Vitranss2 final seminar-en

3/17/2010

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12 March 2010

Hanoi

JICA Study Team

CONTENTS

1. Study Implementation Process

2. Overall Transportation Development Framework

3. Summary of Subsector Strategies and Plans

4. North-South Corridor Development

5. Master Plan (Medium-term Plan) and Short-term Investment Program

6. Recommendations

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1 To formulate comprehensive, long-term transportation sector development strategies up to the target year of 2030.

2 To formulate a comprehensive medium-term transportation master plan up to the target year of 2020.

3 To formulate a short-term investment program for the 2011-2015 period.

4 To formulate a master plan for the North-South Expressway network and to conduct a pre-FS for the priority section.

5 To conduct preliminary planning for the North-South High-speed Railway.

6 To conduct technology transfer for the Vietnamese counterpart during the study.

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Study Objectives

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�Commencement of the study: 2007

�Draft Master Plan submitted and comments received in May 2009

�Revised draft Final Report submitted in July 2009

Overall Study Implementation and Progress

Demand Forecast

Main Tasks

Situation Analysis

Issue Identification, Basic Strategies

Long-term Strategies (2030)

Master Plan (2020)

Short-term Program 2015)

Part B:

North-South

Expressway

Basic Plan

Master Plan

Pre F/S For Priority Projects

Project Implementation

Plan

Basic Plan

Preliminary Development

Plan

Part A:

Comprehensive

Planning

Part C: N-S High -

Speed Railway

Review of F/S on Missing Links

6

�Summary

�Main Text

�Subsector Reports

SR01: Road and Road Transport

SR02: Railway

SR03: Ports and Shipping

SR04: Inland Waterway

SR05: Aviation

SR06: Institutions

SR07: Environment

�Technical ReportsTR01: Traffic Surveys and Database

TR02: Current Transportation System

TR03: Transportation Demand Analysis

TR04: Main Commodity Analysis

TR05: Logistics and Transportation

Industries

TR06: Regional Development Planning

and Socio-economic Framework

TR07: Corridor Analysis

TR08: Traffic Safety

TR09: Transportation Costs and Pricing

TR10: GIS Database

Composition of Draft Final Report

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Name Scale/Coverage

1. Road Traffic Volume/ OD Survey

� 48 stations (24 hours).

� Survey period: 3 consecutive days (1 day for OD

Survey).

� Sample rate for OD Survey: 10-20%.

� Classification of vehicles: 10.

2. River Traffic Volume/ OD Survey

� 20 stations (north) and 20 stations (south).

� Survey period: 3 consecutive days (1 day for OD

Survey).

� Sample rate for OD survey: 10-20%.

� Classification of vessels: 7.

3. Transport Terminal Survey

� 10 locations each for railway, airport, bus terminals.

� 30 locations for truck terminals/ICD.

� Traffic volume count: 20 hours.

� Interview survey: 18 hours.

� Sample rate for interview: 10-20%.

4. Port Cargo OD Survey

� 20 main ports

� Collection and analysis of manifests.

� Interview (1 day) at port gates.

� The survey system basically follow to that of VITRANSS1 surveys for comparative analysis

�Other surveys

◄◄◄◄ Traffic Surveys ►►►►• Survey of existing transportation infrastructure and services

• Survey of transportation industries and service providers

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Supplemental Traffic Surveys

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Prioritization Criteria

Budget Envelope

Proposed Investment Strategies/Plans

Draft Master Plan

Regional Development Framework

Subsector Studies

Demand Analysis

Corridor Study

Development Goals and Strategies

� analysis based on updated database

� integrated transportationdevelopment strategies and planning

� prioritization of projects

� realistic investment plan

Planning Approach

Passenger Freight

Demand Forecast Methodology

VITRANSS2 Transportation Surveys (Traffic volume and OD for road, port, rail, etc.)

2008 OD Tables by mode 2008 Transport Network 2008 OD Tables by Mode and

by Cargo Type (13 Types)

Model Building•Generation/

Attraction

•Distribution

•Modal Split

•Traffic Assignment

Model Building•Production/Consumption

•Generation/Attraction

•Distribution

•Modal Split

•Traffic Assignment

Future (2020,2030)

Projects

Future (2020,2030)

Transport Network

Characteristics

Future (2020,2030) Passenger

OD tables and traffic volumes

Future (2020,2030) Freight

OD tables and traffic volumes

2008

Socio-economic

Indicators•Population

•GRDP

•Employment, etc.

Future (2020,2030)

Socio-economic

Indicators•Population

•GRDP

•Employment, etc.

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Future Demand

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no of pax (000)tons (000)

passenger-km(000)ton-km(000)

0

100

200

300

400

500

600

700

800

900

0

1000

2000

3000

4000

5000

6000

7000

8000

1999 2008 2030

no of pax (000)

tons (000)

passenger-km (000)

ton-km (000)

Do-nothing Analysis (Analysis of Baseline Scenario)

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� To identify demand-supply gap by assigning 2030 demand on existing transportation network

��Passenger��• Road capacity will become insufficient in many areas in Vietnam.• VNR capacity around Hanoi and HCMC will fall short.• Airport capacity in HCMC, Hanoi and Danang will fall short.

��Freight��• Freight transportation demand by rail will grow drastically. If no improvement is done on rail transportation, demand will shift to road.

• Demand for IWT will increase particularly in the Mekong Delta.• Port capacity in most port groups may become insufficient.

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� economic sustainability

� social sustainability

� environmental sustainability

� financial sustainability

� administrative sustainability

� demand

� efficiency & effectiveness

� affordability

� funding capability

� management capacity

Goal: Support/Promote National Growth and Poverty Reduction Strategy

�Develop competitive intermodal transportation network and service at national/international level

�Develop effective local transportation network and services integrated with national/regional transportation system at provincial level

� Stepwise strategic development.

Sustainable Transportation Development Framework

�� Basic Strategy ��

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� Development Clusters

Primary (NFEZ, CFEZ, SFEZ)

Secondary (coastal)

Secondary (upland)

� Development Corridors

Primary (land/air/water)

Secondary (land/air)

Secondary/primary (sea/water)

International gateways (secondary)

International gateways (primary)

Effective integration of development clusters with strategic transportation network

Core National Transportation Network Concept

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Hanoi

Quang Ninh

Hai Phong

Hai Duong

HCMC

Dong Nai

Long Thanh

Thi Vai – Cai MepVung Tau

Da Nang

Hue

Dung Quat

Champa

Hoi An

� handicapped� widening gap� key to N-S integration� large potential 3 World Heritage

Sites, beaches and mountains

� Need for more intensive investment with government initiative to stimulate private investments

� Direct connection with international market (especially via air)

Accelerating urban development of Danang City

� Integrated development and role sharing among provinces in CFEZ

NFEZ

SFEZ

CFEZ

Strategic Integrated Transportation- Regional Development Concepts for FEZs

Laos

Cambodia

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Corridor Study

� to define intermodal coordination strategies in the corridor more clearly

� to translate strategy into integrated plans and projects

� to facilitate integration of national and provincial transportation strategies

� to integrate transportation and regional development

China

� National Backbone Corridor

� International Gateway Corridor

� Land-bridge Corridor

� Regional Corridor

� Metropolitan Ring Corridor

○1 ○2 ○3 ○4○5 ○12○13○14○15○16 ○17○18○19○20○21 ○22○23○24○25○26○27○28○29○30 ○31○32

⑥⑦⑧⑨⑩⑪A Total of 32 Corridors

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Project Prioritization Method

Project Characteristics•Type•Scale•Location•Function•Cost•Others

Demand Forecast

Economic Cost

Financial Cost

EconomicBenefit(Without-With)

