China Railway Engineering Corporation

Not to be confused with China Railway Construction Corporation, another railway infrastructure enterprise in the PR China.
China Railway Engineering Corporation
中国铁路工程总公司
State-owned
Traded as SEHK: 390 SSE: 601390
Industry Construction
Founded 1950
Headquarters Beijing, People's Republic of China
Area served
 People's Republic of China
Key people
 Chairman: Li Changjin
Products Railways
Services Railway infrastructure
Owner Chinese Government
Number of employees
 ~270,000
Website www.crec.cn/

The China Railway Engineering Corporation (simplified Chinese: 中国中铁 or 中国铁路工程总公司; traditional Chinese: 中國中鐵 or 中國鐵路工程總公司) (CREC or China Railway Group) is a large-scale state-owned construction company in the People's Republic of China under the supervision by the State Council of the People's Republic of China. By revenue, CREC is the largest construction company in the world in the 2012 Engineering News-Record "Top 225 Global Contractors" and ranks No.86 among all multinationals in the Fortune Global 500.[1][2]

Business areas

CREC holds a large share of the Chinese construction market and participates in many large-scale infrastructure projects overseas (especially in countries in the Southeast Asia and Africa). In addition to the core business of construction, the company does business in surveying and designing, installation, manufacturing, R&D, technical consulting, capital management as well as international economic and trade activities.

History

From 1970 to 1975, the Railway Engineering Corps, the predecessor to the CREC, helped build the TAZARA Railway in Tanzania and Zambia. The 1,860 km railway in Africa was China's single largest foreign aid project. The Railway Engineering Corps would go on to build other large-scale infrastructure projects in foreign countries.

In November 2007, CREC announced that it would be listing A shares and H shares on the Shanghai and Hong Kong respectively. The IPO price of A share ranged from 4 to 4.8 Chinese yuan while that of H share ranged from 5.03 to 5.78 Hong Kong dollar. CREC joined the Hang Seng China Enterprises Index from 10 March 2008.[3]

In support of a cross country railway building boom in Venezuela, CREC began construction in 2009 of the Anaco-Tinaco railroad, an 800 million USD project to building a 471 km high speed railway line through the agriculture belt.[4]

This company appeared to break new ground in the European Union in 2009 when the COVEC subsidiary along with two Chinese partners were awarded the tender to construct two parts of the A2 highway in Poland.[5] The project began well in the design and preparation stages with COVEC demonstrating "technical acumen" but work ran aground at later stages because of mismanagement within a tight regulatory framework, ending in failure for COVEC and replacement by other contractors.[6]

Corporate structure

CREC consists of 31 member enterprises including:

- 16 super-large construction enterprises

- 3 large or super large surveying and designing enterprises

- 3 large R&D enterprises

- 5 large manufacturing enterprises

In addition there are 4 organizations directly run by the Headquarters and 17 subsidiary companies and project companies. CREC's construction teams are found in over 1,000 cities throughout China.

See also

References

  1. ↑ "Global 500". Fortune.
  2. ↑ "The Top 225 Global Contractors". Engineering News-Record.
  3. ↑ CREC joined Hang Seng China Enterprises Index
  4. ↑ Kroth, Olivia (October 9, 2012). "President Chávez continues Venezuela's railway development". Pravda.
  5. ↑ Broomby, Rob (16 September 2009). "China's controversial Polish contract". BBC News.
  6. ↑ "European Project Trips China Builder". Wall Street Journal. June 4, 2012.

External links