Rail freight transport slows down in first months

Although passenger transport service made better performance, it recovered only 80% of the 2019 pre-COVID-19 level, the corporation reported.

VNR leaders explained that difficulties in freight transport were due to the incomplete recovery in railway business and production after the pandemic, plus competition pressure from aviation and road services.

Rail freight transport is expected to face more obstacles as sea freight costs have been reduced to their previous rates after a period of increases, they noted.

Over the past time, the corporation has applied many solutions to restore business and production after the pandemic, such as maximising freight transport service.

VNR General Director Dang Sy Manh said the sector raked in more than 7.7 trillion VND (326.6 million USD) in 2022, and cut losses by over 400 billion VND from the previous year.

It aims to escape losses this year and gain profits in the next two years, he said, adding that to achieve the target, the sector has put forth a range of plans right in the beginning of this year such as improving infrastructure quality and raising the efficiency of passenger and freight transport.

VNR has proposed the Ministry of Transport upgrade eight railway stations to international ones in order to enhance the freight transport capacity, Manh said, taking the example of Kep station in the northern province of Bac Giang, which has offered international services since February 18.

Freight transport service is projected to become a spearhead accounting for up to 70% of the railway sector’s revenue.

The ministry has included the upgrade of the railway stations into the 2021-2025 mid-term investment plan.

Besides, the model of railway in combination with tourism attracted more than 4.5 million passengers in 2022, tripling that in the previous year, which will be stepped up this year./.