Revenue

1.Traffic Demand

2. Economic Feasibility (EIRR)

3. Financial Feasibility (FIRR or Demand/Cost)

4. NetworkConnectivity

5. Impact on Environment

6. Maturity

7. Government Policy

Allo

catio

n of

Eva

luat

ion

Wei

ghts

(To

tal 1

00%

)

Criteria

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5 G

roup

s of

Ran

king

Budget Envelope

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� Assumed GDP Growth Rates (%/year)

● 2011-2020: 5.5% (low), 6.5% (medium), 7.5% (high)● 2021-2030: 4.5% (low), 5.5% (medium), 6.5% (high)

� Possible Investment to Transport Sector (as % of GDP)

Period3% 5% 7%

Low Med High Low Med High Low Med High

For Early Period

2009&2010 5 5 5 8 8 8 11 11 11

2011-2015 14 15 15 24 24 25 33 34 35

2016-2020 19 20 22 31 33 36 43 47 51

2021-2030 53 61 72 89 102 120 124 143 168

Accumulated

2009&2010 5 5 5 8 8 8 11 11 11

2009-2015 19 19 20 31 33 36 43 47 51

2009-2020 37 39 41 62 65 69 87 91 96

2009-2030 91 100 113 151 167 189 212 234 264

USD billion at 2006 pricesSource: VITRANSS 2 Study Team

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Structure of Subsector Reports

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��Contents of Report��

1. Introduction

2. Present conditions

3. Current policy, plans and projects

4. Main planning and management issues

5. Long-term development strategies

6. Subsector Master Plan

��Title of Report��

No.1 Roads and Road Transportation

No.2 Railway

No.3 Ports and Shipping

No.4 Inland Waterway

No.5 Aviation

No.6 Institutions

No.7 Environment

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ROADS AND ROAD TRANSPORTATION

Present Conditions of Infrastructure and Services

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� Network: 250,000km

� National highways: 17,000km● 7% are 4(+) lanes● 43% good, 37% average, 20% bad/very bad● Gravel surface: 6%

� Provincial highways and local roads

● Provincial roads (23,000km): 24% earth or gravel● District roads (55,000km): 86% earth or gravel● Commune roads (141,000km): 79% earth or gravel● Urban roads and Others (14,900km): 54% earth or gravel

� Registered vehicles: 18 mill. MC and 973,000 automobiles (2006) with growth rates of 20.1%/ year (motorcycles) and 12.3%/ year (automobiles)

� Traffic safety: 14,727 accidents, 12,757 fatalities, 11,288 injuries (2006)

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Main Issues

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� Inadequate road hierarchy: unclear functional classification and corresponding technical standards

� Poor secondary road network

� Lack of maintenance

� Poor construction quality

� Sub-standard long-distance bus and truck transportation services

� Mixture of long distance heavy-vehicle traffic (bus and truck) and local traffic

� High traffic accidents rate

� Increasing traffic congestions around urban areas

� Lack of sustainable funding

Subsector Strategies: Roads and Road Transportation

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�� Key Strategies �� Specific Actions ��

�Improve road network capacity thru proper hierarchy and connectivity

• Balance expressways, primary, and secondary roads• Upgrade road surfaces to all-weather pavements• Intensify development of provincial roads in coordination with national roads

�Segregate traffic to enhance safety and productivity

• Develop design standards suited to motorcycle traffic• Segregate long distance heavy vehicles from local traffic

�Preserve road assets • Negotiate long–term maintenance program and road user funds

• Strengthen institutional mechanism and capacity• Intensify regulations on truck overloading

�Foster environment and safety safeguards in road transportation

• Constantly review vehicle /safety standards• Improve design standards on landslide/flood-prone areas• Continue to implement road safety promotion programs

�Modernize road sector industries

• Modernize transportation operators and foster business environment

• Promote high quality road construction through reforms in the procurement system

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� Strengthen existing national roads (primary function) timely to meet demands and needs of areas (rehabilitation, widening, bypass, grade separation) for smooth and safe traffic

� Promote development of expressways based on the following criteria:

(a) accommodate future traffic demand

(b) segregate long-distance , inter-city traffic (trucks and buses) from local traffic

(c) tap private sector capacity (financial, technical, operation and management)

� Strengthen road maintenance system by providing of necessary fund, technologies and organizations

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Infrastructure Development Strategy (Road)

Identified Road and Road Transportation Projects up to 2030

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Expressway Projects

National Highway Projects

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Core Program (Road)

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A. Candidate Projects (2011–2030)

B. Committed Projects

C. Projects with Highest Priority

(2011-2020)

B+C. Core Program

(2011–2020)

No.Cost: USD million




Total To Gov't Total To Gov't Total To Gov't Total To Gov't

Expressway 44 67,648 47,354 12 11,691 8,184 7 7,169 5,019 19 18,860 13,202

Nat'l Highway 187 19,815 19,815 72 8,935 8,935 40 2,057 2,057 112 10,992 10,992

Traffic Safety 12 1,936 1,936 3 136 136 8 690 690 11 826 826

Total

(%)

243

(100)

89,399

(100)

69,105

(100)

87

(36)

20,762

(23)

17,255

(25)

55

(23)

9,916

(11)

7,765

(11)

142

(58)

30,678

(34)

25,020

(36)

RAILWAY

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� Railway network

● 2,600km and non-electrified

● Single Track (nearly all) and primarily 1,000mm gauge

� Rail condition between Hanoi and HCMC

● Manually managed at-grade crossings

● 29/25 bridges restrict speeds to ≤ 50-60 km/h (freight/pass)

● 41/10 sections where radius restricts speed ≤ 50/60km/h (freight/pass)

● Typical operating speeds at 50-80 km/h

� Rolling stock

● 346 diesel locomotives of which 291 are operable

● 75% are older than 15 years (mostly > 20 yrs old)

● 842 passenger cars and 4,856 wagons

� Traffic demand

● 11.6 million passengers (2006) – decreasing by 4% p.a. since 2004

● 11 million tons of freight (2006) – slightly decreasing on ton-km basis

� Traffic safety: 473 accidents, 192 fatalities, 391 injuries (average for 2004-2006) 29

Present Condition of Infrastructure and Services

Main Issues

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� Underutilized capacity due to obsolete and poor infrastructure and facilities

� Insufficient marketing

� Underdeveloped related business

� Coordination with regional plan (SKRL; Singapore Kunming Railway Line)

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� Shift the role of railway from traditional role to provider of high-grade transportation services

• Target investments into rail improvements to protect existing level of service

• Upgrade sections to raise capacity of existing tracks

• Create new services, especially in freight and suburban commuter

� Strengthen intermodal connectivity between rail and other modes

• Ensure connectivity between origin and destination of passenger and freight traffic

• Develop adequate intermodal facilities through collaboration or joint ventures with rail customers

�Realize full benefits of rail restructuring

• Accelerate full separation of VNRA and VRC• Establish funding support for track maintenance under VNRA

Subsector Strategies: Railway

� Prepare further implementation program on NHSHR by considering prioritization of projects among all transportation subsectors and budget envelop

� Improve existing railways based on the following steps:

(a) Function improvement step: This includes (i) maximizing the use of existing single track (50 trains/both directions/day), (ii) introducing safety train control facilities, and (iii) mechanizing level crossing system and fencing

(b)System reinforcement step: This includes developing partial or full double track for high demand sections in coordination of provincial development strategies

(c) System modernization step: This includes completion of double track with modern equipment and services

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Infrastructure Development Strategy (Railway)

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Identified Railway Transportation Projects up to 2030

