This report inculdes railway market information in Thailand, Vietnam and Malaysia, and the opportunities for the UK companies.
UK Trade & Investment
Scoping Mission to South East Asia
Thailand, Vietnam & Malaysia
Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK
Trade & Investment nor its parent Departments (the Department for Business, Enterprise & Regulatory Reform, and the
Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is
given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned.
Published September 2008 by UK Trade & Investment.
Crown Copyright ©
The UKTI led Railway scoping team undertook a railway scoping mission to Thailand, Vietnam
and Malaysia, herewith contained information learned during the teams visit.
Members of the UKTI Delegation:
This document was produced with the kind assistance of the under noted Rail professionals, to
whom I extend the appreciation of UKTI for their kind assistance:
Name Company Position
Bob Docherty UKTI International Business Specialist
Neil Walker UKTI Deputy Head, Rail Sector Team
Tim Gray RIA International Development Director
Jeff Randall Brecknell Willis Regional Manager
Jim Cudd Invensys Rail VP Marketing
Recognition must be given to the Trade & Investment Officers of the UK Trade & Investment
office at the British Embassies and High Commission Offices in Bangkok, Ho Chi Minh & Kuala
Lumpur. These Officers were responsible for preparing background documents for their various
Rail markets, and arranging a superb visit programme.
British High Commissions and Embassy
Name Location Position
Mr Attakorn Sarapola Bangkok Trade and Investment Manager
Ms GiangThi Ha Ngyuen Hanoi Trade and Investment Officer
Mr Trevor Lewis Kuala Lumpur Director for Trade & Investment
Ms Judith Lourdesmay Kuala Lumpur Trade and Investment Officer
These colleagues provided first class support and access to Officials at the highest levels in the
Markets visited, and as such their assistance and expertise is readily acknowledged.
Contacts in UKTI Rail Sector Team
Mr Neil Walker
Mr Bob Docherty
International Business Specialist
Tel +44 20 7215 4773
Tel +44 7879 661 598
Further information on International railway markets along with international railway business
opportunities and UKTI railway arranged events (Trade Missions, Seminars and inward
missions) are available on the railway sector page of UKTI?s website, www.uktradeinvest.gov.uk
for UK companies. Please note you will need to register to view the full information.
Section CONTENTS Page
1 Summary ? Thai Rail Market 6
1.1 State Rail of Thailand (SRT) 6
1.2 SRT Recovery Plan 6
1.3 Urban Transportation (Bangkok) 6
1.4 Economy & Market Characteristics 6
1.5 Opportunities for UK companies 6
2 Introduction to the Rail Sector 7
2.1 Structure & Governance 7
2.2 Brief History and Background 7
2.3 Operations Review & Improvement Plan 7
2.4 Recovery plan 7
2.5 Track Doubling / Priority Programmes 8
2.6 Finance 9
3 Introduction to Urban Transportation 9
3.1 MRTA (Blue Line) 9
3.1.1 MRTA Physical Data 10
3.2 BTS (Green Line / Skytrain) 10
3.2.1 BTS Physical Data 11
3.3 Planned Extensions to Bangkok Metro System 11
3.3.1 Table of extension plans 12
3.3.2 Purple Line Extension 12
3.3.3 Blue Line Extension 12
3.3.4 Orange Line 13
4 UK Companies experience in Thailand 13
5 Local Manufacturing 13
6 International Links 13
6.1 Link to Cambodia 13
6.2 Link to Malaysia 13
7 Opportunities for UK Companies 13
Appendix I SRT Network 15
Appendix II SRT Track Doubling Plan 16
Appendix III Bangkok Master Plan 17
8 Summary of Vietnam Rail Market 18
8.1 Vietnam Railway Corporation (VNR) 18
8.2 Urban Transportation 18
8.3 Economic Overview 18
9 Vietnam Railways Overview 19
9.1 Introduction to VNR 19
9.1.1 Brief History 19
9.2 Key Officials & Structure 20
9.3 Priority programmes 20
9.4 Tenders Website 21
9.5 Vietnam National Standards Agency (STAMEQ) 21
9.6 Railway Law 21
9.7 VNR Physical Data 22
9.8 Rolling Stock 22
9.9 Freight & Passenger Data 22
9.10 Revenue 23
9.11 Passenger Transport Operations 23
9.12 Private Train Operating Companies 23
9.13 Freight Operations 23
9.14 Tourism Operations 24
9.15 Signalling & Telecomms 24
9.16 Construction Company & Capability 24
9.17 Track Maintenance Company and Capability 25
9.18 Rolling Stock Manufacture 25
9.18.1 Dian Carriage Company 25
9.18.2 Gia Liam Train Company 25
9.18.3 Haiphong Carriage Company 25
9.19 Training 26
9.20 Consultancy & Engineering Capability 26
10.0 Urban Transport 26
10.1 Introduction and Background 26
10.2 Hanoi Masterplan 27
10.2.3 Projects Underway / Line 1 Status 27
10.3 HCMC Masterplan 28
10.3.1 HCMC Development Plan 29
10.4 Japanese Consortium NJPT for Line 2 29
11 TEDI (Transport Engineering Design Company) 29
12 Saigon Railway Materials JSC 30
13 Opportunities for UK Companies 30
Appendix IV VNR Organisation Structure 31
Appendix V VNR Rail Map 32
Appendix VI Useful Contacts 33
14.1 Summary of the Malaysian Rail Market 34
14.2 KTMB State Railway 34
14.3 Urban Transportation 34
14.4 KLIA Airport Express Rail Link (YTL) 34
15 Key Contacts and Acknowledgements 35
16 KTMB ? State Railway of Malaysia 35
16.1 Overview 36
16.2 Historical Background 36
16.3 Projects 36
16.4 KTMB Physical Data 38
17 Urban Railways 38
17.1 SPNB (Governing Body) 39
17.2 RapidKL (Operations & Maintenance) 40
17.3 Ampang Line (formerly STAR Line) 40
17.3.1 Planned Extension to Ampang Line 41
17.4 Kelana Jaya Line (Formerly PUTRA Line) 41
17.4.1 Planned extension to Kelana Jaya Line 41
17.4.2 Fleet Extension on Kelana Jaya Line 42
17.5 System Integration 42
17.6 Ticketing & Fare Collection 42
17.7 (Further) Planned Extensions in RapidKL 43
18 YTL 43
18.1 KLIA Express (Operations) 43
18.2 KLIA Express Maintenance E-Mas 43
18.3 High Speed Rail Link to Singapore 44
19 Scomi Engineering 44
20 Balfour Beatty Rail 44
21 Ircon Engineering 44
22 Penang Monorail System 44
23 Opportunities for UK Companies 45
Appendix IX KL System Map 46
Rail Scoping Mission Summary
1.1 National / Mainline Rail
The Rail sector is currently enjoying a higher profile following a period of under investment.
