Menu

major shifting various components of manufacturing from

0 Comment

major players across Asia, Europe, and North America own
overseas subsidiaries or operating as subsidiaries of foreign companies. Large multinational
corporations through consolidations or single-handedly dominate the industry. Asian
manufacturers such as CSR and CNR consolidated their operations to form CRRC, a
biggest supplier of rolling stocks. In addition, suppliers like Hyundai Rotem
and Hitachi Rail has subsidiaries or affiliations with international companies
to penetrate global market. European manufacturers, such as Alstom and Siemens,
recently merged their entire rail operations to compete with the growing Asian
presence in the rail industry. Earlier, Alstom and Siemens acquired established
companies such as GE Signaling and Invensys Rail respectively to create a
domestic presence in US, while Hitachi Group acquired Ansaldo STS to strengthen
its business in Europe. Such international mergers and acquisitions broaden a
supplier’s product lines and expand geographic markets.

North America: Some companies outsource
manufacturing operations to subsidiaries or contractors in countries with lower
manufacturing costs. The North American Free Trade Agreement (NAFTA) encouraged
greater globalization, with major players shifting various components of
manufacturing from the United States to Canada and Mexico. Growing demand from
emerging markets will continue to promote the development of new manufacturing
centers in Southeast Asia and China. With the presence of GE Transportation,
Greenbrier, and Trinity Rail in US, the total North America rolling stock
market in FY2017 is estimated to be $11.700 million (18 percent)

EMEA: Europe is the second largest regional
market in 2017 in terms of shipment volume, accounted for a 26 percent ($16,752
million) of the base year market size. As most of the leading rail transport suppliers,
including Alstom, Bombardier (Though Canadian, Rail HQ is at Berlin), Siemens,
Stadler, and CAF SA have their headquarters here, this region is expected to
experience steady growth.

The markets in Africa/Middle East will grow once the political
instabilities decline and long term growth will be seen in the rail industry.
France, UK, and Germany drive the market in Western Europe with significant
investments in France (TGV du Futur) and UK (HS2). In addition, substantial
urban investments in the Spanish market (e.g. metro vehicles purchased for
Barcelona Metro Line 9) as well as in the VHS segment by RENFE.

Asia: Asia Pacific region leads the rolling stock
industry with market share of 53.9 percent ($33,176 million). China, Japan, and
India are leading the growth in Asian Subcontinent accounting for 51 percent. Due to urbanization and liberalization, Asia
will see a significant uptick in rail
project activity in the next few years. The Indian rail supply market is
expected to increase significantly by 2022, due to high project volumes in the
interurban segment (e.g. the Western and Eastern dedicated freight corridors,
the Kanchrapara EMU project, etc.). Chinese demand is expected to grow at 3.7
percent CAGR, with a variety of urban projects (e.g. Zhengzhou Metro
extension). Other relevant data points for Asia include:

·       
Six freight corridors planned for
construction/upgrading throughout India

·       
In China, Hunan CRRC Times Communication &
Signal Co has won a 300-million-yuan contract to supply CBTC signaling for
Changsha metro Line 4

·       
New metro vehicles will be added for various
urban systems (e.g. ~550 vehicles for Beijing Metro).

·       
Sapphire Corp subsidiary in China has won a
224-million yuan contract covering three further sections of the Ningbo metro,
due to be completed by mid-2020. Two contracts totaling 47 million yuan cover
sections of Line 17 in Chengdu and Line 5 in Hefei, and a 37m yuan design
consultancy contract covers the second phase of Line 2 in Taiyuan.

·       
Singapore-Kuala Lumpur high speed line is
expected to progress in the coming years and notable projects are planned in
India

·       
In the Philippines, a joint venture of
Construction Corp, East-West Rail Transit Corp, and Alloy MTD in a
joint-venture plan to build the 9·8 km PNR East-West Rail-way linking Manila
and Quezon City

·       
In Australia, New South Wales purchased 400
units of Electric Multiple Unit (EMU). A consortium of Arcadis and BG has
won a design con-tract for the tunnels and stations on Sydney metro Phase 2

·       
The market in Sub-Saharan Africa is expected to
grow rapidly