​Chinese rail companies could gain competitive edge for high-speed rail contracts

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California High-Speed Rail Authority

Two of China's biggest train manufacturers are discussing a merger in order to win more deals abroad -- a development that could affect contracts for California's high-speed rail.

Allen Young

Staff Writer- Sacramento Business Journal

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Two of China's biggest train manufacturers are discussing a merger in order to win more deals abroad -- a development that could affect contracts for the California high-speed rail, the South China Morning Post reported Wednesday.

China's CSP Corp. and a subsidiary of CNR Corp. were among 10 global companies that indicated preliminary interest in October for building trains for California's project. The list of interested companies also includes Siemens Industry Inc., which has said a winning contract would bring hundreds of jobs to its Sacramento plant.

The companies may submit bids sometime next year, said the California High-Speed Rail Authority.

A merger of the two Chinese firms could raise China's bid, though the offer could still be lower than bids from international competitors, an analyst told the South China Morning Post.

Any company awarded California's contract would have to build the bullet trains in a U.S. plant under terms of federal funding for the project.

In other California high-speed rail news, the authority is hosting an open house in Fresno on Thursday to update the public on the project's design, right of way and business opportunities, according to the Fresno Bee.

The authority is evaluating bids from three construction teams for its second construction segment from Fresno to the Tulare-Kern county line.

Allen Young covers state legislation, regulation and contracts, as well as economic news, international trade and economic development for the Sacramento Business Journal.