The Vietnamese railway sector is taking measures to increase the volume of freight transport as it did not meet the set target in the first half of 2019, according to insiders.

Illustrative image (Source: cafef.vn)

Chairman of the Hanoi Railway Transport Joint Stock Company (HARACO) Do Van Hoan said that the volume of rail freight transport is declining significantly. 

During January-June, the company loaded over 1.9 million tonnes of goods, and unloaded over 1.8 million tonnes of goods, equal to only 87 percent and 88 percent of those of the same period last year.

This resulted in a decrease in the company’s turnover from both cargo loading and unloading, just equivalent to 92.9 percent of that of the same period last year.

General Director of the Sai Gon Railway Transport JSC Dao Anh Tuan stated that his company fell into the same situation. In the first six months of 2019, the company transported over 438,000 tonnes and unloaded 394,000 tonnes of goods, equal to 92.1 percent and 87.4 percent of those of the same period last year. Its takings from these works were equal to 96.9 percent of that of the same period of 2018.

Hoan attributed the decreases to business difficulties of his company’s major partners, and declines in farm produce exports to China from the northern and southern regions.

To reverse the situation in the remaining months of 2019, he said that on July 31, his company will launch an express freight transport train from Hanoi’s Yen Vien station to Song Than station in the southern province of Binh Duong, with the frequency of five pairs of trains a week.

The official added that the railway sector will continue reducing transport costs to attract more trade partners.