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 TOKYO: East Japan Railway Co (JR East) plans to join hands with Kawasaki Heavy Industries and trading house Sumitomo Corp to bid for a high-speed railway project in California, the Nikkei business daily said.

Another Japanese railroad operator, Central Japan Railway Co (JR Tokai) , has agreed to cooperate with US engineering firm Fluor Corp and the US unit of British builder Balfour Beatty Plc to win a similar project in Texas, the Nikkei said on Sunday.

Japanese railroad companies and rolling stock makers are eager to seek growth overseas by taking advantage of major railway projects in countries such as Brazil, Vietnam and the United States amid sluggish demand at home.

The JR East consortium -- which will also include Nippon Sharyo , Hitachi Ltd and Mitsubishi Heavy Industries -- plans to inform the California state government by March 16 of its intention of submitting a bid, the paper said.

JR Tokai will work with Fluor and Balfour Beatty's local unit to meet one of the US government's conditions to win a railway project there, which is the purchase of US products, the Nikkei said.

Florida Governor Rick Scott this month rejected $2.4 billion in government funds to build a high-speed passenger rail line, slamming the brakes on the project and disappointing prospective bidders.

Copyright Reuters, 2011

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