China, Argentina sign $10 billion railway deals

Twelve agreements were reached between the two countries during Argentine President Cristina Fernandez de Kirchner's five-day visit to China. Six deals were inked at noon, witnessed by Kirchner and Chinese Vice-Premier Hui Liangyu. The rest of the agreements were signed later in the day following talks between Kirchner and her Chinese counterpart Hu Jintao.

The 10 railway projects - ranging from two to five years - include the purchase of Chinese railway technology and investments in Argentina's rail line electrification projects, Argentine Transport Minister Juan Pablo Schiavi told AFP.

Other deals cover areas like infrastructure, fishery, energy, and plant quarantine.

The two countries agreed to collaborate in light rail and subway construction in Argentina. China will also provide export credit to Argentina for purchases of locomotives.

At least three contracts focus on a $2.5 billion rail renovation project in Argentina's capital Buenos Aires. It requires the Argentine government to purchase materials and technologies for improving railway networks from two Chinese companies: China Northern Railway (CNR) and China Southern Railway (CSR).

During the talks, Hu and Kirchner also expressed wishes to push forward stronger trade ties.

China has become an increasingly important global player in the rail sector as its railway-related exports have been rising fast in the past years.

CSR, one of China's two major railway equipment manufacturers, said it signed contracts to export products worth $1.2 billion in 2009 alone, compared to less than $59 million in 2001.

"The exported products are high-end and more developed countries are on our client list," said a source from the corporation, who required anonymity.

CSR, which provides 70 percent of China's bullet trains in operation, is now exploring the markets of developed countries. Last year, it started exporting rapid transit vehicles and freight wagons to Singapore and Australia.

Analysts also expect high-speed railway related technologies and equipment to be the highlight of China's rail export in the future; Kazinform cites China Daily.

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