The Ministry of Transport will transfer the operation rights to not only highways but also railways in order to raise funds, especially from the private sector, for other infrastructure projects.

A section of the north-south railway system. The transport ministry wants to transfer the operation rights to railways with an aim to boost the development of the sector.

According to the ministry’s plan for capital mobilization, the ministry will transfer the operation rights to certain railway sections to investors as well as call for investments in development of both passenger and cargo terminals and railway routes linking seaports.

The ministry plans to sell the rights to operate the railway sections of Hanoi-Vinh, Vinh-Dong Hoi, Dong Hoi-Danang, Danang-Nha Trang, Nha Trang-HCMC, Lao Cai-Hanoi-Haiphong, Kep-Halong-Cai Lan, Hanoi-Dong Dang, Dong Anh-Quan Trieu, Bac Hong-Van Dien, Kep-Luu Xa, Cau Giat-Nghia Dan and Dieu Tri-Quy Nhon.

Investors will be sought to develop a new passenger terminal at Nha Trang Railway Station in Khanh Hoa Province and cargo facilities at Vinh Trung Station, and upgrade the terminals and warehouses at six other railway stations including Song Than, Bim Son, Giap Bat, Yen Vien, Lao Cao, Dong Dang, Xuan Giao A, and Cai Lan.

Investors are encouraged to take part in projects to build new railways to connect Dak Nong, Chon Thanh and Vung Tau; relocate Danang Railway Station, and a railway leading to Haiphong International Gateway Seaport.

The ministry’s plan has attracted a number of investors, including a joint venture  between Indo-Trans Logistics and National Railway Vietnam Corporation (Ratraco). The venture has expressed interest in the project to build and upgrade the cargo facility at Yen Vien Railway Station.

Road investors have also shown interest in the ministry’s plan to transfer the operation rights to railway projects.

Ho Minh Hoang, general director of Ca Pass Investment Joint Stock Company - the investor of the Ca Pass Tunnel project on National Highway 1A connecting Phu Yen and Khanh Hoa provinces, told the Daily that the company is seeking to operate the Hanoi-Haiphong route.

In 2010, the Vietnam Railway Authority proposed 20 railway projects to be implemented under the build-operate- transfer (BOT), build-transfer (BT) and build-transfer-operate formats. However, few private investors have shown interest.

Hoang said railway projects require hefty investments and a long time for capital recovery. Therefore, implementing railway projects under the BOT format will not be attractive to investors, he said and suggested the public-private partnership (PPP) for these projects.