The largest overseas order of Chinese high-end rolling stock was signed on March 17, 2014, when China’s CSR Zhuzhou Electric Locomotive Co. Ltd., a subsidiary of CSR Corp., won a $2.1-billion contract to supply electric locomotives to South Africa’s Transnet. ChinAfrica spoke to Cao Gangcai, CSR Corp.’s spokesperson about this record breaking deal. Excerpts of the interview follow:

ChinAfrica: What made CSR stand out among other competitors to win the contract? Compared with rolling stock produced by rival companies, what are the advantages of CSR’s locomotives?

CSR: The reasons include CSR’s innovation capability, a well-established financing platform, a complete industrial chain, as well as our emphasis on win-win cooperation. Besides, the contract we won in 2012 to provide 95 electric locomotives to Transnet was efficiently completed in eight months from design, manufacture to delivery, praised as “a miracle in the history of rolling stock manufacturing.”

Freight transportation capabilities in South Africa have been greatly enhanced in recent years with the government’s increasing investment in railway infrastructure construction. Now the country has 30,600 km of rail line, with the electric line exceeding 10,000 km. When the 359 electric locomotives are put into operation, both the freight transportation capability and the utilization efficiency of electricity of South Africa’s railway network will be further improved, while also being a milestone in the country’s foreign trade.

What does the deal mean for the growth of China’s manufacturing industry and globalization of Chinese enterprises?

Globalization has become a new approach for the prosperity of China’s high-end manufacturing industry. The contract is of great significance to the globalization of Chinese rolling stock manufacturing. With CSR Zhuzhou Electric Locomotive as an example, Chinese locomotive producers are upgrading to transfer products, services, technology and investment from just selling products and services. With the biggest volume of overseas orders and the richest experience in expanding overseas markets, CSR Zhuzhou Electric Locomotive can be the model for the upgrading and globalization of Chinese high-end rolling stock manufacturing.

What will the cooperation bring to 
the South African job market and economy?

Based on this export deal, CSR Zhuzhou Electric Locomotive will cooperate with local enterprises to establish a locomotive manufacturing base. By transferring our manufacturing technology, the rolling stock and related industry will be greatly upgraded in South Africa as well as surrounding countries. This export will create about 30,000 jobs directly and indirectly. When a complete industrial chain from producing spare parts to finished locomotives is established in South Africa, more jobs will be available to locals.

When encouraging Chinese enterprises to go abroad during annual sessions of the National People’s Congress and the Chinese People’s Political Consultative Conference in 2014, Chinese Premier Li Keqiang emphasized the quality of products made in China. What do you think of his remarks and what measures has CSR taken to guarantee the quality of its exported products?

After decades of development, CSR has accumulated rich experience in locomotive manufacturing and quality control. We have also learned from well-known stock rolling producers across the world through cooperation and have established a complete quality control system that satisfies not only Chinese standards but also European. Our electric locomotives are well-received in foreign markets. The export amounts to 30 billion yuan ($4.8 billion) in just three countries, namely Turkey, Malaysia and South Africa.

Does CSR have similar cooperation with other African countries?

The friendly political and smooth trade relationships between China and Africa during the past years have laid a solid foundation for future deeper bilateral cooperation. The emerging African economy requires an improvement in infrastructure. Therefore, we believe that booming Chinese enterprises have great value for Africa and there will be extensive cooperation in the field of rolling stock manufacturing.