Four Korean companies have pulled out from the nation’s consortium planning to bid for a contract to build and operate a bullet train network in Brazil, company officials said.

The four companies, including Hyundai Amco Co. and Kolon Engineering & Construction Co., notified the consortium of some 20 firms last week that they pulled out, citing an uncertainty in financial prospects for the Brazilian project.

“We decided to give up because it would cost significantly in operations even if we get the contract,” said an official at Kolon Engineering.

The two other companies to pull out were Hanshin Engineering & Construction Co. and Samwhan Corp., an industry source said.

Brazil plans to hold an auction to build a 511-kilometer bullet train network connecting Sao Paulo and Rio de Janeiro. Korea, Japan, China and several European nations are reportedly interested in participating in the project estimated at some $20 billion, according to the industry source. 

(Yonhap News)