Briefing on CRRC Group’s Participation in Jointly Building “the Belt and Road”
May 8, 2017
CRRC Group
In the past four years of “One Belt and One Road” initiative proposed by China, CRRC has been actively integrating the development requirements of different countries or regions along “Belt and Road”, tailoring the unique high-quality products, providing the excellent and considerate warranty service,creating the original “Mode of Five-localization” to energetically push the construction on localization for additional local jobs and taxes, perfecting the chains of the local railway transport industry, upgrading the level of local railway transport industry development, winning the local respect and appreciation, and establishing the good image of Chinese high-end equipment brand.
1.Closely follow the steps of “One Belt and One Road” initiative, continuously promote the win-win cooperation
Up till now, “Made by CRRC” has covered 102 countries or regions around the global six continents, and CRRC’s products has been running on the lines of 83% of the countries, which operate railways in the world. Recent years has seen the continuous orders to CRRC from Boston, Chicago, Los Angeles and Philadelphia in USA, and from London in UK. Meanwhile, CRRC has set up its production bases in Boston and Chicago. CRRC vigorously participates in the projects of Indonesian Jakarta-Bandung high-speed railway, China-Laos railway, China-Thailand railway and Hungary-Serbia railway，making pilot contributions to the interconnection of “Belt and Road” initiative. CRRC involves in the construction on Addis Abeba-Djibouti railway and Mombasa-Nairobi railway,which greatly speeding up the process of “Networks of Railway, Highway and Airway and Industrialization” in Africa. CRRC supplied the high-speed multiple units to Indonesia, the locomotives to Laos, the metro cars to Pakistan and light-rail vehicles to Ethiopia, which introduced by each country for the first time, lifting the local railway transport and improving the travel quality of the local people.
（1）Internalization enhanced gradually
Thanks to the “One Belt and One Road” initiative, significant changes occurred to CRRC’s overseas assets and overseas employee, from 3 billion yuan in 2013 to 30.6 billion yuan in 2016, and from 509 overseas employees in 2013 to 4808 in 2016 respectively.
By April 2017, CRRC had set up 75 overseas facilities and 13 overseas R & D centers (including those under preparation) in 26 countries or regions around the world. Among our 75 overseas facilities, 50 of them had been set up since September, 2013 when “One Belt and One Road” initiative proposed by China.
（2）Cooperation modes increasingly enriched
In respective of the cooperation modes, CRRC has already transformed its cooperation methods from the simple products to the technology, products, capital, service and others. In July 2015, CRRC Malaysia Railway Transport Equipment Company(briefly called“ASEAN Center”), CRRC’s first railway plant in ASEAN region, was formally completed and put into production, which is the railway transport production base with the most advanced technology in the ASEAN region.In August 2016, CRRC Pioneer Electric(India) Company Limited(briefly called“CRRC Pioneer”, CRRC’s first railway transport equipment manufacturer in South Asia, started its official operation on the railway traction motors production. In the year of 2017, CRRC will deliver the first batch of metro car to Istanbul from its railway transport factory in Turkey, operating on M4 line. CRRC uses its accumulated rich experience on warranty service for reference and promotion, for instance, in 2016, CRRC got the locomotive maintenance order valuing 2.02 billion US dollars in South Africa, the largest one for overseas service. On March 27th, 2017, China signed the first cooperation agreement on “Belt and Road” with New Zealand, one of the western developed countries, at the same time, CRRC, together with its counterpart, KIWIRail of New Zealand, signed the strategic cooperation agreement, which will give New Zealand much broader solution to its railway transport based on the previous supply of just rolling stocks.
(3) Cooperation deepened continuously
CRRC not only provides the high-quality products, deeply integrating into the daily life of the local people of each nation, but also keeps advancing the “Mode of Five-localization”,i.e. “Localized manufacturing, localized purchasing, localized employment, localized maintenance and localized management”, building the localized product bases in Malaysia, Turkey, India and other countries, recruiting and training the local employee, driving the local employment and improving the local industry chain, and escalating the level of the railway transport equipment industry. By April, 2017, CRRC had employed nearly 400 people in Malaysia, 80% from the local residents, 95% to be expected for future. In Turkey, CRRC has 70 employee now, 60 of them from local people, accounting for 85.7%, and will have 219 employee in the future, 194 of them from local residents, accounting for 89%.
2.Casting an eye-catching business card for the “Belt and Road” initiative, winning appreciation from home and abroad
CRRC strives to perfect every product. Improving people’s life with superior-quality products, winning satisfaction of clients with attentive after-sales services, and actively taking on social responsibilities, CRRC dedicates all to create an image of a highly respectful internationalized corporate.
(1) Focusing on manufacturing high-quality vehicles, providing convenient travel experiences.
CRRC endowed its products for "Belt and Road" region with the first impression of "beautiful, durable, comfortable, and highly localized". The EMU and metro cars that CRRC provided for Rio, Brazil serve as a perfect example. The vehicles have successively served during the period of 2014 World Cup and 2016 Olympic Games. Our client, Rio Metro company wrote to CRRC many times, saying that China’s metro cars have won the approval of Olympic fans throughout the world, thus making Rio Olympic Games metro line literally an international transportation line. During the test run of EMU/DMU for Macedonia, Nikola Gruevski, the Prime Minister of Macedonia described the put-into-use of Chinese EMU/DMU as a historic moment, “One can easily judge by himself once seeing in person our previous trains running on tracks and the brand new ones from Chinese manufacturer.”
