State-owned Railway Firm Opens Contract Order for 351 Bullet Trains Worth $10.6 Billion

State-owned China Railway Investment Corp. has reportedly opened orders or tenders for 351 bullet trains, said to be the largest train order in history, according to Xinhua News Agency.

CRIC, a subsidiary of China Railway Corp., said that the contract asks for 228 bullet trains that can run at maximum speed of 350 kilometers per hour, as well as 123 trains that are capable of traveling at 250 kilometers per hour.

The report said that the tenders, which are open to China-based manufacturers only, are estimated to be worth more than 66 billion yuan ($10.6 billion). The manufacturers must have the necessary licenses to build high-speed trains.

According to experts, the move could lead to a massive new wave of construction in China's railway network and industry, which was recognized as the biggest in the world.

Demand for rail transport system, which continues to grow, is expected to triple to more than five billion passengers a year by 2020, the experts added.

This year, industry spending on trains, locomotives and supplementary equipment is expected to reach 150 billion yuan, according to a source quoted by 21st Century Business Herald. The data was based on information shown in a meeting held by Sheng Guangzu, head of China Railway Corporation.

The report said that this is the first time that CRIC has opened bidding, following its merger with China's former top two train manufacturers, CNR and CSR, this year.

The Business Herald said that more tenders are likely to occur in the second half of this year that are estimated to be more than 80 billion yuan.

A senior source at China Railway Rolling Stock Corp. Ltd. (CRRC Corp) said that the demand for the 250-kmph train is likely to increase since a 350-kmph bullet train normally costs around 370 million yuan.

China's high-speed rail network was started only in 2007, but it has expanded quickly as most of the country's cities are now connected.