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INTERNATIONAL PASSENGER RAIL HIGH SPEED RAIL IN EUROPE BlowMe AI: China CANCELS Bulgaria’s $660M Rail Deal After EU’s 'UNFAIR' Actions! PLAY YOUTUBE VIDEO Original article: https://www.youtube.com/watch?v=ORI4-xcd_TU Peter Burgess COMMENTARY I have been interested in passenger rail since I was a child growing up in the UK. I have some vague memories of being very young and travelling by train at night from London to Yorkshire during the WWII nighttime 'blackout'. This was, of course, a steam train. Diesel traction, and then electric came more than 20 years later! The UK built a lot of rail track in the 19th century during the industrial revolution, but essentially all of the track has a 'loading gauge' that is substantially smaller than that of most rail systems in Continential Europe, the United States and essentially the rest of the world. Moving to a common bigger international loading guage would mean an almost complete rebuild of the system ... something that would be ridculously costly and impossible to justify on any rational grounds! China has become an enormously powerful factor in high speed passenger rail with the potential to dominate where it chooses and there is a level playing field. Major European companies want to supply into the European market and the EU has moved to give support incentives to enable this, but it gets complex very quickly. China has the capacity to disrupt European initiatives and will likely do this when and where it chooses. I am impressed with the progress that has been made with high speed passenger rail over the past two decades in many parts of the world. As referenced above the UK is constrained by its limited loading gauge situation and the USA has some significant commuter passenger rail but essentially no inter-city high speed rail. US inter-city freight rail is impressive, but not US passenger rail! Peter Burgess
China CANCELS Bulgaria’s $660M Rail Deal... After EU’s 'UNFAIR' Actions! BlowMe AI Nov 26, 2024 83.2K subscribers Bulgaria's ambitious $6 60 million rail modernization project has collapsed following China's exclusion from the bidding process. The controversy began when Bulgaria, facing aging railway infrastructure, sought to purchase 20 electric trains with maintenance services. While China's CRRC offered a highly competitive bid at $350 million, EU regulators intervened, citing concerns about Chinese government subsidies. After CRRC's exclusion, Spanish company Talgo withdrew from the project, leaving Bulgaria's transportation modernization plans in disarray. Join this channel to get access to perks: / @blowmeai Transcript 0:00 China just shut down Bulgaria's $660 million Rail Project after the eu's interference with crrc out and plans falling apart is Europe's strategy backfiring China has emerged as an Undisputed Global leader in the field of High-Speed Rail technology the nation's rapid development in this sector has been nothing short of extraordinary with its high-speed trains not only crisscrossing the domestic landscape but also making significant inroads internationally the most compelling evidence of China's dominance in this field is the fact that China Railway Rolling Stock corporation's products have been exported to more than 110 countries and regions worldwide before we explore the details make sure to like comment and subscribe to our channel for more interesting content China's high-speed rail network has shattered records and pushed technological boundaries the current operating speed of Chinese high-speed trains has reached an impressive 350 km hour with ambitious plans to increase this to 400 kmph in 1:05 the near future in terms of network size China's total High-Speed Rail operating mileage has reached a staggering 46,000 km accounting for approximately 60% of the world's total High-Speed Rail mileage against this backdrop of Chinese Railway prowess Bulgaria a country in Southeastern Europe announced an ambitious High-Speed Rail Project in December 2023 the project valued at $660 million immediately captured the attention of the global Railway industry more than 20 companies worldwide expressed interest in this large-scale European infrastructure initiative setting the stage for intense competition given China's established reputation and Competitive Edge in the high-speed rail sector many industry observers expected Chinese companies to secure the Bulgarian contract with relative ease however in a surprising turn of events 2:02 Bulgaria suddenly excluded China from the project just a few months after the initial announcement this unexpected decision not only led to China's withdrawal But ultimately resulted in the cancellation of the entire project to fully understand the complexity of this situation it's crucial to examine Bulgaria's unique Transportation challenges Bulgaria is a country of vast land and sparse population with a total area of 110,000 996 Square km and a population of only 6.43 million Bulgaria faces significant challenges in efficiently utilizing its land and connecting its cities this Geographic and demographic context has created a paradoxical situation where abundant Land Resources coexist with inefficient land use and disconnected Urban centers the impact of these challenges is evident in Bulgaria's Transportation sector according to 2009 19 data the 3:01 country's total Freight volume reached 96.67 million