Higher energy costs and growing congestion to the re ?emergence of Rail as a vital mode of
transport. The Rail market in Thailand is headquartered in Bangkok and features both
traditional heavy rail and a thriving metro sector. State Railway of Thailand is responsible for
the National / mainline Railway and is a fully integrated State owned company operating some
4000 route km of track, delivering both passenger and freight services.
It is readily acknowledged that investment in Rail suffered in the past as railway was not a
favoured mode of transport, yet economic reality and rising energy costs are now facilitating
the rising awareness of the importance of Railways. Government policy is to affect a modal shift
from Road to Rail due the sharp increase in energy costs. There is a National Logistics
Development Strategy which aims to increase the efficiency of rail connection between the
North / North saving energy and increasing efficiency. A recovery plan for Rail has been put into
operation, with plans to extend Rail Services across the country and into neighbouring
Further elevated commuter lines in Bangkok will be constructed and the airport will provide an
electrified rail link to the central business district. Details of the projects underway can be found
in the full report.
1.3 Metro (Bangkok)
Bangkok has 2 Metro systems operated by 2 separate companies, both of which will be
extended in the very near future. In addition, there is a (standard gauge) rail link to the airport
though still under construction it will soon be in operation (early 2009). A unitary authority is
being developed to take control of rail within Bangkok, and a cross city, suburban service
known as the ?Red Line? is being developed by SRT to relieve congestion in Bangkok.
1.4 Economy & Market Characteristics
The Economy remains hopeful of growth despite the concerns of recent significant rise in
energy costs. The economic performance has recently under-performed ASEAN neighbours
following the most recent coup of 2006. However, a new constitution has been in place since
August 2007, and an election has taken place empowering a coalition Government lead by the
Palang Prachachon Party and five smaller parties. There have been numerous coups since the
switch from Absolute to Constitutional Monarchy in 1932, in some ways demonstrating the
resilience of the Country. That said, Bureaucracy is considered to be deep rooted, market
confidence is fragile and with rising energy and food prices being a major concern for stability
in the short term.
Despite the above, the UK has a significant level of FDI, though the Japanese have a much
larger presence. UK interests include outsourced manufacture, electronics and financial
services. Japanese interest also extends to Infrastructure hence the prominence of Japanese
interests in Construction and Consultancy.
1.5 Opportunities for UK Companies
Consultancy is certainly one area that will interest UK companies, but the extensions planned
for Metro and the SRT recovery plan including removal of pinch points may yield opportunities.
With rising costs and a desire to improve performance across the spectrum, UK companies that
can demonstrate efficiency measures or performance enhancements should be welcomed.
Signalling certainly needs to be upgraded.
Thailand ? Detailed Report
2 Introducing the Thai Railway Sector
2.1 Railways Structure and Governance
There are three bodies covering Rail Operations:
¾ State Railways Of Thailand (SRT) being the integrated State Owned Railway
¾ BTS (Sky Train / ?Blue Line?) Private Company being the Owner & Operator of 24 km
Metro Line in Bangkok with a 30 year concession
¾ MRTA who own 20 km Metro (Green Line) in Bangkok and let a 25-year operating
concession to BMCL.
The SRT Network is shown in Appendix I.
2.2 Brief History
SRT began in 1891, when (then) Chulalongkorn, engaged a prominent British businessman to
develop the Rail Operations. The first train ran in 1894. A mixture of gauges followed in
successive developments, however a decision was taken in 1930 to convert all lines to metre
gauge conforming to the Rail networks of neighbouring countries of Malaysia, Burma &
Cambodia, prior to that time, Rail on the East Bank of the Chao Phaya River was standard
gauge. SRT was privatised in 1951 and remains a State Owned Enterprise.
2.3 SRT Operational Review
In view of losses and lack of investment in the past, SRT have now prepared a recovery plan to
overcome lower performance resulting from congested track. Proposals include doubling and
tripling of track to overcome pinch points and reduce journey times in both passenger and
freight operations. (One comment noted that as many as 400 locomotives were required to
provide traction for the network.). There is however no current intention to electrify the
system, despite proposals for this in the recovery plans.
Metre gauge Km
Single Track 3697.5
Double Track 172.9
Triple Track 106.7
Staff Employed 26412, of which officers = 10354
2.4 Recovery Plan
The proposals include the establishment of a separate but wholly owned company to overtake
Rail Operations. This company would progressively take over those lines newly electrified. (As
stated above, the investment to electrify lies has not yet been nominated). A similar process is
proposed for the Operation of the airport express currently under construction but which will
commence Operations early next year.
Further proposals include the establishment of a separate company for training, and the
establishment of Independent Standards and a more business like culture.
Some private Capital is utilised in the Logistics sector, but otherwise opportunities are currently
limited. A new Management team including 5 Rail experts who have been recruited externally
and with an International flavour, to effect the turn around, implement a new business plan and
operational model. In addition to three Thai Nationals recruited from the Metro sector, the team
includes one person from Hong Kong, and another from Germany.
Leasing has been considered to provide additional traction, however availability of metre gauge
rolling stock may limit options here, even if budget is made available. Whilst some maintenance
is outsourced to Siemens, developments could include potential JV?s in future for maintenance,
particularly if SRT secure the Operations of the Airport Rail Express.
2.5 Priority programme / Track Doubling
The priority for SRT is track doubling (or tripling) and rehabilitation to relieve congestion and
facilitate a modal shift from road to rail, including upgrading the signalling system. Under
investment at the expense of roads has caused deterioration and as such service improvements
were vital to survival. Further steps include plans to establish a property development company
and a logistics and distribution company. Otherwise, SRT noted the need to return to
Government for additional funding to cover the shortfall from the budgeted prices as prices had
risen in the interim from budget to implementation. This suggests the enhancements planned
are not proceeding to the planned timetable, and Officials acknowledge the need for major
investment. SRT operate essentially with 50 kg / 100lb rails on ballasted track using e clip,
though both Vossloh and Stedeff fastenings are approved. The majority of track is on the plains
in the Eastern Seaboard, therefore there are no issues with gradients or bridges.
New standards to be applied will aim for 20 mt axle loads, 130 kph traffic and new signalling.
2.5.1 Track Programmes Planned
Project Budget Description
Chachoengsao ? 5850 A 78 km stretch of track in the suburbs and a
Sri Racha-Laem 177km on the Eastern Seaboard that will be
Chanbang completed in 2010 at a budgeted cost of 5850
Section, Eastern M Baht. This link will ease congestion and
Seaboard. provide capacity for 1 M teus freight
78 + 110 km enhancing the competitiveness of Rail, by
supporting Phase 2 of Leam Chanbang Port
Chacoengsao ? 7648 Part of the National Logistics Development
Khlongsibkao / Strategy which aims to increase the efficiency
Kaengkoi of rail connection between the North / North
106km East and Laem Chabang port more quickly and
at less cost. Plan is to add 30 trains per day
adding 5 M tonnes of freight pa.
Makkabao ? 9030 / This double tracking project will allow SRT to
Pakchong ? 12,900 run 115 additional trains per day from
Nakhon Bangkok to Nakon Ratchsima as well as
Ratchasima offering much more operational efficiency, by
129 km improving loco & wagon turnaround.
