Railway industry lowers revenue target this year

The March collapse of Ghenh Bridge has caused the railway industry revenue reduction for the last six months and unlikely to obtain its target this year, reported the Vietnam Railway Corporation.

The new Ghenh Bridge has been opened to traffic to resume the north-south railway after three months of interuption by the end of June (Photo: SGGP)

Therefore, the company has reduced its revenue this year to be equal to last year instead of increasing 8 percent.

The industry’s revenue in the first half of 2016  accounted for only 80 percent of that during the same period last year. Preliminary calculations show that the incident resulted in a total revenue fall of VND471.6 billion (US$21.15 million).

In addition, the corporation had to pay transport companies over VND60 billion (US$2.69 million) to transit passengers from Saigon Railway Station to Bien Hoa station and vice versa.

Moreover, the corporation organized train trips over short distances to meet travel demand such as Long Bien-Quan Trieu, Yen Vien-Ha Long-Cai Lan, Mai Pha-Na Duong, Hanoi-Lang Son and HCMC-Binh Duong. Revenue from these trips was too low and unable to cover expenses.

The bridge collapse caused by a sand barge in March sent many railway customers to choose other means of transportation. The new bridge has been built and opened to traffic by the end of June.

By Bich Quyen – Translated by Hai Mien

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