VNR co-operates with Vingroup in rail infrastructure investment

Friday, Jul 24, 2015 15:17


VNR plans to work with Vingroup to upgrade railway infrastructure, including Ha Noi railway station. — Photo

HA NOI (Biz Hub) — The Viet Nam Railway Corporation (VNR) will co-operate with Vingroup in initiating steps to invest in the upgrade of railway stations.

This follows the transport ministry's call for investment in the railway sector from various economic sectors.

In a statement sent to Vingroup in response to the group's proposal to invest in upgrading and using Ha Noi, Da Nang and Sai Gon stations, the VNR said it wanted Vingroup to become a strategic partner in using the railway infrastructure managed by it.

VNR said it would help in effective utilisation of the railway infrastructure, while reducing the pressure on the state budget.

Earlier, Vingroup sent a document to VNR in late June, proposing co-operation in upgrading rail infrastructure.

Vingroup has informed the transport ministry that it would submit a co-operation plan with VNR on upgrading Sai Gon and Ha Noi stations before July 30.

The two sides have discussed measures to ensure the stations operate effectively and to improve financial efficiency.

Last week, Vingroup sent a letter to the transport ministry, expressing its interest in investing in a new railway station in the central city of Da Nang, as the authorities plan to move the existing station out of the city.

The proposed investments in the railways are in response to the government's policies allowing various economic sectors to invest in the sector to modernise it, and to ease the burden on public funds.

VNR said it spent VND7 trillion (US$352.58 million) in the 2011-15 period to upgrade the network and introduce new technologies to manage the operations.

By 2020, an estimated VND2 trillion ($.93.02 million) more will be needed for continued implementation of these plans, and VND60 trillion ($2.79 billion) for 12 projects to modernise the main routes. — VNS

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