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� Committed/ On-going Projects

CR01: Improvement & Upgrading in North-South Railway Line

CR02: Improvement in railway routes in the North

CR03: Yen Vien‒Pha Lai railway construction

CR04: Ha Long-Cai Lan railway construction

CR05: Chua Ve and DAP factory-Dinh Vu (Hai Phong) railway construction

� Proposed Projects

R01: FII (Hanoi‒Saigon Line)

R02: FII (Hanoi‒Lao Cai Line)

R03: FII (Hanoi‒Dong Dang Line)

R04: SRI (Hanoi‒Saigon Line)

R05: SRI & SMI (Hanoi‒Dong Dang Line)

R06: SMI (Hanoi‒Saigon Line)

R07: Trang Bone – Vung Tau railway construction

R08: Hanoi-Lao Cail railway construction

R09: Hanoi-Hai Phong railway construction

R10: HCMC – Loc Ninh railway construction

R11: HCMC – Can Tho railway construction

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ScopeProject Code

Project Title DescriptionCost

(USD mil.)Improvement of Existing Line

R01 Implement Hanoi-Saigon Line

To provide 50 trains/day frequency of service on a single truck in Hanoi-Saigon Line

2,465

Construction of New Line

R07 Trang Bone –Vung Tau Railway Construction

To develop a new railway between Trang Bom and Vung Tau (71.3km)

1,849

Total 4,314

Core Program (Railway)1)

1) high-speed railway project is not included 2) excluding committed projects

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PORTS AND SHIPPING

� Seaports● 17 Class 1 Seaports (total berth length of 17,500m)

● 23 Class 2 Seaports and 9 Class 3 Seaports

� Condition of Major Seaports (min. depth)● Hoang Dieu (1,717m, 8.4/4.1m depth at berth/channel)

● Tien Sa (528m, 11/12.7m depth at berth/channel)

● Saigon (2,669m, 8.5/8.5m depth at berth/channel)

� Shipping Fleet: (2007) 865 units, 3.4 mill. DWT● Mainly Ocean-going: 360 units, 2.5 mill. DWT

● Mainly Coastal: 505 units, 0.9 mill. DWT

● State Owned Vessels (2007): 216 units, 1.6 million DWT

● Mostly gen. cargo vessels (1 mill. DWT)

● 17 container vessels with 181,000 DWT

� Cargo Throughput (2007)● International: 121.1 MT @ 11% p.a. (04~07)

● Domestic: 42.9MT @ 14% p.a. (04~07)

� Container Throughput (2007)● International: 3.7M TEU @ 21% p.a. (04~07)

● Domestic: 0.8M TEU @ 32% p.a. (04~07)

� Passenger Traffic: very little

� Traffic Safety: 74 accidents, with 20 fatalities, and 8 injuries (ave. for 2003-2005) 36


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Current Situation

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� Strength�• Long coastal line that is parallel to the north-south transport corridor with highest

demand;

• High interest from foreign investors, and private sector to participate in seaports;

• Requisite legislation and implementing regulations for the sub-sector are in-place

�Weakness�• Unclear articulation of planning priorities, with strong bias for more berths and

more ports and less emphasis on “soft” improvements;

• Aging maritime fleet ill-suited to growing demand for containerized shipment of goods, with abnormally-high ‘detention’ rates

• Most of the seaports are located on rivers as to be susceptible to siltation, with shallow drafts and limited elbow room for cargo storage and movements

• Fragmented institutional set up makes an integrated seaport development difficult and cumbersome, encourages over-building

• Local shipping still has a long way to go in meeting international maritime standards and conventions, faces financing obstacles to fleet expansion

Future Prospect

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�Opportunity�• Rising cost of petroleum – globally and domestically – increases the advantage

of coastal shipping over other transport modes;

• High economic growths create an expanding and diversified market for shipping companies, big and small

• Experiences of other countries with special financing for fleet expansion can provide lessons to Vietnam

�Threats�• All the proposed gateway seaports will require huge investments in road and

bridge access

• Climate changes could worsen physical constraints currently afflicting existing seaports

• Changing pattern of international trade and logistics, as well as operating model of Global Terminal Operators and Shipping Conferences, could alter viability of proposed transshipment and gateway ports

• Shortage of steel plates and soaring prices of metals in the global market is affecting shipbuilding and supply of vessels

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�Enhance productivity of existing ports through various means

• Open up operations in the north and central to multiple operators

• Extend the scope of port operators to provision of other logistics services

�Develop gateway ports • Focus investments on completion of deep-sea ports (Lach Huyen and Cai Mep) that can enhance regional trade

• Enhance complementation of various ports as a system of feeders and hubs to avoid overlapping hinterlands

�Liberalize domestic shipping and modernize fleet

• Promote private sector innovation in coastal shipping, especially in container shipping

• Adopt a ship-leasing program to upgrade/renew maritime fleet

• Introduce RoRo and passenger services as cheaper alternative to land-based transport

�Comply with IMO standards on vessels and crews

• Intensify training of crews combined with international standards certification

• Enhance vessel inspections and certification process

Subsector Strategies: Ports and Shipping

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Infrastructure Development Strategy (Ports and Shipping)

� Develop competitive international gateway ports focusing on deep-water terminals for SFEZ (Cai Mep – Thi Vai) and NFEZ (Hai Phong) by stage in integration with efficient hinterland access transport services

� Develop key regional ports for integrated development of coastal shipping network and intermodal services

� Introduce RoRo service for domestic cargo transportation

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Identified Port & Shipping Transportation Projects up to 2030


CP01 Cam Pha Seaport Channel DevelopmentCP02 Hon Gai Seaport (Cai Lan) Terminal Development (Committed Stage)CP03 Hai Phong Seaport (Dinh Vu) Channel & Terminal DevelopmentCP04 Nghi Son Seaport Channel & Terminal DevelopmentCP05 Cua Lo Seaport Channel Development (Committed Stage)CP06 Vung Ang Seaport Terminal Development (Committed Stage)CP07 Dung Quat Seaport Terminal Development (Committed Stage)CP08 Quy Nhon Seaport Channel & Terminal Development (Committed Stage)CP09 Van Phong Seaport Terminal Development (Stage 1)CP10 Ba Ngoi Seaport (Cam Ranh) Terminal Development (Stage 1A)CP11 Vung Tau Seaport (Cai Mep - Thi Vai) Channel and Terminal Development (Stage 1)CP12 Ho Chi Minh Seaport (Hiep Phuoc) Channel & Terminal Development (Stage1)CP13 Quan Chanh Bo Channel Development

P01 Hon Gia Seaport (Cai Lan) Terminal DevelopmentP02 Hai Phong Seaport (Lach Huyen) Development (Stage 1)P03 Hai Phong Seaport (Lach Huyen) Development (Stage 2)P04 Hai Phong Seaport (Lach Huyen) Development (Stage3)P05 Cua Lo Seport Channel & Terminal DevelopmentP06 VungAng Seaport Terminal DevelopmentP07 Son Duong Breakwater DevelopmentP08 Chan May Seaport Terninal DevelopmentP09 Danang Seaport Terminal DevelopmentP10 Dung Quat Seaport Terminal & Breakwater/Revetment DevelopmentP11 Quy Nhon Seaport Terminal Development P12 Van Phong International Tranship Terminal Development (Stage 2,)P13 Van Phong International Tranship Terminal Development (Stage 3,)P14 Nha Trang Seaport Channel & Terminal Development P15 Ba Ngoi Seaport (Cam Ranh) Terminal development Development (Stage 1B)P16 Ba Ngoi Seaport (Cam Ranh) Terminal development Development (Stage2)P17 Ca Na Seaport Industrial Port Facility DevelopmentP18 Vung Tau Seaport (Cai Mep Thi Vai - stage2 + other) Terminal DevelopmentP19 Ho Chi Minh Seaport (Hiep Phuoc - Stage2 + other) Channel and Terminal

DevelopmentP20 Expansion of terminal in My Tho seaportP21 Expansion of terminal in Dong Thap seaportP22 Expansion of terminal in Can Tho seaportP23 Expansion of terminal in My Thoi seaportP24 Coal Fired Thermal Power Stations Port Facility DevelopmentP25 Industrial Terminal Development

� Committed/ On-going Projects

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ScopeProject

CodeProject Title Description

Cost

(USD mil.)

