Group of Chinese Railway Companies to Construct High Speed Railway in the U.S.

Group of Chinese Railway Companies to Construct High Speed Railway in the U.S.A joint venture formed by Chinese rail companies and XpressWest Enterprises, a US passenger rail service provider will be constructing a high speed railway project from La Vegas to Los Angeles. Deputy head of the Office of the Central Leading Group for Financial and Economic Affairs Shu Guozeng, that the 370 kilometer high speed railway project will be called the Southwest Rail Network will be connecting Nevada and California using advanced track and rail equipment.

Construction of the railway system is expected to start as early as September 2016 with an estimated investment amount of $12.7 billion. The agreement was signed days before President Xi Jinping’s State visit to the United States a milestone in the efforts of China in promoting their high speed rail technology in developed countries. ExpressWest known as DesertXpress before is a private venture proposal that is supported by a Las Vegas hotel and casino developer in building a privately funded high speed passenger train in the Western US. Based on the company’s website the railway project was already approved in 2011 by the US Department of Transportation along with other authorities to construct and run the rail service.

The US company agreed to form a joint venture with China Railway International USA Co. a consortium which is made up of subsidies from State owned enterprises that include China Railway Rolling Stock Corp., China Railway Construction Corp., China Railway Corp., China State Construction Engineering Corp., and China Railway Eryuan Engineering Group Co. a researcher for the Beijing based Institute of Transportation Research of the National Development and Reform Commission stated that there are parts in the US where passenger rail coverage is insufficient and suffering from financial problems with infrastructure development and in the legislative issues.

The joint venture will enhance the image of the Chinese rail vehicle manufacturers and construction projects contractors in the global market. As the Chinese is competing with Japanese rivals in getting deals with Indonesia and in Thailand for several months now. Based on the agreement that was released by China Railway International USA Co. and XpressWest that both sides are hoping to speed up the launch of the project that has $100 million in initial capital and will be creating jobs in different sectors in the US.

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