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Business Opportunities for Railway Fasteners Suppliers in China By Mohe Mangui Mordaoga Jiagedaqi Heihe Yitulihe Hegang Yakeshi Beian Qianjin Manzhouli Nancha Qiqihar Jiamusi Tarqi Daqing Suihua Arxan Beitun Ulanhot Harbin Ala Shankou Da'an Suifenhe Mudanjiang Jinghe Baicheng Shulan Holingol Changchun Taipingchuan Hunchun Jilin Kuytun Yanji Khorgos Urümqui Xilinhot Siping INDUSTRY FOCUS Tongliao Meihekou 128 Türpan Erenhot Fuxin Chifeng Chaoyang Fushun Shenyang Panjin Ji'an Korla Hami Akshi Chengde Jinzhou Bayan Obo Benhong Kashgar Ceke Changdian Hohhot Zhangjiakou Yingkou Huludao Linhe Jining Huairou Dandong Ejin Baotou Datong Beijing Qinhuangdao Tangshan Shuozhou Dalian Jilantai Wuhai Baoding Tianjin Shenmu Business Opportunities for Railway Jiayuguan Hotan Yulin Shijiazhuang Cangzhou Weihai Yinchuan Taiyuan Yantai Wuwei Dezhou Zhangye Dongying Rongcheng Gantang Hengshui Jinan Zhongwei Handan Lüliang Lines capable for Changzhi Zibo Weifang Zhongchuan Yan'an Liaocheng Qingdao speed above 300 km/h Linfen Taian Pingliang Xinxiang Linyi Xining Jiaozuo Rizhao Newly built lines Golmud Heze Qufu by Behrooz Lotfian capable for 200-299 km/h Lanzhou Luoyang Kaifeng Lianyungang Xinyi Zhengzhou Shangqiu Xuzhou Fasteners Suppliers in China Upgraded lines and other Tianshui Huashan Baoji Xi'an Yancheng lines with CRH service Pingdingshan Luohe Huai'an Bengbu Haian Conventional lines with Guangyuan Nanyang Fuyang Nanjing no CRH service Shiyan Hefei Nantong Ankang Xinyang Changzhou Shanghai Jiangyou Xiangyang Macheng Tongling Wuhu Suzhou Nagqu Dujiangyan Dazhou Wuhan Xuancheng Hangzhou Nanchong Wanzhou Yichang Huangshi Anqing Ningbo Enshi Huangshan Chengdu Fasteners in the Railway Industry Suining Xianning Jiujiang Jinhua Guang'an Lichuan Jingdezhen Taizhou Lhasa Emeishan Shimen Changsha Shigatse Neijiang Nanchang Shangrao Chongqing Loudi Yingtan Wenzhou Tongren Xichang Yibin Zhuzhou Nanping Zunyi Huaihua Hengyang Ji'an Mankind has been fascinated by the history of rail technology for Kaiyang Shaoyang Fuzhou Panzhihua Liupanshui Yongzhou Yongtai Lijiang Ganzhou Dongchuan Guiyang Putian Guilin Longyan Xiamen Railway map of People's Dali Qujing Shaoguan Meizhou centuries. The railway is one of the most important inventions of all time. Hechi Zhangzhou Kunming Hezhou Longchuan Liuzhou Chaozhou Baoxiu Guangzhou Republic of China Kaiyuan Wuzhou Shantou Baise Guigang Huizhou Nanning Zhaoqing Shenzhen Even 200 years after the development of the first locomotives, railway Hekou Qinzhou Yulin Zhuhai Hong Kong Colored lines showing CRH and Lianjiang Pingxiang Maoming Fangchenggang Zhanjiang other high speed rail services Beihai Xuwen technology has still not reached its limits. Today, the tracks across the world Danzhou Haikou Last update: 2016-09-10 Dongfang Wanning carry more transport services than ever before. The demands placed on Sanya railcar manufacturers by railway operators and, in turn on the suppliers, are system can be a good replacement in the roof system challenging. Increasingly shorter product cycles, the use of new, lighter and and bogie of a wagon. And/or thread inserts and semi more environmentally-friendly materials and an ever changing division of hollow tubular rivets are used in railcar bodies, bogies, labour, requires strength of purpose, innovation and adaptability. The railway interiors of wagons and traction systems. industry may not always be perceived as “innovative”. But this industry can claim a high degree of technical competence in finding solutions. Future of the Railway Industry in Faced with lengthy development stages, large-volume investment projects, China with considerable public and political influence, railway operators always According to the Medium- and Long-term Railway expect safe, functioning and innovative systems from day-one onwards. Network Plan issued by the State Council, China More than ever before, research and development forms the cornerstone for will invest more than RMB2.8 trillion to build over major market success at low cost. In particular, this requires a high degree 23,000km new railways during 2016-2020, upsizing its of flexibility and extensive know-how from suppliers. Flexible responses railway network to 150,000km (30,000km high-speed to changing market conditions – this is one of the greatest challenges for railway) and covering more than 80% of large cities