Expansion and upgrading of port function

P02 Hai Phong Seaport (LachHuyen) Development (Stage 1, original schedule: 2010-2015)

To upgrade navigation channel for Lach Huyen Area to -10.3m including construction of sand dyke, develop newdeep-water terminals at Lach Huyen for container/generaland liquid cargo, and convert the function of part of HoangDieu Terminal for other public interest in Hai Phong Seaport

450

P05 Cua Lo Seport Channel & Terminal Development

To construct sand dyke for Nothern Channel and expand theterminal in Cua Lo seaport to handle cargo to/from thenorthern central zone

26

P19 Ho Chi Minh Seaport (Hiep Phuoc - Stage2 + other) Channel and Terminal Development

To upgrade navigation chalnnel for Hiep Huoc Area toaccommodate vessels up to 25,000-30,000 DWT, developnew deep-water container terminal at Hiep Phuoc area tohandle container cargo, convert of the function of NhaRong-Khanh Hoi Terminal into cruise ship terminal andothers, and develop new terminal which will substitute forBen Nghe Terminal

220

P22 Expansion of terminal in Can Tho seaport

To expand a terminal at Cai Cui and at Tra Noc in Can Thoseaport to handle container/general cargo to/from MekongDelta Area

25

Total 721

Core Program (Port)

1) excluding committed projects

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INLAND WATERWAY

� Network

● North IWT Network: 2,700km, with 30-36m min. width and 1.5-3.6m min. depth. Significant seasonal fluctuations to depth, and shoals. Mostly 24-hours operations

● South IWT Network: 3,000 km, with 30-100m min. width and 2.5-4 m min. depth. Mainly 24-hours operation

● Central IWT Network: 800km – relatively of limited role

● Ports and Landing Stage – 7,189, incl. 126 river ports, 4,809 freight handling ports, 2,348 river crossing docks. Many others are unaccounted.

� IWT Fleet

● Vietnam Register (2006): 86,000 vessels (mostly freight),

● 70 tons/vessel ave. Plus 700,000 vessels, of 1-10 tons

● Condition is mediocre, and average age of 12 years

� IWT Traffic (2008)

● 640,000 ton/day (27% p.a. growth since 1999)

● Passenger (local traffic mainly, limited inter-city)

� Types of Commodities

● North: Coal, Ore, Construction Materials, Cement

● South: Construction materials (mainly), fertilizer, industrial and manufacturing products, cement, agriculture products, consumption products, etc.

� Traffic Safety: 308 accidents, with 251 fatalities and 30 injuries (ave. for 2003-2005)44


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Current Situation

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�Strength�• Extensive river systems that enables low-cost & fuel-efficient transport of bulk

goods;

• Willingness of private sector to invest in IWT vessels;

• Prevalence of industrial (own-use) river ports which reduce pressure on public resources;

• Legislation and implementing regulations are in-place, including a good classification to guide development of waterways

�Weakness�• Unclear articulation of planning priorities, with strong bias for capacity-build up

per se of river ports;

• Low funding allocations to IWT vis-a-vis extent of its role in freight transport;

• Low utilization of water vessels in the north, less so in the south

Future Prospect

46

�Opportunity�• Rising cost of petroleum – globally and domestically - could tilt the balance in

favor of IWT;

• Congestions on roads may push non-bulk cargoes into IWT;

• Lessons to learn from success stories in other countries as well as in the Mekong Delta area

�Threats�• Weak inter-modal planning (and expanding road network) is reducing the

market of IWT;

• Climate changes could destabilize the usability of waterways, especially in the south;

• Increasing soil erosion and deforestation in the mountain regions can worsen siltation of rivers.

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�Ensure sustainable scale of IWT operations

• Define minimum size of river network in RRD and MRD whose navigability must be protected and enhanced

• Focus government investment funds on river channel improvements, dredging, and facilities for safe navigation and leave other aspects to private sector/province

� Stabilize funding support for channel maintenance

• Institutionalize participation of industries that are reliant on waterways

• Impose river frontage charges/fees to be earmarked for maintenance

�Create a new market for IWT - particularly as an alternative for non-bulk freight and passenger traffic

• Promote riverbanks for ‘green’ re-development into mixed-use, industrial, commercial and residential complexes

� Continuously improve traffic safety on riverways

• Identify and remedy black spots along rivers• Modernize barge fleet• Promote safety training and licensing of vessel pilots

Subsector Strategies: IWT

� Strengthen IWT system in a way that it can meet transport demand of bulky cargo including construction materials adequately in the metropolitan areas of HCMC and Hanoi

� Upgrade main inland waterway network in the north and south delta areas including (a) upgrading navigation main routes, (b) main ports, (c) improvement of river mouths, (d) strengthening of IWT vessels, and (e) improvement of traffic safety at river crossings.

� Expand funding for maintenance including Central Government transfer and user fees.

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Infrastructure Development Strategy (IWT)

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49

Identified Inland Water Transportation Projects up to 2030

� Proposed ProjectsW01 Upgrading of Quang Ninh/Hai Phong - Ha Noi Route (to ClassII) (166km)W02 Upgrading of Lach Giang - Ha Noi Route (to Class I) (192km)W03 Upgrading of Ha Noi – Viet Tri - Lao Cai Route (to Class II III and IV) (362 km)W04 Improvement of Quang Ninh - Ninh Binh Route (266.5km)W05 Upgrading of Cua Day - Ninh Binh (to Class I)(74.0km)W06 Upgrading of Quang Ninh - Pha Lai Route (to ClassII) (128km)W07 Upgrading of Pha Lai - A Lu Route (to Class III) (33.0 km)W08 Upgrading of Pha Lai - Da Phuc Route (to ClassIII) (87km)W09 Upgrading of Viet Tri - Tuyen Quang – Na Hang Route (to class III and IV/V) (115km)W10 Improvement of Hong Đa T-Junction - Hoa Binh Port Route (58.0km)W11 Improvement of Ninh Binh-Thanh HoaW12 Various Regional/Feeder RoutesW13 Upgrading Cho Gao Canal Route (11km)W14 Improvement of Sai Gon - Kien Luong/Lap Vo canal Route (315km)W15 Improvement of Sai Gon - Kien Luong/Dong Thap Muoi area Route (334km)W16 Improvement of Sai Gon - Ca Mau/Xa No canal Route (336km)W17 Improvement of Sai Gon - Ca Mau/coastal Route (367km)W18 Improvement of Sai Gon - Moc Hoa Route (96km)W19 Improvement of Sai Gon - Ben Suc Route (89km)W20 Improvement of Sai Gon - Ben Keo Route (166km)W21 Improvement of Sai Gon - Hieu Liem Route (88km)W22 Improvement of Mekong river Delta – Thi Vai - Vung Tau Route (75km)W23 Improvement of Cua Tieu – Cambodia Route (223km)W24 Improvement of Dinh An estuary - Tan Chau Route (214km)

and others (52 proposed projects in total)

