Las Vegas-L.A. Rail drops Chinese partner over regulatory issues

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XpressWest, the company developing a high-speed railway connecting Las Vegas and Los Angeles, has terminated its joint venture with a Chinese consortium over performance and U.S. regulatory issues.

The decision to end the partnership with China Railway International U.S.A. Co., a consortium that includes China Railway Corp. and China Railway Engineering Corp., is based on difficulties with moving the project forward, the Las Vegas-based company said in a statement. XpressWest said it will pursue other partnerships for implementation.

“Our ambitions outpace CRI’s ability to move the project forward timely and efficiently,” Tony Marnell, chief executive officer of XpressWest, said in the statement. “XpressWest is undeterred by this development and remains dedicated to completing its high-speed passenger rail project.”

The project faces challenges because of a federal requirement that high-speed trains must be manufactured in the U.S., according to the statement. The “inflexible requirement” has become a barrier to financing high-speed rail in the country, the statement said.

XpressWest is “precipitate and irresponsible” in making the statement while its talks with China Railway International were still going on, Xinhua News Agency reported, citing a manager of the Chinese group responsible for the venture. The unilateral announcement violated the cooperation framework agreement signed by the two sides, the report cited the manager as saying.

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Bloomberg

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.