Southern railway needs PPP funding

Updated 09:21, Wednesday, 27/02/2019 (GMT+7)

An upcoming Bien Hoa – Vung Tau Railway project, which would traverse Binh Duong, Dong Nai and Ba Ria – Vung Tau provinces, should be financed with public-private partnerships, consultants have recommended.

An upcoming Bien Hoa – Vung Tau Railway project, which would traverse Binh Duong, Dong Nai and Ba Ria – Vung Tau provinces, should be financed with public-private partnerships, consultants have recommended. — Photo plo.vn
An upcoming Bien Hoa – Vung Tau Railway project, which would traverse Binh Duong, Dong Nai and Ba Ria – Vung Tau provinces, should be financed with public-private partnerships, consultants have recommended. — Photo plo.vn

At a feasibility study report meeting, the Korea Railroad Research Institute, which is in charge of research, along with the TESO Technological Consultancy Company, said the project should include both private funds and Official Development Assistance (ODA).

The proposed railway would connect the Thi Vai – Cai Mep port in Ba Ria – Vung Tau to the Sai Gon – Loc Ninh railway and Di An station in Binh Duong. It would be 95.4 kilometres long with 12 stations, and allow for up to 160 kilometres per hour on the main route.

The project would be split into two phases. The first phase, which would be 62.4 kilometres long, would cover Binh Duong’s Di An Town, Dong Nai’s Tan Mai Ward and Ba Ria - Vung Tau’s Thi Vai region. The second phase, to extend 33 kilometres, would connect Thi Vai and Vung Tau City.

Private funding could be done through one of three ways: Build – Operate – Transfer (BOT) funding with price support from the government; BOT funding that would ensure minimum revene with help from the government; or Build – Lease – Transfer (BLT) funding.

Kim Hyun Jeong of the Korean Railroad Research Institute noted that more companies would be interested in the BLT form of funding due to its lower risks.

Deputy Minister of Transport Nguyen Ngoc Dong said the Bien Hoa – Vung Tau railway was important for logistics in the region, and instructed the Viet Nam Railway Authority to compile the opinions of experts to complete the feasibility study.

(Source:VNS)

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