Almost 10 years ago, CRRC (China Railway Rolling Stock Company), the world’s largest rail rolling stock and railcar components company, a Chinese Communist Party SOE (State-Owned Enterprise), set forth a grand strategy to dominate the North American rail rolling stock industry. CRRC had already caused every Australian rail rolling stock company to go out of business by 2015, and the company was expanding wherever China’s “Belt and Road” initiative took them—plus North America. CRRC’s tactics were simple: Price to penetrate and drive everyone out of business.
CRRC’s Growth in North America
CRRC’s efforts to dominate the North American passenger railcar market started with Massachusetts Bay Transportation Authority (MBTA) in 2014, where CRRC won a bid for 284 cars valued at $566 million. Its bid was $155 million below Hyundai-Rotem, the next lowest bidder; $339 million below third-place Kawasaki Railcar, and a whopping $442 million below fourth-place Bombardier (now Alstom). In 2016, MBTA ordered an additional 120 cars.
In 2017, CRRC won a Southeast Pennsylvania Transportation Authority (SEPTA) order for 45 bilevel Regional Rail cars at a value of $185 million—$34 million below second-place Bombardier [since cancelled]. CRC won a Chicago Transit Authority (CTA) order for 846 cars valued at $1.31 billion in 2016 by underbidding the next closest competitor, also Bombardier, by $226 million. CRRC continued its offensive in 2017 by winning a Los Angeles Metro order for 64 cars valued at $178 million, with an option for 218 more.
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