Under the VNR’s proposal, the investment would be sourced from the government’s post-Covid-19 stimulus package of nearly VND347 trillion (USD15 billion). It will focus on repairing and upgrading support facilities, including warehouses, at nine freight depots and 32 passenger stations. Road sections to the stations will also be upgraded.
According to VNR, Vietnam has a total of 297 freight and passenger depots and stations. Most of them are small scale and many have deteriorated, posting safety risks. This includes twenty five stations that were built before 1954.
VND2.38 trillion proposed for railway station upgrade
Due to the deterioration, warehouses at many railway stations have failed to preserve goods, particularly fresh farm produce.
The government has decided on a VND7-trillion investment for upgrading the North-South railway route. This, however, remains modest against the real needs of the country’s railway sector development.
Earlier, Deputy Prime Minister Le Van Thanh signed a decision approving the railway system plan for 2021-2030, which sets a target of building nine new railways with a total length of 2,362 kilometres by 2030.
The projects would have a total investment capital of VND240 trillion (USD10.3 million) which is expected to come from the state budget and private investors.
By 2030, the volume of goods transported is expected to reach 11.8 million tonnes, accounting for about 0.27% of the market share, and the number of transported passengers will reach 460 million, representing a market share of about 4.40 percent.
