Railway revenue grew by double digits in the first 6 months of the year

Train passenger numbers increased by more than 20%

At the Conference, Chief of Office of Vietnam Railway Corporation Nguyen Huu Thanh said: In the first 6 months of the year, the total revenue of the corporation reached more than 4,500 billion VND, an increase of 10.1%. The parent company alone had revenue of nearly 3,000 billion VND, an increase of 11.2%.

Many new passenger transport products and railways attract train passengers, bringing double-digit growth in revenue for the first 6 months.

“Passenger transport output in the first 6 months increased by 20.6% over the same period. During the Lunar New Year alone, more than 650,000 train tickets were sold, with revenue reaching 400.7 billion VND, equal to 107.5% over the same period,” Mr. Thanh said, adding that the Corporation has put into operation specialized train pairs bearing regional cultural imprints such as: “Heritage Connection” train on the Hue - Da Nang route, the tourist train “Da Lat Night Train Journey”, charter trains with itineraries and services according to the request of the ordering party.

Regarding freight transport, organize the exploitation of new cargo flows, creating conditions to increase service value. Implement solutions to increase the output of international freight transport by railway. Accordingly, renovate, upgrade and put into operation international freight transport activities at Cao Xa; exploit more international freight transport products between Vietnam and China, transit through China to third countries such as Russia, Europe, Mongolia and Central Asian countries.

However, according to Vietnam Railways Corporation, railway transport operations were interrupted twice due to landslides on top of Bai Gio tunnel and Chi Thanh tunnel, blocking the Hanoi - Ho Chi Minh City railway line. Transport companies promptly organized the safe transfer of passengers through the incident area, providing free meals and drinks during the transfer process. Ticket exchanges and refunds for passengers who did not want to transfer were carried out smoothly, quickly and without additional fees. The impact of the incident led to additional costs to fix the incident and indirect damage of more than 106 billion VND.

Merging two transport companies, profit target over 53 billion

Mr. Hoang Gia Khanh, General Director of Vietnam Railway Corporation, said that along with production and business activities, the corporation has implemented restructuring of its apparatus.

In the field of transport, the corporation has completed the plan to merge the two railway transport joint stock companies Hanoi and Saigon into one railway transport company. The shareholders' meeting of the two companies has approved the content related to the merger and the board of directors of the two companies has decided to approve the content and sign the merger contract. Currently, the two companies are implementing the procedures to merge.

The railway aims for a total profit of more than 53 billion VND for the whole corporation in the last 6 months of the year.

Also regarding restructuring, on June 26, 2024, the Prime Minister signed Decision No. 562 approving the Project on restructuring Vietnam Railways Corporation for the period up to the end of 2025.

Therefore, the task set for the last 6 months of 2024 is to implement the restructuring project according to Decision No. 562 of the Prime Minister; complete the merger plan of two railway transport joint stock companies according to the set schedule.

Regarding production and business, Vietnam Railways Corporation directs transport companies to focus on solutions to improve service quality, especially paying attention to solutions to overcome limitations and shortcomings that customers have reported such as: Quality of train car hygiene, passenger service equipment with additional trains; Quality of train car air conditioning... There are solutions to exploit tourists in localities to travel by train to tourist destinations. On the part of the corporation, prepare to build a train schedule, train plan for Lunar New Year 2025...

To achieve the 2024 production and business plan, Vietnam Railways Corporation aims to complete key targets in the last 6 months of the year. Of which, the entire corporation combined achieved output of VND 4,725.4 billion; revenue of VND 4,701.5 billion; profit of VND 53.5 billion.

The parent company alone had revenue of VND2,916.9 billion, profit of VND11.7 billion. In the transportation sector, direct revenue from transportation was VND2,039.7 billion, equal to 108.6% over the same period.

Source: https://www.baogiaothong.vn/6-thang-dau-nam-doanh-thu-duong-sat-tang-truong-hai-con-so-192240703170221234.htm