� Committed/ On-going ProjectsCW01 Upgrading of Northern Trans Mekong coriddor (to Class III)(253km)CW02 Updating of Southern coastal coriddor (to Class III) (153km)CW03 Upgrading of the feeder canals in Mekong Delta region (to Class IV) (58km)CW04 Upgrading of the east-west northern corridor in the northern delat regeion (to Class II)(Viet Tri -

Quang Ninh) (280km)CW05 Upgrading of the north-south western corridor in the northern delta region (to Class I) (295km)CW06 Improvement to Ninh Co River EstuaryCW07 Inter-connecting canal between the Day and Ninh Co RiverCW08 Improvement of Sai Gon-DongThap-Long Xuyen RouteCW09 Improvement of Thi-Vai-Nuoc ManCanal RouteCW10 Improvement of Viet Tri Port CW11 Improvement of Ninh Phuc PortCW12 Demonstration investment for provincial port facilities in Mikong Delta regionCW13 Invesgtment of small ferry boats stagesCW14 Institutional development concerned with Mekong Delta Inland waterwaysCW15 Institutional development concerned with Northern delta Region Inland waterwaysCW16 Pilot maintenance project

Core Program (Inland Water)

50

ScopeProject


Cost

(USD mil.)Waterway

Improvement

W01 Upgrading of Quang Ninh/Hai Phong - Ha Noi Route (to ClassII) (166km)

To upgrade the 166-km section of waterway to conform to Class II standards throughout the route

38

W06 Upgrading of Quang Ninh - Pha Lai Route (to ClassII) (128km)

To upgrade the section of 128.0 km to class II through the route

29

W13Upgrading Cho Gao Canal Route (11km)

To improve 11-km section connecting the north and south routes (dredging, widening, raising bridge clearance

138

W14 Improvement of Sai Gon - KienLuong/Lap Vo canal Route (315km)

To establish consistent channel conditions over the 315-km section of the route

73

W16 Improvement of Sai Gon - Ca Mau/Xa No canal Route (336km)

To establish consistent channel conditions over 336 km of the route

77

W17 Improvement of Sai Gon - Ca Mau/coastal Route (367km)

To establish consistent channel conditions over 367 km of the route

84

W21Improvement of Sai Gon - Hieu LiemRoute (88km)

To establish consistent channel conditions over 88 km of the route (Implemented 6 years ago; need to rehabilitate after 15 years)

15

Maintenance W38 Maintenance Dredging to reduce backlogs

Multi year program of maintenance dredging to re-establish and maintain set standards (2011-2020)

120

Safety

Improvement

W47 Search and rescue To improve search-and-rescue capability in north & south regions, by acquiring essential equipment and its operation

5

Institution

Improvement

W52Database: River Surveys and Vessel Registry

To develop capability for continuous surveys of channel status (depth, width, bends, etc.) and to improve vessel registry system

20

Total 600


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26

AIR TRANSPORTATION

� Airports: 21 airports, 18 with scheduled domestic flights, and 3 international airports

� Condition of major airports

● Noi Bai:4.3 million pax/yr capacity, with 45x3,800m runway

● Danang: 1million pax/yr, with 45x3,048m runway

● Tan Son Nhat: 10million pax/yr, with 45x3,800m runway

● 3 airlines in operation, with Vietnam Airlines in dominant position

� International passenger traffic: 8.5 mill. (2007) growing at 15.5% p.a. (2003-2007)

� Domestic passenger traffic: 11.6 mill. (2007) growing at 15.6% p.a. (2003-2007)

� International cargo: 224,000 tons (2007) growing at 15.4% (2003-2007)

� Domestic Cargo: 166,000 tons (2007) growing at 14.9% p.a. (2003-2007)

52


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27

Current Situation

53

�Strength�• Increasing demand

• Legacy of basic infrastructure across the country

• Long stretched geographic features

�Weakness�• Low productivity

• Adequate land access to airports

Future Prospect

54

�Opportunity�• Strong demand (international and domestic)

• Regional connectivity with relatively fast growing countries in Asia

• Private sector investment

�Threats�• Priority on airport development services to non-viable

destinations

• Increasing international competition

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28

55


� Enhance complementation of airports as a hierarchical system

• Develop capacities of the 3 international gateway airports (e.g. new pax terminal and logistics terminal for Noi Bai, expanded parking slots for TSN, widening of Danangrunway strip)

• Upgrade existing airports to ICAO standards in accordance with airport class/category

� Develop sustainable financing for airport development and maintenance

• Update and rationalize various charges, e.g. parking, air traffic control fees, ground-handling, etc.

• Define level of government funding support for non-commercial obligations

� Upgrade human resources capability, especially in safety, security, and management

• Train human resources, as recommended by the ICAO Audit Team

• Conduct ICAO language proficiency training among airline crew and air traffic controllers

� Provide competitive air transport services

• Encourage entry of low-cost carriers and charters, especially for tourism purposes

• Level playing field in domestic scheduled services

Subsector Strategies: Aviation

� Expand capacity of Noi Bai Airport including:● construction of new T2 passenger terminal● expansion of apron● construction of a new runway in the south

� Upgrade capacity of Tan Son Nhat International Airport, including ● construction of a new cargo terminal with 400,000 tons handling capacity

● expansion of passenger handling capacity to 25 million passengers● construction of a new international airport in Long Thanh with capacity of 25 million passengers initially and 100 million passengers ultimately

� Strengthen Danang as the third competitive international gateway airport by● construction of a new passenger terminal with initial capacity of 4 million passengers

● extension of runway from 3,048m to 3,500m and apron● overlay of runway pavement

� Develop local airport network using available infrastructures56

Infrastructure Development Strategy (Aviation)

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57

Identified Aviation Projects up to 2030


A01 Long Thanh AirportA02 T1&T2 Terminal Expansion at Noi Bai International AirportA03 T3 Terminal Construction at Noi Bai International AirportA04 Runway Construction at Noi Bai International AirportA05 Cat Bi Airport UpgradingA06 Phu Bai Airport UpgradingA07 Chu Lai Airport Upgrading for Cargo Transport

(Stage1: original schedule: 2009-2015)A08 Chu Lai Airport Upgrading for Cargo Transport

(Stage2: original schedule: 2015-2025)A09 Cam Ranh Airport ExpansionA10 Runway Upgrading at Na San AirportA11 Runway Improvement at Danang international Airport A12 Taixway Construction at Danang international AirportA13 Expansion of Tan Son Nhat International AirportA14 Other Tertiary Airport ImprovementA15 Control tower Construction at Tan Son Nhat International AirportA16 Air Navigation System

� Committed/ On-going ProjectsCA01 Phu Quoc Island AirportCA02 Terminal Construction at Danang International AirportCA03 T2 Terminal Construction at Noi Bai International AirportCA04 Cargo Terminal Expansion at Noi Bai International AirportCA05 Runway upgrading and terminal Construction at Can Tho AirportCA06 Runway Extension and Apron Expansion at Danang International AirportCA07 Passenger Terminal Expansion at Danang International AirportCA09 Control Tower Construction at Noi Bai International AirportCA10 Terminal Building and Control Tower Construction at Cam Ranh Airport

Core Program (Aviation)

58

ScopeProject


Cost

(USD mil.)

Construction

of new

airport

A01 Long Thanh AirportTo construct a new international airport with the capacity of 8 to 10 mppa.