tons notably Land Transportation dominated this sector accounting for over 90% of the total Freight movement this heavy Reliance on Road Transport not only strains the country's infrastructure but also raises serious concerns about Energy Efficiency and environmental impact further complicating matters is the state of Bulgaria's Railway system the country's rail network while extensive is plagued by outdated equipment and infrastructure among the 560 trains running daily the average service life of passenger train engines has reached an alarming 40 years these aging trains not only operate inefficiently under high loads but also pose serious safety risks to passengers and crew alike it's worth noting that while 50% to 70% of Bulgaria's trains are products of the last century with worn out mechanical parts and outdated electrical systems the remaining 30% to 50% are relatively modern these newer 4:07 trains introduced in the early 21st century boast Advanced Mechanical and electrical systems that are not only stable in operation but also energy efficient and environmentally friendly however due to their limited numbers these modern trains can hardly meet the growing Transportation needs of the country faced with these pressing challenges the Bulgarian government recognized the urgent need to update its trains and improve overall Transportation capacity the imperative to modernize the country's Railway system was not just a matter of improving efficiency but also a crucial step in enhancing safety reducing environmental impact and boosting economic development in response to these critical issues Bulgaria launched a high-profile bidding project in December 2023 this comprehensive plan was ambitious in scope including the purchase of 20 Electric trains and encompassing maintenance services and employee training for a 15-year period 5:05 the total Market valuation of this forward-looking project stood at an impressive $660 million the project specifications were demanding the tender required the delivery of all trains within a tight time frame of 33 months in addition to the 15-year warranty and Training Services the announcement of this project sparked significant Global interest attracting more than 20 companies to participate in the bidding process in this competitive landscape a Chinese company quickly stood out capturing attention with its advanced technology and remarkably competitive quotation the company representing China in this bid was Ching da seong Machinery con laram a core subsidiary of crrc and an important base for the research development and manufacturing of China's high-speed trains reports indicated that the Chinese company's offer was a mere 300 50 million an astonishing 6:03 47.5% lower than the bid from Spanish locomotive manufacturer talgo and even 46.7% lower than the Bulgarian Railways expected price this incredibly competitive pricing combined with China's renowned expertise in High-Speed Rail technology seemed to position the Chinese company as the clear front runner in the bidding process many industry observers believe that Bulgaria would almost certainly choose China's solution after all China not only had a clear advantage in price but also enjoyed a high reputation in High-Speed Rail technology worldwide compared to Spain's High-Speed Rail capabilities China's offering appeared to have numerous technological advantages however in an unexpected twist that shocked many March 2024 saw the Chinese company suddenly excluded from the bidding list by Bulgaria this development raised eyebrows across the industry and prompted serious questions why was this Chinese company eliminated 7:05 after making such a competitive offer what factors led to this surprising decision an in-depth investigation revealed that the European Union played a significant role in this decision in recent years faced with growing competition from China's automobile and Railway Industries The eu's Stance has become increasingly cautious even nervous to protect the interests of its local market the EU has not hesitated to introduce a series of policies aimed at restricting the competitiveness of Chinese companies one of the most notable and impactful policies is the foreign subsidies regulation which came into effect in July 2023 this regulation has been described by many as a heavy blow to Chinese companies operating in the EU Market according to the rules if the value of a bidding project exceeds €250 million EUR and the Enterprise has received more than4 million EUR in foreign Financial subsidies from non-eu countries in the 8:02 past 3 years the company must notify the EU of its participation in public tenders the new EU foreign subsidies regulation or the FSR which began to apply in July 2023 the FSR was enacted to expand the geographic scope of existing EU state aid rules which govern the fairness of trade among EU States and extends these rules to any governmental Aid not just from the EU public authorities the FSR mandates a notification and approval requirement from the European commission where a non-eu government provides a financial contribution to a business such as a grant export subsidy or tax credit that provides an unfair advantage against EU companies this regulation created significant obstacles for Chinese companies competing in the EU Market crrc as China's leading High-Speed Rail Enterprise naturally became a focus of EU scrutiny at the beginning