Chinese rail giant links up with local contractor

State-owned Chinese train maker CRRC Dalian Co. has firmed up its partnership with local electro-mechanical and rail maintenance firm Comm Builders & Technology Philippines (CB & T) to boost their bid to secure more rail contracts in the country.

The memorandum of understanding between CRRC Dalian, a unit of the world’s largest train manufacturer, and CB & T was signed Wednesday by CRRC-Dalian deputy general manager Chuan Yi Zhou and CB& T president Roehl Bacar at the New World Manila Bay Hotel in Malate.

Under the MOU, the firms set the framework for the subsequent forging of a binding contract for an exclusive partnership in undertaking rail maintenance as well as construction activities and projects in the Philippines.

Bacar expressed enthusiasm on the partnership with the CRRC Group, noting the Chinese rail technology giant had a solid track record, impressive expertise in rail technology, and solid financial muscle being a state-owned firm.

Bacar noted that CB& T can offer its long track record as a rail maintenance firm, having served a couple of stints as short- term maintenance contractor of the Metro Rail Transit and having been the long- term maintenance contractor of the Light Rail Transit (LRT) Line 1 as lead member of CPG (CB & T-PMP-Gras) consortium before the takeover of the Ayala-MPIC group.

The new consortium is also interested in drawing up unsolicited project proposals for either new rail lines or to rehabilitate and improve current existing trains in the country.

CRRC, or the China Railway Rolling Stock Corp., is a Chinese state-owned train manufacturing giant formed on June 1, 2015, after the “remerger” of the China CNR Corp. and the CSR Corp. Ltd., since the two companies had originally been one company but was separated in 2000.

CB& T had submitted an un-solicitied proposal in partnership with two reputable German firms, Schunk and Heag Mobilo, for a P4.6-billion total rehabilitation of the MRT last year, which was rejected by the then Department of Transportation and Communications.