Vietnamese Ministry of Transport Visits 5 Countries to Study $60 Billion North-South High-Speed Railway Investment

The Ministry of Transport conducted direct surveys in 5 countries with developed high-speed rail systems around the world to finalize the high-speed rail project on the North-South axis and prepare a feasibility study report for the project.

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The Ministry of Transport has just released Document No. 2793/BGTVT-KHDT to the Khanh Hoa Provincial Delegation in response to the electors’ recommendations submitted after the 6th session of the 15th National Assembly.

Accordingly, on February 2, 2024, the Ministry of Transport received a recommendation from the electors of Khanh Hoa province, which was forwarded by the Government Office in accordance with Official Letter No. 840/VPCP-QHDP. The content of the recommendation is as follows: “Request the government to direct the departments and sectors to spend more time studying and learning from other countries in order to invest effectively in the North-South high-speed railway system“.

In response to this issue, the Ministry of Transport stated that on February 28, 2023, the Politburo issued Conclusion No. 49-KL/TW, which provides guidance on “thoroughly studying, analyzing and evaluating, comprehensively and closely, combining with the reference of international experience to choose investment options, technology, technique, capital… to build a modern, synchronous, feasible, efficient, long-term strategic vision high-speed railway line, which can leverage the potential advantages of the country and is in line with the world’s development trend”.

The Prime Minister has established a Steering Committee for the construction and implementation of the North-South high-speed railway project and other important national railway projects, with members including representatives from relevant ministries and departments. The government has also issued an Action Program to implement Conclusion No. 49-KL/TW of the Politburo, directing the ministries, departments, and localities involved to conduct studies and propose efficient investment in the North-South high-speed railway line, in coordination with the Ministry of Transport, other ministries, agencies, and localities, drawing on the experience of some countries in the world in high-speed railway development.

In recent times, the Ministry of Transport has conducted thorough and comprehensive research, compiling the experience of high-speed railway development worldwide. It has also organized intersectoral delegations to directly survey railway systems in 5 countries with high-speed railways to refine the proposal for the North-South high-speed railway project and the pre-feasibility study report.

Currently, the Government continues to direct the relevant ministries, departments, and agencies to conduct research and learn from international experience in terms of institutional policies, human resource development, technology transfer, industrial development, resource mobilization, land exploitation around stations, etc. to implement the investment in the North-South high-speed railway and the railway system in general in a feasible and efficient manner.

Length of 1,545 km, speed of 350 km/h?

According to the National Overall Plan for the period 2021 – 2030 and the Railway Network Plan for the period 2021 – 2030, with a vision towards 2050, the high-speed railway (HSR) line on the North-South axis will have a double-track scale with a gauge of 1,435 mm, a length of about 1,545 km, and an investment plan before 2030.

On February 19, 2024, the Government Office issued a notice of the conclusions of the Government Permanent Committee (GPC) at the meeting on the investment policy proposal for the North-South high-speed railway. The GPC requested the Ministry of Transport (MOT) to closely follow the Resolution of the Party Central Committee, the Conclusion of the Politburo, the Resolution of the National Assembly, and consider the opinions of the participating ministries and agencies to urgently complete the proposal.

At the end of 2023, the Ministry of Transport submitted to the GPC the investment policy proposal for the North-South HSR line for the Government’s consideration before submitting it to the Politburo and the National Assembly for approval. In which, the Ministry of Transport put forth several scenarios.

In Scenario 1: Building a new double-track North-South railway line with a gauge of 1,435 mm, a length of 1,545 km, a design speed of 350 km/h, a maximum axle load of 17 tons, and operating passenger trains only; upgrading and refurbishing the existing North-South railway to transport goods, tourist passengers, and short-distance passengers. The estimated total investment for this scenario is about USD 67.32 billion.

Scenario 2: Building a new double-track North-South railway line with a gauge of 1,435 mm, an axle load of 22.5 tons, and shared operation of both passenger and freight trains. The design speed ranges from 200 to 250 km/h, with a maximum freight train speed of 120 km/h. Modernizing the existing North-South railway to transport goods, tourist passengers, and short-distance passengers. The estimated total investment for this project option is about USD 72.02 billion.

Scenario 3: Building a new double-track North-South railway line with a gauge of 1,435 mm, an axle load of 22.5 tons, and operating passenger trains with the provision of freight transportation when needed. The design speed is 350 km/h. The estimated total investment for this scenario is about USD 68.98 billion. In case of immediately investing in infrastructure, equipment, and vehicles to serve continuous freight trains from the North to the South, the investment budget is about USD 71.69 billion.

Based on the analysis, the Ministry of Transport proposes to choose Scenario 3 with some specific mechanisms and policies to shorten the schedule, mobilize investment capital, and train human resources.