Last updated: 04:00 PM ET, Fri September 18 2015

United States and China Reach Agreement on High-Speed Railway Project

Car Rental & Rail | Donald Wood | September 18, 2015

United States and China Reach Agreement on High-Speed Railway Project

The rail industry in the United States is about to receive a shot in the arm as XpressWest Enterprises LLC and the China Railway Group have formed a partnership to build a high-speed railway linking Las Vegas and Los Angeles.

According to Bloomberg News, construction of the new high-speed railway will be a 230-mile long Southwest Rail Network and is expected to begin in September 2016. This will be the first Chinese-made bullet-train project in the United States.

The new railway agreement was a result of over four years of negotiations, and is being supported initially by $100 million in capital. The Chinese and American companies are hoping to build on a $567 million contract signed last October to supply trains for Boston’s subway system.

There is no estimated on the cost or completion date of the construction project.

China Railway Group’s deputy chief engineer Yang Zhongmin told, “This is the first high-speed railway project where China and the U.S. will have systematic cooperation. It shows the advancement of China-made high-speed railways.”

The deal is also a huge victory for the Chinese high-speed rail industry. There is a rivalry with Japan’s largest manufacturer, JR Central, and both companies expressed interest in the Los Angeles-Las Vegas construction project. The two mega powers are also expected to bid for involvement in a proposed high-speed rail line in California’s Central Valley.

Americans should be excited about the project as well, since the new railway is expected to create new technology, manufacturing and construction jobs in the region.

The agreement also comes just days before Chinese President Xi Jinping visits the United States. During the visit, the two countries are expected to work on deals in the trade, energy, climate, finance, aviation, defense and infrastructure construction industries.


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