Bombardier China, a branch of Canada's Bombardier, a manufacturer of rail equipment and aircraft, is one of the most successful foreign companies in the rail business in China, it did not get there overnight, according to its chief executive.

"We went through a step-by-step process in China, not a leapfrog process," said Zhang Jianwei, its president, describing how they went from one person and zero business.

Zhang explained that he was sent to China in 1999 to develop Bombardier's rail transportation business, after having left the country for more than 10 years, and did not have any employees, or even an office.

Now, however, after 12 years, Bombardier has three joint ventures and seven wholly foreign-owned enterprises with more than 4,000 employees in China, and obtains billions of dollars contracts every year.

It is one of the world's largest rail equipment manufacturers and already had its 15th order this year, in China, by July. They could reasonably expect 20 orders in China by the end of 2011, Zhang said.

"Our strategy is not just to see China as a big market and factory, but to cooperate extensively with China for good long-term results. From that very first train we sold in China, we have insisted on making them in China and developing local roots."

One successful Bombardier joint venture - Bombardier Sifang Transportation Ltd (BST) - got its first order, for 300 railway passenger cars, in 1999. It has delivered over 2,000 railway passenger cars and has a backlog of over 1,100 cars for China's Railway Ministry.

BST also supplied 225 specially designed coaches for the Qinghai-Tibet railway, the world's highest railway, reaching 5,000 meters above sea level, which went into service on July 1, 2006, and is now working on trains that can reach a speed of 380 kilometer per hour, - 80 of them, very high-speed - for 2012 delivery, Zhang said.

In a somewhat related area, in June 2006, Bombardier announced a long-term strategic agreement with the China Aviation Industry Corp (AVIC). It covered commercial aircraft, particularly, Bombardier's C-Series. More than 200 Chinese aircraft engineers are now working in C-Series development at Bombardier's Montreal, Canada facilities, while more than 40 Bombardier engineers are working in Shenyang with Chinese aircraft partners.

Success secret

Bombardier China has developed a "personality" in the past 12 years, building credibility and relationships with business partners and clients - all of it based on trust, Zhang said.

The best weapon in getting orders and contacts with government officials, is this credibility as well as the advanced technology, proven products, and respect to commitment, he said.

But, the company gives credit to its competitors, as well: "We try to behave in a gentlemanly way with competitors. In fact, many of our Chinese competitors are also partners, and we can help each other to improve."

One example of this is the China South Locomotive and Rolling Stock Corp Ltd, China's largest railway equipment manufacturer, which says its hope to exceed Bombardier in becoming the world's largest, in the next five years. Meanwhile, it is partnering with Bombardier in the BST operations.

Moving ahead

Bombardier has benefited from the fast rail transportation development in recent years. The boom period started in 1999, the year it came to China.

China Communication and Transportation Assoc statistics show that, by the end of 2010, the country had 48 urban mass transit lines covering 1,395 km, in 12 cities. In addition, 28 cities have the go-ahead on mass transit systems, with more than 1 trillion yuan expected to be spent by 2015.

Although development has slowed a bit recently, Bombardier products bring confidence, Zhang said.

"We can supply the products that best meet China's needs."

Tan Qinglian, director general of the China Civil Engineering Society, said in August that urban mass transit will grow to 6,100 km in 2020 and will need more than 30,000 train cars.

So, Bombardier plans to expand its business to light rail, commuter trains, and automated people movers (APM).

Guangzhou's new Bombardier APM system opened in November 2010 before the Asian Games as the first fully APM system ever.

Meanwhile back in aviation, business analysts have predicted that the number of business jets in China will grow to 1,700 by 2031, from the current 160.

It so happens that Bombardier is the world's third largest civilian aircraft builder and the largest business jet builder and accounts for 30 percent of China's business aircraft market.

"Our business jet market share in China should match our number one position globally," Zhang said optimistically.

And, although Bombardier has more than 30 commercial aircraft in use by five Chinese airlines, it is not completely satisfied.

"We're hoping the aerospace business can be more successful in China. After all, it's such a big, fast developing market," Zhang concluded.

(China Daily 09/14/2011 page39)