of tilting EMUs were also developed but do not appear to have reached production stage.

With the recent rapid development of the extensive 200-350 km/h high-speed passenger rail network, China has placed large fleets of 8- and 16-car EMUs in service on these lines and on several key general purpose lines upgraded to permit 160-200 km/h services. By the end of 2012 around 700 high-speed EMUs had been put into service with many more on order.

The first orders for high-speed EMUs were placed in 2004 with Alstom, Bombardier and Kawasaki and their respective Chinese partnering rolling stock firms. Several of the first sets against these orders were built overseas, with full production then taking place in China. Further contracts for similar types of trains from these builders were placed. A fourth foreign supplier, Siemens, also received orders together with its local partner.

In 2010 the first Chinese high-speed EMUs with a design speed of 380 km/h emerged and large orders were placed for these. More recently further Chinese high-speed EMU types have entered production for 160-250 km/h regional services centred on a number of China’s major conurbations, e.g. Guangzhou, Chengdu and Zhengzhou. These have increased standing-to-seated passenger ratios and enhanced acceleration and braking characteristics to better suit the nature of the shorter distance services they are to be used on.

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 21 At present under test in China are what are reported to be the world’s first high-speed EMUs designed for a maximum speed of 380 km/h in commercial operation. These have been designed and are being built by Bombardier Sifang Transportation Ltd at its works in Qingdao and are the first examples of an order placed for such trains by the MoR.

CSR Sifang has developed an experimental high-speed EMU designed to attain speeds in excess of 500 km/h.

An approximate breakdown of the high-speed EMU fleet is as follows:

Type Number of sets built 8-car regional service 250 km/h 80 8-car long-distance service 250 km/h 230 16-car long-distance service 250 km/h 70* 8-car long-distance service 300-350 km/h 210 16-car long-distance service 300-350 km/h 130 Various other types 200 Approximate total 720 * Some sets include sleeper cars.

CR plans to significantly increase the size of the high-speed passenger rail network by 2020 and further large orders for EMUs will need to be placed to operate on these lines.

High-speed EMU production currently takes place at the following major rolling stock plants in China:

■■ CNR: Changchun and Tangshan ■■ CSR: Sifang (Qingdao) ■■ Bombardier Sifang Transportation Ltd (Qingdao)

DMUs The most recently introduced diesel multiple-units (DMUs) placed in service by the MoR, CR’s predecessor, were a small number of 160 km/h push-pull sets introduced at the time of the Beijing Olympics in 2008 to serve tourist and commuter traffic on the Beijing-Badaling (Great Wall)-Yanqing line. The most numerous type of DMU placed in service was a 160 km/h double-deck push-pull design initially used for intercity services on the Beijing-Tianjin and Lanzhou-Xining lines. Small numbers of other DMU designs have also been produced but no new developments appear to be taking place now with this form of rolling stock.

CNR has recently announced that it was hoping to begin testing a prototype 160 km/h trainset in 2015 that was capable of running under diesel, electric and battery power.

Annual passenger numbers on China’s public railways continue to grow at an average of 5 to 7%. At the end of 2012 the public railways, mainly CR, had around 52,000 passenger coaches in service, excluding those in EMU sets. Between 1,000 and 1,700 new coaches are placed into service each year. While the development of the dedicated high-speed passenger network has added considerable capacity, the conventional locomotive-hauled passenger operation remains of considerable size. This can be gauged from the size of the passenger coach fleet and also from the fact that around 950 new electric locomotives for 120 km/h passenger services have been introduced since 2009.

Most new passenger coaches continue to be predominantly versions of the standard Type 25 design first introduced around 1990. Small numbers of the previous standard Type 22 design remain in traffic.

The overall coach fleet is made up of the following broad range of types:

■■ Non-air-conditioned 120 km/h stock on local services within each railway bureau. These are being steadily withdrawn. ■■ Air-conditioned 120 / 140 / 160 km/h stock on long-distance services. ■■ High-standard air-conditioned 160 / 170 km/h stock on long-distance services. Includes the trains for high-altitude services into Tibet. ■■ Passenger stock for international services. ■■ Non-passenger coach-based 160 km/h stock for express parcels and freight services.

The coach layout forms in China range from “hard-seat” open coaches, the most common type, to recently introduced luxury “soft-sleeper” coaches with two- bed compartments containing their own washrooms.

Most passenger rolling stock in China is single-deck apart from a small proportion of the fleet, estimated at between 5 and 10%, which is double-deck with short-distance and long-distance designs in service.

The main plants in China building passenger rolling stock are:

■■ CNR Changchun and Tangshan ■■ CSR Qingdao Sifang and Nanjing Puzhen ■■ Bombardier Sifang Transportation Ltd

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 23 FREIGHT WAGONS The freight wagon fleet of China’s public railways is of considerable size and continues to grow in line with the country’s economic growth rate and with the expansion of the system. The most recent total publicly reported was for 2010 and this showed an overall fleet size of around 622,000 wagons. The fleet had grown to this total from around 438,000 in 1997.

Between 35,000 and 45,000 new freight wagons are built annually by the wagon-building plants within the large CNR and CSR groups. Most of these are supplied to China’s public railways. In addition to the CNR and CSR wagon- building plants, a number of heavy engineering entities that fall outside the CNR and CSR umbrellas produce freight wagons of standard designs in relatively small numbers.

The bulk of the freight wagon fleet is owned by CR and the other public railways. However, many wagons can be seen on the public railways with inscriptions indicating that they are either owned by or dedicated to serving particular companies or mines.

During the 2000s China significantly improved the designs of freight wagons built for the public railways to increase capacities and freight train speeds, a particularly important consideration for the key main lines where maximum passenger train speeds were being increased to 160 and 200 km/h. The two major improvements were an increase in maximum axle-load and an increase in maximum design speeds.

