China Railway Group Ltd., the world’s second-largest publicly traded heavy construction company, said it is in talks with South Africa’s government for a $30-billion high-speed rail project between Johannesburg and Durban.
Discussions are at an early stage and no funding is in place, China Railway Chairman Li Changjin said in an interview in Beijing today.
South Africa’s government said in April it was studying the feasibility of a high-speed railway link between Johannesburg and the eastern port of Durban, South Africa’s busiest harbor. Driving the 566 kilometers between the two cities takes between five and seven hours, while a high-speed train would complete the trip in about three hours, according to the Transport Ministry.
South Africa is hoping Chinese state-owned banks can provide loans for the project, Li said on the sidelines of a China-Africa investment forum, while China Railway wants South Africa to contribute as much as 40% of the capital.
