Eurasia Rail Exhibitor Focus: CRRC

Continuing our look at internationals exhibiting at Eurasia Rail 2019, we look at Chinese rail behemoth CRRC.

CRRC is by far and away the largest rolling stock manufacturer in the world. 44% of all trains built worldwide come from the company’s fabrication yards and factories. 

Now, the company has set its sights on Turkey, with major rolling stock supply deals as its end goal. So, what is the train builder’s Turkish outlook, and how its business is doing there? Let’s find out.

CRRC in Turkey

Turkey is spending big sums on upgrading its national rolling stock fleets; from high-speed train sets to metro trains to light rail sets, everything is up for grabs.

Turkey’s search for new train suppliers, it is searching worldwide. Naturally, the world’s biggest builder of rolling stock wants a piece of the action, and so CRRC solutions are now hitting the rails in Turkey.

So far, it’s largest deal has come in the form of a $500m contract to supply the Istanbul Metro with fresh units. Specifically, the trains will be used to ferry millions of passengers per year to the currently under construction Istanbul third airport. 

No word on how many LRVs will actually be built, but CRRC is confident they will be able to slot into the current operating structure of Istanbul’s underground railroad with ease. Each LRV is composed of 4 cars, all powered, with passenger a capacity of 1,500 passengers.

Elsewhere, CRRC has supplied coastal city Izmir with 19 metro train sets in 2017. The contract, worth over $80m, was to provide 19 sets each composed of 95 cars. With the delivery of these trains, the Izmir Metro effectively doubled the size of its fleet.

CRRC embraces domestic production

In response to growing demand for quality rolling stock from Turkey’s rail operators, CRRC set up its own Turkish-based subsidiary in 2016. CRRC-MNG Rail Systems is a joint venture between the Chinese firm and its Turkish partners MNG Holdings.

The joint venture was partly established to improve the ease of supply chain logistics, but it is mainly down to Turkey’s domestic content regulations. Many Turkish rolling stock tenders require high localisation ratios for components used in trains they plan on running nationally.

As such, CRRC MNG has its own production facility in Turkey. Located in Sincan near the Turkish capital Ankara, the JV’s factory has a production capacity of 200 urban rail units and 100 locomotives per year.

To give an idea of how CRRC is meeting Turkey’s local content requirements, we can look at CRRC’s Ankara Metro supply deal. Of the 342 cars CRRC MNG is building, the first 75 have 30% local content. The remainder of the units will have a localisation rate of 51%.

CRRC is not content with staying with MNG. It has bigger Turkish ambitions. As we’ve mentioned many times on these pages, Turkey is quickly emerging as a key market for high-speed trains. Currently, a tender is out for 96 HSTs, and CRRC is one of the companies vying to score this big contract.

Under its tender application, CRRC posed Turkey’s national railway operator TCDD two big questions: will domestic fabricators Tulomsas be sold before the HST tender is completed and orders met? And if Tulomsas is to be sold 10 years after the HST project’s completion, will the winner of the tender have buying priority? 

CRRC also asked if there was an option to buy Tulomsas under the current tender’s terms. There was nothing of this sort in the tender’s specifications, but it does give a strong indicator that CRRC is very keen on establishing a major manufacturing presence in Turkey.

Indeed, in the same month it was enquiring about purchasing Tulomsas, CRRC signed a contract with Turkish hybrid and diesel locomotive manufacturer Acarlar for maintenance and repairs at its facility in Ayfon.

Eurasia Rail 2019 is proud to host CRRC

CRRC joins a comprehensive line-up of rail technology and rolling stock manufacturers showcasing their unique, cutting-edge solutions at Eurasia Rail this year.

With more than 200 exhibitors, it’s the region’s B2B meeting hub for the railway industry.

We’re expecting some big things from CAF at their stand this year, so make sure you have registered as a visitor and join us in Izmir for the 2019 edition of Eurasia Rail.

There’s still time to join CRRC at Eurasia Rail 2019

The biggest names in international rail infrastructure and rolling stock manufacturing will be at Eurasia Rail – will you?

It’s the one and only event of its kind in Turkey and Eurasia, and third largest worldwide.

Held every two years, Eurasia Rail presents the latest advances in train and rail system technology, providing a unique business platform for manufacturers and buyers alike.

Nearly 12,000 visitors come each year to meet 200 exhibitors from 25 countries worldwide. It is the perfect platform to showcase the latest technologies and rail innovations to a motivated, professional audience.

Book your stand today.

For more information on how Eurasia Rail can help your business get a slice of Turkey’s $46bn railway spending regime, contact us today.