From "project development" to "industrial chain operation", the China Railway No 10 Engineering Group has realized the transformation from "project construction contractor" to "investor + contractor + operator" in Venezuela, providing all-round services including international engineering design consulting, project construction and operation management. 

The China Railway No 10 Engineering Group and Venezuela's Ministry of Industry signed a strategic alliance cooperation framework agreement in the iron ore sector at the 16th China-Venezuela High-Level Joint Commission in Beijing on Sept 14.

According to the agreement, the two parties will take investment and financing as a breakthrough to promote all-industry chain cooperation in the iron ore field and develop the mines of Venezuela's iron ore producer Ferrominera del Orinoco (FMO) mainly in San Joaquin city.

In the past two months, the China Railway No 10 Engineering Group has conducted discussions with domestic top experts in the design fields of railways, ports, logistics, and finance.

In the next six months, they will continue to conduct on-site investigations in Venezuela and negotiate with the partner.

The mining plant, the railway transportation system, the port of Ordaz and the sea transshipment platform will be comprehensively and systematically upgraded to achieve an increase in iron ore production capacity of 16 million tons and an increase in export trade of iron ore products.

For the foreseeable future, the China Railway No 10 Engineering Group will be able to fully participate in the whole industrial chain of FMO covering iron ore mining and processing, transportation and export system upgrading and later operation, which will help foster new business growth points. 

The move is an innovation and breakthrough in actively implementing China's Belt and Road Initiative, accelerating the transformation and upgrading of overseas business and improving quality and efficiency.

It is also of great significance for promoting the development of economic and trade exchanges between China and Venezuela. 

As the main promoter of the "business chain" strategy of overseas business, Li Xuemin, general manager of the China Railway No 10 Engineering Group, said that in recent years, the group has abandoned the idea of "developing projects", innovated overseas development thinking and successfully participated in the entire industrial chain of iron ore production in Venezuela. 

Since 2010, the newly signed infrastructure projects have amounted to $1.58 billion, and the ore trade contract amounted to $1 billion, realizing the transition from developing projects to operating an industrial chain in Venezuela.

Staffs of the China Railway No 10 Engineering Group lay a railway track in Venezuela. [Photo provided to chinadaily.com.cn] 

The MATANZAS station of the FMO project is under construction in Venezuela. [Photo provided to chinadaily.com.cn]  

Tracklayers are seen on a track-laying vehicle with logo of the China Railway No 10 Engineering Group in Venezuela. [Photo provided to chinadaily.com.cn]