Japanese conglomerate Hitachi is stepping up efforts to expand its presence in the Asian rail market, putting it in direct competition with China, the region’s main infrastructure supplier.
Hitachi’s strategic focus is to expand its presence in Singapore, Malaysia and India. The company’s ambitions are Highlighting Giuseppe Marino, head of Hitachi’s railway systems business and CEO of Hitachi Rail, said on June 19:
The move follows the acquisition of Thales Group’s railway signalling business, which was completed on May 31, and was a strategic move aimed at strengthening the company’s global footprint and competitiveness.
The new acquisition follows Hitachi’s previous acquisition of AnsaldoBreda and STS from Italy’s Finmeccanica, and will combine the companies’ capabilities in rolling stock, signalling, ticketing systems and digital services.
Hitachi, which makes Japan’s bullet trains, maintains a strong presence in Japan, the UK and Italy, but the acquisition of Thales’ signalling business will expand its reach into new markets including France, Germany, Canada and across Asia, including Singapore and Malaysia.
![A high-speed train designed to run at 350 kilometers per hour for the Jakarta-Bandung high-speed rail rolls off the assembly line in Qingdao, east China's Shandong province, on August 5, 2022. Photo: Courtesy of China Railway](https://www.globaltimes.cn/Portals/0/attachment/2022/2022-08-02/87f9523d-00ac-4d12-8cf9-ea7352a2ccdd.jpeg)
“We’re able to offer a connected, highly integrated system,” Marino said, highlighting the appeal of the comprehensive “KeyReady” solution for customers who prefer a streamlined procurement process.
Hitachi’s expansion strategy in Southeast Asia puts it in direct competition with China’s state-owned giant, CRRC, which is involved in high-speed rail projects across the region.
CRRC is spearheading high-speed rail initiatives in Indonesia and Thailand and has expressed interest in linking Kuala Lumpur with Singapore by high-speed rail, a project for which Japanese companies have yet to submit proposals.
“We are looking into it,” Marino said of Malaysia’s high-speed rail plans, signalling Hitachi’s willingness to explore new opportunities amid China’s ambitious Belt and Road Initiative, which aims to expand its influence through infrastructure projects such as the East Coast Rail Transit (ECRL).
Beijing Announced On June 19, it said it was open to exploring linking Malaysia’s $10 billion East Coast Rail Link (ECRL) with existing China-backed railway developments in Laos and Thailand.
The move could significantly expand the impact of China’s Belt and Road Initiative across Southeast Asia. Chinese Premier Li Qiang, who is on a three-day visit to Malaysia, said the initiative would solidify the central route of a proposed pan-Asian railway from Kunming, China, to Singapore.
India, a very important market
Marino emphasized India’s importance as a major market, noting that its population has grown rapidly and is now the world’s largest, surpassing China. “India is a very important market. It’s becoming the most populous in the world,” Marino said.
Hitachi’s expansion efforts also come as India, under the leadership of Prime Minister Narendra Modi, moves ahead with plans for the Mumbai-Ahmedabad High Speed Rail project, a groundbreaking initiative that is expected to transform inter-city travel.
The estimated Rs 1.25 trillion Mumbai-Ahmedabad high speed rail project is being primarily funded by the Japan International Cooperation Agency (JICA), which provides 88 per cent of the funding.
Marino expressed Hitachi’s ambition to bring Japanese technology to India, particularly the Shinkansen, and said negotiations were ongoing. “Of course, we have an ambition to bring Japanese technology, the Shinkansen, to India,” Marino said. “Negotiations are ongoing.”
In addition to the Mumbai-Ahmedabad corridor, India is also planning high-speed rail connections between New Delhi, Chennai and Kolkata.
![Public domain stock photos. Japanese Shinkansen Hikari. - PICRYL - Public Domain Media Search Engine Public Domain Search](https://cdn12.picryl.com/photo/2016/12/31/japan-bullet-train-hikari-405a48-1024.jpg)
Marino did not go into detail about Hitachi’s activities in India, but Previous Report The company indicated it was working with another Japanese company, Kawasaki Heavy Industries, to begin discussions on needed changes to the bullet train’s design.
These consultations are aimed at ensuring that the trains are suitable for the Indian environment and operating conditions.
Under JICA rules, only Japanese companies such as Kawasaki Heavy Industries and Hitachi can bid for the project. The two companies have indicated they are willing to supply bullet trains modified for Indian conditions, including resistance to the intense heat and dust prevalent in the region. The modified trains will be 10 carriages, each capable of accommodating up to 690 passengers.
NHSRCL (High Speed Rail Corporation of India) plans to introduce an 18-car Shinkansen train using Japan’s E5 bullet train technology for the Mumbai-Ahmedabad high-speed rail. The train can reach a maximum speed of 320 km per hour.