As an alternative of constructing 9 railways on the similar time, you need to do these 2 issues instantly to save lots of tens of billions of {dollars}

Just lately, the Railway Division has submitted to the Ministry of Transport the planning of the nationwide railway community for the interval of 2021 – 2030. Accordingly, throughout the subsequent 9 years, moreover the present 7 railway strains, our nation may have 9 extra routes. The brand new railway is 2,378 km lengthy. The overall price for this challenge is predicted to be 239,000 billion VND, of which the South – North high-speed railway is 112,325 billion VND, the traditional railway is 126,505 billion VND.

Earlier than this concern, we had a dialogue with Prof. La Ngoc Khue, former Deputy Minister of Transport concerning the feasibility of the challenge, in addition to the railway points that Vietnam must prioritize to unravel.


– Pricey Professor Ngoc Khue, earlier than the brand new proposal of the Railway Division on the nationwide railway planning interval 2021 – 2030, how do you consider the feasibility of this plan?

Prof. Ngoc Khue: In my view, figuring out 9 such railway strains may be very appropriate. All 9 routes are value doing. However we actually cannot do it all of sudden. The assets expended there are too nice. Due to this fact, the core concern now could be which route ought to be prioritized first, which route ought to be later.

In my view, there are two issues that our nation must do first: Deal with constructing the North-South high-speed railway; opening home railway with worldwide railway.

  Former Deputy Minister of Transport: Instead of building 9 railways at the same time, you should do these two things immediately to save tens of billions of dollars - Photo 1.

Prof. La Ngoc Khue – Former Deputy Minister of Transport. Photograph: Thien Son.

– Based on GS, why are these two issues that our nation must prioritize first?

Prof. Ngoc Khue: As a result of railway improvement should intention to rapidly cut back logistics consumption (transportation prices). Thus, the brand new transport actually promotes financial improvement.

Consumption on transport doesn’t assist create items and wealth. Nevertheless, at current, Vietnam has logistics prices twice as excessive because the world common. Based on the World Financial institution, logistics prices within the nation are as excessive as 21% of GDP. In 2019, our nation’s GDP is about 361 billion USD. Thus, the consumption of 21% may be very giant, about greater than 70 billion USD per yr.

The principle motive for that is that we use high-cost modes of transport. For instance, roads are consuming a whole lot of gasoline, autos, and human assets, to not point out different issues akin to environmental air pollution, site visitors accidents, and many others.

Due to this fact, for the primary answer, which is the North-South high-speed railway, I suggest the route of planning a route with a reasonable excessive pace to each carry passengers and cargo with a purpose to rapidly cut back logistics prices.

The second answer is to attach home railways with worldwide railways.

At present, our nation’s financial system serves an enormous export. However our sea route is going through many difficulties. 95% of the ocean transport market share is acquired by international ships. The freight charges have elevated lately. When our nation signed the EVFTA agreements (European Union-Vietnam Free Commerce Settlement), the tax precedence is being negated largely by transportation prices.

To clear items, there should be a global railway. Crucial is the route going to Lao Cai connecting to Kunming, then to Chongqing – China’s main logistics heart, then from there to Xinjiang to go to Kazakhstan, proceed to go to the Russian market to go to Kazakhstan. Europe.

I suggest connecting the railway line from Can Tho, going to Ho Chi Minh Metropolis, to Hanoi, by means of Yen Vien, to Lao Cai and following the above route. Thus, agricultural and aquatic merchandise from the Mekong Delta might be gathered in Can Tho, then cleared to Hanoi and additional to the worldwide market.

At present, our railway is a 1m street, unable to hook up with the worldwide. The answer of constructing such a North-South route and connecting with the world not solely helps home items to be transported at low price. And export items additionally eliminate dependence on the ocean. Combining the 2, logistics prices will probably be diminished, saving tens of billions of {dollars}.

  Former Deputy Minister of Transport: Instead of building 9 railways at the same time, you should do these two things immediately to save tens of billions of dollars - Photo 2.

