World biggest caterer, Compass, invests in China's railway industry

The world biggest caterer, the Britain-based Compass Group, entered into an agreement with a Chinese railway company recently to establish a railway food producing base in south China's coastal city Beihai, Guangxi Zhuang Autonomous Region.

Sydney S. Tang a representative of Compass Group PLC, said at the foundation-laying ceremony of the food base on Sept. 12 that Compass is increasingly interested in the rising Chinese market.

The 150 million yuan (about 18.1 million US dollars) venture between Compass and Beijing Association of Railway Sciences Environmental Protection Sciences & Technology Development Co., Ltd is expected to begin business operations by the end of this year.

The new railway food base will not only produce food for trains, but also make environmentally safe dishware.

Catering services has been popular in China's airplanes, railways and schools. The railway sector is seen as the last but largest market to be explored in China.

China's railways transported more than 1.1 billion passengers in 2003, much higher than the number transported by bus or planes.

Lei Junhai, board chairman of the Beijing investor, said that in 1997, China's railway catering demand reached 600 million shares, and with the further development of China's railway industry, there will be increased demand in China for railway catering services.

Ranked 313 among the world's top 500, Compass has 75 percent of catering business of the Hong Kong airport, and has opened catering training schools in more than 20 Chinese cities.

In April, 2004, Compass began cooperation with the Shanghai Railway Bureau to offer catering services on trains running between Beijing and Shanghai. It was a breakthrough in China's railway sector to open its catering industry.

Sydney S. Tang said the railroad is the last market opened in China, and the railway catering sector will require high standards of service, sanitation and environmental protection. He expressed his belief that the world-noted brand Compass will help boost China's railway catering industry.

Source: Xinhua