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Engineered for Success

2013-04-29 01:38:43ByZhengYang
CHINAFRICA 2013年2期

By Zheng Yang

one of the most important international contractors in China, Sichuan Road & Bridge (Group) Co. Ltd.(SRBG) has expanded its business in many countries in Asia and Africa in recent decades, building not only infrastructure but also friendships between these countries and China, while showcasing the strength of Chinese contracting enterprises.

Located in southwest China, SRBG is a stateowned enterprise formed in 1998 by the Sichuan Road & Bridge Engineering Corp. and its affiliated companies, all of which were established in the early 1950s. It boasted 1.5 billion yuan ($240 million) in registered funds. The company mainly engages in road and bridge construction, investment in roads and bridges, hydropower development, real estate development, mineral development and securities investment. It has more than 50 wholly owned or holding subsidiaries and branches staffed by over 18,000 employees, and collects annual operation revenues of 50 billion yuan ($8 billion).

Over five decades, SRBG has built more than 15,000 km of roads, 5,000 km of which are highgrade roads, over 1,000 large bridges, as well as tunnels, airports, docks and dams.

Early beginnings

The enterprises experience on Chinas highly-competitive domestic market helped lay a foundation for its international success. Since 1979, SRBG has worked on more than 110 overseas engineering projects; the total contract value of these projects amount to over $300 million.

According to Wang Chuanfu, Assistant General Manager at SRBG, the company first got involved in overseas engineering projects as part of Chinas foreign aid to other countries. Today, the companys construction projects are mainly based in Eritrea, Tanzania, Cambodia and the United Arab Emirates, with annual turnover totaling $20 million.

“The foreign aid projects paved the road for us to enter the world stage,”said Wang. “Without these opportunities to show our abilities, African countries would not be aware of the capabilities of Chinese contracting companies.”

Good reputation

In 1993, the then Chinese Ministry of Foreign Economic Relations and Trade (now the Ministry of Commerce) authorized SRBG to take on commercial contracts for foreign engineering projects. The market in Eritrea, a young country founded that same year, became the site of SRBGs first foray into the international market. This posed many new challenges and risks for the company.

At that time, dozens of internationally recognized companies from the Middle East, Europe and the Asia-Pacific region were all bidding on Eritrean projects, but SRBG emerged as the front-runner. “To compete with them, we focus on nothing but improving our proposal and working hard,” said Wang.

This strategy has earned SRBG a great reputation and more business opportunities in Eritrea. To date, the company has been contracted to work on six engineering projects, including building roads and refurbishing hospitals and schools. The Eritrean president praised SRBGs tireless efforts, and invited the company to take on more projects.

“No matter how the situation changes, quality is always our top priority,” said Wang.

Liao Xianqi, General Manager of the Overseas Engineering Co., a subsidiary of SRBG, said that a local newspaper, Eritrea Times, commented in a report on SRBGs performance: “This hardworking attitude is the reason for Chinas fast development and great achievements.”Africa occupies an important position in the companys future plans. “Since the 1990s, the African continent has been a site for Chinese enterprises to work toward their ambitions to get internationally recognized,” said Wang. In 2013, SRBG will shift focus more on its overseas business, which is expected to account for one third of its total turnover.

Socially responsible

As a Chinese enterprise exploring foreign markets, social responsibility in environmental and employment areas is of great concern of SRBG.

According to Liao, who has spent decades working on overseas construction sites, Chinese compa- nies were not fully aware of the importance of environmental protection when they first ventured outside of China in the 1980s, but this soon changed as they gained more overseas experience.

“Some African countries are short on water,” said Liao. “We must be very careful not to pollute local water resources, including both surface water and groundwater.” He added that the company now strictly manages its industrial waste disposal.

In recent years, SRBG has created about thousands of jobs for Eritreans. The total number of local staff hired for SRBG projects in the country once peaked at over 1,000.

Meanwhile, the company also managed to introduce new techniques through professional training courses designed to help local engineering personnel improve their skills.

“In both good times and bad, SRBG is always here,” Eritrean Ambassador to China Tseggai Tesfazion told ChinAfrica. Tesfazion praised the companys work efforts on Eritreas road construction projects, which continued despite the war between Eritrea and Ethiopia at the end of the last century.

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