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So now the government wants to see if the Chinese would be cheaper

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Edders23

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https://www.bbc.co.uk/news/business-51512831

HS2: UK in talks with China over construction of high-speed line

China's state railway company said it could build the line in just five years and at a much lower cost, according to a letter seen by Building magazine.

Government officials said "preliminary discussions" had taken place, but no "concrete commitments" had been made.

It comes after Boris Johnson this week approved the controversial scheme.

This was despite an official review warning costs could reach over £100bn, against a budget of £62bn

Under current plans, the final stretch of the line is not due to be completed until 2040 - although Mr Johnson has said he wants that brought forward to 2035.

However, Building magazine reported that the China Railway Construction Corporation (CRCC) had written to HS2 Ltd's chief executive last month, saying it could build the line by the middle of the decade, for a much reduced price tag.

Any move to give Beijing a further role in the UK's infrastructure would almost certainly prove controversial, after Mr Johnson reportedly incurred the wrath of US President Donald Trump - as well as upsetting many Tory MPs - with his decision to allow tech giant Huawei to supply equipment for the 5G mobile network.

The CRCC letter, also been seen by the Financial Times, states: "We are certain that we can offer a cost that is significantly lower than the projections we have seen.

"The advantages are too great, in our opinion, too great to dismiss on the basis that there are obstacles to overcome.

"You will find that the Chinese way is to seek solutions, not linger on obstacles and difficulties."

CRCC has transformed China's transport system, building most of the country's 15,500-mile high-speed network.

However, British officials are said to be sceptical that it could operate in the same way in a democracy with property rights, protected landscapes and powerful lobbying groups.

Supporters of HS2 say it will improve transport times, increase capacity, create jobs and rebalance the UK's economy.

Once it is built, journeys will be shorter. London to Birmingham travel times will be cut from one hour, 21 minutes to 52 minutes, according to the Department for Transport.

And while it is being built, it is expected to create thousands of jobs and provide a stimulus to economic growth.

A Department for Transport official said: "The DfT is always keen to learn from the experience of others and to consider approaches that offer value for money to the taxpayer."
 
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Aictos

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Well they do have the experience but so do the French and Germans so why are they not coming forward with offers?

Yes it’s always good to get value for market but surely this could have dealt with prior to the PM approving?
 

civ-eng-jim

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Well they do have the experience but so do the French and Germans so why are they not coming forward with offers?

Presumably SNCF don't actually have the in-house capability to build high-speed lines like Chinese state railways have. But Vinci, Effiage, Bouygues are all French and were awarded phase 1 contracts (as joint ventures) a couple or three years ago. Not sure what the status is of those early contract awards is though.

Yes it’s always good to get value for market but surely this could have dealt with prior to the PM approving?

Financial Times suggest a letter from China Railway Construction Corporation was sent to the HS2 chief a month ago.
 
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Bessie

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Industry practice is to get at least 3 bids. Not sure how the Chinese will respond to the question on how they deal with nimbys.
 

Aictos

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Industry practice is to get at least 3 bids. Not sure how the Chinese will respond to the question on how they deal with nimbys.

I can imagine how they would respond in the People’s Republic of China but here they would have to obey the laws of the UK so wouldn’t be able to get away with it.
 

Bald Rick

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Slightly misleading thread title. From reading The article (and no more) the Chinese approached HS2. HS2 had a chat with them. More discussions may take place. That’s it.

Given that the main works contracts have largely been placed, albeit at zero value, it would seem to be rather foolish to reopen them. It would guarantee delay and legal action.
 
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hooverboy

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Industry practice is to get at least 3 bids. Not sure how the Chinese will respond to the question on how they deal with nimbys.
simple. A chinese state sposored "community cultural exchange"visit.
 

LNW-GW Joint

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The Chinese had every opportunity to bid for contracts at the same time as everybody else.
Similarly for the rolling stock.
The Chinese angle has been an opportunity since George Osborne invited their involvement in the financing of the line (which may still happen).
Any construction contracts will be let on "UK terms", not "Chinese terms".
 

daikilo

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Anyone could build the line faster if they used the same approach as the Chinese used on their high-speed lines. Earth-moving speed is a function of the number and size of the machines, bridges and viaducts can be built very fast and "in parallel" but tunnels are only as quick as the TBMs (though you could add more). The French got round this problem by "going over the top" which unfortunately destroys any habitats on the route. Obviously the fact that they also work 24/7/52 helps but NR does that in part anyway.
 

Polarbear

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I suspect this may be a bit of political engineering (no pun intended), on the part of the government. Sound-bytes to play to the gallery to male it look like options for cutting costs are being explored.

I don't see any reason why some of the experience the Chinese have couldn't be incorporated into the planning & construction of HS2, but to re-jig contracts at this late stage could well ending up costing more in legal fees & further delay the project.
 

Meerkat

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Isn’t it just a “don’t take the mick gents” message to the UK/European contractors?
 

Grumpy Git

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I too think it is brinkmanship, to give the incumbents something to think about?

It would be a total travesty though if it ends up being built with (crappy) Chinese steel.
 

