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Title: Mexico cancels Chinese bullet train deal
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URL Source: http://news.yahoo.com/mexico-cancel ... n-deal-054801622--finance.html
Published: Nov 7, 2014
Author: Leticia Pineda
Post Date: 2014-11-07 07:49:17 by Tatarewicz
Keywords: None
Views: 103
Comments: 3
News Home U.S. World Politics Tech Science Health Odd News Local Dear Abby Comics ABC News Yahoo Originals Photos Mexico City (AFP) - Mexico abruptly withdrew a multi-billion-dollar deal Thursday with a Chinese-led consortium to build the country's first bullet train after concerns were raised about the bidding process. The government had awarded the $3.75 billion contract to the China Railway Construction Corp. and four Mexican partners on Monday after the group had been the only one to submit a bid. But President Enrique Pena Nieto scrapped the deal to avoid "any doubts about the legitimacy and transparency" of the bidding process, said Transport Minister Gerardo Ruiz Esparza. Ruiz Esparza told the Televisa network that Pena Nieto had taken the decision "moments ago" and that the bidding would start over. The transport ministry said in a statement that the president made the decision "due to the doubts and concerns that have emerged in public opinion." More time will be allotted to encourage more train-makers to make proposals, the ministry said. The Chinese-Mexican consortium faced no opposition when it was picked Monday to build the 210-kilometer (130-mile) high-speed rail between the capital Mexico City and the central manufacturing hub of Queretaro. Pena Nieto surprisingly revoked the deal three days before flying to China for an Asia-Pacific Economic Cooperation (APEC) summit and a two-day state visit in his latest effort to forge closer ties with the Asian powerhouse. The high-speed rail project is part of Pena Nieto's plan to bring back passenger trains to Latin America's second-biggest economy. But only one group submitted a proposal by the October 15 deadline. The transport ministry said at the time that 16 companies decided against entering the contest, including industry giants Mitsubishi of Japan, Alstom of France, Bombardier of Canada and Siemens of Germany. It did not explain why the companies shied away from making bids. When announcing the winner on Monday, Ruiz Esparza said it was not unusual for just one group to bid for a high-speed train project, noting that on average, only two companies make bids for such projects worldwide. Prior to scrapping the deal, the government had expected construction to start in December and operations to begin in 2017. The project aims to carry 23,000 passengers per day at speeds of up to 300 kilometers per hour, reducing the commute between Mexico City and Queretaro from two-and-a-half hours to 58 minutes. Mexico would become the first Latin American nation to have a bullet train after Brazil and Argentina postponed their own high-speed rail projects. While Mexico has freight railways, the country now only boasts some tourist trains after regular passenger lines disappeared following the sector's privatization in the 1990s. Mexican and Central American migrants have illegally hitched rides on top of a cargo train dubbed La Bestia (The Beast) to head north to the United States, a risky trip that has killed or maimed many passengers. Poster Comment: Richard I wonder why this Chinese group submitted the only bid.25 solid Only china has enough resources to wait till the Mexicans pay them the 3 billion. All other countries are in some kind of debt and need the money pronto. 1-7 Andrew Because all the other companies were too smart to get involved with that price point. Do the math on the number of years each country of the respective companies has had their bullet trains versus the number of accidents. Would you want the lowest bidder with the worst safety record building your bullet train? 5-1 Incognito @Andrew - Considering China has the world's largest high speed rail network (larger than Western Europe combined) and only one serious accident reported while having transported close to 3 billion passengers safely. I'd say you don't know what you're talking about. 6-7 robert h The others didn't bid on the project because they care about their employees, they don't want them kidnapped, robbed or murdered. If China does get the contract I'll bet that they insist that they be allowed to bring their own security (PLA) like they did in all their African deals r 4 hours ago 3 6 Being the devils advocate for one no other country can beat the price of slave labor that china employes and secondly is it just a coincidence that Nieto is or at least was about to visit. Just maybe China placed too low of a bid hence now we all know what kt was.Therefore second bidding process shall begin and this time China will up the bid but yet will be the last and potentially the only bidder but may raise its bid by another lets say billion and in a few years Nieto will retire with a hefty retirement gift from china . Just my thought.6=3 WayneC WOW! Two of the most trusted governments in the world concerned that there may be an appearance of corruption? Really…NO WAY! I'm sure that whoever complained isn't alive any more.
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#1. To: Tatarewicz (#0)
Lolololol!!! It was a duel to see who could scam the contract for maximum kickbacks/payola and the mexicons were going to lose to the chinkernese so the taco-benders said "no Bueno"..... Two of the most trusted governments in the world concerned that there may be an appearance of corruption? Really…NO WAY!
-Alex Kurtagic
#2. To: X-15 (#1)
The Messicans would sell their souls for a peso but they would not allow themselves to be out swindled.
#3. To: Cynicom, X-15 (#2)
I agree with you and X-15. ;)
"When bad men combine, the good must associate; else they will fall, one by one." Edmund Burke
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