In the early 2000s the maximum axle-load for freight wagons was increased from 21 to 23.5 tonne and new standard wagon types designed to this were introduced from around 2005. Close to half the public railway freight wagon fleet is now made up of vehicles to these higher axle-load designs.

From 2001 most new wagons were equipped with bogies of improved design, permitting maximum speeds of up to 120 km/h. A programme was also introduced to upgrade the existing wagon fleet to permit similar increased maximum speeds through the retrofitting of swing-motion bogies. By around 2010 this programme was largely complete. However, it will still be a number of years though before the bulk of the main line freight locomotive fleet will be of designs having a maximum speed rating of 120 km/h.

The wagon fleets operating over the two heavy-haul coal railways now mostly consist of open gondola type wagons with a 25 tonne axle-load. Research is being undertaken with a view to increasing the maximum axle-load on these two lines to 30 tonnes.

The most common general purpose freight wagon types in China are open gondola types with side doors and covered box wagons. Significant numbers of these are produced at various plants annually. Many container wagons are also being built to cope with the rapidly increasing use of this form of intermodal transport in China. Likewise many high-capacity motor vehicle transport wagons are now being put into traffic. Other types of wagons such as tankers, grain and flat wagons are also produced.

The main plants in China building freight rolling stock include: CNR Qiqihaer, Dalian, Xi’an and Jinan; CSR Yangtze, Meishan and Beijing Erqi. CSR Yangtze (Wuhan) includes subsidiary plants at Zhuzhou and Tongling.

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 24 CONTAINER / INTERMODAL TRANSPORT Since the mid-2000s the growth of container traffic in China has been rapid as suitable handling facilities have been commissioned. By 2007 only about 5% of rail freight in China was transported by container. By 2010 the figure had reached around 10%.

In 2007 the MoR set up a joint-venture with six foreign companies including Deutsche Bahn, Zim and CMA CGM to establish 18 inland hubs to facilitate containerised rail freight transport. The locations of these hubs include Chengdu, Chongqing, Dalian, Kunming, Qingdao, Wuhan, Xi’an and Zhengzhou.

For the most part containers are at present transported on conventional container flat wagons and over 13,000 of these were in service by 2010, with large scale production continuing.

China introduced its first double-stack container train operations – between Beijing and Shanghai – in 2004. While double-stack operation has not been significantly expanded since, a network is planned of around 10,000 km of high-standard main lines that will be able to accommodate trains of this type. Several new lines that will form part of this network, such as that from Fuzhou to Nanchang, have recently opened to traffic and more are under construction, e.g. Chongqing-Lanzhou.

The international movement by rail of containers has been rapidly increasing at China’s main border crossing points with Russia (Manzhouli), Mongolia (Erenhot) and Kazakhstan (Alashankou).

The movement of containers by rail between Western Europe and China began in the mid-2000s and has steadily increased since. These operations involve several international border crossings and track gauge changes as the railway systems of Mongolia, Russia and Kazakhstan are to 1,520 mm gauge against the standard 1,435 mm used in China. A similar change of gauge occurs in the west before the standard gauge European network is reached.

The growth and potential of international container traffic is such that significant efforts are being made to speed up these operations through more efficient operations at changes of gauge and through streamlining border crossing requirements and procedures. Overall travel times between central China and points in Western Europe of around 17 days are envisaged, significantly less than the fastest times that can be achieved by competing sea transport.

While much of the transcontinental container traffic originates or is for destinations within China, it is expected that flows to and from nearby countries such as South Korea and Japan will also be attracted through east coast ports such as Lianyungang, Qingdao and Tanggu (Tianjin).

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 25 INTERNATIONAL BORDER CROSSINGS China is the world’s fourth largest country and shares borders with 14 other nations. At this stage there are cross-border rail connections with five of these: North Korea (two main crossings, other less important crossings), Russia (three), Mongolia (one), Kazakhstan (two) and Vietnam (two). New rail connections will soon be established with Kyrgyzstan, Myanmar and Laos, while China has longer-term plans for rail connections to several more neighbouring countries.

The busiest crossings in terms of rail traffic levels are those at Alashankou on the Kazakhstan border, Manzhouli on the Russian border and at Erlian on the Mongolian border. These all involve a gauge change to the broader 1,520 mm.

A second rail crossing from China into Kazakhstan was opened in late 2012. This is at the town of Korgas in Xinjiang Province, around 200 km south of the older crossing at Alashankou.

The third crossing directly into Russia was recently re-opened, located near Hunchun, close to the northeastern Chinese city of Tumen in Jilin Province and near North Korea’s northern border with Russia. A fourth rail border crossing with Russia to be opened in 2016 is planned at Tongjiang in northern Heilongjiang Province. This will require a bridge of around 2 km over the Heilongjiang / Amur River; there will be an upgraded link from the line to Russia’s Trans-Siberian Railway.

NEW LINE DESIGN AND CONSTRUCTION China is generally self-sufficient in terms of engineering input for new lines. The country has a number of railway construction bureaux that are among the largest engineering organisations of their type in the world. China also has a number of universities that specialise in programmes and subjects relating to railways.

The design of new public railways in China is mainly undertaken by a number of Railway Design Institutes, most of which fall under some of the major railway construction bureaux referred to above. The construction of new lines is generally also undertaken by these bureaux. These organisations have subsidiary companies dealing with specific aspects of new line construction such as electrification.

While China now has a number of consultancy companies involved in railway construction supervision, several prominent foreign engineering consultancies with high-speed rail experience secured appointments in conjunction with some of these firms for project supervision on a number of the new dedicated passenger high-speed lines.

