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The National Development and Reform Commission has approved more than 140 billion investment in multiple railway investment projects.
On March 17, the South African National Transportation Group revealed the results of what they called the country’s largest locomotive procurement bid. China’s CSR Zhuzhou Locomotive secured a $2.1 billion order for electric locomotives, while CNR’s Dalian Locomotive won nearly $800 million in diesel locomotive contracts. This marks a significant win for Chinese rail equipment manufacturers in the international market.
The following day, on March 18, the National Development and Reform Commission (NDRC) announced approval for five major railway construction projects. These include routes from Xinjiang Hongliu River to Mang Lake, Harbin to Mudanjiang, Harbin to Jiamusi, Qingdao to Lianyungang, and Hangzhou to Huangshan. The total investment for these projects amounts to 142.422 billion yuan, signaling continued growth in China’s domestic railway infrastructure.
GF Securities analyst Luo Libo commented that as domestic demand for railway infrastructure and equipment improves, the export sector is also showing strong progress. He believes that upcoming market-oriented reforms could further unlock potential within the industry. Chinese rail companies, such as China South Locomotive and CNR, have been actively pursuing an “internationalization†strategy, leveraging advanced technology and cost-effective solutions to gain recognition abroad.
From large-scale exports of freight trucks and EMUs to urban rail systems and buses, these companies are expanding their global footprint. The scale of projects has grown significantly, ranging from hundreds of millions to tens of billions of yuan.
Luo noted that with the economy facing downward pressure, railways remain a key area of government support. Recent data on imports, fixed asset investment, and retail sales suggest a weak domestic economy, while declining real estate activity adds to concerns. In this context, the government may need to stimulate demand, and railways have historically been a priority.
According to company reports, by the end of 2013, China South Locomotive had over 100 billion yuan in outstanding contracts, and CNR had more than 90 billion yuan. After two major bidding rounds, both companies were well-positioned, though recent delays in EMU orders have raised some concerns. However, ongoing efforts to reform the investment and financing system—such as establishing a Railway Development Fund—along with increased financial support, could improve the financial health of the China Railway Corporation and accelerate procurement activities.
Industry analysts also pointed out that the NDRC's decision to approve multiple railway projects at once sends a positive signal to the market. It sets a strong foundation for this year’s railway construction investments. Additionally, local governments’ eagerness to develop intercity rail networks could lead to the expansion of the national railway plan from the current "four vertical and four horizontal" to an "eight vertical and eight horizontal" network.
With internal and external factors aligning, railway equipment and infrastructure companies are well-positioned to benefit in the coming years.