The Hanoi Department of Transport has asked investor Vinafood Corporation to continue maintaining the operation of Luong Yen Bus Station in Hanoi.
The move came after Vinafood sought the department’s approval to close the station from July 1 when the station’s business license will expire on June 30. After being closed, the station would be turned into a real estate complex project on the site, including high-rise buildings, school and a multi-storied parking area.
Luong Yen Bus Station under threat of closure
In late 2010, the corporation invested VND10 billion (USD476,190) to narrow Luong Yen Bus Station to the north of the site to implement the project. However, on June 6 this year, it proposed to the local Department of Transport to close it.
According to the department, the station would not affect the project and closing the station would be a waste, saying that, coming into operation in 2004, the station has helped to meet increasing travel demand in Hanoi and the north.
Nguyen Hoang Linh, Deputy Director of the department said that Hanoi’s current stations are crowded, while, construction of new ones remained slow. Therefore, the closure will add pressure to the city.
The department asked Vinafood to continue maintaining the station until the city has a new replacement station.
Many of the 300 plus coach operators in the city worried that they may be forced into bankruptcy if Hanoi's Luong Yen Bus Station closed.
The news of Luong Yen Station’s possible closure has worried coach operators at Giap Bap and My Dinh stations. They fear that increased competition over a limited number of passengers will hurt their businesses.