CSR, which is just behind Bombardia Inc's transport unit in terms of revenue, agreed to formed a joint venture with General Electric Co to bid for rail projects in the United States and South America, said Chairman Zhao Xiaogang.
"We will join the competition in the United States through the joint venture. Leveraging our synergies, we can beat competitors on the fronts of technology and costs," he told Reuters in an interview.
China has rapidly developed its domestic high-speed rail network over the past decade, making it the world's longest at 8,358 km. It plans to open the $33 billion high-speed link between Beijing and Shanghai in June.
This would help lift CSR's revenue by an average of 20 percent annually in 2011-15, Zhao said.
Revenue contributions from overseas were expected to rise to 6 percent this year from less than 4 percent in 2010, he said.
"If there are no unforeseen circumstances, we will become the world's No.1 this year in terms of revenue," said Zhao.
Despite a 4 percent gain on the Hang Seng Index this year, Hong Kong-listed shares of CSR have fallen about 19 percent since the beginning of the year, following a near 80 percent gain in 2010.
Investor interest was affected by concern that investment in the sector could slow after the country's railways minister was removed from his post in February following an investigation.
"This is a misunderstanding. China's railway development plan will change," Zhao said.
Newly appointed railways minister Sheng Guangzu told the People's that railway construction between 2011 and 2015 would be rolled out quickly across the country, with an investment of 2.8 trillion yuan ($428 billion).
Zhao said the company's multiple unit and rapid transit segments would be the main growth drivers this year.
Overseas Push
CSR also sees U.S. President Barack Obama's proposed long-term transport spending plan in his 2012 budget as a good growth opportunity for the company.
"There will be a number of projects in the United States," Zhao said, adding that CSR would compete with other companies for the California project.
Plans for an 800-mile high-speed rail network connecting California's urban centers are undergoing environmental review, with the expectation of work beginning on its initial phase in the Central Valley in 2012.
However, Zhao said he was disappointed when Florida's governor in March rejected about $2.4 billion in federal funding for a high-speed rail project in the state.
"I am worried that the U.S. could cut infrastructure spending when they cut the budget," he said. (Reuters)
