The Taiwan Railways Administration said it has ordered 136 rail cars worth T$10.6 billion ($363 million) from Sumitomo Corp, Japan's No. 3 trading company, and rail equipment maker Nippon Sharyo.

The two Japanese companies will begin by supplying 16 carriages, an official from the Taiwan rail authority, which is expanding and modernising its network, told Reuters.

The two companies in September won an order to supply 160 rail cars to Chicago's train operator, the Northeast Illinois Regional Commuter Railroad Corp.

Japanese companies including Sumitomo Corp and Nippon Sharyo are trying to tap demand overseas for rail and other infrastructure projects as orders at home stagnate.

By teaming up, Japanese rail equipment makers including Mitsubishi Heavy Industries and Hitachi Ltd are vying with rivals such as Germany's Siemens, Canada's Bombardier and France's Alstom for orders around the world. (Reuters)