Belt and Road set to deliver significant boost to China Railway
Company likely to see overseas revenue grow to 7-8pc of total turnover within three years, says Moody’s
Analysts expect China Railway Group to receive a bigger proportion of its revenue from overseas operations, as the state-owned construction company starts building projects under the state-led “One Belt, One Road‘ initiative.
Continued overseas expansion will help support annual revenue growth of between 3 and 4 per cent in the coming two years, credit rating agency Moody’s said in a note.
China Railway is the latest Chinese company to benefit from the ‘One Belt, One Road’ initiative, which involves building major construction and communications projects along the ancient trade routes between Asia and Europe.
The company announced last week it had won a US$3.1 billion project to build a rail network in Bangladesh. The line will connect capital Dhaka to southwestern city of Jessore, a distance of 168.6 kilometres.
“This contract award demonstrates the company’s strong capabilities with cutting-edge technologies in railway, bridge and tunnel construction to win large-scale and complex projects,” Chenyi Lu, a Moody’s vice president and senior analyst, said in the note after the deal was announced.