BIZCHINA / Top Biz News
US rail firm steams into Shanghai
By Wang Xu (China Daily)
Updated: 2006-04-12 09:37
BNSF railway company is expected to establish an office in Shanghai to
become the first US rail firm to set up in the country.
The Shanghai office, to be opened soon, represents the growing importance
of Chinese exports to BNSF, the second-largest rail freight company in
the US.
"China is a key driver in BNSF's international business and we will
continue to expand our network and services to accommodate that growth,"
said Steve Branscum, vice-president of BNSF, at a conference yesterday.
BNSF's business from China has been growing by more than 13 per cent
annually since 2000.
China now accounts for 60 per cent of BNSF's international intermodal
business, which adds up to 3 million containers.
BNSF, the world's largest intermodal rail carrier, moves 5 million
containers and trailers each year.
Intermodal freight is transported using more than one means of conveyance.
A great proportion of its 24,000 clients, including Wal-Mart and Ikea,
are shifting an increasing proportion of their manufacturing process to
China.
"The Shanghai office will allow us to expand our presence in Asia,
strengthen existing partnerships with key stakeholders in international
trade and explore growth opportunities in Asian countries," said Branscum.
BNSF will use its Shanghai office to stay in closer contact with its
customers, providing network information to Chinese ocean carriers, such
as the China Shipping Group and COSCO.
The rail firm also has an office in Tokyo, currently its only one in Asia.
The company might invest in China's railway infrastructure or even
establish joint ventures with local companies in the future, but will
focus on expanding its domestic network in the US at present, said
Branscum.
The company is poised to invest US$2.4 billion to expand its network at
home this year, compared with US$2.2 billion spent last year.
With its 52,000 kilometres of rail, the company now serves all major US
ports on the west coast and on the Gulf of Mexico.
According to Branscum, the US company will continue to expand its
relationship with the Chinese Government, which is planning to spend
US$155 billion over the next 10 years to upgrade its rail network.
BNSF signed a five-year memorandum of understanding relating to
co-operation on rail transport with China's Ministry of Railways.
Under the agreement, both sides pledged to exchange information on best
practices in railway management, operations, logistics and technology.
(For more biz stories, please visit Industry Updates)
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