Overseas Railway Alliance with Hitachi

Apr. 06, 2001

  Kawasaki and Hitachi announced on April 6 that they had reached an agreement to build a broad alliance in the overseas railway systems sector, in response to increased global demand for rail equipment and high-speed railcars. The agreement calls for cooperation in substantially all areas of the business, including order acceptance and maintenance services.
  Kawasaki and Hitachi say the alliance will allow them to plan and execute all aspects of rail projects, from the supply of railcars to the installation of the control systems and overall construction. They have complementary hardware and software lineups that will enable them to pursue projects for virtually all railway systems, including commuter lines and subways, light rail transit, automated people movers and monorails.
  The two companies took the first step of establishing a joint order processing center in April, and are currently organizing a joint marketing office that will manage individual projects.
  Rail features such as environmental friendliness, high-volume transport capabilities and safety have contributed to a building boom, with railway line extensions, new line construction and rail system upgrades underway in Asia and the Americas. Kawasaki produces rolling stock for the Japanese shinkansen(bullet train) and conventional lines, automated people movers and all other types of railway systems. It is already actively engaged in a diversity of overseas rail projects, and has been winning large orders from such operators as New York City Transit. It has a railcar assembly plant in New York and is currently building a new railcar production facility in Nebraska.
  By combining Kawasaki's railcar technology, R&D capabilities, overseas railcar project experience and construction engineering know-how with Hitachi's strengths in railway system hard/software development and systems engineering, the alliance will enable the companies to operate as a general contractor and to secure contracts for railway projects in global markets.