Nakhon Pathom ? 41,090 / Track doubling on this stretch will provide train
Surat Thani 58700 M path for 62 additional trains per day and
587km improve journey times by 87 minutes for
passenger trains and 600 minutes for freight
Lop Buri ? Sila At 22,750 / This project will increase efficiency and the
325 km 32,500 double tracking stretch to 488 km from
Bangkok to Nakhon Ratchasima and provide
trainpaths for an additional 74 trains per day,
reducing journey times by 74 minutes for
passenger and 213 minutes for freight trains.
Red Line 59,888 M This major project is aimed to increase the
Commuter Train + efficiency of the Bangkok commuter services,
Project 13,133 M offering a competitive safer service. Also
Bangsue to serving as part of the National Logistics
Rangsit Strategy (in the East to South route) and will
Bangsue to be used by electrified commuter trains in
Talingchan future.40 trains to the South are planed and
75 trains on the Northern line, easing
congestion on 8 level crossings Passenger
numbers are predicted at just over 300,00 per
day in the first year of operation rising to
Airport Rail Link 30 Bn A Cabinet Resolution established this rail
28 km project to link the Airport directly with the City
Centre in 15 minutes.
A Second Operation will service 6 stations en
route reaching the airport in 30 minutes.
Both services will come into operation in 2009
and a City Air terminal will be added to
There may also be a Rail Regulator type operation that may emerge from preliminary talks
between Ministries of Finance and Transport, though it is early in this process.
There is limited facility for Private Capital in the Thai market, law being one hurdle.
Government is not allowed by Law to support Private Companies.
However should finance may be made available, Sovereign Guarantees would be provided (for
example to Financed Infrastructure agreed Centrally by Government).
3 Introduction to Urban Transportation (Bangkok Area)
Bangkok operates two existing systems, MRTA (the Blue Line) and the Skytrain, (BTS, or the
Green Line). Feasibility studies for rail systems for both Phuket and Chai Mai have been
considered but not progressed. Urban transport focus remains on Bangkok meantime.
The current two lines system will be enhanced to provide 10 lines providing up to 300 km total
length, shown in the master plan in Appendix I. The priority projects are extensions to the
existing Blue and Green Line, including a so-called blues ?Circle Line, a Purple Line and the SRT
Commuter Red Line. These lines are shown in the extract below, the descriptions taken from
the ?10 Routes? published by the Office of Transport and Traffic Policy and Planning of the
Ministry of Transport in Thailand (a copy is available on request). Buses provide severe
competition to the Metro systems and as these are subsidised, skew competition somewhat.
Therefore metro fares are inelastic. Proposals for joint ticketing through a ?clearing house? for
Sky Train and MRT have been announced.
Monorail has been reviewed as a solution to some congested areas, with Scomi from Malaysia
active. Attractions include the modest street footprint, ability to adapt to tight radii, and
reasonably quick construction times.
3.1 MRTA (Blue Line)
being the Mass Rapid Transit Authority of Thailand, which is entirely an underground system.
MRTA established in 1992 is a State owned enterprise reporting to the Minister for Transport
commenced Operations in 2004. An extension is currently planned to the existing line, which
was the first PPP scheme in Thailand. Bangkok Metro Company Limited operates the system,
having secured a 25 year concession. (BMCL is owned by Ch Karnchang who is a major
contractor in Thailand.)
MRTA built the system supported by JBIC loan covering 96% of the costs, whilst BMCL supplied
the M& E on a PPP basis with a 25-year concession also being responsible for the Operation and
Maintenance funded by fare box revenue. Rolling Stock was supplied by Siemens.
The initial loan from JBIC of 60 % was increased due to economic downturn at the time of
construction, just as the loan terms were also eased (to a 40 year term with 0.75% interest,
and a 10 year grace period.). The Government is subsidizing the loan repayments by MRTA,
and Design Build was used in an attempt to contain costs.
Stations are 200 m long and equipped with platform screen doors. A central control centre
provides an effective means of coordinating all aspects of Rail Operations M&E and SCADA.
Siemens supplied the system equipment, being a late change from Metro ? Alstom.
3.1.1 Physical Data & Characteristics
Route Km 20.8
Passengers / 200,000
Speed 35 km/hr
Headway 5 minutes
Rush Hour 3 minutes
Power 3 Rail 750 Kv
Signalling ATP & ATO
Fare 15 ? 39 Baht
An automatic Fare collection system is in operation to handle the high volume of traffic. Plans
are underway to provide a multi modal smart ticketing system valid on the buses and metro
MRTA report that he occurrence of 2 major earthquakes, of 6.7 and 6.1 on the Richter scale in
2003 and 2007 respectively did not cause any structural damage to the MRT. The Authority
report that the ? earthquakes could not cause any damage to the tunnels and underground
stations of the MRT Chaloem Line because the underground structures are constrained by the
surrounding ground and thus move in the same direction with the earthquake vibration at the
time of occurrence. The design also allows for loading due to earthquake effects imposed on the
underground structures in terms of a static force equivalent to 6% of earth gravity.?
395 acres of land are dedicated for depot. Currently 118 are in use with the remainder reserved
for future operations and Commercial Development. The areas located at the centre of the
Chaloem Ratchamonghon line, include workshop and maintenance facilities and areas for
stabling, cleaning and washing test track and control centre.
MRTA use FIDIC terms of contract. (International Federation of Consulting Engineers).
Performance specifications are issued and value for money is welcomed not simply lowest price.
Park & Ride
7 stations have park and ride facilities and these are proving to be very popular.
3.2 BTS (SKY TRAIN / Green Line)
BTS is a private company, owned by the Tanayong Group a property development company,
not (yet) listed on the stock market. There are two lines in operation, and both lines have
extensions already planned. The system was a turnkey project awarded to Siemens, though
BTS changed signalling system to Bombardier. The lines are making operational profits, but not
at a rate that would cover the capital costs. Fares are currently inelastic due to pressure from
busses. BTS has been operating for 9 years of a 30 year lease.
Though currently tied (to Siemens) for spare parts and maintenance, there may be
opportunities for outsourcing and a decision will be taken by 2010, the full term contract ends
by 2015. The traction system is deemed very reliable, though spares are expensive.
