China Railway Construction Corporation

China Railway Construction Corporation Limited (abbreviated CRCC) 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.[3]

Not to be confused with China Railway Engineering Corporation, another railway infrastructure enterprise in China.
China Railway Construction Corporation Limited
TypeState-owned enterprise
IndustryConstruction
Founded1948
1990 (holding company)[1]
2007 (listed company)[1]
Headquarters
Beijing
,
China
Area served
Worldwide
Key people
Chairman: Fengchao Meng
ProductsRailways
ServicesRailway infrastructure
RevenueCN¥680.98 billion (2017)[2]
CN¥20.91 billion (2017)[2]
CN¥16.92 billion (2017) [2]
Total assetsCN¥821.89 billion (2017)[2]
Total equityCN¥178.65 billion (2017)[2]
OwnerCRCCG
Number of employees
261,333 (2017) [2]
ParentCRCCG
SubsidiariesCCECC (100%)
Websitewww.crcc.cn
China Railway Construction Corporation Limited
Simplified Chinese中国铁建股份有限公司
Traditional Chinese中國鐵建股份有限公司

The limited company was incorporated in 2007 in order to float the assets of China Railway Construction Corporation [Group] (CRCCG, simplified Chinese: 中国铁道建筑总公司; traditional Chinese: 中國鐵道建築總公司, or the holding company) in Shanghai and Hong Kong stock exchange. CRCCG retained some assets which was deemed not suitable to float in the stock exchange.[4]

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 (holding company) is not disclosed. As both parent and subsidiary share almost the same English name, one without the word "Limited" (they have different names in Chinese), 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 (the Bureau Groups numbering 1 through 10 belong to competitor China Railway Engineering Corporation)
    • China Railway Construction Bridge Engineering Bureau Group Co., Ltd. (former 13th Bureau)
  • China Civil Engineering Construction Corporation (CCECC)
  • CRCC High-tech Equipment (CRCCE)
  • 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 (found 1948 and became part of the Ministry of Railways from 1982). 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.[5]

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.[4] 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.[6]

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.[7] 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.[8][9]

Projects

Domestic

CRCC has built much of the transportation infrastructure in China including high speed rail, subways, and expressways.

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.[10]
  • 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

Central America and Caribbean
  • Honduras A consortium of CRCC and CMC with SOPTRAVI constructed the Tegucigalpa Metro.

Southeast Asia

Europe

Africa
  • Angola CRCC built a 1344 km railway line in Angola that opened in 2015 for a contract value of $1.83 bn.[16]
  • Mali CRCC signed a $1.5 bn deal with the government of Mali to improve its railway system.[17]
  • 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.[18]

Other business areas

The main business activity of the company is in construction and engineering but it is also engaged in real estate development and copper mining.

Controversy

In November 2020, Donald Trump issued an executive order prohibiting any American company or individual from owning shares in companies that the United States Department of Defense has listed as having links to the People's Liberation Army, which included China Railway Construction Corporation.[19][20][21]

References
  1. 中国铁建股份有限公司概况 [Brief summary of China Railway Construction Corporation Limited] (in Chinese). Archived from the original on 10 March 2015. Retrieved 6 June 2015.
  2. "Archived copy" (PDF). Archived (PDF) from the original on 2018-10-22. Retrieved 2019-02-15.CS1 maint: archived copy as title (link)
  3. "ENR Top 250 Global Contractors". Engineering News Record. 2014. Archived from the original on 2015-07-28. Retrieved 2015-07-30.
  4. 與中鐵建總公司的關係 Archived 2015-06-07 at the Wayback MachineRELATIONSHIP WITH CRCCG Archived 2016-03-05 at the Wayback Machine Filing in Hong Kong Stock Exchange (in English and Chinese)
  5. Allen-Ebrahimian, Bethany (2020-06-24). "Defense Department produces list of Chinese military-linked companies, 20 years after mandate". Axios. Retrieved 2020-06-24.
  6. "Connected Transaction Acquisition of Equity Interest in Chongqing Tiefa Suiyu" (PDF). Archived (PDF) from the original on 2016-03-05. Retrieved 2015-06-07.
  7. "CRCC contributes to capital construction in Africa". Xinhua. November 22, 2009. Archived from the original on November 24, 2015. Retrieved July 30, 2015.
  8. "Press release: Internazionale Holding S.r.l". F.C. Internazaionale Milano. 1 August 2012. Archived from the original on 10 June 2015. Retrieved 5 June 2015.
  9. F.C. Internazionale Milano S.p.A. bilancio (financial report and accounts) on 30 June 2013, PDF purchased from Italian C.C.I.A.A. Archived 2014-04-30 at the Wayback Machine
  10. "Now Chinese firm on the scene". Daily Star. August 26, 2014. Archived from the original on July 3, 2015. Retrieved July 27, 2015.
  11. "CRCC reports booming overseas contracts". China Daily. October 20, 2007. Archived from the original on March 5, 2016. Retrieved July 27, 2015.
  12. "Chinese company wins Egyptian track upgrading contract". International Railway Journal. April 15, 2015. Archived from the original on September 26, 2015. Retrieved July 30, 2015.
  13. "World rail market March 2009". Railway Gazette International. 2009-03-08. Archived from the original on 16 June 2011. Retrieved 3 March 2010.
  14. Connected Transaction: Signing of the Agreement on the Arrangement of Matters in Relation to the Mecca Light Rail Project and Resumption of Trading Archived 2015-06-16 at the Wayback Machine CRCC c/o hkexnews.hk
  15. "Turkey's new high-speed rail: victory for Erdogan – and China". Global Construction Review. July 29, 2014. Archived from the original on September 10, 2015. Retrieved August 2, 2015.
  16. "CRCC-built Benguela Railway in Angola inaugurated". Want China Times. February 18, 2015.
  17. "Mali signs $1.5 bln rail deal with China Railway Construction". Reuters. December 26, 2015. Archived from the original on December 16, 2016. Retrieved June 30, 2017.
  18. "Senegal - Mali railway modernisation agreements signed". Railway Gazette. January 5, 2016. Archived from the original on January 7, 2016. Retrieved January 6, 2016.
  19. Chen, Shawna (November 12, 2020). "Trump bans Americans from investing in 31 companies with links to Chinese military". Axios. Retrieved November 12, 2020.
  20. Pamuk, Humeyra; Alper, Alexandra; Ali, Idrees (2020-11-12). "Trump bans U.S. investments in firms linked to Chinese military". Reuters. Retrieved 2020-11-12.
  21. Swanson, Ana (2020-11-12). "Trump Bars Investment in Chinese Firms With Military Ties". The New York Times. ISSN 0362-4331. Retrieved 2020-11-13.
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