China has a large industrial railway market with numerous large systems, some of which also provide public rail services. These range from small and short lines linking specific industries and power generation facilities to the national network to very large and extensive systems serving major steelworks and mining areas. Many of China’s ports also have large rail systems that link them to the national network. The majority of China’s industrial railways are of 1,435 mm standard gauge to match the national system. However, systems using 1,000 mm, 900 mm and 762 mm gauge can also be found, while the mining areas particularly make use of narrower track gauges as well.

Perhaps the largest industrial railway system in China is that serving the Anshan Iron and Steelworks and various related ore mines and industries in the immediate area. Anshan is located south of Shenyang in Liaoning Province and the steelworks there is China’s second largest. Anshan Iron & Steel Works (www. ansteelgroup.com) is also known as Angang steelworks. A study of commercial satellite photography of the area will reveal just how extensive this system is. It is estimated that around 200 locomotives are in use on it, the fleet being a mix of diesels and 1.5 kV DC electric types. A passenger service for steelworks employees and the public is also operated. Similar but smaller systems exist at various other locations in China.

Several of the large, long-established coal mining and ore mining entities also have large railway systems that in many cases also provide public services such as passenger train operation in the area and collection and distribution of general freight wagons moving between the national system and local industries. Examples can be found at Pingdingshan (Henan Province), Yanzhou (Shandong Province), Diaobingshan (Liaoning Province), Qingtongxia (Ningxia Autonomous Region), Ma’anshan (Anhui Province) and at many other locations.

No combined statistics are published on the industrial railways of China. From knowledge of some of these systems it is estimated that there are about 3,000 locomotives in use on them around the country. Many of these are main-line or heavy diesel shunting types bought new, while others are secondhand units acquired from CR. Many of the larger steelworks and ore mines as well as a few of the older coal mining systems have 1.5 kV DC electrified sections and around 400 electric locomotives are used on these.

Diesel locomotives for the industrial systems are supplied mainly by CNR Dalian, CSR Ziyang and several companies outside the CNR and CSR umbrellas that specialise in the supply of smaller less powerful machines for industrial shunting duties. One of the largest of these is the Shijiazhuang Power Machinery Factory in Hebei Province. Another undertaking building diesel locomotives for industrial use is Changzhou Lihua Machinery Electric Co in Jiangsu. This company also produces light overhead line electric locomotives. 1.5 kV DC electric 1,435 mm gauge locomotives for industrial and mining use are supplied by the Xiangtan Electric Manufacturing Company in Hunan Province. These are large units – up to 200 tonnes in weight and with axle- loads of up to 30 tonnes. However, the present market for these locomotives is small and only limited numbers are produced.

BACKGROUND

In 1990 China had only a handful of working urban rail-based public transport systems. Two metro lines were operational in central Beijing and one in the nearby city of Tianjin, while three northeastern cities, Changchun, Anshan and Dalian, had predominantly street-running tram systems, all of which were in relatively poor condition. A very different situation exists now with China having two of the world’s largest metro systems, in Beijing and Shanghai, and lines operational in around 13 other cities. The boom in new metro construction continues and today around 50 to 60% of all new metro cars built in the world are supplied to systems in Chinese cities. Should current rates of development continue, by 2050 China will account for more than half the world’s total route length of metro-type lines. Rolling stock for Chinese metro systems is now all produced by domestic suppliers, though in some cases using specialised components from foreign companies. Chinese metro systems fall under the respective city or metropolitan administrations. In planning terms a city is required to have a population exceeding 3 million to be able to embark on new metro projects.

The present boom in metro construction in many of China’s larger cities has come about due to rapid urbanisation brought about by the country’s protracted period of high economic growth. Increased affluence has led to strong growth in car ownership, resulting in very high levels of congestion and pollution in cities. There are no signs at this stage that the pace of metro line construction will reduce in the near-term future.

In addition to the many new metro systems, several Chinese cities are also now building light rail systems. Various special application modes also exist in the country, such as monorail in Chongqing and maglev in Shanghai.

In addition, China is constructing high-speed regional passenger lines serving a number of the large and rapidly growing metropolitan conurbations such as Chengdu, Zhengzhou and the Pearl River Delta centred on Guangzhou. At present these are regarded as part of the national network but proposals have been put forward to shift control to the metropolitan and city authorities. These lines are essentially conventional 160-250 km/h high-speed lines but with closer station spacing and trains with a higher passenger standing-to- seated ratio and higher braking and acceleration performance. These lines and the rolling stock to be used on them have been discussed earlier in Section 1.

Beijing System name: Beijing Subway Extent: 443 route-km, 16 lines, 260 stations Operators: Beijing Mass Transit Railway Operation Corp; Beijing MTR Corp Website: www.bjsubway.com; www.mtr.bj.cn.

Beijing’s first metro line opened in 1969, while the first of the present boom period and the city’s third opened only in 2004. By the beginning of 2013 16 metro lines totalling 443 route-km and with around 260 stations were in passenger service. The target for 2020 is to have 1,000 route-km in operation. Peak ridership in 2013 was expected to be close to 10 million passengers per day. Beijing’s metro system is now one of the three largest and busiest in the world.

Beijing’s metro lines are predominantly underground in the city centre, with long elevated sections further out. Where land has been available in the outer areas lines have been built at-grade. The city’s metro lines are not fully standardised and in many cases have dedicated rolling stock. All are to 1,435 mm standard gauge and with the exception of Lines 6 and 14 have 750 V DC third rail traction power supply. Lines 6 and 14 use an overhead power supply. In most cases 6-car 80 km/h trains are operated. Trains on the Airport Express line are 4-car 110 km/h sets, while those on Line 6 are 8-car 100 km/h sets.

