09/14/2010

Japan Offers California Loan for $40 Billion High-Speed Train

Schwarzenegger Rides Bullet Train as Japan Offers Rail Loan

Schwarzenegger visited Tokyo as part of an Asian tour as he looks for contractors and funds to help with a high-speed rail network that will include a route between Los Angeles and San Francisco. Photographer: Shuji Kajiyama/Pool via Bloomberg

California Governor Arnold Schwarzenegger rode one of Japan’s fastest trains today after the nation’s transport minister offered loans to support the state’s more than $40 billion high-speed rail project.

“I am very impressed with the technology and also with the infrastructure itself,” Schwarzenegger said in Omiya, Japan, a 25-minute journey from Tokyo Station. East Japan Railway Co.’s “Hayabusa” bullet train accelerated to 110 kph (68 mph), short of its

Schwarzenegger visited Tokyo as part of an Asian tour as he looks for contractors and funds to help with a high-speed rail network that will include a route between Los Angeles and San Francisco. Japan is offering a loan to California, which faces a $19.1 billion deficit, to help companies including East Japan Railway compete with Chinese, South Korean and European rivals.

“Japan’s strength lies not only in being able to provide finance but also in the quality of the product,” said Ryota Himeno, an analyst at Mitsubishi UFJ Morgan Stanley Securities Co. “China and South Korea lag behind in terms of operating experience.”

The state-owned Japan Bank for International Cooperation is prepared to lend funds for California’s rail project, Transport Minister Seiji Maehara told reporters late yesterday in Tokyo. He declined to comment on the amount of the possible loan.

‘Genius Mind’

Apologies for interrupting your reading, however, I have a question:  How how the hell can Schwarzenegger recognize a 'genius mind?'

Schwarzenegger rode on a Chinese high-speed train on Sept. 12 and is planning a similar trip in South Korea. California has encouraged Asian companies including East Japan Railway, China South Locomotive & Rolling Stock Corp. and Hyundai Rotem Co. to bid on its rail project.

“Japan has a genius mind,” Schwarzenegger said earlier today at a breakfast event in Tokyo held by the American Chamber of Commerce in Japan. “California wants to have that kind of mind and technology to build our high-speed train.”

Read more at Bloomberg

Sep 14, 2010 9:30:07 AM | Current Affairs, Transportation

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