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China, Argentina agree 10 billion dollars in rail deals

by Staff Writers
Beijing (AFP) July 13, 2010
China and Argentina on Tuesday agreed contracts for railway projects in the South American country totalling 10 billion dollars, Argentine Transport Minister Juan Pablo Schiavi told AFP.

The news came during a visit to Beijing by Argentine President Cristina Kirchner, who met with her Chinese counterpart Hu Jintao later on Tuesday.

A total of 10 projects -- ranging from two to five years -- were agreed, including the purchase of Chinese railway technology and investments in electrification of Argentina's rail lines, Schiavi said.

Some of the agreements were signed in the presence of Kirchner and Chinese Vice-Premier Hui Liangyu earlier and the rest were to be signed following the talks between Kirchner and Hu, the Argentine minister said.

In a speech to businessmen from both countries, Kirchner praised the signing of what she called "important deals between the Argentine government and several Chinese firms" for the improvement of her nation's railways.

Firms from both sides also signed a deal to build a laboratory in the South American nation to produce swine flu vaccines.

Relations between Beijing and Buenos Aires have been strained in recent months. In April, China imposed heavy restrictions on imports of soybean oil from Argentina, the world's top exporter of the product.

Some observers said that was in response to restrictions on imports put in place by Kirchner's government last year during the global economic crisis which resulted in reduced purchases of Chinese appliances and textiles.

Kirchner made no direct reference to the tensions, but called for a "relaunch" of the relationship.

Trade between the two countries rose from four billion dollars in 2004 to 14 billion dollars in 2008, according to official data. Kirchner said China was Argentina's second trade partner after Brazil.

She asked that China use Argentina "not only as a trade partner but also as a platform to do business in the world".

Kirchner said that Argentina -- which only has 40 million inhabitants but can feed 500 million people with huge farmable lands -- could help ensure China's food security.

The Argentine leader was due to meet Premier Wen Jiabao on Wednesday, before heading to Shanghai.

earlier related report
Germany's Siemens in two-billion-euro Russian deal: source
Berlin (AFP) July 13, 2010 - German industrial group Siemens has won a major contract from Russian Railways to be signed during a visit by Chancellor Angela Merkel this week, government sources in Berlin said Tuesday.

Siemens chief executive Peter Loescher, who will be accompanying Merkel to Russia Wednesday and Thursday, will sign the 2.2-billion-euro (2.8-billion-dollar) accord for more than 200 regional trains.

The sources said that on the second leg of the trip, in China, German auto giant Daimler will seal a deal to expand its joint venture with truck manufacturer Beiqi Foton with a total investment by both companies of nearly 800 million euros.

Siemens could not immediately be reached for comment.

The train sale is the second major coup for Siemens in Russia this year.

In May, a joint venture between Siemens and its Russian partner OJSC Sinara Transport Machines won a contract for 221 trains worth 1.1 billion euros.

And last December, the Russian railway group RZD signed a 580-million-euro order for up to 54 Siemens regional trains for the 2014 Winter Olympic Games in Sochi, a few days after a high-speed train built by Siemens began service between Moscow and Saint Petersburg.

Russia's railway service operates more miles (kilometres) of track than any other country in Europe, Siemens said.

Merkel will be travelling with a high-level business delegation of 25 executives on the four-day trip, which will also take in Kazakhstan.

Siemens also has plans to work on the expansion of that country's rail network, the government sources said.



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