The metro system operates on a flat fare basis with free transfers except for the Airport Express line, which has a higher fare. Subsidies are received from the Beijing Municipal Government.

Three of Beijing’s metro lines, the Daxing line and Lines 4 and 14, are operated through concessions by the Beijing MTR Corp, a joint-venture of Hong Kong’s MTR Corp, Beijing Capital Group and Beijing Infrastructure Investment Corp. The Daxing line and Line 4 are effectively operated as one end-to-end line. All remaining lines in the overall metro system are operated by the city-owned Beijing Mass Transit Railway Operation Corp.

Chongqing System name: Chongqing Rail Transit (CRT) Extent: 130 route-km, 4 lines and more than 80 stations Operator: Chongqing Rail Transit Group Ltd Website: www.cqmetro.cn.

Chongqing is a densely populated city with a population of around 7 million located in a hilly region of southwest China and with two major rivers meeting within its area. Its first metro line opened in 2005 and by the end of 2012 the system had grown to four lines totalling around 130 route-km with more than 80 stations. Extensions and several more lines are under construction and by 2020 it is envisaged that the system will have grown to nine lines totalling over 400 route-km. Daily ridership now peaks at over 1 million.

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 29 Chongqing’s metro system is unique in China in that due to the nature of the topography the city has chosen straddle-type monorail technology for some lines. This permits the use of small radius curves and maximum gradients up to 6%, both advantageous in challenging terrain. Of the four lines in use at the end of 2012 two use this technology. These are Lines 2 and 3, which extend for about 85 km in total, forming the world’s largest monorail network; at 55 km Line 3 is now the longest monorail line in the world. The monorail lines use Japanese-based technology with electrical equipment from Hitachi. Apart from the first few trains all sets have been built in China by CNR Changchun. Traction power supply is 1.5 kV DC.

The city’s remaining two metro lines employ conventional rail technology using 1,435 mm standard gauge track and a 1.5 kV DC overhead traction power supply. A fleet of 6-car trains supplied by CNR Changchun operates on these.

The Chongqing metro system in line with most other metro systems in China uses a distance-based fare system. It is operated under the name Chongqing Rail Transit and is owned and operated by the Chongqing Rail Transit Group Ltd.

Guangzhou and Foshan System name: Guangzhou Metro Extent: 230 route-km, 7 lines, around 150 stations Operators: Guangzhou Metro Co Ltd Website: www.gzmtr.com

China’s third largest metro system is in the large city of Guangzhou in Guangdong Province in the south of China. The first section was opened in 1997 and by the end of 2012 seven lines totalling 230 route-km were in operation. One of these extends to the nearby city of Foshan and further integration of the transport systems of both cities is planned through the metro network. The target for 2020 is to have 20 lines in operation in the Guangzhou area with a total route-length exceeding 600 km.

Guangzhou’s metro lines make use of 1,435 mm standard gauge track with a mix of 1.5 kV DC third rail and overhead traction power supply systems. A distance-based fare system is used. The system is run by Guangzhou Metro Co Ltd through a number of operating divisions.

Shanghai System name: Shanghai Metro Extent: 439 route-km, 12 lines Operators: Shanghai Shentong Metro Group Ltd; Shanghai Modern Metro Investment Co Ltd Website: www.shmetro.com.

Shanghai’s first metro line commenced public service in 1995. Subsequent development of the network was rapid to match the population, exceeding 22 million, and economic growth of this vibrant commercial city. By the end of 2013 Shanghai’s metro network had reached a route length of 439 km, very similar to that of Beijing, and 12 lines were in operation, making it one of the three largest metro systems in the world. Maximum daily ridership is in the region of 9 million. The target for 2020 is for the metro system to have 19 lines in operation totalling around 900 route-km.

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 30 Shanghai’s metro lines are all 1,435 mm standard gauge and traction power supply is through the 1.5 kV DC overhead wire system. Most lines use 6-car sets but 4-, 7- and 8-car sets are in use too. Many stations have platform screen doors, and retrofitting of older lines with similar doors is taking place. Some stations have been equipped with various forms of half-height platform gates.

A distance-based fare system is used on the network and interchange is possible without the need to obtain a further ticket. Most of Shanghai’s metro lines are operated by subsidiaries of Shanghai Shentong Metro Group Ltd, while the remaining lines are operated by Shanghai Modern Metro Investment Co Ltd.

In addition to the metro system Shanghai has one of China’s first 160 km/h high-speed commuter lines. This is numbered Line 22 and is operated by Shanghai Jinshan Railway Co. Opened in 2012, it is around 55 km long and uses a 25 kV AC overhead power supply.

Perhaps Shanghai’s best known public transport line is the 30 km experimental maglev (magnetic levitation) line opened in 2004 linking Pudong Airport and central Pudong. Trains on this line attain a maximum speed of 430 km/h and the 30 km journey takes around 8 minutes. The line is a separate operation run by Shanghai Maglev Transportation Development Co Ltd. It is one of the world’s few maglev lines operating in public service.

Shenzhen System name: Shenzhen Metro Extent: 175 route-km, 5 lines and around 130 stations Operators: Shenzhen Metro Co Ltd; Shenzhen Metro Line 3 Operations Branch Corp; MTR Corporation (Shenzhen) Ltd Websites: www.szmc.net; www.mtrsz.com.cn

Just 150 km from Guangzhou on the border with Hong Kong is the relatively young city of Shenzhen, which at the end of 2013 had China’s fourth largest metro system comprising five standard gauge lines totalling 175 route-km and around 130 stations. The first line opened in 2004 and since then development has been rapid. The planned route length for 2020 is around 250 route-km with a total of 13 lines.

Daily ridership on the Shenzhen metro network is around 2.5 million.

