Haraco seeks support for loss-making rail routes

22-Aug-2019 Intellasia | The Saigon times | 6:02 AM Print This Post

Hanoi Railway Transport Joint Stock Company (Haraco) is seeking financial support for three loss-making rail routes, Thanh Nien newspaper reported.

Earlier, a pair of trains, QT91 and QT92, had run on the Long Bien (Hanoi)-Quan Trieu line each day, but since the Hanoi-Thai Nguyen expressway was put into service, the revenue from the two trains has slipped significantly. The rail line suffered losses of VND7.1 billion in 2016 and VND9.2 billion in 2017.

Between February and August 2018, the firm stopped passenger trains from running on the Hanoi-Quan Trieu rail line.

The Hanoi-Dong Dang rail route had earlier been used by a pair of passenger trains as well, but the number of passengers and cargo has dropped since the Hanoi-Lang Son section of National Highway 1A was upgraded.

From 2016 to 2017, the line incurred a loss of over VND10 billion per year and stopped operations in early 2018.

The Yen Vien-Halong route faced the same fate, losing over VND14 billion in 2017.

As such, the firm has asked for VND35 billion in financial aid for the three loss-making routes to maintain their operations, running two trains per day.



Category: Business, Vietnam

Print This Post