of 2024 the 9:04 European Union launched an investigation into crrc accusing it of using subsidies to distort Market competition within the EU China has been openly encouraging intens energy intensive companies in Europe and elsewhere to relocate all or part of their production they do so with the promise of cheap energy low labor costs and a more lenient regulatory environment at the same time China heavily subsidizes its industry and restricts access to its market for European Union companies the European commission stated there are sufficient indications that this company has been granted a foreign subsidy that distorts the internal Market the crrc may have made an unduly advantageous offer that could cause other companies participa in the public procurement procedure to potentially lose sales opportunities according to 10:04 the eu's estimates the reason why China's High-Speed Rail company was able to offer a price that was 46.7% lower than Bulgaria's estimated cost and 47.5% lower than the Spanish company's price was primarily due to the Chinese government providing a subsidy of up to 1.75 billion EUR to the bidding company this statement by the EU immediately aroused doubts from many Observers critics raised a key question who would invest up to 1.75 billion in subsidies for a $660 million project moreover the subsidies mentioned by the EU were not specifically for the Bulgarian High-Speed Rail Project but rather the Chinese government's support for the overall operation of crrc group therefore many people suspected that the eu's move was an opportunity to suppress Chinese companies under the guise of Fair competition concerns in response to these accusations CRC promptly reported 11:05 its transactions with the Bulgarian Ministry of Transport and Communications as required by the new regulations however due to Bulgaria's Financial constraints and heavy Reliance on EU support the country ultimately decided to exclude crrc from the tender list this is not the first time the EU has investigated and controlled Chinese involvement in key Industries in March 202 3 the president of the European commission Ursula vonder liion explicitly stated in a speech that China's low priced electric vehicles have spread throughout the global market she argued that the prices of these vehicles are artificially low due to subsidies severely distorting the European market ferline emphasized that the EU will resolutely prevent what it terms malicious competition from outside to safeguard its own interests the EU internal Market commissioner tiry said our first investigation under the foreign subsidies regulation has already 12:04 yielded results we will continue to take all necessary measures to preserve Europe's Economic Security and competitiveness with assertiveness and speed after excluding China from the tender Bulgaria decided to cooperate with the Spanish company talgo with a history spanning nearly 80 years talgo focuses not only on the design and manufacturing of trains but also provides customized maintenance services for Railway operators in various countries however the story took another unexpected turn while Bulgaria eagerly anticipated the official launch of the project in April 2024 talgo suddenly announced that it could no longer support the complete completion of this project this announcement dealt a major blow to Bulgaria's train renewal plans and raised questions about the wisdom of excluding the Chinese bid the reasons behind talgo withdrawal are multi faceted although Spain's High-Speed Rail companies have a certain reputation 13:03 internationally they do not possess the most advanced High-Speed Rail technology Spain's strengths lie more in light rail construction while High-Speed Rail technology often relies on the support of multiple countries expertise Spain's accumulation of independent research and development in this area is not as strong as some of its competitors moreover it's important to note that although Spain is currently the second country in the world in terms of the total length of high-speed Railways there are only four countries globally that are widely recognized to have cuttingedge high-speed Railway technology China France Germany and Japan Spain is not among this Elite group the high-speed Railways currently operated in Spain are mainly talgo 350 series produced by a interestingly this type of high-speed Railway is not designed and produced by Spain itself but rather built with technology 14:01 provided by France and Germany this Reliance on foreign technology may have contributed to the challenges faced by talgo in meeting Bulgaria's specific requirements the China Chamber of Commerce to the European Union offered a pointed critique of the situation stating that crrc Ching DA's withdrawal adds to evidence that the subsidies regulation is being used as a new tool to deter foreign companies coercing them into withdrawal and subsequent business exclusion China's dominance in highspeed rail technology China's ambitious $660 million High-Speed Rail Project in Bulgaria has been derailed after unexpected European intervention raising big questions about power plays protectionism and the future of infrastructure in Europe why did the EU block China's lowcost offer and how will this setback impact Bulgaria's High-Speed Rail dreams let's find out China has emerged as the global leader in High-Speed Rail technology over the past few