6000

Capacity

expansion of

existing airport

A11Runway Improvement at Danang international Airport

Shifting of taxiway E6 to widen clearance from 75 m to 150m

-

A13Expansion of Tan Son Nhat International Airport

To expand capacity of Tan Son Nhat International Airport to handle 25 mppa

200

Improvement

of navigation

facility

A15Control tower Construction at Tan Son Nhat International Airport

To construct a new control tower 50

A16 Air Navigation SystemModernization of the air traffic management system

100

Total 6,350


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MULTI-MODAL TRANSPORTATION SUBSECTOR

60

Main Issues

� Virtually no multimodal transportation corridor in Vietnam, while the need to develop improved freight transfers between different modes and facilities is becoming increasingly important.

� The reason is mainly institutional.

� Inadequate infrastructure has been cited as the reason for the high logistics costs which are higher than Thailand, China, etc. Poor timeliness of shipments is also a cause.

3/17/2010

31

61


�Reduce overall logistics cost of Vietnam

• Implement interventions on bottlenecks of supply chain, e.g. port productivity, warehousing and transfer points

• Ensure multimodal planning for faster development of least-cost transport modes for freight

• Identify opportunities for improvements for specific export products

�Nurture growth of 3rd

Party Logistics Providers (3PLs)

• Review regulations impeding growth of multi-service logistics enterprises

• Liberalize entry of foreign logistics players• Develop human resources to upgrade competence and

professionalism in the subsector

�Intensify and integrate ICT in logistics processes, especially at customs and borders

• Strengthen logistics industry organization• Promote standardization in operations, such as

documentation, technology standards, etc.• Develop logistics portals to link all players across the

supply chain

Subsector Strategies: Logistics

62

Core Program (Logistics)

ScopeProject


Cost

(USD mil.)

Construction of new facility for multimodal cargo handling

L01 North Logistic Park Development

To develop the LP facility which has an area of 500,000 square meters and be designed to have the services of customs clearance for inbound and outbound shipments, warehousing of goods for regional distribution and for exports to cater to the requirement of FDI enterprises in the nearby industrial parks, cross-docking facility, consolidation and deconsolidation, customs-bonded warehouse, container transportation management system, and value-added logistics services.

199.8

L02 South Logistic Park Development

To construct a distribution / collection centre for international container traffic via international container terminal and international airport

40.0

L03 Lao Cai Cross-border gate improvement

To Improve, expand and provide a customs clearance office, inspection area, a truck terminal, etc. for trade facilitation with China

6.0

Total 245.8

L04: Lang Son Cross-border gate improvementL05: Moc Bai Cross-border gate improvement

� Other identified projects up to 2030

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32

URBAN TRANSPORTATION SUBSECTOR

64

Main Issues

� Accelerating urbanization: about additional 25 million people need to be housed in cities by 2030.

� Hanoi and HCMC started to construct urban mass transit systems including urban rail and BRT (Hanoi). To complete planned network, about US$ 15 billion is necessary.

� Medium-sized cities have been growing and demanding increasing funds for urban roads and transportation infrastructures.

� Current city master plans do not attend sufficiently to urban transportation issues.

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65

Suggested Core Strategy

� Establish effective mechanism to accelerate development of key transportation infrastructure and facilities such as roads, UMRT, parking, etc.

� Strengthen traffic control and management to smoothen traffic flow for increase in capacity, safety and amenity.

� Establish determined policy to promote public transport based urban development in integration with transportation and land use/ development control.

3/17/2010

34

● Transportation Requirement: To develop high-quality, balanced, multi-modal transportation services including high-speed railway and expressway required by society and industries

● Urban/Regional Development Requirement : To establish competitive multi-modal national transport backbone:(i) to integrate the country, (ii) to encourage urban/regional development along the corridor, and (iii) to provide effective base to connect upland/mountain provinces with the coastal growth corridor in integration with North-South Upland Corridor (HCM Route)

● Environment Requirement : To establish environmental friendly and safe transportation system

67

Need for North-South Corridor Development

Vinh HCMC Mekong River DeltaDanangHanoi

221,663

North South

100

200

300

400

(000)

263 266

353332

362

2008CurrentSituation

2030Do-nothingScenario


58 5972

65

79100

50

North South

(Representative mode of travel)

(000)

2030Improved CR+ Expressway+ HSR 300 km/h, Equal to Air Fare


263 266

353332

362

100

200

300

400

North South

(000)


HSRCar Bus CR Air


Traffic Demand and Modal Share along the North-South Coastal Corridor (Passenger) Pax/day (000)

Pax/day (000)

Pax/day (000)

68

3/17/2010

35

Traffic Demand and Modal Share along the North-South Coastal Corridor (Freight)

2008

2030


76 76 73

226

100

200

300

North South

95

ton/day (000)


301 325 345

100

200

300

North South

Truck Rail IW Shipping


Air

400

500

600

700

353

685

ton/day (000)

69

NORTH-SOUT HIGH-SPEED RAIWAY(NSHSR)

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36

Basic Evaluation Criteria

• EIRR: more than 12%

• FIRR: more than 15%

• Fare Box Ratio: more than 1.0

Analysis of “Danang –Hue Section Development Scenario”

Analysis of conditions making “Full Development Scenario” feasible

Method

Analysis of Full-section (Hanoi – HCMC) Development Scenario

71

To analyze Economic and Financial Feasibility of NSHSR and find out Possible Development Scenarios

Analysis of “Partial Development Scenario”�� Hanoi – Vinh �� HCM – Nha Trang

72

Project Profile

� Terminals: Hanoi and HCMC

� Route length(km): 1,540

� No of Stations: 25 with Average distance between stations of 64km

� Maximum Speed: 300km/hour

� Travel Time between Hanoi and HCMC:

5h25 min (in case stopping 6 priority stations only)

� Investment Cost: US$38 billion excluding rolling stock, contingency and taxes

3/17/2010

37

Evaluation Result of “Full-development Scenario” (2026)

Velocity(km/h)

Fare (VND/Km)2030

HSR Pax(thou/day)

Economic Indicator Financial Indicator

EIRR(%) B/C FIRR(%) Fare Box Ratio

300 Same as Air 146 - 0.46 - 1.9

300 3/4 of Air 172 5.6 0.58 - 1.5

300 Half of Air 208 6.9 0.66 - 1.1

300Quarter of Air

(equal to bus/CR)248 9.6 0.84 - 0.6

(a) No. of passengers is highly dependent on the fare: 146 thousand (same as air fare), 172 thousand (3/4 of air fare), 208 thousands (half of air fare) and 248 thousands (1/4 of air fare).

(b) EIRR is low in all cases.

(c) FIRR cannot be calculated and initial cost recovery is impossible while fare box ratio is more than 1.0 in the case of “half of airfare”.

(d) Composition of benefits (2030): Operating cost savings = 57%Travel time cost savings = 17%Reduction in traffic accidents = 26%

73

Analysis of Priority Sections (Fare : Half of Airfare)① Base Case② Accelerated Urban Development along NSHSR ③ Accelerated Urban Development along NSHSR + 50% Increase in Fuel Cost

Assumptions EIRR：7.9%：7.9% + 4.9% =12.8%：7.9% + 6.6% =14.5%

� Hanoi – Vinh Section (2020 open)

� HCM – Nha Trang Section (2020 open)：9.1%：9.1% + 2.7% =11.8%：9.1% + 4.7% =13.8%

EIRR

74

① Base Case② Accelerated Urban Development along NSHSR ③ Accelerated Urban Development along NSHSR + 50% Increase in Fuel Cost

Assumptions

Economic feasibility becomes higher than “Full-development Scenario”, though EIRR is still lower than 12% in Base Case.

