A Japanese consortium will likely not take part in a tender for Brazil's near $19-billion high-speed rail project, according to a Kyodo news report Friday.
Companies led by Mitsui will not bid in a tender by the Brazilian government amid uncertainty over whether the project would be profitable over 40 years, the report said.
The Japan group, which includes Mitsubishi Heavy Industries, Hitachi and Toshiba, asked the Brazilian government to reduce the burden on the bid winner, but this was rejected.
A Mitsui spokeswoman declined to comment on the report ahead of a Nov. 29 bid deadline for the project that will connect Rio de Janeiro with Brazil's financial centre Sao Paulo.
Companies from France, Germany, South Korea, Spain and China have expressed interest in the project, while Brazilian media said France's Alstom and Germany's Siemens are among the possible contenders.
Separately, shares of Hitachi declined Friday after the U.K. government delayed until next year a decision on how to replace its ageing Intercity express trains.
Hitachi, seen as one of the preferred bidders, said it was still optimistic about clinching the British deal