HCMC – Vietnam Railways now has over 160 locomotives and 500 train cars whose lifespans are set to expire in 2023, putting the sector at risk of failing to meet the travel demands.
Dang Sy Thanh, general director of Vietnam Railways (VNR), said at a recent year-end conference that the number of locomotives and train cars of VNR that expired this year accounted for 30% of the total equipment.
The elimination of expired locomotives and cars complies with the applicable railway regulations, under which the maximum service life of a locomotive and passenger train car would be 40 years and cargo car would be 45 years.
The new investment in equipment will lead to financial pressure on VNR given the current hardships of the sector, as it will cost around VND8,000 billion for the project, according to Thanh. He added that if the current locomotives and train cars can no longer be used, VNR would not be able to satisfy the demand in the coming time.
According to the general director of the VNR, some neighboring countries have no regulations on the service life for locomotives and wagons, except for several spare parts of the train. Therefore, VNR is proposing the competent authorities allow it to continue using the current locomotives and wagons and committed to take responsibility for their safety until there is a revision to the Railway Law.
In 2022, Vietnam’s railway sector achieved a high growth rate with its consolidated revenue of over VND7,718 billion, a 14% increase over last year. Among these, revenue from cargo transport amounted to VND3,702 billion, rising 63% compared to last year.
