Monday, September 7, 2009

NWS to Invest in Chinese Rail Freight

Huge Infrastructure Development Due For Container Carriage
Shipping News Feature

HONG KONG, CHINA – NWS Holdings, the service and infrastructure arm of Hong Kong’s property giant corporation New World Development Co., is to work with China’s Ministry of Railways, state owned controller of the network, to develop and improve the parlous state of the nation’s rail freight system to enable the carriage of far more containers.

The company is reportedly planning to spend $1.76 billion to support its 22% stake in the China United International Rail Container Company and transform the speed and efficiency of the service. Plans include development of 18 main freight terminals and the seriousness of the Governments involvement can be gauged by the size of their own investment, a reported $100 billion plus each year until 2013.

NWS are modelling their investment on the American BNSF rail freight company and intends to become the leading logistics supplier for rail containers in the country. Other companies with a stake in the venture include local Chinese Government authorities and CMA CGM, Zim, Deutsche Bahn AG and assorted investors.

Currently only 3% of China’s rail freight actually moves in containers compared to the usual 20 to 30% in western countries.

http://www.nws.com.hk/html/eng/index.aspx