3/17/2010

38

Danang–Hue Section Improvement Project

75

� Stepwise Development Strategy

� construction of new tunnel with NSHSR standard for rerouted existing railway service

� improvement of remaining Hue-Danang section of existing railway

� improvement of existing railway in Hai Van Pass section

development of NSHSR and relocation of rerouted existing railway to �

Hai Van Pass

Hue DaNangHSR: 80km

Existing line: 103km

Conclusion

76

� “Full-development Scenario” will be economically feasible on the condition that: (a) operating cost savings, (b) travel time savings, and (c) reduction in traffic accidents are included as benefits, while (d) urban development along the NSHSR accelerates, and (e) fuel cost for air increases by 50% and NSHSR opens after 2036.

� “Partial-development Scenario” both for the Hanoi–Vinh and HCMC–Nha Trang sections will become more or less economically feasible by 2020 on the condition that urban development along the NSHSR accelerates. This implies that NSHSR is competitive for 300–500km distances, rather than 1,500km between Hanoi and HCMC wherein air is much more competitive.

� Financial viability is very low in all cases, though operating expenses can be covered by fare revenue in most cases.

� Introducing business-class seat or non-transportation benefit can be considered to improve financial feasibility (In JR group, operating station space, integrated development of commercial facilities and offices, distribution and advertisement business account for 20%-30% of overall revenue.)

3/17/2010

39

Main Issues for North-South High Speed Railway Development

77

�� Key Aspects�� Main Issues ��

�Land Acquisition • Delay in land acquisition for a partial section affects the schedule for a whole line, resulting in high risks of NSHSR development.

• Effective implementation approach and implementation plan for smooth implementation must be introduced.

�Human Resource Development

• Human resource development programs should be designed to train necessary staff in proper ways.

• It should consider the current human resource situation and concrete study methodologies.

�Design of Development and Operational Institutions

• Institutional reform plan which provides clear institutional responsibilities and jurisdictions setup to develop and operate HSR in harmony with existing railways shall be necessary.

�Development of Regulations including Technical Standards

• Efficient and smooth railway development and operation require development of regulations stipulating the roles of local authorities, private sector and other stakeholders, development procedures, engineering standards as well as land acquisition process and development and operational institutions

� Integrated High Speed Railway and Urban Development Plan

• Integrated development plan of NSHSR and urban area will enforce the importance of NSHSR as transport system connecting urban areas and growing centers strongly and accelerating the well-balanced national land development.

• Integrated urban development also ensure the feasibility of NSHSR.

� Implementation Plan • Implementations of NSHSR face varieties of issues (funding, land acquisition, connectivity with urban transport in Hanoi and HCMC, development measures in sections where require high level engineering approaches, e.g. Hai Van Tunnel, disaster prevention, environmental impacts and others. )

• Feasible sections should be chosen based on a detailed feasibility study. Sections must be developed with a phased approach.

1. Land Acquisition (a) Adopt HSR to Urban Development Plan(b) Establish implementation system for local central government(c) Develop regulations regarding land acquisition(d) Acquire land for test truck(e) Acquire land for priority sections

2. Human Resource Development

(a) Develop human resource development plan(b) Develop human resource development system(c) Implement training

3. Design of Development and Operational Institutions

(a) Develop HSR operational institution Plan(b) Develop relevant regulations(c) Develop operational institutions

4. Development of Regulations including Technical Standards

(a) Develop regulations and implementation standards regarding HSR technical standards

(b) Develop regulations regarding HSR construction and operations

5. Integrated High Speed Railway and Urban Development Plan

(a) Revise urban development plans and local development plans(b) Implement integrated urban development projects(c) Develop HSR promoting measures(d) Implement HSR promoting measures

6. Implementation Plan (a) Conduct F/S(b) Formulate phased development plan(c) Implement Detailed Design for each phase

Required Tasks before North-South High Speed Railway Development

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40

NORTH-SOUTH EXPRESSWAY(NSEXY)

North-South Expressway (NSEXY)

Expressway Network NS Expressway

E02

E03

E04

E05

E06E07

E08

E09

E10

E12E14

E42

E44

E01

E11E13

Code SectionLength(km)

Cost(US$ Mil)

Status

E01 Cau Gie – Ninh Binh 50 452 Under Const

E02 Ninh Binh – Thanh Hoa 75 828 PF/S completed

E03 Thanh Hoa – Vinh 140 2,128 PF/S completed

E04 Vinh – Ha Tinh 20 201 PF/S completed

E05 Ha Tinh – Quang Tri 277 2,641 -

E06 Quang Tri – Hue 73 712 -

E07 Hue – Da Nang 105 1,778 -

E08 Da Nang – Quang Ngai 131 1,048 Commited

E09 Quang Ngai – Quy Nhon 150 1,788 PF/S ongoing

E10 Quy Nhon – Nha Trang 240 3,390 -

E11 Nha Trang – Phan Thiet 280 2,890 F/S ongoing

E12 Phan Thiet – Dau Giiay 100 1,004 F/S ongoingE13 HCMC – Long Thanh – Dau Giay 55 1,111 Commited

E14 Long Thanh – Nhon Trach – Ben Luc 45 739 F/S Ongoing

E15 HCMC- Trung Luong 40 776 Conpleted (Phase1)

E16 Trung Luong – My Thuan – Can Tho 92 1,510 F/S completed

E17 Doan Hung – Hoa Lac – Pho Chau 457 4,813 -

E18 Ngoc Hoi – Chon Thanh – Rach Gia 864 7,974 -

E19 Lang Son – Bac Giang – Bac Ninh 130 1,176 TA Committed

E20 Ha Noi – Hai Phong 105 1,441 Under Const

E21 Ha Noi – Lao Cai 264 1,219 Under Const

E22 Ha Noi – Thai Nguyen 62 248 Under Const

E23 Thai Nguyen – Cho Moi 28 257 -

E24 Lang – Hoa Lac 30 450 Under Const

E25 Hoa Lac – Hoa Binh 26 214 -

E26 Bac Ninh – Ha Long 136 1,619 -

E27 Ha Long – Mong Cai 128 1,255 TA Committed

E28 Ninh Binh–Hai Phong–Quang Ninh 160 1,189 -

E29 Hong Linh – Huong Son 34 302 -

E30 Cam Lo – Lao Bao 70 699 -

E31 Quy Nhon – Pleiku 160 1,615 -

E32 Dau Giay – Da Lat 189 1,871 -

E33 Bien Hoa – Vung Tau 76 696 F/S ongoing

E34 HCMC – Thu Dau Mot – Chon Thanh 69 996 -

E35 HCMC – Moc Bai 55 410 -

E36 Soc Trang – Can Tho – Chau Doc 200 1,440 -

E37 Ha Tien – Rach Gia – Bac Lieu 225 1,620 -

E38 Can Tho – Ca Mau 150 1,756 -

E39 Quang Ngai – Dak To 170 2,074 -

E40 Nha Trang – Da Lat 80 1,062 -

E41 Da Nang – Ngoc Hoi 250 3,094 -E42 Ring Road No.4 in Ha Noi 90 1,350 F/S ongoingE43 Ring Road No.5 in Ha Noi 320 2,583 -

E44 Ring Road No.3 in HCMC 83 1,227 F/S ongoing

Total 6,484 67,648 80

3/17/2010

41

EIRR of Expressway Projects

81

(Assuming opening year is 2020)