Of the five lines, three are operated by the Shenzhen Metro Co Ltd, one is operated by the Shenzhen Metro Line 3 Operations Branch Corp and one by the MTR Corporation (Shenzhen) Ltd, a subsidiary of MTR Corporation, which operates the large metro system in Hong Kong.

Tianjin System name: Tianjin Metro Extent: 130 route-km, 4 lines and over 80 stations Operators: Tianjin Metro General Corp; Tianjin Binhai Mass Transit Development Co Ltd Websites: www.tjdt.cn; www.ctbmt.cn.

Tianjin is a major port city east of Beijing that has a population exceeding 10 million. Its first metro line, 7 km with 8 stations, opened in 1984. At that time it was one of only two cities in China to have a metro, the other being Beijing, which had just lines at that time.

By the end of 2012 Tianjin had four operational metro lines. The first modern line opened in 2004. The next, of 26 km, was commissioned in 2006, constructed partly along the alignment of the original 1984 line which had been closed in 2001, and partly along new alignment. The remaining two lines opened in 2012. The four lines have a total route length of around 130 km with 82 stations. Two further lines are expected to open to public service in 2014.

As with all the rail-based metro lines in China, Tianjin’s metro lines uses 1,435 mm standard gauge track. Traction power supply is via third rail. The fare system is distance-based, making use of stored-value magnetic smartcards. Daily ridership reached up to 800,000 trips prior to the commissioning of the lines which opened in 2012.

The system has two operators: Tianjin Metro General Corp for three of the lines, while Tianjin Binhai Mass Transit Development Co Ltd operates the fourth (Line 9), the 53 km line that opened in 2004.

City and system No of Route No of Year Operator/s Website name lines length stations of first (km) opening Nanjing 2 87 57 2005 Nanjing Metro www.nj-dt. Corp com (Nanjing Metro) Dalian 2 63 18 2003 Dalian Public - Transportation (Dalian Metro) Group Co Ltd

Wuhan 2 57 46 2004 Wuhan Metro www.whrt. Co Ltd gov.cn (Wuhan Metro) Shenyang 2 50 41 2010 Shenyang www.symtc. Metro Corp com (Shenyang Metro) Hangzhou 1 47 30 2012 Hangzhou www. Metro Corp hzmetro.com (Hangzhou Metro) (with MTR Corp) Chengdu 2 40 36 2010 Chengdu www. Metro Ltd cdmetro.cn (Metro) Suzhou 1 25 24 2012 Suzhou Rail www.sz-mtr. Transit Co Ltd com (Suzhou Rail Transit – SRT) Xi’an 1 20 17 2011 Xi’an Municipal www. People’s xametro.gov. (Xi’an Metro) Government cn Subway Construction Kunming 1 18 2 2012 Kunming Rail www. Transit Corp kmgdgs.com (Kunming Rail Transit – KRT)

China’s six largest metro systems are covered earlier in this sections. Information on the remaining nine operational in 2013 is given in the table on the preceding page. At present metro systems are in operation, under construction or planned in around 45 Chinese cities and this high pace of system implementation appears set to continue for many years to come.

In addition to the 15 systems in operation in 2013, construction has been underway on lines in several more cities in China as well as on additions and extensions to most of the systems now in operation. Cities expected to see their first metro lines open to public service by 2014 include Hefei, Nanchang, Ningbo, Qingdao, Wuxi and Zhengzhou.

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 33 Suppliers The principal suppliers of trains to Chinese metro systems are CNR Changchun, Dalian and Tangshan and CSR Qingdao Sifang, Nanjing Puzhen and Zhuzhou. In some cases specialised electrical systems and equipment supplied by foreign companies are used. It is understood that at least one of the major metro companies is considering becoming involved in the metro train construction market.

Several western companies active in the modern rail and metro fields have established joint-ventures with Chinese companies to supply the metro market.

Engineering and design As with the national public railway system, China is generally self-sufficient in terms of engineering input for new metro lines being built in the country. Design is mainly undertaken by a number of railway design institutes, most of which fall under the country’s large major railway construction bureaux or companies. Some of the metro companies have also established their own research and design sections.

LIGHT RAIL SYSTEMS In 1990, before the boom in construction of modern rail-based urban public transport systems began, China had only three tramway systems in addition to the small metro systems in Beijing and Tianjin. These were all in the northeast of the country, in the cities of Changchun in Jilin Province and Anshan and Dalian in Liaoning Province. The single line in Anshan closed in the late 1990s but the systems in Changchun and Dalian have been retained in part and upgraded through the acquisition of new rolling stock and track realignments to provide increased lengths of dedicated right-of-way. China now appears to be at the beginning of a new light rail boom. A system opened in Shenyang in mid-2013 and several more in other cities are due to open before the end of 2014. At least a dozen other Chinese cities are investigating light rail as part of their public transport planning.

Changchun System name: Changchun Rapid Transit (this excludes the upgraded remaining tramway line)

Today the upgraded Changchun tramway consists only of one line of around 8 km. In addition, Changchun has a 50 km fully segregated at-grade light rail line, the first part of which opened in 2001, with an extension commissioned six years later. With 49 stations, this was the first modern light rail line to be constructed in China. The cars used on it were manufactured in China. While extensions appear to be under consideration, Changchun is also constructing or planning several conventional underground metro lines.

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 34 Dalian In 2000 Dalian was still served by three tram routes. Part conversion to light rail standards then followed, with the first converted line opening in 2002 and the second in 2007. This second line is an amalgamation of two of the tram routes. The total route length of the two lines is about 23 km. Today, most services are provided by a fleet of three-section articulated cars manufactured by the Dalian Public Transport Group. A number of elderly cars that were in service on the original system have been retained and work on one of the converted tram routes. Dalian also has two conventional metro lines in operation with several more planned.

