CCCC expanding overseas

Kenyan workers at the construction site of the Mombasa-Nairobi railway, contracted by China Communications Construction Company Co Ltd. [Photo provided to China Daily]

China Communications Construction Co Ltd, one of the country's largest infrastructure project builders, will adopt varied models to invest in BRICS markets in fields such as infrastructure construction, industrial parks and property development, its chairman said.

Liu Qitao said CCCC has put continuous emphasis on BRICS partners, grouping Brazil, Russia, India and South Africa, which boast a "huge scale market potential".

"We'll make use of different investment models including public-private partnership, build-operate-transfer, equity participation and mergers and acquisitions," Liu told China Daily in an exclusive interview.

To further expand its market share, the company will seek alliances with capable local enterprises familiar with the local business environment, he added.

CCCC's expansion in BRICS markets can be traced back to the 1980s, when it set up its first unit in Brazil. It then branched out to India, Russia and South Africa.

During the BRICS Summit in Xiamen earlier this month, the company signed a memorandum of understanding to invest in and construct a grain handling port in Santa Catarina, a project aimed to facilitate grain trade between China and Brazil. CCCC will take charge of the port's operations, according to a public filing.

CCCC's expansion strategy targeting BRICS countries is in line with its long-lasting goal: to boost its overseas sales revenue to around 50 percent of the total by 2035 via diversified operation models.

In the first six months of 2017, the company reported that revenue from overseas markets stood at 41.25 billion yuan ($6.09 billion), accounting for 21.7 percent of the total.

During the same period, the value of newly signed contracts in overseas markets was 140.3 billion yuan, nearly one-third of the company's total.

Experts said in the second half of the year, CCCC's performance would be further fueled by the steady rise of overseas orders.

Lu Ping, an analyst at China Merchants Securities Co Ltd, said overseas business would help the company realize the goal it set for this year－newly signed contracts reaching 900 billion yuan.

Kong Lingxin, an analyst with China International Capital Corp Ltd, said: "CCCC's revenue from both domestic and overseas markets is expected to grow at a faster pace. Overseas business will benefit from the country's Belt and Road Initiative."