Advanced not only meet fluctuating domestic market need, but

Advanced Industry Manufacturing Base

Global suppliers should form a
nationwide industrial chain with the main machinery company as its core and
supporting companies as its support. It will beneficial for the suppliers to
construct of several rail transportation equipment manufacturing bases at an internationally
advanced level.

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With the global manufacturing
units, leading suppliers in rail transportation will not only meet fluctuating
domestic market need, but also rapidly respond to the demands of the global
rail transportation equipment market. It will give an opportunity to operate at
lower costs, reach untapped markets. Less spending on labor and raw materials
gives companies a pricing edge over the competition; additionally, hourly
arrangements make real-time scaling possible, eliminating overproduction and
helping companies meet consumer demands as they arise. It also helps the
company increase its brand recognition throughout the world. In an increasingly
global economy, greater brand awareness may be necessary for companies that
want to continue to expand, especially if their current markets have reached
their saturation point. Globalization helps major manufacturers optimize
development, resource use and supply chain efficiency when scaling their
operations to suit market activity.

In addition, the continuous
improvement in the management capability of the company mainly through refined
management and advanced manufacturing technologies will establish advanced
quality control system and robust-industrial-chain production guarantee system.
It will improve its product manufacturing capability, industrialization
capability, production process technology as well as major technological
equipment and methods of measurement and detection. This can automatically be
translated into better business potential opportunities and higher revenues.

On the downside, opening a
production facility in a foreign country offers an element of uncertainty. A
sudden change in political regime can also lead to economic upheaval that can
jeopardize the business’s long-term success. In addition, Scaling challenges
like overproduction and insufficient material use can cost your company tens of
thousands of dollars and ruin overall profitability; this goes without
mentioning the production down time that’s required to modify operations.

Public-Private Partnership (PPP)

 

There is a strong need for infrastructure investments to
be better coordinated with the requirements of logistics operators. It is
important for the operators to be involved in public infrastructure investment
planning to ensure the efficient use of capacity. But many infrastructure
owners and operators do not have a global view or easy access to global best
practices. On the other hand, construction companies are becoming increasingly
international, enabling the transfer of technology and working practices. But
the industry would benefit if operators, who understand the markets, had a more
influential role here.

Complementing the role of the public sector, the private
sector brings an entrepreneurial approach to infrastructure development with
market-based solutions that can expand the provision of essential services. In
addition, harnessing the private sector usually results in decreased lead times
thus allowing projects’ economic benefits to be reaped sooner. PPP approach
allows introduction of competition, which encourages firms to provide quality
service at a low cost, be responsive to customer’s needs, and encourages
competitors to innovate. It allows fresh capital to be injected into rail
industry. At times, the public sector simply does not possess the necessary
resources. Reliance on private capital is thus the only way to complete
necessary renovations, upgrades, and maintenance that result in safer, faster
and more efficient service.

In the rail sector, there are also cases in which
rolling stock investments were not coordinated with infrastructure. However,
there are also examples of good collaboration, such as the £5.8 billion
Intercity Express Program (IEP) in the UK that is being handled as a PPP of up
to 35 years. It involves the procurement of 700 seat high-speed trains
specified to run on existing tracks (and subject to a coordinated program of
infrastructure improvements) as an alternative to the approach elsewhere of
building new high-speed dedicated lines (though these are also planned in the
UK).