Chinese builder scores big in overseas infrastructure

In early May, at the construction site of the Kaphatenga-Benga Road rehabilitation project in Malawi, a prefabricated portal culvert section measuring 3.6 meters in length and 3 meters in height was accurately lifted and positioned.

State-owned China Railway 20th Bureau Group Corp, a subsidiary of Beijing-based China Railway Construction Corp Ltd, worked quickly and efficiently to recover time lost due to the rainy season — which typically lasts from February to early May — in the African country.

Along the roadside, 75 precast culverts were neatly aligned, and over 3,000 metric tons of stones were washed and readied. At the excavation site, after spraying water on the road, two road rollers started to firmly compact the subgrade.

Cheng Jun, the project manager at CR20G for the project, said the rainy season in Malawi concluded in early May, with temperatures averaging around 30 C. This provided an ideal opportunity for the company to continue with construction.

"Our team is now working diligently to finish the road subgrade, which will serve as the foundation for the upcoming asphalt paving," said Cheng.

The 60-kilometer-long Kaphatenga-Benga Road is alongside Lake Malawi, posing additional challenges for construction. The rainy season lasts over three months, making the roadbed unstable and road surface unsafe.

In some sections, parts of the road had sunk, causing significant inconvenience to construction, he added.

Despite the absence of extensive construction on the roadbed during the rainy season, the project construction team, in collaboration with the owner and consultants, engaged in thorough discussions and finalized a plan to reinforce the roadbed foundation with boulders, ensuring its maximum stability.

Cheng said that the upgrading of the Kaphatenga-Benga Road has come with high expectations for the development of agriculture, fishing and tourism in the villages and towns along its route. This road also serves as a main transportation artery in Malawi, garnering widespread attention from both the Malawian government and its people.

Since the commencement of this project, CR20G has completed the construction of ancillary facilities such as aggregate plants and temporary houses for living and working. With adequate preparation, the Chinese company aims to finish reconstruction work on a 30-kilometer stretch of the road by the end of this year.

Since entering the Malawian market in 2018, CR20G has undertaken over 10 construction projects, including roads, sports facilities, buildings and railroads. It has provided nearly 10,000 job opportunities and trained nearly 1,500 local residents in various fields such as management, logistics and construction.

With more than 17,000 employees, the Xi'an, Shaanxi province-based CR20G has built a market presence in more than 20 countries, including Angola, Mozambique, Uzbekistan and Mongolia.

Aside from the design and construction of transportation infrastructure, CR20G's business scope includes real estate development, manufacturing, logistics and trade, railway transportation, environmental protection, engineering project inspection, design consulting and training.

Supported by well-developed industrial and supply chains in China, domestic companies have greater opportunities to diversify their market channels internationally, said Zhang Xiang, vice-president of the Beijing-based China International Contractors Association, which helps Chinese companies expand their footprint in overseas markets.

This is fueled by the rapid pace of globalization and the increasing demand from various economies to develop or upgrade their infrastructure facilities, she said.

China's nonfinancial outbound direct investment amounted to 343.47 billion yuan ($47.41 billion) in the first four months of 2024, up 18.7 percent year-on-year, data from the Ministry of Commerce showed.

Meanwhile, Chinese companies' nonfinancial outbound investment in countries and regions participating in the Belt and Road Initiative reached 77.77 billion yuan during the same period, surging 20.4 percent year-on-year.

Chinese businesses' turnover of contracted projects overseas rose 8.8 percent on a yearly basis to 313.42 billion yuan between January and April, while the contract value of newly signed projects amounted to 444.39 billion yuan, growing 9.3 percent year-on-year, said the ministry.