A ‘luxurious’ prepare automotive of the railway line operating from Hanoi to Lang Son. Photograph: Thien Son


– The market share of rail transport when it comes to each items and passengers is presently solely about 1.5%, which is a negligible degree. So in response to GS, is investing lots of of trillions of dong to construct the North-South high-speed railway and open it to the world as you simply stated, is it actually an efficient answer?

Prof. Ngoc Khue: 1.5% that is as a result of throughout the previous 50 years, funding in railways solely accounted for two% of whole funding in transport infrastructure. Like a tree that isn’t nourished, it’s stunted, and naturally it’s troublesome to bear the burden.

Trying on the world, no nation has failed with railways! China makes about 20,000 km of highways, in addition they make 1,435 km of railway to hold passengers and items.

The plan to construct a reasonable high-speed railway to hold each passengers and items may be very affordable. As a result of even to the US, such a superpower solely has a railway pace of roughly 200km/h. Russia additionally has just one railway line operating on the quickest 200km/h. However all of their items are primarily transported by rail, so logistics prices are low. Roads solely carry items for brief distances, underneath 400km.

  Former Deputy Minister of Transport: Instead of building 9 railways at the same time, you should do these two things immediately to save tens of billions of dollars - Photo 3.

– However with very giant prices, for instance, the North-South high-speed railway, if it may be opened, the estimate is as much as lots of of hundreds of billion VND. With such a big capital, lengthy building time might be added, will the Vietnamese financial system be capable to bear it, sir?

Prof. Ngoc Khue: Based on info revealed within the media, the Ministry of Transport is finalizing the draft street planning for the interval 2021 – 2030, with a imaginative and prescient to 2050. Accordingly, within the subsequent 10 years, our nation may have 42 highways deliberate to funding with a complete estimated quantity of practically 825 trillion dong.

If now, making a railway from Hanoi to Ho Chi Minh Metropolis with a pace vary of 160 to 200 km/h, nonetheless a double monitor, gauge 1,435, operating diesel trains first after which changing them with electrical trains, the capability will by means of nice. Preliminary price is just 525 trillion. In comparison with 825 trillion, it’s a lot much less.

What I imply is that society can nonetheless mobilize VND825 trillion to construct highways. So if sooner or later, we prioritize and give attention to railways, the financial system can actually nonetheless mobilize sufficient capital.

I’m not saying that investing in roads is flawed, however the abuse of roads is driving logistics prices up excessively, inflicting nice losses to the financial system. Due to this fact, we should know how you can appropriate that scenario to alter the transportation panorama.

  Former Deputy Minister of Transport: Instead of building 9 railways at the same time, you should do these two things immediately to save tens of billions of dollars - Photo 4.

The present railway system has many aged strains, little funding and doesn’t entice passengers. Photograph: Thien Son

9 railway strains that the Railway Division has simply submitted to the Ministry of Transport

North-South expressway, double monitor, 1,435 mm gauge, about 1,559 km lengthy. Earlier than 2030, it’s anticipated to put money into two sections Hanoi – Vinh and Ho Chi Minh Metropolis – Nha Trang.

Yen Vien – Lim – Pha Lai – Ha Lengthy – Cai Lan line with single gauge, 1,000 mm and 1,435 mm gauge, about 129 km lengthy

The Hai Phong – Lach Huyen route, from Mao Khe station to Du Nghia station and to Dinh Vu seaport, Lach Huyen, is about 78 km lengthy.

Ngoc Hoi line – by means of Lac Dao station – to Bac Hong station (Hanoi) with a double monitor, 59 km lengthy.

The Vung Ang – Cha Lo route (Mu Gia cross, Quang Binh province) connects with the Laos railway about 119 km lengthy.

The Bien Hoa – Vung Tau route extends from Trang Bom station to Vung Tau station with a size of 84 km.

Ho Chi Minh Metropolis – Can Tho route from An Binh station, Binh Duong province to Can Tho station, Can Tho metropolis with double monitor, 1,435 mm gauge, about 174 km lengthy.

The Di An – Loc Ninh route from Di An station to the Vietnam – Cambodia border (Hoa Lu border gate) is 128 km lengthy.

Thu Thiem – Lengthy Thanh mild rail route from Thu Thiem station to Lengthy Thanh Worldwide Airport station with double gauge, 38 km lengthy.

Truong Thu Huong