Vingroup eyes railway investment

Friday, Jul 17, 2015 19:54

The railway station in the centre of Da Nang City. The station is set to be relocated to the outskirt of the city between 2016 and 2020. -- Photo

DA NANG (Biz Hub) — Vingroup is seeking to invest in a new railway station in Da Nang, as the authorities plan to move the existing station out of the centre of Da Nang City.

The property developer sent a letter on the issue to the Ministry of Transport this week, expressing its hope that the ministry would soon provide guidelines on procedures related to the investment, VnExpress online said.

As the ministry and the municipal authorities have approved the project, the company has discussed the matter with Viet Nam Railways and hopes to build the station under a build-transfer contract.

The company has reportedly said that with its abundant financial capacity and management experience, it expects to help enhance the quality of railway services.

A statement submitted by the Da Nang People's Committee to the Government late last month said the new station was expected to be built in Lien Chieu District, substituting the current facility in the central city in Thanh Khe District.

Also, the Viet Nam Railway Authority said the new location would suit the local traffic master plans, though the People's Committee's statement had not provided any details. Further information about the scale of the project and details about the routes should be provided, the agency said.

The relocation of the station, set to be implemented between 2016 and 2020, will be an important project for developing local infrastructure, Committee Chairman Huynh Duc Tho said on the Da Nang Portal.

The relocation is in line with high-level strategies, as well as master plans of the rail transport sector for the period up to 2030. The relevant agencies have been asked to prepare for site clearance works, Tho said.

During a meeting in early April to discuss the privatisation of railway projects, Minister of Transport Dinh La Thang revealed that besides Vingroup, other large private enterprises also wanted to invest in railway stations.

He asked Viet Nam Railways and its affiliated units to study a road map to transfer the right of exploiting railway facilities.

Vingroup is one of the most high-profile firms involved in infrastructure projects of the Ministry of Transport.

The company recently began construction of the Phu Quoc international passenger port in the southern province of Kien Giang. It has also proposed buying controlling stakes in the two largest seaports in the country, Sai Gon and Hai Phong. — VNS

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