3.2.1 BTS Physical Data
Route Km 24 km
Passengers / day 430,000
Speed 35 km/hr
Headway 5 mins
Rush Hour 3 to 4 minutes
Structure Elevated System
Power 3 Rail 750 Kv
Fare 15 ? 40 Baht
3.3 Planned Extensions to Bangkok Metros
Plans to extend the system were approved in Feb 2008, including 50km from Bang Yai -Bang
Sue, and a blue line extension of 27 km, from Bang Sue to Tha Pra & Hua Lamphong to Bank
Economic and Financial Benefits (feasibility study)
Project Economic IRR Economic Benefit Financial IRR
Purple Line 13.69% 843,000 M Baht Negative
Blue Line 16.38% 1,222,000 M Baht 0.64%
The economic benefits are recognised in terms of travel time & cost saved, whereas the
financial evaluation notes that the system will run at a loss. The Authorities recognise the
benefits of the system, which will have a negative return as being common for
infrastructure projects where costs are high, financial returns low but social benefits are
Item Purple Line Blue Line
Land Acq Jan 07 - May 07 Jun 08 ? Jan 10
Contractor Selection Mar 08 - Jan 09 Sep 08 ? Feb 10
Concessionaire Selection Apr 08 - Feb 09 Jun 08 ? Jun 09
Construction Feb 09 - Apr 13 Feb 10 ? Jun 15
Service May 13 July 15
3.3.1 Bangkok Metropolitan
Planned Lines & Extensions
Line 1 2 3 4 5 6 7 8 9 10
Colour Dark Light Blue Purple Orange Green Green 2 Yellow Pink Brown
Red Red Line 1
From Rangsit Taling 1Ban Bang Bang 1 Stadium Saphan Lat Phrao Khae Rai Bang kapi
Chai g Sue Yai Kapi 2 Taksit
2Tha On Nut
Phra Mo Chit
To Maha Airport 1 Rat Bang Phran Nok BangWa Samrong Pak Kret MinBuri
Chai Phra Burana Bamru Samut
Hua Prakan SaphanMai
Total Lth 65km 50 27 43 24 24 19 32 33 9.5
Elev. Km 55km 50 22 29 3 17 19 22 17 9.5
Grade 10km 0 5 0 0 0 0 0 0 0
Km U/g 5 14 21 7 0 10 O 0
Stations 29 13 17 19 2 14 19 12 17 5
Stations 2 2 0 0 0 0 0 0 0 0
Stations 0 0 4 13 15 5 0 8 0 0
System# H H H H H H H L Tba H
Pass/day 718 457 500 504 368 300 280 Tba Tba Tba
Status* RFT Opens RFT RFT RFT RFT RFT Plan Plan Plan
# H = Heavy Rail & L = Light Rail.
RFT = Documents Ready for Tender (Design & Build), subject to funding.
3.3.2 Purple Line
23 route km will be added on an elevated structure covering 16 new stations, starting at Bang
Yak in the North West of Bangkok, crossing the River, following Pracharat Road eventually
merging with the Blue Line at Pao Pun Intersection.
3.3.3 The Blue Line Extension
Will be extended in two phases:
1) The Circle Line, Bang Sue - Tha Phra covering 13 km and 10 new stations.
2) Hua Lamphong to Bang Khae is a 14 km stretch of which 5 km are underground. The
underground line will have 4 stations whilst 7 stations are planned on the elevated
The track will again be 1435 mm gauge, with a 3 Rail bottom pick up using 750 volts DC,
and a 3 or 6 car set. The system is designed to serve 50,000 passengers per hour per
Projected Costs M Baht (Jan 2008)
Project Land Acq. Consultant Civil Works M&E Total
Purple Line 9209 2233 31217 13243 55892
BlueLine 1 559 1071 11763 9653 23046
Blue Line 2 5314 2235 33926 10770 52245
Total 15082 5529 76906 33666 131183
MRTA will provide the Civils work whilst PPP will be used to supply M& E along the principles
established by BMCL on the original Blue Line.
JBIC will supply the majority of finance for both lines.
3.3.4 Orange Line
This line will be built to the MRTA specification.
4 UK Companies in Thailand
A number of UK Companies are active in Thailand.
We had the opportunity to meet a number of UK companies active in Thailand and to learn of
others establishing operations there.
Amongst the newcomers are Metal Box and Westinghouse Signalling, whilst existing companies
include Tesco and Triumph Motor Bikes.
Amongst the companies active already we had meetings with:
¾ Lloyd?s Register Rail
¾ Ove Arup
¾ Mott MacDonald
¾ Scott Wilson
My summary of their views is:
It is important to take a long view in the market and the Region.
Skills are in demand and in common with the Rail Sector elsewhere, in short supply. Metro
is currently the active sector for Rail, but SRT too are making progress particularly in a
desire to eliminate the pinch points that are causing congestion.
Perceptions are that additional competition would be beneficial, and that stability of
investment would be helpful (requiring longer term planning on the Government side);
however as funding is often a deciding factor in sourcing, then that remains an issue. The
market is aware that Chinese companies are keen to penetrate the Thai market; otherwise,
Siemens have the market on MRT whilst Bombardier has their kit established on Skytrain.
5 Local Manufacturing Capability
There is some local capability in for example sleepers and other items for Rail, consultancies we
have mentioned certainly on the Civils side, and some partnering with International companies.
UKTI local briefing described Thailand as having the potential to be a useful source of out -
sourcing, though local conditions and culture need to be taken into account.
6 External Rail Links
Investment is need to take these potential links forward, just as political will and cooperation
would also be required to foster cross border traffic.
A Rail Link to Cambodia is proposed, adding to the line connecting Laos has just been
completed, but literally only crosses the border by 3 km, with a through route from China to
Singapore a potential development.
The Malaysian Government was said to have donated used rail for track construction and
studies for cross border traffic, though no progress is evident.
7 Opportunities for UK Companies
Consultancy is certainly an area of Opportunity.
Supply opportunities may well flow from the tenders issued for each of the projects announced
by SRT or the Metros. Tenders are generally reported to the British Embassy, and issued on
SRT websites. UK Consultants are active, and some UK companies have had success in the past
despite the influence of JBIC funding.
Local Contractors such as Italian-Thai whom we met, welcome introductions from UK
Companies interested to supply and who will meet market conditions.
New developments include property development around the Railway and proposals for
Logistics hubs and operations. Efficiency measure, regulation and training may provide fields of
opportunity, whilst signalling is clearly in need of upgrading.
State Rail of Thailand
Appendix II SRT Track Doubling Plan
Bangkok Metropolitan Masterplan
MRT Network DEVELOPMENT PLAN
Extension phase 1
Extension phase 2
Extension phase 3
Summary - Rail Scoping Mission
Vietnam has over 3000 route km of existing rail network, though it is much in need of
rehabilitation. There are also ambitious plans to build 6 Metro operations in the two major
cities, Hanoi and Ho Chi Minh City (HCMC) though these planes are somewhat hindered by a
lack of finance.
8.1 Vietnam Railways VNR
VNR also has a wholly integrated Rail system, including operations and design, manufacturing
and construction, and extending to tourism and other diversified businesses. Many of these are
now Joint Stock Companies where employees own part of the company and the Government
the balance, perhaps in preparation for divestment or float off. Issues include the condition of
the relatively large numbers of bridges and tunnels, currently imposing speed restrictions on
the system, despite which Vietnam Railway has ambitions to upgrade the system to high speed.
The State Rail system will also form an arm of the commuter rail services in the suburban areas
of the 2 major cities and these will enjoy the earliest rehabilitation, prior to improving the route
beyond the city limits. Deregulation ensures train operations companies have access to track
and several companies already operate passenger services. VNR are aware of the potential to
link China to Singapore.
