Copyright 2002 Asia Pulse Pte Limited
Asia Pulse

July 26, 2002 Friday

HEADLINE: VIETNAM TO UPGRADE NORTHERN RAIL ROUTES TO SPUR GROWTH
DATELINE: HANOI, July 26

The projected rapid economic growth of Vietnam's northern provinces
has spurred railway planners to upgrade a network connecting Hanoi
with the coast on the east, and China's Yunnan Province in the
northwest.
The network, named the East-West Railway Corridor, comprises three
routes: Hanoi-Hai Phong, Hanoi- Cai Lan Port and Hanoi-Lao Cai.
Besides serving the hinterland of two key ports, Hai Phong and Cai
Lan, railway officials said, the system would also serve other key
economic and tourism projects. They said that the rail route would
enable more people from Yunnan to visit world-famous sites like Ha
Long Bay while Vietnam's farm produce could enter China through the
Lao Cai border gate. The upgrade to the network is expected to help
increase freight transport capacity three-fold, passenger capacity
four-fold and halve travelling time, and generally boost development
of the northern economic triangle.
It is estimated to cost US$990 million, which will come from the state
budget and bank loans, according to the Vietnam Railway Investment
Consultant and Construction Company (VRICC), which completed a
pre-feasibility study last month. VRICC experts said that the first
phase, to run between 2004 and 2008, will cost $623-million, during
which the three existing single routes will be upgraded.
However, the major portion will be used to build new sections between
Lao Cai and Yen Bai and Hanoi's Yen Vien station and Cai Lan.
Phase two will see the doubling of the existing Hanoi-Lao Cai line,
enabling to cut travelling time by two thirds to four hours, the VRICC
said.
Faster and more convenient travel is expected to see the number of
passengers travelling on the Hanoi-Lao Cai section to surge to 2.6
million a year by 2005 and 5.4 million by 2020.
The comparable figures for the Hanoi-Hai Phong route will be 1.6
million passengers by 2005 and 4.5 million by 2020, and for the
Hanoi-Ha Long sector, 2.25 million passengers each year by 2005 and
3.2 million in 2020.
The volume of cargo that will be lugged by 2005 on the Hanoi-Lao Cai
sector will reach more than 3 million tonnes per year, on the
Hanoi-Hai Phong route, 783,000 tonnes and on the Hanoi-Cai Lan sector,
1.2 million tonnes.
In an attempt to put the country's north-east region on the sea
transport map, the government drew up in 1996 the Cai Lan deep-sea
port project which, when complete, will be able to handle large
vessels.
The ports in the region are then expected to handle around 23 million
tonnes by 2010 - increasing to 60 million tonnes in 2020 - with Hai
Phong handling 8.35 million tonnes and Cai Lan 16 to 17 million
tonnes.
VNA

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