Spotlight: Mexico reopens bidding for high-speed train project

Mexico relaunched bidding for its first high-speed railway project on Wednesday, setting fresh preliminary terms after the Latin American country abruptly annulled a win by a Chinese-led consortium two months ago.

New bidding for the high-speed rail project linking Mexico City with the industrial city of Queretaro will be opening for 180 days, according to a bidding invitation notice published on the website of Mexico's Ministry of Communications and Transport.

Bidders need to submit tenders by July 14 and the winner will be finally announced on July 31, according to the notice.

The new terms unveiled are similar to the previous ones, requiring the winner to be responsible for the designing and construction of the railway system, provide the high-speed trains, and take care of their operation and maintenance in the first five years.

The notice did not reveal the exact value of the project. It was worth 3.7 billion U.S. dollars in last November's bidding.

The Mexican high-speed rail project covers a distance of 210 km, designed with a maximum speed of 300 km per hour. Upon completion, the rail will be able to transport 27,000 passengers per day.

Due to domestic reasons, the Mexican government canceled the bidding won last November by the Chinese-led consortium, which groups the China Railway Construction Corporation (CRCC) and several Mexican construction firms.

With sharpened competitive edge, the consortium has decided to re-enter the bidding this time.

The CRCC has participated in dozens of overseas railway construction projects, including the high-speed railway from Ankara to Istanbul in Turkey and China's CRH380 bullet train which has had smooth operation on the Beijing-Shanghai High-Speed Rail for more than three years.

The Chinese railway industry has comparative advantages in construction technologies, cost control, and productivity of labor, Zhou Lei, chairman of CRCC International Co., Ltd, a wholly owned subsidiary under CRCC, told Xinhua.

Analysts say the Chinese bidder's financing power is also highly competitive and can offer much more favorable terms than any other rivals.

They believe that such a tender is very significant to the Mexican government which is seeking to open up its energy sector to foreign investors.

To help activate the economy and improve communication, Mexican President Enrique Pena Nieto announced at the start of his term in 2012 that his government would promote several rail infrastructure projects.

The high-speed train project open for bidding will be one of Nieto's flagship infrastructure investments. After its completion, travel by train between Mexico City and Queretaro will merely take about one hour.

The Mexican government is reportedly expected to extend the project north to include the second city of Guadalajara after the first leg of the project is finished. Endi