Nanjing The next and third light rail system to open in China is expected to be that in Nanjing, the capital of Jiangsu Province and a city that already has two conventional metro lines in operation. Nanjing is constructing a 17 km two- line system due to open in 2014. This will see even greater use of catenary-free operation as it is reported that around 90% of the system will be wire-free. The 15 cars for the system are being built by CSR Nanjing Puzhen using propulsion and battery equipment supplied by Bombardier.

Shenyang Changchun and Dalian remained the only two cities with light rail systems in China until mid-2013, when a large part of a new 70 km four-line system was opened in Shenyang, also located in northeast China and the capital of Liaoning Province. In contrast to Changchun’s fully segregated light rail line, the new lines in Shenyang are for the most part aligned along the medians of wide major urban roads built in areas of the city being developed. Shenyang’s light rail system is also notable for being the first in China with sections permitting catenary-free operation.

CNR Changchun has supplied 30 German-styled light-rail cars of two types for the system. Twenty are 70% low-floor three-section vehicles and the remaining 10 are 100% low-floor of five sections. Propulsion equipment for these was supplied by Voith and includes super-capacitors that allow the cars to operate catenary-free for distances of up to 700 m at locations such as major road intersections.

The Shenyang light rail system is being operated by a joint-venture of Transdev / RATP and the city under a three-year contract. A fifth light rail line is under construction in Shenyang and the city is carrying out feasibility work on a sixth.

Suzhou Also expected to open in 2014 is an 18 km light-rail line in the city of Suzhou, located between Nanjing and Shanghai. A further five light-rail routes are planned in this city. For this system CSR Nanjing Puzhen is supplying 18 cars similar to those built for Nanjing and also with Bombardier propulsion equipment.

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 35 Systems under construction or planned At the end of 2013 construction or planning of new light rail systems was underway in at least seven Chinese cities. These include Chengdu, Guangzhou, Nanjing, Suzhou, Wuhan and Zhuhai. Other cities reported to be investigating the introduction of light rail systems include Benxi, Datong, Fushun, Guangzhou, Shanghai, Wuyishan and Yantai.

In Chengdu in Sichuan Province construction is reported to be underway on a 20 km initial light rail line located mainly in the median of major roads. Twenty-two cars have been ordered for this system. Several further lines are contemplated.

Construction of a new 18 km light rail line is also underway in the Hanyang district of Wuhan in Hubei Province. Wuhan has ambitious plans for developing a 14-line light rail network.

Zhuhai, close to Macau, in Guangdong Province in the south of China, is planning its first light rail line, which will use catenary-free technology provided by the Italian firm Ansaldo STS. This involves the use of a ground-level embedded power supply system that is live on any particular section only when a light-rail car passes directly over it. Planning for the system includes provision for 12 Italian-designed low-floor light rail cars.

Guangzhou, the capital of Guangdong Province, is constructing an 8 km light rail line that is due to open in 2014. Seven low-floor light rail cars incorporating Siemens propulsion technology are being supplied by CSR Zhuzhou.

The light rail plans of the Chinese cities discussed above are dwarfed by the 2013 announcement by Shanghai, China’s largest city, that it is planning to open six light rail lines totalling 90 km by 2020, and to have an eventual 800 km of light rail serving the metropolitan region. The first line of 16 km is due to open in 2016.

It remains to be seen whether this activity heralds a boom in light rail system construction similar to those that have previously evolved for the public railway and metro systems. However, given the rapid growth in affluence and car ownership and the concerns over environmental impacts and traffic congestion, it would not be surprising if this happens. The relatively low cost of light rail systems compared to that of metros should also add to their appeal.

Until recently China’s ventures into the light rail field were relatively small and largely without direct foreign influence. With the opening of the Shenyang system in 2013 and the spate of light rail developments in other cities, there is strong evidence that Chinese cities now want to adopt the best of current western design and technology in this field.

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 36 Suppliers Main suppliers of light rail cars are: CNR Changchun; CSR Nanjing Puzhen; and CSR Zhuzhou. Other suppliers are: Xiangtan Electric Manufacturing Co; and Dalian Public Transport Group.

A number of western railway and rolling stock companies have signed agreements with Chinese firms to supply specialised equipment for light rail cars to be manufactured in China. Bombardier has an agreement with CSR Nanjing Puzhen for the supply of control and propulsion equipment and bogies; Voith has an agreement with Xiangtan Electric Manufacturing Co to develop a series of light rail car designs; Ansaldo is working with Zhuhai and its suppliers to equip the city’s new light rail line and cars with its catenary-free system; Siemens has a contract with CSR Zhuzhou for the supply of propulsion and braking systems as well as powered bogies; and recently Skoda has linked up formally with CSR Qingdao Sifang to produce light rail vehicles.

Locomotive, multiple-unit train and passenger and freight rolling stock manufacturing in China is dominated by two groups: the China North Locomotive and Rolling Stock Corporation Ltd or China CNR Corporation Ltd (CNR); and the China South Locomotive & Rolling Stock Corporation Ltd (CSR). These two large state-owned enterprises, supervised by the State Council of the People’s Republic of China, were formed when the previous single umbrella organisation, China National Railway Locomotive & Rolling Stock Industry Corporation (LORIC), was split geographically in 2000 into two organisations and separated from the Ministry of Railways.

Both CNR and CSR are extremely large organisations, with CSR reportedly now the largest railway rolling stock producer in the world and CNR among top producers globally. Both corporations have large numbers of subsidiaries involved in rolling stock manufacture and refurbishment, component and sub-system manufacturing and in related product development and research. The CNR website lists 28 subsidiaries while CSR lists 16. These lists may only reflect the larger subsidiary organisations. In turn these would have their own subsidiaries. Only the major CNR and CSR entities will be listed in the two tables below. Further information and lists can be obtained through accessing appropriate internet websites. (Users of this report should note that through reforms, names of organisations sometimes change relatively often in China and as a result of translation differences some organisations may appear to have more than one name.)