VNR also has plans to provide a high speed link from Hanoi to HCMC in the longer term, but will
begin by improving the operations of those lines within in both major cities to assist
8.2 Metro Developments
Both major cities have a masterplan for public transport. Up to 6 metro lines are planned
together with Bus Rapid Transit and Monorail to provide a multi modal solution by around 2020.
The Authorities recognise the need for public transport, and metro in particular to ease
congestion and improve competitiveness, providing a major driver for the sector. Some finance
is being sourced through donor funding, with JBIC and French Development Agency, (AFD)
actively funding specific metro projects. Tied aid inevitably leads to tied specifications and
limited design competition, often with escalating prices. A further concern this brings is the
potential incompatibility of systems and an inability to integrate future metro lines. If these
concerns appear to be recognised by the Engineering teams who will develop the projects, they
are less well recognised by the City Officials who have the pressing need to find the finance at a
time when an International Credit crunch is being experienced. Rising energy costs are also
impacting the Country?s competitiveness despite a very promising economy just a few months
precedent to our visit.
8.3 Economic Overview
Vietnam had until the recent energy crisis been one of the rising stars in Asia, but is now
feeling the pinch of the market economy, with inflation jumping to 25% from 11% last year.
Rising energy costs have subdued confidence and the economy has slowed.
Vietnam has a population of 84 M of which 60% is under 35, so remains committed to economic
growth and to enhancing its manufacturing base. Politically mature and stable is considered a
high growth market by UKTI.
Vietnam is a market where personal relationships are important and companies are encouraged
to develop their position by regular visits and building client confidence through familiarity.
Further information and updated market and economic data is available on the UKTI website,
Rail Scoping Mission - Detailed Report
9 Vietnam Railways VNR
Vietnam built its first railway in 1881. Now, VNR has been incorporated since 2004 and is
organised into a number of divisions, including several Joint Stock Companies (JSC) that remain
wholly owned. (The structure is shown in Appendix I). Though JSCs are often the fore runners
of a privatisation, there is no known, current plan to divest any of these. There is provision for
private capital in Rail, and we are advised a number of different companies run passenger
services on the network. Priority plans have been developed and rehabilitation is a major goal
of the company.
The railway?s mission as written extends to:
? Provision of Railway & Multi Modal Transport Services
? Joint Ventures with Local and International Organisations
? Making best use of it?s capital, natural resources and land
? Investing in Stocks and Shares and Other enterprises
? Research & Development
? Business Development
Provision of commuter services is a priority now, with the Trans National lines planned to be
upgraded in the Suburban areas of Hanoi and HCMC as a priority, and then the Trans Viet lines
will be enhanced to a high speed operation. The planned Metro lines in both major cities fall
under the Local Authorities, and will be administered separately. One major positive, is that the
value of Rail as a means of reducing congestion, and its socio ? economic benefits is fully
recognised. Ensuring finance is made available to realise their rail ambitions is a challenge the
Viet authorities are facing now.
There is facility for Private Capital in Vietnam, and a specific mention of an interest in a
workshop for training was made, as VNR seeks to enhance its capacity. (VNR operates two
A coal project straddling Vietnam and Cambodia is under study by BHP Billiton that may include
a coal line.
9.1.1 Brief History
Rail operations began in 1881 with the French built Railway on 71 km of track linking Sai Gon
and My Tho. The First Trans Viet line was operated in 1936, and the system now extends to
3106 route km. The Rail lines were connected to China in 1898, and re- unified the North and
South in 1967.
In 1999, the journey time from north to south was shortened from 58 hours to 32 hours,
whilst in 2000 VNR introduced locally manufactured railcars. VNR was incorporated by statute
in 2003, with the law being ratified in 2005, ensuring the legal basis for the sustainable rail
development of VNR. Traffic levels show an upward trend.
9.2 VNR Key Officials & Organisations
Vietnam Railways Corporation (VNR)
Nguyen Huu Bang Chairman & CEO
Han Nhu Quynhg Deputy Director International Relations Dept
VNR Transport Investment & Construction Consultant JSC
Nguyen Anh Tuan Deputy General Director
Ministry of Transport Vietnam Railway Administration
Nguyen Bui Nam Director of Planning & Investment
Ministry of Transport
Vietnam Vietnam Road Vietnam Railway Vietnam Civil Aviation
Maritime Administration Administration Inland Authority of
Bureau Waterway Vietnam
The detailed Railway Structure is enclosed in Appendix IV, and consists of a Board of
Management supervising a vertically integrated Railway a developed structure including Joint
Stock Companies and Rail Operations. The Chairman and CEO of Vietnam Railways is Nguyen
Huu Bang, and is well known for his work with VNR, often referred to as Dr Bang. There are
100 employees in the Administration Department, and 45,000 in the Operations Vietnam
100 people 45,000 people
An ambitious rail development programme was launched in 2002, in recognition of the socio-
economic importance of the Railway, covering the period through to 2020, which included
plans to realise a high speed rail project. A new law came into effect in 2005 opening Railway
up to external parties & entrepreneurs, creating a level playing field for new entrants, and
encouraging PPP as a critical factor for success.
Following the re-organization in 2003, VNR has two Passenger Operations and one freight
operation company. Other companies can run train services. Access charges are payable to
the Government, and my understanding is a fee of 8% of revenue is charged.
VNR has terminals at the major ports, and connects to the main economic and industrial
areas, as well as offering routes to prominent tourist resorts. VNR also has two connections to
China, and through these, onward to Russia, Kazakhstan and beyond. (These routes can even
reach into Europe now).
VNR holds memberships with UIC, ASEAN and OSZD rail communities, which covers the former
CIS rail authorities across Russia and into Europe. The aim of membership is to provide easy
cross border transport.
9.3 Priority Projects
VNR desires to improve its services across the country, including a high speed rail link from
North to South running at 300 kph. However the first steps will be to enhance the facilities
inside the 2 major cities to improve the commuter rail services and to facilitate decongestion.
Improving and extending Suburban services using the Trans National Line (within suburban
areas) will be a priority and then improvements will be made to the lines north and south
respectively. Consideration is given to external links, but for now these are future
Though in its infancy, VNR has been exploring the possibility of a high speed link Form Hanoi to
HCMC. The Consultancy JSC noted there was German assistance in the initial considerations.
Siemens too are involved in developing the Operations Centre for Freight.
Level Crossings are a key safety concern and hence demand attention.
