Scottish First Minister Nicola Sturgeon welcomes the Chinese groups' $14 billion investments to build railway infrastructure in Scotland. (Photo : Reuters)
Scotland’s commuting system and local employment are expected to improve as Chinese investment group SinoFortone Group and China Railway No 3 Engineering Group have signed a memorandum of understanding with the government of Scotland on Monday, March 21, to undertake infrastructure projects worth nearly 10 billion pounds ($14.3 billion), China Daily reported.
"With high-speed trains traveling at a speed of over 300 kilometers per hour, it certainly will help Scotland change the situation in which its ground commuting systems long been dominated by automobiles," Luo Renjian, a researcher at the Institute of Transport Research at the National Development and Reform Commission, said. "And related projects can generate a large number of jobs and construction materials supplying businesses."
According to Luo, China's railway infrastructure building ability and rail equipment companies are flourishing due to cost advantages, reasonable delivery times and flexible financing models, although the country may be a latecomer in the field, compared with French and German rivals.
Analysts said that significant investment in fields such as clean affordable housing, energy and transport may follow the agreement.
Peter Zhang, the managing director of SinoFortone Group, Sir Richard Heygate, senior adviser for China Railway No 3 Engineering Group, and Chinese Consul General Pan Xinchun were joined by Scottish First Minister Nicola Sturgeon at Bute House during the agreement's signing ceremony.
"We have been cooperating and engaging with China since 2007 and I further progressed Scotland's business credentials during my trip last year, and this Memorandum of Understanding will strengthen our economic links with China in a number of areas," Sturgeon said.
"We have high hopes for Scotland's economy and it is in a strong position, but if we can drive further growth by looking beyond our shores and building relationships with firms across the world then we will seek to make that happen," the Scottish First Minister added.
"We are delighted to act as a bridge between Chinese infrastructure expertise and finance with Scotland, to provide a real example of the benefits of the Belt and Road Initiative in action," Zhang said.
Meanwhile, Consul General Pan, who congratulated all sides on this agreement, said that the project will benefit the Scottish people as much as Chinese enterprises.
SinoFortone's investment will be good for Scotland's economy as it will create jobs and enable growth, Sir Brian Souter from Souter Investments said.
