Vietnam Railways set to continue strong growth
HANOI - Vietnam Railways recorded a decade high turnover last year, despite floods in the central
provinces, dilapidated infra-structures, and funding shortages.
The sector posted a turnover of VND2,733 billion (US$180 million) last year, an increase of 27 per cent over 1999.
The sector's biggest success in 2000 was the growth in the cargo transport sector, which carried more than 6 million tonnes of
goods and earned a turnover of VND1,230 billion ($78 million).
Railway officials attributed this success to a cut in transport fees and to the sector's efforts to diversify transport services and
improve passenger services.
With the support from the government and relevant bodies, over 40,000 railway workers and employees enjoyed a 13 per cent
increase in income in 2000 compared with 1999.
The year 2000 also saw the construction and operation of four trans-Vietnam express trains.
Improved passenger safety was an other factor that contributed to boosting the sector's revenues. The three major carriage
plants of Di An, Gia Lam and Bien Hoa all produced safer passenger carriages last year.
The renovation of diesel-powered locomotives was another of the year's triumphs, allowing the sector to save billions of dong,
by renovating obsolete locomotives instead of buying new imported ones.
However, according to Dao Dinh Binh, the Vietnam Railway Union Director General, the sector has some serious problems,
including a lack of adequate safety controls at crossings, dilapidated railway infrastructures and damaged sleepers.
In 2000, the sector invested VND400 billion in infrastructure development, an increase of VND100 billion over 1999.
However, the sector's renovation and maintenance program requires an annual investment of VND550 billion.
Another problem is that most locomotives and carriages are obsolete, meaning that there is a severe shortage of passenger and
container carriages.
Railway authorities have stressed that the sector needs further investments if it is to significantly reduce urban traffic congestion
and environmental pollution.
This year's investment priorities will be the replacement of dilapidated rail tracks, the extension of rail gauges, the repairing of
war-torn railway bridges, and the construction of automated crossings.
The sector plans to earmark VND50 billion for a crossings upgrading project this year. It also plans to borrow funds from the
French Government to buy new locomotives, and to access other domestic and foreign loans to buy between 100 and 200 high
quality carriages this year.
Additionally, the sector has also presented the government with a twenty-year development plan which focuses on attracting
different economic sectors to contribute to developing the railway sector.
Vietnam News Agency - January 11, 2001.
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