Representatives of VNR and ITL ink the deal. (Source: tuoitre)

The state-owned Vietnam Railway Corporation (VNR) inked a build-operate-transfer (BOT) deal with Indo Trans Logistics Corporation (ITL) on September 16 to build the Yen Vien Railway Logistics Centre in Gia Lam district of Hanoi.

According to VNR Chairman Tran Ngoc Thanh, the new logistics centre will boost the container-handling capacity of Yen Vien railway station by 3-5 times and its goods-handling capacity by 2-3 times while reducing handling times.

The first phase of the project will begin on October 10, 2015 with total investment of 90 billion VND (about 4 million USD) while additional 5-6 twinsets (a set of two railroad cars) will be put into operation in routes linking Yen Vien with Hai Phong Port in Hai Phong city, Cai Lan International Container Terminal (CICT) in Quang Ninh northern province and Song Than Industrial Park in Binh Duong southern province.

The project also includes the construction of a 19,000-square-metre warehouse area.

Customs procedures for export and import will be conducted in the new centre once it is completed.

The BOT contract will allow ITL to operate the Yen Vien Railway Logistics Centre in 23 years.-VNA