News » Headlines
North-South express railway to face losses for at least 10 years
  • | tienphong, | November 13, 2018 01:02 PM
It is estimated that the government will have to cover losses from 10-12 years to operate the North-South Express Railway.


illustrative image

During a conference on the final feasibility study on November 12, Deputy Minister of Transport Nguyen Ngoc Dong, reported the project would cost USD58.71bn and will face losses for 10 to 12 years after going into operation.

"The state will have to cover maintenance costs for about 10-12 years," Dong said.

Research has been carried out since 2007 with the help of Korea International Cooperation Agency, Japan International Co-operation Agency and the consortium of consultants Tedi-Tricc-Tedisouth. The line will run from Hanoi's Ngoc Hoi District to HCM City's District 2.

The USD13.97bn Hanoi-Vinh and the USD13.37bn Nha Trang-HCM City sections are scheduled to be completed in 2032. The construction of Vinh-Nha Trang section will only start in 2035 and be completed in 2050.

The government will contribute 80% of the investment for this PPP project and the remainder will come from an investor.

In the first phase, the express railway will be connected and share the infrastructure with Hanoi Railway Station. The feasibility study report will be submitted to the National Assembly in August 2019.

Leave your comment on this story