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Japan Rides High-Speed Rails Business

8 years ago1K views

t's been more than 45 years since Japan introduced the bullet train. Now, companies such as top electronics maker, Hitachi, are looking to take the technology global.

High-speed rail travel isn't just a way of life in Japan, it's increasingly big business.

Over 45 years since Japan introduced its bullet train, companies such as the nation's biggest electronics maker, Hitachi, are looking to take the technology global.

Hoping to close soon an $11 billion deal for U.K. trains, Hitachi's rail boss Gaku Suzuki says the world's biggest rail market, China, may order as many as 3,000 high-speed cars a year.

[Gaku Suzuki, CEO, Industrial & Social Infrastructure, Hitachi]:
"In overseas markets, we're eyeing Europe and China, then Asia as well as India."

The rail industry's Big Three -- Germany's Siemens, Canada's Bombardier and France's Alstom -- holds about half of the global market.

But Hitachi and its Japanese rail consortium eye a U.S. plan to invest $8 billion in 11 high-speed train lines, while Brazil is seen build infrastructure ahead of hosting the World Cup and Olympics.

[Gaku Suzuki, CEO, Industrial & Social Infrastructure, Hitachi]:
"Brazil has the World Cup in 2014 and the Rio Olympics in 2016, so it will need rail lines and infrastructure, and this is a very big potential mover."

After decades of Japan expansion, by 2015, Hitachi sees about 60 percent of its rail business coming from overseas, logging $3 billion in revenues a year.