The_Train

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Not sure if I should post this as I'm sure it's highly confidential but I've come across leaked footage of these 'preliminary discussions' between our Government officials and the salesman for the Chinese Government.......

 

DarloRich

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Industry practice is to get at least 3 bids. Not sure how the Chinese will respond to the question on how they deal with nimbys.

You dont build any part of hs2 on 3 quotes!!!!!!!

Slightly misleading thread title. From reading The article (and no more) the Chinese approached HS2. HS2 mane had a chat with them. More discussions may take place. That’s it.

Given that the main works contracts have largely been placed, albeit at zero value, it would seem to be rather foolish to reopen them. It would guarantee delay and legal action.

Spot on. Although looking at the comments your efforts are wasted!
 

ExRes

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I too think it is brinkmanship, to give the incumbents something to think about?

It would be a total travesty though if it ends up being built with (crappy) Chinese steel.

But what if it was British steel, produced in Britain and giving British people jobs? just because the Chinese have made a normal business approach it doesn't mean the product will be second rate rubbish made by slave labour in deepest China
 

DelW

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They usually are. Sometimes I wonder why I bother!
Please carry on, I find the great majority of your posts interesting and (as far as I can tell as an outsider) they are well-informed too.
 

LNW-GW Joint

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But what if it was British steel, produced in Britain and giving British people jobs? just because the Chinese have made a normal business approach it doesn't mean the product will be second rate rubbish made by slave labour in deepest China

It's complicated by globalisation.
China is in line to buy British Steel (deal not done yet, Turkish company also waiting in the wings).
And British Steel owns the main French steel-rail-producing plant in Hayange (Lorraine).
Scunthorpe provided the raw steel for Hayange to supply rail for the latest LGVs in France.
It's impossible to be black and white about product origins.
eg class 80x diesel power packs are a "German" MTU product - but MTU is owned by Rolls Royce...
Stadler's "Swiss" trains have bodyshells made in Poland (or Hungary) and have Austrian electrics.
etc.
 

The Planner

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Well they do have the experience but so do the French and Germans so why are they not coming forward with offers?

Yes it’s always good to get value for market but surely this could have dealt with prior to the PM approving?
They have, you have joint ventures like Balfour Beatty Vinci, Bouygues VolkerFitzpatrick and Sir Robert McAlpine, Skanska Construction Costain and Strabag, and so on. Plenty of European partnerships there in the contracts already awarded.
 

leightonbd

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Slightly misleading thread title. From reading The article (and no more) the Chinese approached HS2. HS2 had a chat with them. More discussions may take place. That’s it.

Given that the main works contracts have largely been placed, albeit at zero value, it would seem to be rather foolish to reopen them. It would guarantee delay and legal action.


Do you mind if I ask: what is a contract at zero value? An undertaking that the work will be done by contractor X on terms to be agreed, or based on some kind of framework?
 

ExRes

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It's complicated by globalisation.
China is in line to buy British Steel (deal not done yet, Turkish company also waiting in the wings).
And British Steel owns the main French steel-rail-producing plant in Hayange (Lorraine).
Scunthorpe provided the raw steel for Hayange to supply rail for the latest LGVs in France.
It's impossible to be black and white about product origins.
eg class 80x diesel power packs are a "German" MTU product - but MTU is owned by Rolls Royce...
Stadler's "Swiss" trains have bodyshells made in Poland (or Hungary) and have Austrian electrics.
etc.

Quite so, what I don't like is the "(crappy) Chinese steel" remark, I reckon the Chinese can make things as well and as badly as any other industrialised nation, I bought a brand new VW which they took back because it was such a bucket of old nails, made by the Germans!!!!!!!
 

Bald Rick

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Do you mind if I ask: what is a contract at zero value? An undertaking that the work will be done by contractor X on terms to be agreed, or based on some kind of framework?

Short version:

Contractors are asked to tender on rates for elements of the work expected, such that the client can then determine which is best for their package of works. For main works civils rates could be on outputs (metres cubed on earth shifted, metres cubed of concrete supplied, metres of drainage, etc etc) or inputs (daily rates for staff, plant, etc) or some combination of the two. Obviously there are also rates for ‘back office’ functions, plus overheads and profit.

The contract is let on the basis of this ‘price list’, but with zero value*; individual packages of work are then instructed as and when required, with value attached.

There are then variations regarding how the price for each work package is agreed, which is effectively around the maagement of risk and who owns it.

Clearly it’s all much more complicated than this though. If you want to read more, the various forms of contract that Network Rail use are on their website, and there is also some good stuff on the IChemE website.

* often a zero value contract does actually have some value, to pay for the basic project management etc needed to kick stuff off.
 
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gazthomas

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Bring it on. Looking forward to a few reports of health and safety and planning infringements but they'll be quickly forgotten. (I'm joking)
 

deltic

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UK Government has been talking to the Chinese about HS2 since at least 2015 when George Osbourne was touting various infrastructure projects to them. Unless the Chinese have some great new technique for building high speed lines then it is difficult to see how they will bring substantial cost or time savings. Where they have worked on lines elsewhere they have brought in their own labour which I cant see working here and speeded up the process by working 24/7 which HS2 Code of Construction Practice does not allow.
 
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