The multiple units for Malaysia have a carriage especially for female passengers. The light rail vehicles for Ethiopia look from inside out one hundred percent African. The front of the metro car for Brazil resembles a running football, matching perfectly with the country’s title “land of football”. The metro car for Argentina, with yellow & grey outside, and yellow & green inside, reminds people of the Pampas Steppe all the time.
(2) Gaining clients’ thumbs-up with attentive service guarantee
CRRC endeavors to reach its ultimate in product manufacturing and service providing. During the Mecca pilgrimage, the light rail vehicles must operate consecutively for seven days (168 hours). Accordingly, CRRC service team also had to operate in "whole week plus day and night” work schedule in order to offer a non-stop service guarantee. The vehicles have held the record of zero malfunction since the day they came into use seven years ago, transporting pilgrims up to 22 million. They spent all seven days even without leaving the vehicles or the stations. It was 16th August according to Chinese lunar calendar when the 2016 pilgrimage ended. In order to express their gratitude, Madame MAS, the President of Mekkah Mass Rail Transit Company (MMRTC) especially came to celebrate the Mid-Autumn Festival with CRRC service team, calling them "the most lovely people".
(3)Actively taking on social responsibilities, gaining public approval
Wherever CRRC goes, it does not only dazzles the world with its capability, but also bring benefits to local people.
For there is no college specialty on railway transportation in Malaysia, CRRC hence employed people with similar specialties and sent them to Tongji University and Hunan Railway Professional Technology College for training. In addition, CRRC helped Malaysia to build up a whole business chain of railway industry from scratch, cultivating companies with certain design and manufacture abilities, upgrading them into suppliers who can meet up with international procure standards via technical transfer and cooperation, and introducing major suppliers in China to set up branches in Malaysia. Through these efforts, a railway industry supply chain has come into being in Malaysia, radiating all the way to other countries in ASEAN region. The catering and service industry neighboring the manufacturing base have been promoted as well.
In South Africa, CRRC takes on as much social responsibilities as possible: providing training courses of management skills to local female officials, sending stationary and concern to the local orphans and disabled kids, hiring martial arts coaches from China to teach local policemen Chinese Kongfu, sponsoring community cultural activities, and helping workers to improve their professional skills. CRRC has been well received in varieties of societies of South Africa. In July 2016, President Zuma even attended one of CRRC’s charity activities.
CRRC has also helped cultivate high-end talents for the implementation of "Belt and Road" initiative. In the year of 2016, a graduate course run jointly by CRRC and Tongji University officially began, with the first batch of nine students mainly from Malaysia, India, South Africa and other countries.
3.Brightening up the road of hope by sharing and connecting, hitting a high note in realizing “Belt and Road” initiative.
In recent years, one can easily spot foreigners on the high speed trains, in the workshop and on the playground of CRRC. They came to CRRC not only for the sake of technical exchanges, business negotiations or industry tour. Those two steel rails have become the emotional tie connecting CRRC and the countries along the "Belt and Road" region.
As one of the leading enterprises implementing the “Belt and Road” initiative, CRRC proposed the goal of creating an image of respected internationalized company, making contribution to starting a whole new chapter in realization of the “Belt and Road” initiative.
(1) Speeding up technology innovation and promoting interconnection
CRRC will keep developing new technologies and new products so as to customize the “Belt and Road” initiative. Also, we will adapt to the demands of international multimodal transportation and interconnection. For instance, CRRC has been working on the free gauge train with the speed of 400 km/h, mainly for the convenience of cross-border transport, and to cut down expense.
(2) Innovating operation system and mechanism in response to market demands.
CRRC has made great efforts to optimizing its operation system and mechanism into the “headquarter - regional headquarter - regional companies” structure according to the needs of regional development of "Belt and Road" initiative. Basing on the principle of quickest response, CRRC strives to optimize the distribution of regional companies, local manufacture facilities and after-sales network, efficiently serving the implementation of "Belt and Road" initiative.
(3) Integrating global resources in order to satisfy clients’ needs.
Up to now, CRRC has set up 13 R&D centers across the world, such as those in USA, Germany, Britain, Czech, Russia, Israel, Bulgaria, Thailand and etc. Meanwhile, we purchased quite a few companies outside China. The R&D centers and foreign companies, as complementary to domestic resources, not only satisfy the need of Chinese domestic market, but also add new blood to the implementation of "Belt and Road" initiative.
(4) Focusing on the interest of clients, providing individualized solutions.
CRRC is dedicated to supplying systematic solutions for the implementation of "Belt and Road" initiative and building up the benefit-above-cost service system. We'll also continue to expand the pentagonal development mode of “product + technology + service + capital + management”. Making full use of former experience in rolling stock manufacture industry, CRRC provides clients with customized and integrated solutions, as well as value-added services, thus helps to create a more reasonable, efficient, and economical transport system. Meanwhile, CRRC endeavors to promote new industries such as new energy buses, wind power equipment, and sewage treatment, etc., offering new options for an Eco-friendly "Belt and Road", as well as enabling the public to enjoy the convenience and comfort brought by "CRRC solution", "CRRC wisdom" and "CRRC experience".
(5) Promoting the mode of “Five-localization”, realizing integration and sharing.
CRRC will continue to promote the mode of “Five-localization”, thus realizing comprehensive sharing effects. CRRC will share with its international peers, aiming to transform competitors to partners; CRRC will share with its clients, creating for them more values; CRRC will share with local government and public, offering more working positions and taxes. It is our promise to perform social duties and respect local traditions. By blending into local community, CRRC is bound to become a respected enterprise citizen of the world.