? Carry out the survey and design of the following projects: telecommunication and
signalling of 3 northern lines, Hanoi and Vinh ? Nha Trang line;
? Increase the safety of 44 railway bridges and crossroads
? Strengthen the investment process of approved projects such as increasing the capacity
of Yen Vien ? Lao Cai line;
? Changing K1.K2 sleepers and steel sleepers;
? Lengthening station railway lines and adding the third line at stations in Vinh ? Nha
Trang section which have only 2 lines
? Actively carry out the investment preparation stages of following strategy projects:
o Hanoi-HCM city high speed railway line;
o high-speed railway line in the 2 corridor ? 1 economic land development
o Hanoi elevated railways
Priorities for 2008
10% increase in revenue for all divisions of VNR, being at least 15% ahead of 2006 results
? Average Wages to be paid expected to be 2.5% M Dong / month
? Complete the feasibility and investment reports on the 2 strategic corridors,
o North South High Speed Line
o High Speed Line in the designated priority economic land development
9.4 Tenders Website
Tenders are published on the Ministry of Planning & Investments website www.mpi.gov.vn,
though the British Embassy is often notified of these, for publication via UKTI website.
9.5 National Standards Agency
VNR did confirm their interest in new products and technology, and would be willing to conduct
trials for approvals. There is also a National Standards Agency that establishes specifications for
materials and systems and reports to the Ministry of Science. The Agency is known as the
Directorate for Standards and Quality /STAMEQ.
9.6 Railway Law
A copy of the Railway Law of 2005, published in English Language is available. The Law runs to
27 Pages, and governs Rail Operations in Vietnam. Land ownership is a key issue in Vietnam,
yet Railway enjoys preferential treatment in terms of land made available for infrastructure
projects and with import duties levied at preferential rates.
9.7 VNR Physical Data (Table)
Route km km
Total Track Length 3106
Route Km 2600
Metre Gauge km 2169
Dual gauge Metre & 1435 253
Standard Gauge 178
Loops & Sidings 506
Main Routes Route Km Gauge
Hanoi ? Ho Chi Minh City 1726 1000
Hanoi ? Hai Phongh 102 1000
Hanoi ? Lao Cai 296 1000
Hanoi ? Dong Dang 163 Dual
Hanoi ? Quan Trieu 75 Dual
Kep ? Uong Bi ? Ha Long 106 1435
Luu Xa - Kep 57 1435
Bridges # 1809 Being 56,966 m
Tunnels 39 11,513 m
Temporary Bridges 180 18,084 m length
Rail P30 / P38 P43 and
Fastening Part eclip
Sleepers Steel, wood and
twin bloc concrete
all in use
Average Speed Hanoi ? HCMC 70 kph
Other lines 40 kph
# 63% of bridges are on the North South Line, Hanoi to HCMC.
9.8 Rolling Stock
VNR has 317 diesel locomotives, with power capacity from 1300 t0 1900 HP, sourced from a
variety of International suppliers, such as Belgium, China, Czech Russia, Romania, USA and
others. These have been overhauled and repaired several times.
More than 900 passenger cars and 4000 freight wagons are in use, supplied mainly from India
There is capability for local production of new cars and wagons.
9.9 Freight & Passenger Demand Data
(given in 000?s)
Vol 1998 99 2000 01 02 03 04 05 06 07
Tonnes 4883 5033 6139 6336 6944 8282 8771 8688 9153 9049
Pass. 9697 9292 9806 10627 10782 11586 12941 12771 11573 11571
Freight 000 tonnes
Passenger 000 Nos
8 9 0 1 2 3 4 5 6 7
9 9 0 0 0 0 0 0 0 0
9 9 0 0 0 0 0 0 0 0
1 1 2 2 2 2 2 2 2 2
The total revenue of Vietnam Railways Corporate reached 6.151 billion dongs, and the various
sectors all appear to be progressing admirably.
2007 Bn Dong % Increase from 2006
Total Revenue 6151 11.4%
Transport Sector 3131 14.9%
Construction Revenue 743.7 9.3
Infrastructure Turnover 842.2 13.7
Industrial Sector Revenue 452.9 45.3
Service Material Turnover 1014 93.3
9.11 Passenger Transport /TOCs
VNR has two passenger transport companies, based in Hanoi and HCMC offering national and
These services include Ticketing & e-ticketing, catering, various classes of travel including Air
conditioned coaches, scheduling and communications to passengers. Maintenance operations
including jv?s, car rehabilitation, Rail TV service on the North ? South line.
Passenger growth is recorded at 5 to 6 % annually.
9.12 Private TOC?s
Train Operating companies have access to track to run services. We understand a number of
companies already do so, some leasing rolling stock from VNR others using renovated cars. A
Belgian company has signed a contract with VNR for traction and wagon lease, to allow it to run
9.13 Freight Operations
VNR has adopted a modern market driven approach to enhancing its freight business. Turnover
has been rising by 10% pa, reaching out across the 100 freight locations served. Operations
and investments include:
¾ Depots including BOT type (one example is Lao Cai Mineral Company)
¾ Loading and discharge facilities including craneage and handling equipment
¾ Warehousing and distribution facilities
¾ Use off block freight trains (14 pairs per week on the north / South route
generating revenue of VND 10 Bn pa.
¾ Container trains
¾ Provision of return load services earning revenue in both directions
¾ International routes to China , Russia , Mongolia , Kazakhstan and other former
CIS states is possible
9.14 Tourism & Hotels Operations
VNR has the facility to combine services such as Passenger trains with Hotel operations and
offer tourists a packaged service. VNR lists 14 hotels around the country, and claims to own a
large number of guest houses particularly in the well known tourist venues. In addition, VNR
offers a complete multi modal transport facility to enhance the tourism experience. This
company is structured to allow external equity participation in order to grow the business.
9.15 Signalling & Telecomms
Interlocking systems are in use in most stations, and a modernisation programme is underway
seeking to improve the capacity and efficiency of the system. One example quoted is the
gradual replacement of semaphore signals with colour light system. Semi automatic and
automatic block systems are replacing token block systems and automatic warning systems
have been installed at 230 level crossings. The system is described as ?Electric-used block
system with colour-light block equipment used in most of the routes in the North. Semi-
automatic block system is used in Ha Noi - Ho Chi Minh city railway line. Regarding information
system, 1 channel or 3 channel-transmission equipment made in Hungary in the mid years of
1972 and 1979 are used in Vietnam Railways. High-frequency radio system is used in
emergency storage system of some divisions. The open-wire system is much used in long-
distance information transmission. The 2-core copper cable is used in local information system.
VNR are keen to trial and introduce modern technology such as automatic train control system,
automatic train protection system, train location detection system, etc with a view to better
ensuring train operation safety, increasing speed and the overall capacity of the railway
Existing technology was Chinese is being replaced with more modern equipment from China
and European sources. Fibre optic has been fully deployed in the sections covering Hanoi ?vinh,
Nha Trang ? Sai Gon, and will be installed soon on Vinh ? Sai Gon. Since 1998, in Ha Noi - Ho
Chi Minh city railway line, Vietnam Railways has applied television using Microband ATM
technology and multi-channel statistic transmission with the speed of 64 kb per second hired
from Vietnam Post and Telecommunications Corporation.
VNR plan to offer telecoms services to the public telephone market.
9.16 (In House) Construction Capabilities
VNR has a heritage of 125 years of Railways construction. There are 12 construction and
construction material manufacturing joint-stock companies which specialize in:
? Building of civil structures such as bridges, tracks, tunnels, stations, embankment and
? Building of industrial, irrigational and agricultural works.
