Japan Offers Loan for US High-Speed Rail

16 September 2010 (Last Updated September 16th, 2010 18:30)

The Japan Bank for International Cooperation will offer a loan to the US state of California for its $40bn high-speed rail project. Japan is offering the loan to the state, which is facing a $19.1bn deficit, to allow its companies to compete with Chinese, South Korean and European train

The Japan Bank for International Cooperation will offer a loan to the US state of California for its $40bn high-speed rail project.

Japan is offering the loan to the state, which is facing a $19.1bn deficit, to allow its companies to compete with Chinese, South Korean and European train makers, according to Bloomberg.

The US has invited Asian companies, including East Japan Railway, China South Locomotive & Rolling Stock and Hyundai Rotem, to bid for the rail project.

The state is also welcoming bids from France and Germany.

The route will take 2h and 38min between Los Angeles and San Francisco, and will also be extended to San Diego.