CRRC Changchun Railway Vehicles is Making History in Australia
CRRC Changchun Railway Vehicles officially announced on Saturday, November 26 that it will take part in the largest railway project in Australian history with a contract worth AU$2 billion ($1.5 billion).
What is the Project?
This project is a 65 High Capacity Metro Trains (HCMT) public-private partnership (PPP) is to be completed by Victorian government and the Evolution Rail Consortium.
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This 65 trains will be used on the Cranbourne, Pakenham and Sunbury lines in Melbourne. The Evolution Rail will maintain the fleet for 30 years at purpose-built depots in Pakenham East and Calder Park. The trains will be assembled at Downer's facility in Newport, Victoria, which will undergo a AU$16 million ($11 million) upgrade.
This will be the largest railway project in the history of Australia. It is privately financed by Evolution Rail's debt partners include Bank of China, Westpac, Bank of Communications, HSBC, ISBC, Intesa Sanpaolo, Mizuho Bank, and UOB.
Equity financing will come from the Evolution Rail Consortium, and funds managed and advised by Partners Group.
Evolution Rail Consortium
According to the International Railway Journal, the Evolution Rail Consortium comprises Downer Rail, CRRC Changchun Railway Vehicles, and Plenary Group. On November 22, Jacinta Allan, Victoria state minister for public transport, announced that the consortium had signed a contract.
CRRC Changchun Railway Vehicles is one of the best train manufacturers in China. It is a subsidiary of the Beijing-based CRRC Corporation.
CRCC will design the HCMT project and establish new regional headquarters in Melbourne. The train manufacturer contributed about 45 percent of the value of the project.
The first of the new trains will be delivered for testing by November 2018, ready to enter service on the Cranbourne-Pakenham Line from 2019. All 65 metro trains will be ready in 2026 when Melbourne's metro tunnel opens.
This project is expected to produce at least 1,100 jobs.