Hanoi bus rapid transit route reports loss after four years

The bus rapid transit route in Hanoi is incurring rising losses after four years of pilot operations.

The bus rapid transit route in Hanoi is incurring rising losses after four years of pilot operations.

  

A BRT bus in Hanoi

The report about the effectiveness of the bus rapid transit route from Yen Nghia to Kim Ma Bus Station by the Department of Transport has been submitted to the Hanoi People's Committee. According to the report, the bus route was opened in January 2017. In 2018, it received 5.3 million passengers, an increase of 6.3% compared to 2017. The numbers of passengers in 2019 and 2020 totalled 5.5 million and 5.35 million respectively.

The report claimed that the number of passengers dropped in 2020 because of Covid-19 which cause travel demand to drop. The BRT buses also have their own bus lane but they are often encroached upon by other vehicles, especially during rush hours, which has prevented the buses from going at their fastest speeds. As a result, many people still prefer personal vehicles.

In 2018, the services earned VND27.5bn (USD1.2m). However, revenue in 2019 and 2020 decreased to VND24.8bn and VND15.2bn respectively. The subsidy-cost ratio in 2018 was 26.6% and rose to 36.6% in 2019.

Hanoi People's Committee asked the Hanoi Institute for Socio-Economic Development Studies to research whether the city should continue investing in the bus rapid transit system.

The Department of Transport also agreed that there must be a careful review of the system's effectiveness before any more investments are made.