Hanoi, November 15 (Engineering Daily) -- Vietnam has confronted with a difficulty in constructing its first high-speed railway in the nation for its high cost and doubt on its advantage over aviation vehicle.
Vietnam Railway Authority calculated that Vietnam has over 3,000 kilometers of railway tracks and the average speed of them is 70km per hour. In contrast, this first high speed railway project is 200km per hour and 1,545km long.
In the situation where high-speed railway transportation is scarce the success of constructing the railway raises doubt for its high cost and its advantage over aviation counterparts.
The total cost for the project is $58.71 billion but additional cost is anticipated to occur. Especially, the acquisition of construction equipments and consultancy fees-alone $3 billion expected- are the main concerns for now.
Furthermore, apart from the $58.71 billion, additional funds are required for the first 10 years of the construction. There is no capable investor inside/outside of Vietnam for local investors being financially incapable and foreign investors being reluctant to spend extended time on their investment recovery.
The solution to the difficulty suggested by Vietnames construction firms TEDI, TRICC, and TEDISOUTH are three options: ▶The first is to pay for the project by the state budget ▶the second is for the project fund to be split between state coffers and ODA ▶the last is to involve investors to pay 20% of the cost and the rest should be paid by the state.
On the advantage over aviation transportation, the train ticket will cost 50-75 percent of an airplane one but it is still worrisome for the construction associates that the railway route would be less competitive than aviation transportation.
The approval of the project should be waited until next year when the Pre-Feasibility report is presented to the National Assembly.