Three High-Speed Rail Plays to Watch


Jim Jubak Image Jim Jubak Founder and Editor,

Jim Jubak is on vacation the week of March 29 to April 2. We will resume the regular posting schedule on Monday, April 5.

I’ve got three high-speed train stocks to tell you about—and US-based investors can actually put money into one of them. (And I’ll give you a second US rail equipment stock to consider.)

Why not all three? Because the rising stars of the new generation of high-speed rail companies are Chinese and Korean, and it’s hard to buy into these companies now. The European and Canadian companies that once dominated this space are easy to buy into, but are facing a huge challenge from the “upstarts.”

And US companies are barely even players in this space, unfortunately.

More on why that’s unfortunate for anyone who wants this economic recovery to produce enough new jobs to reduce US unemployment below 6% in a moment. First, let’s look at those potential high-speed stock picks.

The world is looking at growth in high-speed rail that’s faster than a speeding locomotive. In 2005, a study by Germany’s SCI Verkehr projected that the length of the world’s high-speed rail networks would double over the next ten years. According to the study, by 2015, high-speed rail networks would total 14,400 kilometers (roughly 8,600 miles), up from 6,300 kilometers in 2004.

Boy, was that study wrong.

In the next three years, China alone will put 9,200 kilometers of new high-speed lines into operation, according to the Chinese Ministry of Railways.