Railway firm gets back on track after rough years

Vietnam Railway (VNR) aims to accelerate its growth to a rate of 8 percent in 2019 after suffering depression from 2015 to 2017.
Railway firm gets back on track after rough years ảnh 1A railroad crossing on Kham Thien Street, Hanoi (Photo: VNA)

Hanoi (VNS/VNA) - Vietnam Railway(VNR) aims to accelerate its growth to a rate of 8 percent in 2019 aftersuffering depression from 2015 to 2017.

The corporation also plans to utilise the 7 trillion VND (300 million USD) infunding approved by the National Assembly in September last year to upgradefour railway infrastructure projects.

“In spite of the severe fall between 2015 and 2017, VNR started recovering in2018,” said Vu Anh Minh, head of the VNR Committee of Members. “We hope tosustain that momentum in 2019.”

Improvements in service quality will also be targeted as a part of VNR’spassenger-oriented strategies.

“We have built new trains which focus on offering genuine experiences andproviding better services for tourists and passengers,” said Minh.

On January 10, 2018, six new five-star trains on the Reunification routeconnecting Hanoi and HCM City were launched. Passengers on these trains areoffered hot meals prepared by the Southern Airports Services Joint StockCompany.

A meal worth about 30,000 VND (1.30 USD) is including with a ticket, and theticket price remains unchanged.

According to a VNR report, its total revenue in 2018 was some 8.3 trillion VND (356million USD), marking an increase of 1.9 percent. The average monthly income ofits workers, therefore, was lifted 2.9 percent to reach 8.46 million VND (363USD).

Last year, the corporation witnessed two important turning points. The revisedLaw on Railways went into effect in January and VNR was transferred from theMinistry of Transport to the State Capital Management Committee.

These changes affect the corporation’s operation.

“The transfer creates opportunities, and atthe same time poses challenges for VNR, especially in balancing therelationship between the three involved sides,” said Nguyen Ngoc Dong, DeputyMinister of Transport. “While the committee only manages the state capital of 3.8trillion VND (163 million USD), the ministry is responsible for the railwaysystem.”

He stressed corporate restructuring and separating infrastructure management,maintenance and business to improve transparency.

In 2018, some 120 VNR workers, including officials, were fined or suspended formatters related to severe crashes.

These actions followed repeated accidents due to ill management and poorwarning systems at crossings.

For example, a collision between a truck and the SE19 Express Train crossingThanh Hoa province on May 24, 2018 killed two people and injured ten others. Anofficer and two employees in charge of ensuring safety at thecrossing were detained for investigation.

Since June, 2018, VNR has piloted the operation of cameras at crossings toprotect pedestrians and reduce accidents caused by railway staff.-VNS/VNA
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