? Levelling of land for construction works.
? Producing of construction materials and steel structure.
? Supplying and manufacturing of pre-stressed concrete sleepers
The experienced and qualified staff have built many important structures for the road and
railway sector in recent years, such as:
? New Hai Van station and Cau Nho station.
? The bypass for Dong Hoi city, Quang Binh province.
? The railway for Uong Bi Thermoelectric Power Plant.
? Bao Lam - Lam Dong road.
? Army optics cable work.
? The Operations Office of Thai Binh port authority.
? Ho Chi Minh road in co-operation with other construction companies of the road sector.
9.17 (In house) Track Maintenance
At the moment, Vietnam Railways has 15 railway infrastructure management companies
responsible for track maintenance for the total length of 2,600 km. The main functions of the
15 railway infrastructure management companies are:
? maintaining of railway infrastructure such as bridges, tracks, tunnels;
? replacing of turnouts, rails, sleepers;
? supplementing additional ballast to ensure the smooth status of track, track direction
and track geometry.
Due to investment in modern equipment for track maintenance, the quality of the railway lines
and the working condition of railway workers is much improved. Equipment such as Plasser &
Theurer tamping machines, Mattisa recording cars and rail-defect detectors are in use.
VNR is committed to continuous improvement and wishes to introduce the best practice
possible in terms of equipment and materials to enhance the network.
9.18 Rolling Stock Manufacture
VNR owns 3 carriage manufacturers, though mention was made if cooperation with Chinese
companies, this requires further clarification:
? Dian Carriage Company
? Gia Lam Carriage Company
? Hiaphong Carriage Company
9.18.1 Dian Carriage Company
Dian Railway Carriage Company is one of the biggest industrial companies of Vietnam Railway
Corporation. Dian Railway Carriage Company is an independent enterprise under the
management of Vietnam Railway Corporation. The factory is located in Binh Duong province, 23
km North - East of Ho Chi Minh city, an important economic zone in the Southern provinces of
Vietnam, having a 24-hectare production area with 100-hectare surrounding area. Since 1975,
Dian Railway Carriage Company has completed repair of over 7,000 cars and newly built 900
coaches and wagons of different kinds including the first class coaches such as soft-berth cars,
double-deck cars, etc. The company has ISO 9001:2000 quality management system and
creation in new-technology application. The company produces a range of wagons including air
9.18.2 Gia Lam Train Company
Gia Lam Train Company is one of industrial unit of Vietnam Railways Corporation. Its main
activities are: Overhauling and manufacturing rolling stock of different types:
? Producing spare parts of cars, verifying instruments and a laboratory for testing
? Manufacturing other industrial products such as boilers and steel structures.
This company produces a wide range of cars and bogies.
9.18.3 Haiphong Carriage Company
Haiphong Carriage Company is an independent enterprise under the management of Vietnam
Railway Corporation, is situated in the centre of Haiphong port city, a gateway to the Northern
area. Haiphong is one part of the potential economic triangle: Hanoi - Haiphong - Quangninh.
The company alludes to a large scale manufacturing operation. In the last recent 5 years; its
revenue has been increasing, from activity in:
? renovation of all types of coaches and wagons
? provision of spare parts
A variety of coaches and wagons are produced.
VNR has two training facilities, being interdisciplinary and vocational schools as well as the
centres of research application and railway transport technology (including technology acquired
via transfer). The colleges play a vital role in the development and integration of VNR. Both
schools are located in large, easy to reach areas in Hanoi and Ho Chi Minh city and equipped
with various types of equipment and facilities such as dormitories, refectories, and recreational
facilities. Some staff have international experience and training, and in 2006, Railway
Vocational College No.1, trained some bout 2600 students in various disciplines. A wide choice
is available in scope and duration of course, and both rail and non-rail sectors. The schools'
managements also cooperate with organizations and companies in the field of research and
9.20 Consultancy & Engineering
The Consultancy is a JSC.
The company comprise over 300 Engineers covering sectors such as Rolling Stock Systems
Civils Roads, Economics and Legal, including:
? Permanent way design,
? Project cost estimation,
? Transport construction works design,
? Evaluation and supervision (track, bridge, culvert, station, signal & telecommunication
systems, architectural and civil works)
International Standard ISO 9001:2000 is applied, and work is continuing to support
transport services on both road and rail throughout Vietnam, including Investment and
Construction Consultant Services for Railway and Roadway Transport Projects and Railway
Transport Vehicles and Equipment.
In addition to local knowledge and experience gained in hundreds of projects, the consultancy
strives to keep staff and technology up-to-date. Priorities are high-speed railway, elevated
railway, LRT, urban and suburban railway.
10 Urban Railway
10.1 Introduction & Background
In common with most cities, the desire to improve mobility, decrease congestion and take
advantage of the socio-economic benefits a modern integrated transport will bring is driving the
two key cities to implement plans for a network of 6 lines. Vietnam is also suffering from a poor
safety record compared to other Asian cities, one key reason given is due to a lack discipline
and etiquette, as well as that the use of crash helmets on motorbikes is not compulsory.
A full appraisal of urban transport prepared by the Metropolitan Transport Board is available on
Both cities are also planning for increased populations by 2020, Hanoi for over 5 M and HCMC
for around 10 M.
To assist the preparation of this report, we met:
? Department of Transport for Public Works, Hanoi & HCMC
? Department of Communications & Public Works
? Hanoi People?s Committee ? Hanoi Metropolitan Rail Transport Project Board
? The People?s Committee for of HCMC ? Management Authority for Urban Railways
? HCMC ? Department for Planning & Investment
? Transport Engineering Design North & South (TEDI ? Consultant JSC)
? Transport Investment & Construction Consultant JSC
The People?s Committees include a political level directing the projects (and finance though this
require Prime Minister level approval), and a Technical / Operations level, who must approve
detailed designs and act as the Approving Authority.
Hanoi Urban Transport Proposals
Plans are underway to combat congestion and to facilitate growth. Congestion in Hanoi is
severe, and with air pollution and noise, is on the increase.
? Provision of a commuter rail service in Hanoi
? Alleviating congestion
? Reducing energy consumption from a modal shift from road to rail
? Increasing the capacity of national and international trains by improved train path of the
? Reduced travelling time
Public transport is very popular in Vietnam, even despite the huge number of motorcycles. New
buses and policy introduced in 2002 were instantly successful.
10.2 Hanoi Master Plan Detail through 2020
Line 25 Ngoc Hoi ? Ha Noi Stn ? Yen Double Track,
1 km Vien Dual Gauge, (National & Urban Rail)
Elevated & at Grade
Japanese Funds USD 1 Bn
approved March 08
Line 14 Hanoi- Hadong 14 km Double Track
2A km Elevated
JBIC funding Gauge 1435 mm
USD 330 M
Line 33.7 Noi Bang ? Thang Long South
Line 21 Nhon ? Hanoi Stn Systra have undertaken Feasibility
3 km Mixed funding Study and are at planning stage.