decades the country has 15:00 aggressively built out its high-speed rail network with the total operating mileage reaching an astounding 46,000 km as of recent data this figure accounts for around 60% of the world's total High-Speed Rail infrastructure China's High-Speed Rail advancements have not only transformed domestic connectivity but have also attracted the attention of countries worldwide the country's competitively priced and technologically advanced Solutions have made Chinese highspeed rail an attractive option for Nations seeking to modernize their transportation systems as a result China's High-Speed Rail technology has been exported to more than 110 countries and regions spanning across southeast Asia the middle east Europe and Latin America some notable examples of China's High-Speed Rail projects overseas include the Jakarta Bandung High-Speed Rail Line in Indonesia the Anora Istanbul High-Speed Rail Link in turkey and the Belgrade Budapest High-Speed Rail Corridor connecting Serbia and 16:02 Hungary these projects showcase China's ability to deliver efficient reliable and cost-effective High-Speed Rail solutions to its International Partners the Jakarta bandong HSR affectionately nicknamed whooosh by the local population has not only improved connectivity but has also catalyzed economic growth along the corridor small businesses have thrived in the burgeoning community-based economic ecosystems surrounding the train stations with local vendors reporting a significant increase in Daily earnings the project has also boosted tourism with popular destinations in West Java seeing a surge in visitor numbers particularly during Peak holiday periods the Jakarta Bandon highspeed Railway celebrating its first anniversary on Thursday has transported 5.79 million passengers according to PK ker cpad Indonesia China a joint V Ure between Indonesian and Chinese 17:01 Enterprises that built and operates the railway according to kcic statistics since its commercial launch in October 2023 the HSR has completed over 15,8 126 train trips covering more than 2.57 million kilm the number of daily train Services has increased from 14 at the start of operations to 52 with passenger seats rising from 8,4 00 to over 31,000 the highest daily ridership reached 24,1 32 18:02 [Music] moving Westward China's High-Speed Rail prowess has also found a foothold in Turkey where the anara Istanbul High-Speed Rail Link has been a game Cher for the country's Transportation infrastructure completed in 2021 this 254 km line has reduced travel time between the two major cities from over 4 hours to just 3.5 hours making it a more attractive and efficient option for both commuters and businesses well actually serban was one of the first Nations to sign a memorandum of understanding in the Balon Road initiative with China the country has benefited from several years of infrastructure cooperation one major project is Budapest Belgrade Railway which will connect the capitals of Hungary and Serbia is scheduled to food for food completion by the end of 2025 or Yan chuni explores the Belgrade Budapest High-Speed Rail Project is another example of China's growing influence in the transportation 19:04 infrastructure globally as part of Serbia's cooperation with China under the belt and Road initiative the 350 kmet Railway link connecting the capitals of Serbia and Hungary is taking shape once completed by 2025 the high-speed line will significantly reduce travel time between the two cities from over 8 hours to just 2.5 hours importantly the railway aderes to European Union standards showcasing China's ability to deliver projects that integrate with the continent's existing systems this project is also part of a larger plan to extend the high-speed Network Southward to the Greek Port of pyus further enhancing trade connectivity in the region today we are taking the Belgrade Budapest Railway which had been a legendary train line I'll tell you more when we're inside 20:04 okay now here's the backstory the route of this train I'm taking on points towards hungary's capital of Budapest which was used over a century ago by the iconic Orient Express now having survived two world wars much of the line was barely usable until now as it's reconstructed by Chinese Railway Builders currently only one section within Serbia is finished and open running between Belgrade and the second largest city of noad it's perfect it's comfortable uh I go to see my cousins in noad before this train was upgraded how long would it take for you to visit your family it would take very much longer it would take like 2 hours or so and now it's only half an hour and it's [Music] great what what's also worth mentioning 21:00 is that everything on this rail line from the signaling system all the way down to the nails is made according to European Union standards Bulgaria's ambitious High-Speed Rail Project against the backdrop of China's Global High-Speed Rail dominance Bulgaria a country located in Southeastern Europe announced an ambitious High-Speed Rail Project in December 2023 the plan involved the procurement of 20 electric trains along with 15 years of maintenance services and staff training at a total estimated cost of $660 million Bulgaria's decision to undertake this transformative project was driven by the pressing need to modernize its aging and inefficient Transportation infrastructure the country's vast land area coupled