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Nov 3, 2014 8:40 PM

Chinese firm wins Mexican rail contract

The Associated Press

MEXICO CITY (AP) A consortium headed by China Railway Construction Corp. Ltd. won the contract to build a high-speed inter-city rail line in central Mexico Monday after submitting the only bid on the project.

Another Chinese firm, CSR Corporation Limited, and the Mexican companies Constructora y Edificadora GIA, GHP Infraestructura Mexicana, Prodemex and Constructora Teya are included in the consortium.

Mexico's Communications and Transport Department announced the awarding of the contract, saying the train was expected to run at about 186 mph (300 kph) and serve 27,000 passengers per day.

The rail line will connect Mexico City with the north-central industrial hub of Queretaro, a distance of about 130 miles (210 kilometers).

It will cost about $3.7 billion and is expected to shorten travel times from about 2 hours to less than one hour.

Potential bidders had been given only two months to put together a bid on the extremely complex project, and 13 companies asked for but were denied more time.

The government has pledged to revive passenger rail service, which was largely abandoned in a 1990s privatization of the industry.


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