China Railway Group, Local Partner Win USD2.1 Billion Bid for Hungarian Track
Zhang Yushuo
DATE:  Jun 20 2019
/ SOURCE:  yicai
China Railway Group, Local Partner Win USD2.1 Billion Bid for Hungarian Track China Railway Group, Local Partner Win USD2.1 Billion Bid for Hungarian Track

(Yicai Global) June 20 -- A joint venture between subsidiaries under China Railway Group and a Hungarian company have won a USD2.1 billion bid to construct a border railroad in the Central European country as the Belt and Road Initiative continues to work wonders for the railroad maker's bottom line.

China Tiejiujiu Engineering and Construction and China Railway Electrification Engineering Group's Hungarian branches will take on 50 percent of the project for CNY7.2 billion (USD1 billion), China Railway Group said in a statement yesterday. Opus Global -- a firm controlled by an associate of the Hungarian prime minister -- will take on the remaining half.

China's Belt and Road Initiative, a multi-decade plan devised by President Xi Jinping to expand trade via roads, rails, pipes and waterways in several continents around the globe, has been a massive boost to China Railway's revenue over the past several years.

The firm has penned some CNY13.7 billion worth of overseas contracts since the beginning of 2019, more than three time's last year's total of CNY4.5 billion. The latest contract makes up just 1 percent of China Railway's operating income in 2018.

Its subsidiaries in Hungary will handle track design, roadbeds, tracks and ancillary works, taking about five years to complete the project.

Editor: James Boynton

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Keywords:   China Railway,Belt and Road Initiative,Hungary