with a relatively small population of around 6.7 million had resulted in an underutilized and outdated rail network the majority of bulgar trains were products of the last 22:00 century with mechanical parts and electrical systems struggling to keep up with the growing demand for efficient and reliable transportation the announcement of the High-Speed Rail Project immediately captured the attention of companies from around the world eager to Showcase their technological capabilities and secure the lucrative contract among the biders was a familiar name Ching da cang locomotive company a subsidiary of China's state-owned crrc Corporation the global leader in High-Speed Rail technology China's bid and the eu's intervention Ching da seong locomotive company with its extensive experience and expertise in High-Speed Rail submitted a bid that caught the attention of both Bulgaria and the European Union EU the Chinese company's offer came in at a mere $390 million nearly half the estimated cost of the project and significantly lower than the 600 $7 million bid 23:00 submitted by the Spanish company talgo this price disparity immediately raised concerns within the European Union in February 2024 the European commission launched an investigation into crrc chinga siong locomotive suspecting that the company's low price bid was heavily subsidized by the Chinese government a practice that would be considered a violation of Fair competition principles the eu's actions were rooted in its recently enacted foreign subsidies regulation which empowers the European commission to investigate and take action against foreign companies that may be benefiting from government subsidies potentially distorting the eu's internal Market under this regulation any company participating in a public procurement tender valued at more than €250 million EUR and having received at least €4 million EUR in foreign subsidies over the past 3 years must report its involvement to the EU given the $660 million price tag of the Bulgarian High-Speed Rail Project and 24:03 the suspicions surrounding crc's low bid the European commission had no choice but to launch a formal investigation this move placed the Chinese company in a precarious position ultimately leading to its withdrawal from the bidding process there are sufficient indications that this company has been granted a foreign subsidy that distorts the internal Market the commission said the crrc may have made an unduly advantageous offer that could cause other companies participating in the public procurement procedure to potentially lose sales opportunities in just a few weeks our first investigation under the foreign subsidies regulation has already yielded results the statement from the European commission quoted internal Market commissioner tiar Britton as saying he said that Europe's single Market remained open for firms that are truly competitive and play fair but that Brussels will take continue to take all necessary measures to preserve Europe's Economic Security and 25:05 competitiveness with assertiveness and speed in September commission Chief Ursula Vander lion announced a probe into Chinese subsidies for electric vehicles judged by European industry to be artificially low and in January Brussels unveiled policies to prevent sensitive technology or infrastructure from falling into the hands of economic Rivals such as China the China Chamber of Commerce to the European Union however expressed its disapproval stating that crrc Ching DA's withdrawal adds to evidence that the subsidies regulation is being used as a new tool to deter foreign companies coercing them into withdrawal and subsequent business exclusion while China has criticized these measures as double standards the EU remains steadfast in its resolve to ensure Fair competition and protect its Industries Bulgaria's dilemma and the Spanish takeover with the Chinese 26:01 company out of the picture Bulgaria was left to choose between the remaining bidder the Spanish talgo while talgo had a long history in the rail industry and a reputation for quality products its bid price of $670 million was significantly higher than the Chinese offer for Bulgaria this presented a dilemma the country's Transportation infrastructure had long been in need of modernization and the High-Speed Rail Project was seen as a crucial step in addressing this issue however the government's Financial constraints and its Reliance on EU funding made it challenging to accept the more expensive Spanish bid despite the concerns Bulgaria ultimately decided to move forward with talgo hoping that the Spanish company's expertise and experience would outweigh the higher price tag in April 2024 the project was officially awarded to talgo and preparations began for the delivery of the 20 electric trains the Spanish takeover and the project downfall the excitement surrounding the High-Speed Rail Project was shortl as unexpected challenges soon emerged in October 2024 27:08 talgo announced that it could no longer support the completion of the project citing various Technical and logistical issues one of the primary concerns was the complex terrain of Bulgaria which posed significant challenges for the construction of High-Speed Rail infrastructure the country's mountainous landscape and uneven topography required more specialized Technology and Engineering Solutions than talgo had anticipated furthermore talg Go's