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Nghe An's abandoned train route racks up massive annual losses

Update: July, 01/2014 - 09:38
Each year, the Viet Nam Railway Corporation spends about VND7 billion (US$328,500) to maintain this route.— Photo laodong

NGHE AN (VNS) — Abandoned for five years, a 32-km long train route connecting Quynh Luu and Nghia Dan districts in central Nghe An Province, is causing huge losses for the railways.

Each year, the Viet Nam Railway Corporation spends about VND7 billion (US$328,500) to maintain this route.

Pham Hong Nam, Director of the State-owned Nghe Tinh Railway Transportation Enterprise, said to Lao Dong (Labour) newspaper that, five years ago, the demand for transporting goods via this route dropped suddenly.

The results of a survey undertaken at that time by the enterprise, showed that almost all businessmen complained that trains carrying goods via the route ran very slowly – about 15 km per hour, Nam said.

Therefore, goods were not being delivered on time, he said, adding that high transportation fee was also believed one of the main reasons.

So, businessmen began transporting their goods by road instead of the rail, he said.

Cao Tien Hung, Deputy Director of Nghe Tinh Railway Management Co Ltd, told the Lao Dong (Labour) newspaper that although no trains ran on this route for the past five years, the corporation still assigned their company to maintain the route to ensure its safety in case any train ran on the route.

Recently, when the Ministry of Transport tightened loading capacity on road transport, several companies which exploited minerals in the districts of Nghia Dan, Quy Hop and Quy Chau, had considered transporting their goods via the train route, Hung said.

The train route was built in 1966 with the aim of strengthening socio-economic development in the west of the province. — VNS


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