Ti­tan CCCC in rev­enue push abroad

Con­struc­tion group to sub­stan­tially boost over­seas sales to 50 per­cent by 2035

China Daily (USA) - - BUSINESS - By ZHONG­NAN and JING SHUIYU Contact the writ­ers through zhong­nan@ chi­nadaily.com.cn

China Com­mu­ni­ca­tions Con­struc­tion Co Ltd, one of the coun­try’s largest in­fra­struc­ture project providers by mar­ket share, will boost its over­seas sales rev­enue to 50 per­cent of the to­tal by 2035 via di­ver­si­fied op­er­a­tion mod­els, ma­chin­ery ex­ports, over­seas merger and ac­qui­si­tion, said its top ex­ec­u­tive.

The com­pany’s global sales ac­counted for 33 per­cent of its annual sales rev­enue in 2015, thanks to fast-grow­ing busi­ness in coun­tries along the Belt and Road Ini­tia­tive, in­clud­ing Mom­basa-Nairobi Stan­dard Gauge Rail­way in Kenya, con­struc­tion work of Gwadar Port in Pak­istan, and Sri Lanka’s Colombo In­ter­na­tional Fi­nan­cial City project.

The in­fra­struc­ture, ser­vice and trade net­work pro­posed by China in 2013 en­vi­sions a Silk Road Economic Belt and a 21st Cen­tury Mar­itime Silk Road, cov­er­ing about 4.4 bil­lion peo­ple in more than 60 coun­tries and re­gions in Asia, Europe and Africa.

Liu Qi­tao, chair­man of CCCC, said the group will fo­cus on de­vel­op­ing high-end in­fra­struc­ture and man­u­fac­tur­ing projects in­clud­ing ports, high­ways, un­der­wa­ter tun­nels, off­shore en­gi­neer­ing prod­ucts and cranes, to boost sales in over­seas mar­kets dur­ing the 13th Five-Year Plan (2016-20).

CCCC is a State-owned en­ter­prise listed on the Hong Kong Stock Ex­change that has busi­nesses de­sign­ing and build­ing trans­porta­tion in­fra­struc­ture, and man­u­fac­tures dredg­ing and other heavy ma­chin­ery. The group’s sales rev­enue amounted to $67.76 bil­lion in 2015.

“Un­like other Chi­nese con­struc­tion com­pa­nies, which only fo­cus on en­gi­neer­ing, pro­cure­ment and con­struc­tion projects, or EPC projects, our sub­sidiaries have grad­u­ally trans­ferred their pil­lar busi­ness from EPC into new busi­ness mod­els such as build-op­er­ate trans­fer, and pub­lic-pri­vatepart­ner­ship for both the pub­lic and pri­vate sec­tors,” said Liu.

EPC projects are a com­mon form of con­tract­ing ar­range­ment in the con­struc­tion in­dus­try.

Hav­ing a mar­ket pres­ence in 135 coun­tries and re­gions, CCCC to date has es­tab­lished 193 branches and of­fices in 103 of them. It has over 60 sub­sidiaries, in­clud­ing China Har­bor En­gi­neer­ing Corp, China Road and Bridge Corp and Shang­hai Zhen­hua Heavy In­dus­tries Co.

With a to­tal con­tract amount of $37 bil­lion, the Chi­nese com­pany has un­der­taken more than 2,000 in­fra­struc­ture projects in 58 coun­tries and re­gions along the Belt and Road Ini­tia­tive, in­clud­ing rail­ways, roads, bridges, tun­nels, air­ports and har­bors be­tween 2013 and the first half of 2016.

Ea­ger to en­hance its global ser­vice abil­ity, CCCC in­vested 6.3 bil­lion yuan ($926 mil­lion) to ac­quire John Holland, a sub­sidiary of Aus­tralian con­struc­tion com­pany Leighton Hold­ings Ltd last year.

This move will help CCCC fur­ther ex­pand its mar­ket pres­ence in sec­tors in­clud­ing tun­nel build­ing, rail­way op­er­a­tion and con­struc­tion in Aus­tralia and other de­vel­oped mar­kets such as New Zealand, the United King­dom and Canada.

XINHUA

Tech­ni­cians from China Com­mu­ni­ca­tions Con­struc­tion Co Ltd check ca­bles of a bridge in Chongqing.

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