China researching on merger of two railway construction giants

Wang Mengshu receives an interview with China Economic Weekly. (Photo from website of China Economic Weekly)

(ECNS) - The Chinese government is doing research on merging China Railway Engineering Corporation and China Railway Construction Corporation, according to a report posted on China Economic Weekly's website.

Wang Mengshu, deputy chief engineer at China Railway Tunnel Group and also a National People's Congress deputy, revealed the news during an interview with the magazine.

The merger plan hasn't been launched so far, but the government has begun to research on it, according to the railway expert.

Wang said the merger of China Railway Engineering Corporation and China Railway Construction Corporation might not have much impact on the general public, but will benefit engineering projects and the development of Chinese railways.

It will also help curb corruption and facilitate fair and technology-backed negotiations with the national railway operator, he added.

China Railway Engineering Corporation is a super-large construction group engaged in infrastructure construction, surveying, design and consulting services, engineering equipment and component manufacturing, property development and other businesses, according to the company's website.

China Railway Construction Corporation is a mega-sized construction corporation in China, with business covering project contracting, surveying and design consultation, industrial manufacturing, real estate development, logistics, trade of goods and materials as well as capital operations, says the company's website.