China Railway Construction Corporation
China Railway Construction Corporation Limited is a listed construction enterprise based in Beijing, China, that was the second largest construction and engineering company in the world by revenue in 2014.
The limited company was incorporated in 2007 in order to float the assets of China Railway Construction Corporation in Shanghai and Hong Kong stock exchange. CRCCG retained some assets which was deemed not suitable to float in the stock exchange.
Corporate structure
CRCCG is under the supervision of the State-owned Assets Supervision and Administration Commission of the State Council. Since February 2008, A shares and H shares of CRCC are listing on the Shanghai and Hong Kong stock exchanges.The financial report of the parent company is not disclosed. As both parent and subsidiary share almost the same English name, one without the word "Limited", the business activities of the holding company was often incorrectly mixed up with the publicly floated limited liability subsidiary by the media.
Subsidiaries of CRCC
- China Railway Bureau Groups numbered 11 through 25
- *China Railway Construction Bridge Engineering Bureau Group Co., Ltd.
- China Civil Engineering Construction Corporation
- CRCC High-tech Equipment
- China Railway Construction Group Ltd.
- China Railway Electrification Bureau Group Co., Ltd.
- China Railway Real Estate Group Co., Ltd.
- China Railway Goods and Materials Co., Ltd.
- Kunming China Railway Large Maintenance Machinery Co., Ltd.
- China Railway Construction Investment Co., Ltd.
- CRCC Finance Company Limited
- China Railway Urban Construction Group Co., Ltd.
History
Founding
Formerly the railway arm of the People's Liberation Army. Along with China Railway Engineering Corporation, both railway construction super conglomerates were under the Ministry until 2000. The company maintains links to the People's Liberation Army.In 2003, China Civil Engineering Construction Corporation, another former entity of the Ministry of Railways, was assigned to China Railway Construction Corporation as its subsidiary.
IPO
In preparation for listing, China Railway Construction Corporation Limited was incorporated in 2007 as a joint-stock company with limited liabilities which received most of the assets of the parent company. 5 Build-operate-transfer projects were not included, namely Chongqing Tiefa Suiyu Highway, Nanjing Yangtze River Tunnel, Beijing Tongda Jingcheng Highway, Xianyang Zhongtie Road and Bridge and Guangdong Chaojie Highway. Later on in 2015 CRCC bought Chongqing Tiefa Suiyu Highway from the parent company, while 20% was retained by Chongqing Expressway Co., Ltd.The company premiered on the Shanghai and Hong Kong in February 2008, raising US$5.7 billion, making the second largest IPO of that year. The performance was poorer than expected because of poor investment atmosphere from United States subprime mortgage crisis and China's economic macro-control.
International markets
CRCC is a global construction company. The effort to achieve this status was apparent in the 2000s when by end of the decade, the company had 209 projects in 35 countries, mostly in Africa. Its five major overseas markets then were Algeria, Nigeria, Libya, Angola and Saudi Arabia.In the succeeding decade, CRCC has branched to more overseas markets and moved up the value chain into overseas high speed rail construction. The company's work in new markets seemed to gather speed in Europe with the announcement of a deal to construct a stadium for F.C. Internazionale Milano as part of an acquisition by a Chinese investor in the club but the acquisition did not go through and apparently neither did the stadium deal tied to it.
Projects
Domestic
CRCC has built much of the transportation infrastructure in China including high speed rail, subways, and expressways.- Beijing–Shanghai High-Speed Railway, construction began in April 2008 and commercial serviced started in June 2011.
Asia
- Bangladesh The Dhaka Elevated Expressway, the first elevated expressway of Bangladesh, is to be constructed by CRCC in a $1.062 billion contract signed with the Italthai Industrial Group.
- The construction of Construction on the first new-build portion of the Karachi - Lahore Motorway project between Lahore and Multan costing approximately $1.5 billion was launched in November 2015 as a joint venture between the China Railway Construction Corporation Limited and Pakistan's Zahir Khan and Brothers, Engineers and Constructors.
Middle East and North Africa
- Algeria A consortium of CRCC and CITIC constructed the Central and Western sections of the Algeria East–West Highway in a contract worth $6.25 billion.
- Egypt Track upgrade contract for $600m won by the China Civil Engineering Construction Corporation unit in April 2015.
- Libya CRCC wins $2.6b bid in 2008 for west-to-east coastal railway 352 km from Khoms to Sirte and a south-to-north railway 800 km long for iron ore transport from the southern city Sabha to Misrata.
- Saudi Arabia CRCC wins 6.7 billion Saudi riyal contract in 2009 to build the first 18 km of the metro in Mecca. However, due to net loss of the project, the state-owned parent company subsidized the listed company to cover the loss.
- Turkey A consortium of CRCC and China National Machinery Import and Export Corporation with two Turkish construction firms constructed the Ankara-Istanbul high-speed railway, which opened in 2014.
Central America and Caribbean
- Honduras A consortium of CRCC and CMC with SOPTRAVI constructed the Tegucigalpa Metro.
Southeast Asia
- Laos A consortium of CRCC and CMC with the Ministry of Public Works and Transport constructed the Vientiane Metro.
Europe
- Albania A consortium of CRCC and CMC with the Ministry of Transportation and Infrastructure constructed the Tramvaj Tiranës.
Africa
- Angola CRCC built a 1344 km railway line in Angola that opened in 2015 for a contract value of $1.83 bn.
- Mali CRCC signed a $1.5 bn deal with the government of Mali to improve its railway system.
- Nigeria The China Civil Engineering Construction Corporation unit signed a $3.5bn contract with the Ogun State in April 2015 to construct a railway line through the state.
- Senegal CRCC signed a $1.26 bn deal with the government of Senegal for work on 644.6 km of the rail line from Dakar to the Malian border.
Other business areas