CNR – CHINA NORTH LOCOMOTIVE AND ROLLING STOCK CORPORATION LTD

Organisation name Location Main activities Website

China CNR Corporation Ltd Beijing Group Head Office www.chinacnr.com Dalian Locomotive & Rolling Dalian (Liaoning Electric and diesel locomotive and www.dloco.com Stock Co Ltd Province) freight wagon manufacturing (DLoco) Datong Electric Locomotive Co Datong (Shanxi Electric locomotive manufacturing www.dtloco.com Ltd Province) (DELC)

Beijing February 7th Railway Beijing Electric and diesel locomotive www.27rail.com Transportation Equipment Co manufacturing, diesel locomotive Ltd refurbishment and mechanised track maintenance vehicles (BRE) Qiqihar Railway Rolling Stock Qiqihar (Heilong- Freight wagon manufacturing www.qrrs.chinacnr.com Co Ltd jiang Province) Changchun Railway Vehicle Co Changchun (Jilin High-speed EMU, metro train and www.crc.chinacnr.com Ltd Province) passenger coach manufacturing Tangshan Railway Vehicle Co Tangshan (Hebei High-speed EMU and passenger www.tangche.com Ltd Province) coach manufacturing (TRC) Jinan Railway Vehicles Jinan (Shandong Freight wagon manufacturing www.jrvec.com Equipment Co Ltd Province)

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 38 The Dalian Locomotive and Rolling Stock Company or CNR Dalian is one of China’s largest designers and manufacturers of electric and diesel locomotives. The range produced is extensive, from high-powered electric and diesel main line locomotives for the national railways to shunting and industrial diesel locomotives, these ranging from heavy 6-axle to light 3-axle units. CNR Dalian has also become a significant exporter of diesel locomotives.

The Datong Electric Locomotive Company or CNR Datong concentrates on the production of electric main line locomotives for national and joint-venture railways. The Beijing February 7th company is smaller in terms of production and builds electric locomotives to designs developed by CNR Dalian as well as shunting and industrial diesel locomotives to its own designs.

The two CNR companies involved in the production of high-speed EMUs for the high-speed dedicated passenger network are Changchun Railway Vehicle Co (or CNR Changchun) and Tangshan Railway Vehicle Co (or CNR Tangshan). For high-speed EMUs these companies have been associated with Siemens and Alstom. CNR Changchun and Tangshan, and in particular the former, are also involved in the production of metro trainsets, while both companies are major suppliers of main line locomotive-hauled passenger rolling stock.

The Qiqihar Railway Rolling Stock Company (CNR Qiqihar) is one of China’s largest freight wagon builders and one of its major exporters of vehicles of this type. CNR Dalian also builds freight rolling stock.

In recent years CNR Dalian has worked with Toshiba and Bombardier on the production of high-power AC-motored electric locomotives and with EMD on the production of high-power AC-motored diesel locomotives. CNR Datong has likewise worked with Alstom. CNR Changchun and CNR Tangshan have worked with Alstom and Bombardier on high-speed EMU production.

Organisation name Location Main activities Website

China CSR Corporation Ltd Beijing Group Head Office www.csrgc.com CSR Zhuzhou Electric Zhuzhou (Hunan Electric locomotive and metro train www.english.csrzelc. Locomotive Co Ltd Province) manufacturing com CSR Ziyang Locomotive Co Ltd Ziyang (Sichuan Electric and diesel locomotive www.zyloco.com Province) manufacturing CSR Qishuyan Locomotive Co Qishuyan Diesel locomotive manufacturing and www.qscn.com Ltd (Jiangsu Province) refurbishment. CSR Qingdao Sifang Qingdao High-speed EMU and passenger www.qrrs.chinacnr.com (Shandong coach manufacturing Province) CSR Nanjing Puzhen Rolling Nanjing (Anhui Passenger coach manufacturing Access via www.csrgc. Stock Company Province) com or via search engine. CSR Yangtze Rolling Stock Co Wuhan (Hubei Freight wagon manufacturing www.csrcj.com.cn Ltd Province), Tongling (Anhui Province), Zhuzhou (Hunan Province) CSR Meishan Rolling Stock Co Meishan, Sichuan Freight wagon manufacturing www.csrms.com.cn Ltd Province

CSR Erqi Co Ltd Beijing Freight wagon manufacturing www.csrgc.com.cn/

For the manufacture of high-speed EMUs and high-standard locomotive- hauled passenger rolling stock, CSR Qingdao Sifang established a joint- venture with Bombardier known as Bombardier Sifang Transportation Ltd. A separate manufacturing facility was established by this joint-venture in the Qingdao area. High-speed EMUs and passenger coaches of different designs are produced in Qingdao at the CSR Qingdao Sifang and Bombardier Sifang Transportation plants.

The CSR Zhuzhou Electric Locomotive Company or CSR Zhuzhou is historically the home of the main line electric locomotive in China. It is now a major designer (with its associated research organisations) and builder of electric locomotives and metro trains, and has also become a major exporter. CSR Ziyang initially concentrated on industrial and main line diesel locomotive design, construction and refurbishment and then added to this the production of electric main line locomotives of designs produced at CSR Zhuzhou. It has become a major exporter of diesel locomotives. CSR Qishuyan is primarily involved in the design, building and refurbishment of diesel main line locomotives.

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 40 CSR Qingdao Sifang concentrates on the design and manufacture of high- speed EMUs and of main line locomotive-hauled passenger coaching stock. CSR Nanjing Puzhen is involved in the design and manufacture of passenger rolling stock and metro trainsets.