expertise lay more in the realm of Light Rail systems rather than the advanced High-Speed Rail technology that was required for this project the Spanish company's Reliance on technical support from other European countries such as Germany also proved to be a weakness as the German Railways were facing their own operational and financial difficulties at the time as the Project's progress lagged behind and the budget continued to rise talgo ultimately made the decision to withdraw from the partnership with Bulgaria this 28:05 sudden announcement dealt a major blow to the country's High-Speed Rail dreams leaving it back at Square 1 the aftermath and Lessons Learned the failed High-Speed Rail Project in Bulgaria highlights the complexities and challenges that can arise when countries attempt to modernize their transportation infrastructure the intervention of the European Union through its foreign subsid regulation played a significant role in shaping the outcome ultimately leading to the exclusion of the Chinese company from the bidding process while the eu's actions were apparently aimed at ensuring Fair competition and protecting the interests of European companies the decision to favor the more expensive Spanish bid over the Chinese offer has raised questions about the true motivations behind the regulation some have accused the EU of using it as a tool to suppress the growth of China companies in the European market a concern that Echoes the broader tensions 29:03 between the two economic powerhouses the Bulgarian case also shows the importance of careful planning and the need to align technical capabilities with the specific requirements of a project the decision to choose talgo despite its higher price tag ultimately proved to be a misstep as the Spanish company's expertise was not well suited to the unique challenges posed by Bulgaria's terrain and infrastructure needs China's broader Ambitions in High-Speed Rail China's High-Speed Rail dominance extends Beyond individual projects as the country has set its sights on even more ambitious goals one such goal is the integration of Passenger and Freight Transportation through the China Europe Express routes if successfully implemented this plan would connect 25 countries and 224 cities in Europe as well as 11 countries and 108 cities in Asia creating a vast transportation Network spanning the Eurasian continent 30:00 the plan to integrate passenger and Freight Transportation on the China Europe Express routes is not just a logistical challenge but also a geopolitical one by establishing this seamless Network China aims to solidify its position as a key player in the global supply chain potentially Shifting the balance of economic power and influence in the region the broader implications and the need for cooperation the events surrounding the failed High-Speed Rail Project in Bulgaria highlight the complex and often contentious nature of global economic competition particularly in the realm of critical infrastructure development the intervention of the European Union through its foreign subsidies regulation has raised concerns about the potential politicization of economic decision-making with accusations of protectionism and the suppression of Chinese technological advancement have you ever wondered why so many of the products we use every day are stamped with those four little words made in China on those different kinds of production you've got for instance aluminium smelting there is China by far 31:04 and way the most dominant when it comes to aluminium similar thing when it comes to cement production concrete China is way ahead of everyone else same thing for solar panels same thing too for steel manufacturer you can just about see the UK over here teeny tiny uh bar there that's the UK production from Tech giants like Apple and Samsung to fashion brands like Nike and Adidas it seems like everyone is manufacturing their products in China these days but how did China become such a manufacturing Powerhouse in 1978 China's GDP was a mere $200 billion accounting for just 4% of the world's total economic output fast forward to today and China's GDP has skyrocketed to a whopping $18 trillion representing around 177% of the total economic activity in the entire world that's an increase of over 8,000% and a huge part of that growth 32:00 can be attributed to one thing manufacturing but why has manufacturing played such a pivotal role in China's economic rise well there are a few key reasons first and foremost China has developed an incredibly sophisticated and efficient manufacturing ecosystem over the past few decades we're talking about clusters of suppliers manufacturers and Logistics providers all located in close proximity to each other allowing for lightning fast production and distribution of goods in fact China has become a major producer of raw materials for Industries like electronics and textiles meaning that companies who set up shop in China have easy access to everything they need to make their products it's like having all the ingredients for a recipe right in your hands but China's manufacturing dominance isn't just about efficiency and convenience it's also about cost labor costs in China are are significantly lower than in many other countries which has made it an attractive destination for companies looking to keep their production costs down

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