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Investment door wide open for City to Delta express railway
Director of the Viet Nam Railway Department Vu Xuan Hong spoke to Dau Tu (Viet Nam Investment Review) about a project to build an express railway from HCM City to Can Tho.
Will the project be built basing on plans proposed by South Korean or by Japanese consultants?
The Ministry of Transport has entrusted us to make a report on the project on the basis of a plan proposed by a joint venture between the HCM City-based Transport Engineering and Design Inc South (TediSouth) and South Korea’s Chungsuk Company. The railway will link HCM City and the Cuu Long (Mekong) Delta’s Can Tho City. It will have a total length of 150km and a total investment capital of US$4 billion, including expenditure for construction and buying trains.
Does this mean that the Railway Department will choose South Korean technology for the project?
Yes, it does. In order to implement an agreement between the Governments of Viet Nam and South Korea, the Ministry of Construction asked the department to mainly use technology from South Korea - but to update it and adjust it to fit conditions in Viet Nam.
Will the railway technology of South Korea match Japanese one expected to be used for the remainder of the North-South express railway?
The construction of the North-South express railway or any express railways will be built by consulting technology standards of countries that are experts in the field, such as France, Japan, Germany and South Korea.
What will be the speeds of trains running on the railway?
This railway is designed for passenger transport only, which limits the speed to a maximum of 350km per hour. This will also be the maximum speed for trains running on the North-South railway.
It is believed that it will be difficult for the railway to compete with highway and waterways in the Cuu Long region. What do you think?
The high-speed railway will not take cargo market share from waterways. Passenger transport is the key target of this railway. The express railway has advantages in speed, safety and economic efficiency. Besides, it will directly link the centre of HCM City (Hoa Hung or Thu Thiem station) to the centre of Can Tho city.
The costs of a ticket on the high-speed railway may be higher than that for buses or water transport, but it will take only 40 minutes from HCM City to Can Tho.
At present it takes three hours to complete the journey by car.
Therefore, I believe that not only tourists, but also many residents will choose this means of transport.
Where will most of the investment come from?
The department is planning to raise capital for the construction of the railway. The South Korean side plans to provide Official Development Assistance (ODA) and Ordinary Capital Resources (OCR) for the project. However, we hope that the project will be invested in by public-private-partnership (PPP). Apart from capital resources, Viet Nam hopes to learn from the experiences in express railway management, exploitation and operation.
Big companies in South Korea have set up a board to promote research and mobilise capital for the project. However, the door is still wide open for all investors interested.
When will the project begin?
The department is finalising an investment report for the project. If everything runs smoothly, construction is scheduled to start in 2012 and to complete within five or six years.
VietNamNet, VietNamNews
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