Monday, March 28, 2016

High iron front game in Indonesia s high speed rail project

High iron front game in Indonesia's high-speed rail project

  With bid Jakarta, Indonesia in Bandung, high-speed rail projects in China and Japan (hereinafter "yawangaotie") entered the final critical moments, more dense of gunpowder. Recently, China and Japan senior official again for their own high-speed technology platforms and programmes endorsed, with ready to lead on this project for a long time in Japan, met with China's struggling to catch up. Indonesian officials said, to identify yawangaotie projects flowers who this month.

  In recent years, in particular high-speed rail infrastructure between China and Japan go, as an important strategic country. Bidding on high-speed rail projects around the world, almost all can be seen in the figure of competition between China and Japan.

  Direct confrontation high in iron

  Yawangaotie project will connect to the Indonesian capital of Jakarta and Bandung, the fourth-largest city, a distance of 120 km in two cities. Due to the ever increasing traffic congestion between the two cities, the construction of intercity high speed rail gradually put on the agenda. It is estimated that around this will be 150-kilometre high-speed rail, according to a top speed of 300 kilometers, high-speed rail is completed, Jakarta and Bandung by the passage of time between 2-3 hours 36 minutes.

  As early as 2011, Japan international transportation consultant to the yawangaotie line to do a feasibility study. Then Japan through official and popular two channels to sell Indonesia a new trunk mode, and the Indonesian Government agreed to carry out a detailed investigation into the deal. But last year, the Indonesian and the Chinese Government began to introduce high-speed rail technology consultation. Around the yawangaotie project, infrastructure exports as an important strategy in China and Japan to open confrontation.

  Indonesian economic coordinating Minister Sofian said after a cabinet meeting held on July 13, so far, only China and Japan on this project carried out a detailed and comprehensive feasibility studies. Indonesia will be held in Japan a "beauty contest" and specify a third party agencies as a consultant involved in the bidding process, which belongs to the State should be able to make an objective judgement, no conflict of interest between China and Japan. Indonesian President zonko recently said, the Government has commissioned a private advisory body considering Japanese proposals on the yawangaotie project, and winners will be announced at the end of the month party, hopes next month to start construction of the project.

  As the bidding approach, high in China and Japan are actively campaigning for the project "platform". China, the total iron sent led by Chief Engineer he Huawu, combined luxury of railway enterprises to participate in the "marketing" started on August 13, in Jakarta for a week of "exhibition on China's high speed railway". Special Envoy of the Chinese President, met Thursday in Jakarta, Director of the national development and Reform Commission, Mr Xu on August 10 in zonko and feasibility study report submitted to the Chinese side on the yawangaotie project. On July 10, the Japanese Prime Minister assisted officer Stephen foreigners held talks in Jakarta with zonko, introduced Japan Shinkansen technology advanced, and handed Japan Prime Minister Shinzo Abe's letter. Abe on July 14 in a meeting with the Indonesian Commerce and industry President. Abe said that Japan will be in quality and quantity both meet the infrastructure needs of Asian countries, including Indonesia.

  "If yawangaotie could start next month, then it will be the first high-speed rail project in Southeast Asia, the other railway projects will form a demonstration effect in the region, both China and Japan are hoping to win this item. "International market research of the Chinese Academy of international trade and economic cooperation Department Deputy Director Bai said.

  China programme high performance-price ratio

  Dong Yan, a researcher at Institute of comprehensive transportation of national development and Reform Commission economics said Japan high-speed technology starting early, the world's first high speed rail was the 1964 opening of the Japan Tokaido Shinkansen project, but China is a rising star, not only construction and operations experience, and lower prices.

  Currently offers no specific news about the programme in China and Japan, but that the Chinese delegation had told the press that China programme "cost-effective, total price, price indicators, line length, overall is better than other countries." According to past experience, under normal circumstances, building high-speed rail in China International offers 30 million dollars per kilometer, while Japan is US $ 50 million per kilometre, the gap is large.

  Similarities in the programmes submitted by the two countries, as both provide loans. Reportedly, Japan provided 40-year loan, grace period is 10 years, but borrowing rates as low as 0.1%. And China has targeted adjustments to the programme, the introduction of more competitive policy.

  Bai said the Japan long-term interest rates, lending rates are low related to their domestic financial policy, the costs associated with many factors, promise can start next month, plans completed in 3 years, while Japan is expected to take 8 years to complete, China's scheme to shorten the time of construction and delivery, which is Indonesia reduced construction costs.

  Insiders say in China, China's high-speed train technology introduce and absorb the Germany Siemens, France's Alstom and Japan Kawasaki heavy industries and other countries technology, compatible.

  "It can be said that China and Japan options have their advantages and disadvantages, for Indonesia, China and Japan are important trade partners, which also brings a great deal of uncertainty for the final outcome. "Bai says.

  Dong Yan says, for the Indonesian Government to China scenario might be more cost-effective, the Indonesian Government third party agencies as a consultant involved in the bidding process, avoid directly offending either side.

  Global rail market in China, rather than Japan has the advantage

  In the eyes of Dong Yan, the Indonesian Government for a high profile yawangaotie bid, intended to appeal to China and Japan investment and make the two compete in order to drive down prices and lending rates, and get the optimal solution. Earlier some media reports have pointed out that Indonesia released "break ground next month" message, also let temptation, to pressure suspected bidders.

  It is understood that in order to win the competition, both times to amend the proposal.

  In fact, high-speed rail projects in Indonesia is not the battle for Japan high speed rail for the first time, prior to Thailand in the high-speed rail project, China and Japan are engaged in a fierce battle.

  In addition, only in May this year to finalise the Terminal maxingaotie, as well as India and the United States and other countries high-speed rail contest is also important in China and Japan. COTS becomes the focus of future development of

  "Japan are actively seeking out high-speed rail technology and brand, competition is inevitable in this process, Japan the main constraint is the high cost and long construction period. "Dong Yan said, from overseas high-speed rail market of pattern view, China also is has is big advantage of, Japan is Island, and China and vast of Eurasia bordering, in" area way "strategy of promoted Xia, future Europe Asia States of railway network and China are is to connected of, China and has rich of high-speed rail operation experience, these national in select cooperation partners Shi, certainly will more tendencies Yu China, especially Mongolia, and Russia, country, on China high-speed rail technology very favored.

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