Chinese firm submits only bid on Mexican project for inter-city rail line, wins contract

MarketsAssociated Press

A consortium headed by China Railway Construction Corp. Ltd. has won the contract to build a high-speed inter-city rail line in central Mexico after submitting the only bid on the project.

Another Chinese firm, CSR Corporation Limited, and the Mexican companies GIA, GHP, Prodemex and Teya are included in the consortium.

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Mexico's Communications and Transport Department announced the awarding of the contract Monday.

The rail line will connect Mexico City with the north-central industrial hub of Queretaro, a distance of about 130 miles (210 kilometers).

It will cost about $3.7 billion and is expected to shorten travel times from about 2 ½ hours to less than one hour.

The government has pledged to revive passenger rail service, which was largely abandoned in a 1990s privatization of the industry.