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CRCC signs major $2.26 billion Zambian rail deal

Staff Writer |
China Railway Construction Corp (CRCC) has signed an agreement with the Zambian government for a 15.09 billion yuan ($2.26 billion) railway line.

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The line will link Chipata and Serenje in the east of the country. The single-track railway will be 388.8 kilometers in length. Passenger trains will travel at a top speed of 120 kilometers per hour, and freight trains at 80 kilometers per hour.

Beijing-based CRCC said the project is projected to last four years, ranging from design to construction under the contract.

"In the short term, CRCC's overseas business has huge growth potential, as the county pushes forward the Belt and Road Initiative," Xia Tian, construction analyst at Essence Securities, wrote in a research note late last month.

The contract was signed between China Civil Engineering Construction Corp, a unit of CRCC, and Zambia's Ministry of Transport, Works, Supply and Communications. The contract value accounted for 2.51 percent of CCECC's revenue in 2015, according to the company.

The net income of CRCC reached 9.123 billion yuan in the first nine months of 2016, up 12.43 percent year-on-year. In the same period, its revenue increased 2.62 percent year-on-year to 423.885 billion yuan.

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