by the railway industry. The growing range of customer-specific requirements 2020. Moreover, major cities scale up their investment and the ever more sophisticated equipment in new and modernised railcars, in urban rail transit, adding an estimated traffic 3 increase the individuality of production, modernisation and maintenance. mileage of 900km annually during 2016-2020 , thus This requires optimised material and information flows. Procurement contributing an upsurge in rail transit vehicles delivered and delivery systems simplify processes, minimise stocks, prevent supply to newly-opened lines. With mushrooming subway and bottlenecks and reduce costs. There must, of course, be an uninterrupted light rail lines, China is expected to account for more supply to the assembly and maintenance lines. Even just a missing or faulty than half of the global rail equipment expenditures in fastener risks bring production to a standstill. coming years. Stiff local-content rules stipulate that 70–90 percent of rail equipment be manufactured Despite high technological and, for the most part, individual customer domestically. Technology-transfer agreements with requirements, systems manufacturers are trying to increase flexibility by foreign suppliers have permitted Chinese manufacturers developing more and more platform and modular concepts. One-time parts to reproduce vehicle designs in local factories. The suppliers are now establishing themselves as specialists in partnerships country’s two dominant rail manufacturing companies, or are going on to become systems suppliers. The complexity of railcars CSR (China South Locomotive and Rolling Stock) and today means that companies have to work together. Efficient and effective CNR (China Northern Locomotive and Rolling Stock) cooperation between manufacturers, system and component suppliers is together employ more than 200,000 people directly. constantly under review. The railway industry is a market with the highest technical demands Last Word based on high safety specifications and complex regulations. As a result, rail Fasteners can be found anywhere in the railway transport is also one of the safest modes of transport. If a fastener producer industry, such as inside, outside, under and above the wants to work in this sector, he should adopt these challenging guidelines and railcars, rail tracks, etc. Therefore, we believe years make their systematic quality management programs1. ahead will be strong years for the fastening market Therefore, added demand to improve safety and operations in the rail and fastener suppliers. On the other hand, railroads industry is a must for the fastener providing companies that want to work in continue to show high demand for rail fasteners and this sector. As the rail industry becomes more compliant with these demands, related components that are rugged enough to provide another challenge in this field for fastener producers is the experience and a long service life even when faced with today’s capability to provide supply chain support for both critical and industrial challenging operating conditions. In addition, they standard fasteners. Success of these efforts is more than having the ability are looking for fastening systems that offer lower to get product from one place to another. It requires specific industry installation and maintenance costs. knowledge and expertise. Active companies and new entrance in this field Railway fastener suppliers should notice that this should understand the unique attributes and specific requirements of the rail industry is moving toward high speed trains. It means industry2. suppliers should make effort to boost production and at the same time develop products that can keep track China’s Railway components fastened for the long haul. The following map shows that China has a very long railway (recording 1. http://www.bollhoff-usa.com/static/pdf/downloadcenter/EN/Railway- 124,000 Km in 2016). These route lengths were increased by average approx. Industry-EN-0960.pdf 6,100 km (3,800 miles) annually between 2010-2016. 2. https://www.wuerth-industrie.com/web/en/wurthus/industries/rail_industry/ rail.php Most part of a rail wagon use fasteners, for example, self-piercing riveting 3. http://www.prnewswire.com/news-releases/china-rail-transit-air- conditioner-industry-report-2016-2020-300407499.html.
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