Global engineering company AECOM has signed an agreement with Sunvision Holdings Inc, a subsidiary of Shanghai-based Fosun, one of China’s largest investment conglomerates, for the establishment of a joint venture focusing on Transit Oriented Development (TOD) project opportunities.
In September 2017, Fosun signed China’s first public-private-partnership (PPP) agreement for a high-speed rail project, the 269 km Hangzhou-Shaoxing-Taizhou line in China’s densely populated eastern region. The line is estimated to cost 44.9 billion RMB and is scheduled for completion in 2021. By 2030, China’s high-speed rail infrastructure is expected to double to 45,000 km, making it the most extensive such network in the world. This massive investment is being complemented by more than 40 additional subway and metro rail systems planned and/or currently under construction, based on a report by Xinhua News Agency.
“China’s high-speed, long distance and metro rail investment significantly raises the demand for rail-oriented TOD projects. Our joint venture with Sunvision brings together complementary strengths to deliver infrastructure that will both enhance convenience and work well with the natural and built environment,” said Sean Chiao, president for Asia Pacific at AECOM.
“Aligning our diversified and highly complementary resources will facilitate vertical cooperation between upstream and downstream industries. As part of Fosun’s investment strategy of ‘Combining China’s Growth Momentum with Global Resources,’ we are confident this joint venture will deliver efficient, world-class infrastructure to our home customers,” said Xiaodong Wen, Fosun’s global partner, who is also chairman and CEO of Fosun Infrastructure Group.
According to the strategic cooperation framework agreement signed by the two parties, the new joint venture will form a special team after the establishment to actively integrate the business resources of both parties in Greater China and kick off collaboration on several project opportunities in the pipeline.