Posts tagged ‘Economic Times’

11/05/2014

China Says It Wants To Build Massive Railway To America

China has announced an ambitious engineering plan to build a bullet train railway to America, state media reported Thursday.

Possible route of a bridge or tunnel across th...

Possible route of a bridge or tunnel across the Bering Strait. (Photo credit: Wikipedia)

The massive railway network, nicknamed “China-Russia-Canada-America,” would run north from China, through Siberia and Russia, under the Pacific Ocean to Alaska, then down through Canada to the contiguous United States, The Guardian reports.

The trip from China to the contiguous U.S. would take less than two days, with trains traveling about 217 mph, according to The Beijing Times. China will reportedly fund the construction of the 8,079 miles of railway track, including a 125-mile underwater tunnel across the Bering Strait from Russia to Alaska.

But this may not be the best time for China to embark on such an epic undertaking, considering the country’s railway industry is in the red, as The Economic Times points out.

“China’s railway sector is still being haunted by deep debts. Therefore, even with the government’s support, it must persuade banks to lend a colossal amount of money,” an unnamed expert from Beijing Jiaotong University told The Economic Times.

Aside from financial challenges, many are skeptical of whether the engineering required to build such a massive network is feasible.

According to The Guardian, “The Bering Strait tunnel alone would require an unprecedented feat of engineering – it would be the world’s longest undersea tunnel – four times the length of the Channel Tunnel” connecting the United Kingdom and France.

China Daily claims that the technology needed to construct the undersea tunnel is already available. But even if it is, The Economist’s Gulliver business travel blog says the railway plan is simply not a realistic or necessary project.

“Languorous tourists might love it, just as they do the Orient Express or the Ghan train through the Australian Outback, and I suppose it might also carry some freight. But still, there is no practical case for it,” the blog post’s author writes. “Nonetheless, such ambition is to be admired in an abstract way.”

The Guardian notes that it is unclear whether China has consulted Russia, the U.S. or Canada about the project.

via China Says It Wants To Build Massive Railway To America.

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25/02/2014

Indian E-Commerce to Become $8 Billion Industry – India Real Time – WSJ

The outlook for India’s economy may be gloomy for now, but one sector looks set to boom: online retail.

As more and more Indians use the internet, revenues of e-commerce companies could triple over the next three years to 504 billion rupees ($8.13 billion), according to Crisil Research, a unit of division of Mumbai-based ratings firm Crisil Ltd.

There are around 200 million internet users in India currently and the number could grow to 500 million by 2015, according to consulting firm McKinsey & Co.

Over the last few years, dozens of websites have been launched in India to sell everything from books and appliances, to baby care products and flight tickets.

Online retail companies earned revenues of around 139 billion rupees ($2.24 billion) in the financial year that ended on March 31, 2013, according to the Crisil report. Though this is just 0.5% of the total revenues of brick-and-mortar retail companies, online retail sales have been growing much faster.

Revenue of e-commerce firms grew by 56% annually between the financial year that ended March 31, 2008, and the year ended March 31, 2013, according to Crisil.

The scope for growth in this sector has already attracted a lot of interest from venture capital investors.

Earlier this month, online retailer Jabong.com raised around $100 million from CDC Group PLC, a U.K. government-backed private-equity fund-of-funds that invests in some emerging markets, according to The Economic Times.

Clothing and accessories-seller Myntra.com also raised $50 million, this month.

Foreign companies have also been looking to get a piece of the action in India. Amazon.com Inc. launched its India website in June.

via Report: Indian E-Commerce to Become $8 Billion Industry – India Real Time – WSJ.

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