Rail exports still on track - for now

Last weekend's deadly high-speed train crash has not yet derailed China's rail exports, with a British operator eyeing an order for Chinese trains valued at more than GBP200 million (HK$2.6 billion) and Thailand considering teaming up with mainland firms to build a network.

'It has not made us think any differently of the purchase of trains from China,' said Ian Yeowart, managing director of private British rail operator Alliance Rail Holdings.

Alliance has been holding talks with CSR Corporation, a Chinese state-owned rolling-stock manufacturer listed in Hong Kong and Shanghai, said Yeowart, who added that his company was also talking to potential train suppliers from other countries. CSR manufactured one of the trains involved in the July 23 collision that killed 40 people, while a joint venture between CSR and Bombardier of Canada made the other train.

However, analysts say the nation's worst-ever high-speed train disaster would still hurt exports of China's much-touted high-speed rail products and delay rail contracts on the mainland.

'Some European clients are concerned that the reputational fallout [from the accident] will affect their ability to sell Chinese technology in their own markets,' an international construction executive said.

A Thai railway official said the Thai government was likely to approve a high-speed rail line between Bangkok and the Laotian border in northeast Thailand, the political base of the newly elected ruling party, Puea Thai.

Puea Thai had included a proposed high-speed rail system in its election campaign, the official said. 'Relations between Thailand and China are very crucial at least for the Thai side,' the official said. 'We will treat this matter very carefully.'