CSR Yangtze is a major freight rolling stock manufacturer and has several subsidiary plants in southern China supporting its main production base in Wuhan. Other significant freight rolling stock producers in the CSR family are CSR Erqi based in Beijing and CSR Meishan in Meishan in Sichuan Province.

In addition to the numerous CNR and CSR companies producing freight rolling stock for China’s public and industrial railways, there is at least one other company, and possibly others, supplying sectors of this market and actively exporting. This is Baotou Beifang Chuangye Co Ltd (www.bfcy.cc), part of the Norinco group, based in Baotou in Inner Mongolia.

While production of locomotives and rolling stock for the national railways and industry has a long history, the production of high-speed passenger EMUs and modern metro trains began comparatively recently. China’s railway industry is now also entering the new field of light rail vehicle production, with CNR Changchun and CSR Zhuzhou, CSR Nanjing Puzhen and CSR Qingdao Sifang becoming involved.

There are several other manufacturers in China in addition to the CNR and CSR companies that supply locomotives and rolling stock to the mining and industrial markets. These include the Shijiazhuang Power Machinery Factory in Hebei Province and the Changzhou Lihua Machinery Electric Co (www. lihua.com) in Jiangsu Province, which produce diesel locomotives, and the Xiangtan Electric Manufacturing Co (www.xmec.com.cn ) in Hunan Province, which produces 1.5 kV DC electric locomotives and is now also involved in the light rail vehicle market.

To showcase its products and capabilities China’s railway industry arranges a number of exhibitions in major cities. Details of the major exhibitions held in Beijing and Shanghai are:

Metro China (www.metro-china-expo.com): held biennially in Beijing, most recently in November 2013.

Modern Railways (www.modernrailways.com.cn): held annually in Beijing.

Rail+Metro China (www.railmetro-china.com): held annually in Shanghai.

The modernisation and substantial expansion of the Chinese railway industry over recent years and China’s relatively low production costs have facilitated the growth of exports to a steadily widening range of countries. China’s principal railway industry suppliers, the CNR and CSR groups of companies, now see around 15% of their annual turnover coming from exports.

Almost all the main production companies in the two groups are now active in the export of rolling stock and components. In addition, a number of these companies have established subsidiary production facilities in countries seen to be major markets or which have placed orders of significant size. A brief selected list of recent exports is given below:

ELECTRIC LOCOMOTIVES Belarus – 12 locomotives (CNR Datong) South Africa – 359 locomotives (CSR Zhuzhou)

Electric locomotives have also been supplied to Iran and Kazakhstan.

DIESEL LOCOMOTIVES Angola – 15 locomotives (CNR Dalian) Argentina – 20 locomotives (CNR Dalian) Argentina – 24 locomotives (CSR Qishuyan) Australia – 14 locomotives (CSR Ziyang) Estonia – 16 locomotives (CNR Beijing 7th February) Kazakhstan – 74 locomotives (CSR Ziyang) Namibia – 17 locomotives (CSR Sifang) New Zealand – 48 locomotives (CNR Dalian) Pakistan – 58 locomotives (CSR Ziyang) Saudi Arabia – 10 locomotives (CSR Qishuyan) South Africa – 232 locomotives (CNR) Tazara (Tanzania / Zambia) – 10 locomotives (CSR Qishuyan) Thailand – 20 locomotives (CSR Qishuyan) Turkmenistan – several large orders (CSR Ziyang) Uzbekistan – 11 locomotives (CNR Dalian)

Diesel locomotives have also been supplied to Congo, Ethiopia, Iraq, Madagascar, Malaysia, Myanmar and Vietnam.

In several cases diesel locomotive designs for export have been fitted with diesel prime movers from American and European manufacturers.

EMU TRAINSETS Argentina – 709 EMU cars (CSR) Australia – 626 EMU car bodies (CNR Changchun) Brazil – 30 x 4-car EMUs (CNR Changchun) Georgia – 1 x 8-car, 5 x 4-car and 1 x 2-car (CSR Nanjing Puzhen) Malaysia – 38 x 6-car EMUs (CSR Zhuzhou)

METRO TRAINSETS Hong Kong – 160 cars (CNR Changchun) Iran – 455 cars (CNR Changchun) Malaysia – 20 x 6-car (CSR Zhuzhou) Saudi Arabia – 204 cars (CNR Changchun) Thailand – 48 cars (CNR Changchun) Turkey – 342 cars (CSR Zhuzhou)

PASSENGER COACHES Angola – 120 coaches (CNR) Argentina – 220 coaches (CNR Changchun) Argentina – 160 coaches (CSR) Iran – 50 coaches (CNR) Pakistan – 200 coaches Turkmenistan – 154 coaches (CSR Nanjing Puzhen)

FREIGHT WAGONS Australia - >7,000 wagons (ore, container, grain) (CNR) Colombia – 150 open wagons (CSR Yangtze) France – 40 tank wagons (CNR Jinan) New Zealand – 400 container wagons (CNR Qiqihar) Saudi Arabia – 669 wagons, various types (CSR) UAE – 240 wagons (CSR)

Freight wagons have also been supplied to Namibia.

Other exports from Chinese rolling stock companies include passenger coach body panels, components such as traction motors, wheelsets, bogies and braking system parts.

Chinese companies have also become involved in the design and construction of many railway projects in developing countries outside China.

THE RAIL MARKET IN CHINA - 2014 Brooks Events Ltd©2014 43 Brooks Reports Tel: +44 (0)1727 814400 Romeland House, Romeland Hill Fax: +44 (0)1727 814492 St Albans, Herts Email: [email protected] AL3 4ET United Kingdom www.brooksreports.com

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