CNR on straight line to success in emerging markets

Boosted by surging foreign orders, CNR's export sales rose 40 percent last year to $1.7 billion.

"Africa is another hot market," Yu said. "Large parts of the continent are still struggling to develop their infrastructure, especially rail, port and road facilities."

Yu said that improving the infrastructure can help Africa urbanize and industrialize. Even though African infrastructure spending is in its early stages, Yu said, "it could have meaningful economic implications because it comes at a critical time, when the world is counting on emerging markets, especially Africa, to revive the global economy."

African governments, instead of concentrating investment overwhelmingly in farming, mining, energy and military development as they did previously, are allocating an increasing proportion of their foreign reserves to build and improve their railway networks.

As a result, the continent has become one of the largest markets for CNR to fuel its overseas growth.

The Chinese company's products such as locomotives, trams, freight and passenger cars are in use in more than 16 African markets, including Ethiopia, Tanzania, Zambia, Angola, Nigeria, Mozambique and Sierra Leone.

The company recently sealed a deal with Ethiopia to supply 41 light rail cars for use in Addis Ababa, with a contract value of $475 million. The cars will be built by China CNR Changchun Railway Vehicles. The groundwork will be carried out by China Railway Engineering Corp.

"Addis Ababa is 2,400 meters above sea level, so the carriages need to be able to withstand the harsh effects of ultraviolet rays. Moreover, Ethiopia has a long rainy season, which makes it imperative for the carriages to be extremely resistant to water and lightning," said Liu Gang, general manager of the international division of CNR's Changchun branch.

The first cars are to be delivered in August for test operations. The entire system is scheduled to start running by the end of this year.

The Chinese company will also supply 30 cars that will run on the new Addis Ababa-Djibouti rail line. The rail project will connect the Ethiopian capital to the nation's major port and spur economic activity.

"Africa has abundant natural resources and a large population, but its rail network is backward, with insufficient rail passenger and cargo resources," said Zhu Xiaoning, a professor of traffic and transportation at Beijing Jiaotong University.

Africa's chances to participate in global trade will continue to increase and the demand for rail transportation will rise.

"Because Africa's heavy industry cannot meet the continent's demand for rail products, China will become the main provider of railway equipment in Africa," said Zhu.

Building brand South Africa in China	China confident of foreign trade growth in 2014