Part French (AFD) and Systra
has been appointed as General
Part Asian Development Bank
Part Chinese Govt funding
Line 53.1 Dong Anh ? Sai Dong ? Me Linh
Line Thang Long South ? Hoa Lac
10.2.1 Challenges facing Hanoi
? Finance (to be drawn from a number of sources internal and external) and tied aid
considerations potentially affecting operational and engineering efficiencies
? Sharing of existing VNR track between urban and long distance passenger operations in
the suburban areas
? Gauge issues with the mix employed on VNR and Chinese rail lines
? Land acquisition costs and efforts to minimise land take
? Ensuring no interruption to existing freight operations using a section of the line being
? Construction of 11 new stations, including the Ngoc Hoi complex
? Construction of a new bridge 50 m upstream from existing bridge
10.2.2 Projects Underway and Status of Line 1
From Ngoc Hoi ? Yen Vien.
Length = 27 km, 16 stations.
Phase 1: 2014 from Giap Bat to Gia Lam, 15 km, 10 stations.
Phase 2: 2019 from Giap Bat ? Ngoc Hoi and Gia Lam ? Yen Vien, 12km, 6 stations.
Phase 1: approx 1 bn usd
Phase 2: approx 0,5 bn usd
Funding source: ODA loan from Japan government through JBIC, and design will be carried-out
Clearly complex civil works will be required to complete the line without disruption to existing
traffic, rolling stock, electrification and signalling will also be required.
160 urban trains and 90 intercity trains can be operated per day so an internal rate of return of
11% is forecast, meaning the service is deemed viable.
A new management unit is proposed to take control, and experienced external (international)
consultants should be employed with skills in:
? Project planning
? Construction supervision
? Management and Operations
The project is split into 2 elements:
Project 1 Giap Bat to Gia Lam 10 km
Project 2 Ngoc Hoi to Giap Bat and Gia Lam to Yen Vien, giving a total of 18.8 km.
Estimated Costs and time :
Project 1 USD 1.23 Bn 2008 to 2017
Project 2 USD 540 Bn 2017 to 2019
ODA loan is anticipated at a level of USD1.45 Bn, with local funds of USD300 in local currency.
JBIC provided a STEP loan of ¥4.683 in 2007 to undertake the technical design for Project 1
and will be the source of funds for the whole project.
10.3 HCMC Urban Transport - Development Plan Ho Chi Minh City
Under Vietnam's Transport Development Plan from 2008 to 2020, which has been cleared by
the Prime Minister, almost Viet Dong (D) 300 trillion (D 300 Tn) (US$ 17.81bn EUR 11.36bn)
will be invested by Hanoi to enhance its transport infrastructure and ease traffic congestions. A
minimum of 15% of the city's land area in total, or 13,800 hectares (ha), will be zoned off for
the infrastructure, with 1,100 ha going to railways and 11,500 ha for roads. A sum of D 117tn
of the D 300tn will be used to construct more expressways, widen its national highways into
four to six lanes, and finish building its second belt road. Meanwhile, D 138tn will go towards
constructing five railway tracks by 2010. One track will connect the city centre and Noi Bai
International Airport. Another D 13.7tn will be allotted for waterways, and D 13.8tn for airports.
There is recognition of the technical differences and issues of integration that a mixture of
National specification will bring. Examples mentioned include the unique Japanese signalling
and differences in operating voltages of Japanese and European systems.
Donor funding makes these issues more difficult for the client, though I detected a desire for
European / generic systems at Operational level, the structure of the finance may dictate
Tramway for example, remains an option in HCMC but there is strong desire for this to be a
steel wheel rather than a rubber tyre option.
Japanese Consultants are assisting HCMC with Safety & Regulation.
Japanese Finance Terms are believed to be 0.4% over 40 years, with a grace period, and
sourcing restriction is that minimum 30 % of value must be Japanese origin.
10.3.1 Masterplan to 2020
A total of nine lines appear on the HCMC master plan, of which 3 maybe Monorail (MR) or Bus
Rapid Transit (BRT): tba indicates that further study has yet to be made.
Line Type Lth Description Est Status / Potential Funding
1 Metro 19.7 Double Track 700 VNR / MOT to develop
Underground & JBIC funding.
2 Metro 19 Tba 1 No Government Decision yet on
Bn funding German & Japanese Proposals
German funds have been used for
City Authorities have proposed JBIC
funding be used.
3 Metro 23 tba 1.3 No Government Decision yet on
Bn funding German & Japanese Proposals
German funds have been used for
City Authorities have proposed JBIC
funding be used.
4 Metro 24 Tba 1.3 Chinese Feasibility Study Financed But
no decision on funding.
5 Metro 17 tba 800 Spanish Feasibility Study Financed
6 Metro 6 tba 300 Spanish Feasibility Study Financed
7 MR 12.5 tba Interest from Scomi Monorail of
8 MR 14 tba tba
9 MR 8.5 tba tba
10.4 NJPT Japanese Consortium Line 2
A Japanese consortium together with two local JSCs has been formed for the Line 2 project in
HCMC, NJPT Association comprising:
? Nippon Koie Co Ltd
? Japan Railway Technical Service (JARTS)
? PB Japan Ltd
? Japan Transportation Consultants Inc
? Tonichi Engineering Consultants Inc
? JR East Consultants Co. Ltd
? Transport Engineering Design Incorporated South (Tedi South)
? Transport Investment and Construction Consultants (TRICC)
11 TEDI ? Engineering Consultancy JSC
Transport Engineering Design Incorporated (TEDI) was incorporated from its predecessor, the
Transport Engineering Design Institute, (est. December 1962), by a Government Decree in
November 1995 by the Ministry of Transport with the approval of the Prime Minister. TEDI
cover the whole range of consultancy, survey and design services for projects in the transport
and other sectors, and has a team of qualified and experienced specialists, engineers trained
both in Vietnam and overseas, and a work-force of skilled technicians capable of conducting
field surveys and investigations. This includes feasibility and evaluation as well as the full range
of engineering disciplines associated with Rail Design and Construction. TEDI is a JSC with 70%
of the capital owned by employees and the balance with the government.
12 Saigon Railway Materials Company JSC
This company originally established to import materials for the Railways in the South now has a
brief to import for the Rail Sector nationally, as well as for some of the Construction sector
(national brief since 1993). The Government retains 51% of the stock, and one clear advantage
the company has is the international experience it has gained since 1975.
The company imports according to rail demand, and has interests in steel fabrications and the
service sector too, and would be happy to develop agency support. Specific areas of experience
? Rolling Stock Spares ? USA & Germany
? Air conditioning and Toilet Modules ? USA
? Passenger Coach ? USA
? Signalling ? Siemens
Steel for construction and coach structures and rails are imported mainly from China.
Amongst their other strengths they list, warehousing and distribution, and promotion of
alternative or 3 party supplies which comply with a prescribed specification or ?brand?.
The JSC has a small factory to produce mechanical equipment, though they note there is no