Vietnam National Railway Corporation (VRC) is calling for private investment in railway infrastructure, surrendering its monopoly, to improve service.
VRC surrenders monopoly for Yen Vien railway logistic project
The Logistic ILT Railway Joint Venture is trying to mobilise VND85bn for the construction of a railway logistic centre and storage areas for domestic containers and export-import containers at Yen Vien railway station in Hanoi.
It is one of four projects submitted by the VRC to the Transport Ministry for approval to call for private investment. It also plans to build a commodities storage facility at Song Than, in Binh Duong Province, a railway station at Dong Dang, Lang Son Province, and the Xuan Giao A railway station.
“VRC held a monopoly in railway investment, but now we’re opening opportunities to private investors,” said Tran Ngoc Thanh, chairman of the VRC’s Council of Members.
Private investment is the railway sector has the support of Transport Minister Dinh La Thang, with construction of the Yen Vien railway logistic centre expected to begin in the second quarter of this year.
Thang said Vingroup has proposed buying Hanoi, Saigon and Danang railway stations, and investing in new railway stations in those cities to ease overcrowding.
“The Danang municipal People’s Committee has mapped out plans to relocate the Danang railway station out of the city centre to boost tourism development,” Thang said.
“But more attention should be paid to studying the feasibility of the plans to build new railway stations in Hanoi and HCM City without using state funding.," he said. "It is also necessary to preserve historic railway works amid urbanisation.”
Sun Group, a major investor in several luxury tourism sites in Vietnam, wants to buy 20 trains equipped with modern facilities to promote tourism between Hanoi and Danang, Saigon and Danang, and Hanoi and Lao Cai.
“Initially we will serve our own clients before expanding the services to all people,” said Tran Thanh Son, chairman of Sun Group.
The Vietnam Railway Department has submitted to the Transport Ministry a list of projects that call for private investment, including 12 public-partnership projects to upgrade railway routes scheduled for franchising and four new railways under the BOT model.
“All individuals and enterprises are encouraged to invest in such projects,” Thang said.
