China Railway Group Limited

China Railway Group Limited known as CREC (the acronym of its predecessor and parent company China Railway Engineering Corporation) is a Chinese construction company which floats in Shanghai and Hong Kong stock exchanges. The major shareholder of the company is the state-owned China Railway Engineering Corporation (CRECG).

By revenue, CREC is the largest construction company in the world in the 2015 Engineering News-Record "Top 225 Global Contractors".^[1] In 2016, CRECG ranks in the 57st place among Fortune Global 500 Enterprises^[2] and the 7th place among Top 500 Chinese Enterprises.

Business areas

CREC holds a large share of the Chinese construction market and participates in many large-scale infrastructure projects overseas (especially in countries in the Southeast Asia and Africa). In addition to the core business of construction, the company does business in surveying and designing, installation, manufacturing, R&D, technical consulting, capital management as well as international economic and trade activities.

History

In November 2007, CREC announced that it would be listing A shares and H shares on the Shanghai and Hong Kong respectively. The IPO price of A share ranged from 4 to 4.8 Chinese yuan while that of H share ranged from 5.03 to 5.78 Hong Kong dollar. CREC joined the Hang Seng China Enterprises Index from 10 March 2008.^[3]

In support of a cross country railway building boom in Venezuela, CREC began construction in 2009 of the Anaco-Tinaco railroad, an 800 million USD project to building a 471 km high speed railway line through the agriculture belt.^[4]

This company appeared to break new ground in the European Union in 2009 when the COVEC subsidiary along with two Chinese partners were awarded the tender to construct two parts of the A2 highway in Poland.^[5] The project began well in the design and preparation stages with COVEC demonstrating "technical acumen" but work ran aground at later stages because of mismanagement within a tight regulatory framework, ending in failure for COVEC and replacement by other contractors.^[6]

In the media

The works of a CREC subsidiary active in the Democratic Republic of the Congo are the focal point of the 2011 documentary Empire of Dust. The film is directed by Belgian filmmaker Bram Van Paesschen. In the documentary, the employees of the company just set up camp near the mining city of Kolwezi. The goal of CREC is to redo the road - covering 300 kilometers - that connects Kolwezi with Lubumbashi. The Chinese man Lao Yang is head of logistics of the group.^[7][8]

Since a massive resources-for-infrastructure deal in 2007, China endeavors to take on a wide range of development projects (including roads, hospitals, schools and airports) to be paid for by Congo’s immense copper and cobalt reserves.^[9] Though a promising deal for the Congolese– the majority of whom live on less than $1.25 a day– the deal’s lack of transparency has made it the subject of scrutiny for human rights organizations.^[10] Empire of Dust examines the human aspect of this exchange. The documentary is lauded for its depiction of the cultural differences between the Chinese and Congolese employees.

Subsidiaries

As of 31 December 2014^[11]

CREC received former no.1 to 10 bureau of Ministry of Railways, which became

• China Railway First Group Co., Ltd.
• China Railway No.2 Group Co., Ltd.
• China Railway No.3 Engineering Group Co., Ltd.
• China Tiesiju Civil Engineering Group Co., Ltd. (CTCE)
• China Railway No.5 Engineering Group Co., Ltd.
• China Railway Sixth Group Co., Ltd.
• China Railway Seventh Group Co., Ltd.
• China Railway No.8 Engineering Group Co., Ltd.
• China Railway No.9 Engineering Group Co., Ltd.
• China Railway No.10 Engineering Group Co., Ltd.

CREC also had the following subsidiaries

• China Overseas Engineering Group Co., Ltd.
• China Railway Major Bridge Engineering Group Co., Ltd.
• China Railway Electrification Engineering Group Co., Ltd.
  • China Railway Electrification Engineering Group Nanjing Co., Ltd. (30%)
• China Railway Construction Group Co., Ltd.
• China Railway Tunnel Group Co., Ltd.
• China Railway International Group Co., Ltd. (CRECGI)
• China Railway Shanhaiguan Bridge Group Co., Ltd.
• China Railway Real Estate Group Co., Ltd.
• China Railway Resources Group Co., Ltd.
• China Railway Trust Co., Ltd.
• China Railway Finance Co., Ltd.

former design bureau

• China Railway Eryuan Engineering Group Co. Ltd. (CREEC^[12] or CREEGC)

non-wholly owned subsidiaries that have material non-controlling interests

• Yunnan Fuyan Expressway Co., Ltd. (10%)
• Guangxi Cenxing Expressway Development Co., Ltd. (34%)

References

External links

• Official Site (in Chinese) (in English)