China Railway Construction Corp. Ltd. (601186.CN) has agreed to build a coastline railway project in Nigeria worth US$13.12 billion, which is equivalent to 13.77 percent of the company’s revenue in 2013.
The agreement was signed on Monday during the visit of Premier Li Keqiang to the African country. The contract, when confirmed, would set a new record for a mainland firm taking on an overseas engineering project in terms of contract value.
The 1,385-kilometer rail line will link up 10 Nigerian coastal states across 22 stations, with train speed at 120km per hour.
Africa has emerged as the biggest market for mainland engineering companies, while Nigeria is the biggest buyer for China Railway Construction, which is mainly active in the eastern, middle and western parts of Africa.
In 2009, China Railway Construction landed a light rail project in Mecca, Saudi Arabia for US$1.77 billion, although it announced a year later the project has resulted in a net loss of 4.15 billion yuan (US$666.41 million), the report said.
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