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Railways to open doors to external investment

2015-05-08 09:55:42

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A train is running from the northern region to the southern region. The railway sector is expected to lure capital investment from the society to develop logistics service.

Property developer VinGroup will collaborate with Vietnam Railways to study a number of projects, which could be launched with capital contribution from society and the sale of operational rights, said Chairman of Vietnam Railways Tran Ngoc Thanh.

He was quoted by VnExpress.net at a meeting held by the Ministry of Transport in Ha Noi on April 21.

VinGroup was one of the obvious choices that the ministry thought of when it tried to implement its pilot scheme of selling the operational rights for an infrastructure project. It has proposed to purchase 80 per cent of the State’s stake in the Sai Gon and Hai Phong sea ports—the two largest ports in Viet Nam.

Besides VinGroup, Thanh said the corporation had invited a number of businesses to study the sector’s projects, which had been listed for capital contribution from the society. They included the Bach Dang Hotel Trading Service Company Ltd., Indo Tran Logistics and Express Trains Company Ltd.

The Xuan Giao, Yen Vien, Dong Dang and Song Than railway stations had also garnered interest among many investors and the two sides were currently studying a suitable mechanism for co-operation, said Thanh.

Meanwhile, big stations, including Ha Noi, Lao Cai, Hue, Da Nang, Nha Trang and Sai Gon had also elicited investor curiosity, but there were some issues relevant to the railway planning and urban railway projects in localities, which were beyond the corporation’s competence. The corporation would have to build an overall plan to ask the higher authorities for approval.

Minister Dinh La Thang said the “socialization” of investment for the transport infrastructure projects was essential. The sector, which had been facing many difficulties, was in need of huge investment capital so that it should adopt drastic measures.

“The overall plan should be public and explicit in conditions, mechanism and list of projects so that it attracts the investors in a better way,” said Thang.

He urged the sector to complete the “socialization” of investment capital for several stations in June, including Yen Vien, Dong Dang and Song Than, which cater to logistical needs.

Earlier, the Railway Vietnam had proposed implementing a pilot scheme to sell the rights of operating storage at the Yen Vien Station and called for investment in terminals and storage at stations, including Bim Son, Giap Bat, Lao Cai and Xuan Giao.

Source: vietnambreakingnews