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

0.0

10.0

20.0

30.0

E3

3: B

ien

Ho

a –

Vu

ng

Tau

E0

1: C

au G

ie –

Nin

h B

inh

E0

4: V

inh

–H

a T

inh

E3

5: H

CM

C –

Mo

c B

ai

E1

4: L

on

g T

han

h –

Nh

on

Tra

ch

–B

en

Lu

c

E1

3: H

CM

C –

Lo

ng

Th

an

h –

Dau

Gia

y

E0

2: N

inh

Bin

h –

Th

anh

Ho

a

E1

5: H

CM

C-

Tru

ng

Lu

on

g

E2

4: L

an

g –

Ho

a L

ac

E4

2: R

ing

Ro

ad

No

.4 in

Ha N

oi

E4

4: R

ing

Ro

ad

No

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HC

MC

E2

8: N

inh

Bin

h–

Hai

Ph

on

g–

Qu

an

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E0

6: Q

uan

g T

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Hu

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E3

4: H

CM

C –

Th

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Mo

t –

Ch

on

Th

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E0

3: T

han

h H

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Vin

h

E2

0: H

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Ph

on

g

E1

2: P

han

Th

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Dau

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y

E1

9: L

an

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ac G

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g –

Bac N

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E2

1: H

a N

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Lao

Cai

E2

2: H

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Th

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gu

ye

n

E0

8: D

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Qu

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E1

6: T

run

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7: H

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ach

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7: H

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5: H

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6: S

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Th

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E3

8: C

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E2

6: B

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Ha L

on

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E3

1: Q

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ho

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Ple

iku

E3

9: Q

uan

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gai –

Dak T

o

E1

1: N

ha T

ran

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Ph

an T

hie

t

E2

7: H

a L

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E4

3: R

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Ha N

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E4

0: N

ha T

ran

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at

E1

8: N

go

c H

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Ch

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Th

an

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Rach

Gia

E2

9: H

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So

n

E2

5: H

oa L

ac –

Ho

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E2

3: T

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E3

2: D

au G

iay –

Da L

at

E3

0: C

am

Lo

–L

ao

Bao

E4

1: D

a N

an

g –

Ng

oc

Ho

i

Cu

mu

lative

Co

st

(US

$ b

illio

n)

EIR

R(%

)

EIRR(%) Cumulative Cost (US$ billion)

FIRR of Expressway Projects

82

(Assuming opening year is 2020)

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

0.0

5.0

10.0

15.0

E3

3: B

ien

Ho

a –

Vu

ng

Tau

E0

1: C

au G

ie –

Nin

h B

inh

E0

4: V

inh

–H

a T

inh

E3

5: H

CM

C –

Mo

c B

ai

E1

4: L

on

g T

han

h –

Nh

on

Tra

ch –

Be

n L

uc

E1

3: H

CM

C –

Lo

ng

Th

anh

–D

au

Gia

y

E0

2: N

inh

Bin

h –

Th

anh

Ho

a

E1

5: H

CM

C-

Tru

ng

Lu

on

g

E2

4: L

an

g –

Ho

a L

ac

E4

2: R

ing

Ro

ad N

o.4

in H

a N

oi

E4

4: R

ing

Ro

ad

No

.3 in

HC

MC

E2

8: N

inh

Bin

h–

Hai

Ph

on

g–

Qu

an

g N

inh

E0

6: Q

uan

g T

ri –

Hu

e

E3

4: H

CM

C –

Th

u D

au

Mo

t –

Ch

on

Th

anh

E0

3: T

han

h H

oa –

Vin

h

E2

0: H

a N

oi –

Hai

Ph

on

g

E1

2: P

han

Th

iet –

Dau

Giia

y

E1

9: L

an

g S

on

–B

ac

Gia

ng

–B

ac N

inh

E2

1: H

a N

oi –

Lao

Cai

E2

2: H

a N

oi –

Th

ai N

gu

ye

n

E0

8: D

a N

an

g –

Qu

ang

Ng

ai

E1

6: T

run

g L

uo

ng

–M

y T

hu

an

–C

an

Th

o

E3

7: H

a T

ien

–R

ach

Gia

–B

ac

Lie

u

E0

7: H

ue

–D

a N

an

g

E0

9: Q

uan

g N

gai –

Qu

y N

ho

n

E0

5: H

a T

inh

–Q

uan

g T

ri

E3

6: S

oc T

ran

g –

Can

Th

o –

Ch

au

Do

c

E3

8: C

an

Th

o –

Ca

Mau

E1

0: Q

uy

Nh

on

–N

ha T

ran

g

E2

6: B

ac N

inh

–H

a L

on

g

E3

1: Q

uy N

ho

n –

Ple

iku

E3

9: Q

uan

g N

gai –

Dak

To

E1

1: N

ha T

ran

g –

Ph

an

Th

iet

E2

7: H

a L

on

g –

Mo

ng

Cai

E4

3: R

ing

Ro

ad N

o.5

in H

a N

oi

E4

0: N

ha T

ran

g –

Da

Lat

E1

8: N

go

c H

oi –

Ch

on

Th

anh

–R

ach

Gia

E2

9: H

on

g L

inh

–H

uo

ng

So

n

E2

5: H

oa L

ac –

Ho

a B

inh

E1

7: D

oan

Hu

ng

–H

oa

Lac

–P

ho

Ch

au

E2

3: T

hai N

gu

ye

n –

Ch

o M

oi

E3

2: D

au

Gia

y –

Da L

at

E3

0: C

am

Lo

–L

ao B

ao

E4

1: D

a N

an

g –

Ng

oc

Ho

i

Cu

mu

lative

Co

st

(US

$ b

illio

n)

FIR

R(%

)

FIRR(%) Cumulative Cost (US$ billion)

3/17/2010

42

Conclusion

83

� Accelerate to complete the north-south expressway to provide high-quality transportation services along the fast-urbanizing corridor.

� Develop the north-south expressway to ensure seamless travel across the sections and integration with urban systems, growth centers, transportation hubs, local transportation networks, and other expressways.

� Constructing roads to ensure effective interface with urban transportation system of Hanoi and HCMC and avoid conflicts due to traffic mix.

� Tap private sector capacity for construction, operation and management of expressways by improving institutional arrangements.

3/17/2010

43

IDENTIFICATION AND EVALUATION OF THE PROJECTS

86

Subsector Project Proposed Committed1. Road • Construction of new expressways

• Construction of new roads

• Construction of bypasses

• Improvement of roads/bridges

• Securing all-weather 2-lane roads on corridors

• Improvement of traffic safety

32

25

21

62

7

9

12

16

5

51

-

32. Railway • Improvement of existing lines for capacity expansion

• Construction of new lines

6

5

2

33. Ports & Shipping • Expansion and upgrading of ports 25 134. IWT • Waterway improvement

• Improvement of river port

• Landing stages improvement

• Safety improvement

• Building

• Institution improvement

• Maintenance

37

6

1

2

2

3

1

9

3

1

-

-

2

15. Aviation • Construction of new airport

• Capacity Expansion of existing airport

• Improvement of navigation facility

1

13

2

1

7

26. Multimodal • Construction of new facility for multimodal cargo handling 5 -

Total 265 131

Identified Transportation Projects by Subsector

Note: Regarding railway, some committed projects identified by the Vietnamese government were redefined as planned projects in the package of plans by the VITRANSS 2 Study Team.

3/17/2010

44

87

Economic Evaluation of All Projects by Sub-sector

Subsector Total CostEconomic Benefit

EIRR (%)2020 2030

Expressway Projects 60,902 1,678 4,641 10.1Road Projects 7,150 357 679 13.4Railway Projects 41,083 775 2,224 4.1Port Projects 8,673 678 990 11.3IWT Projects 1,026 249 420 24.8Aviation Projects 7,400 269 543 7.1

1) Projects for economic evaluation are limited to infrastructure projects selected for EIRR analysis, exclusive of maintenance and rehabilitation projects.

(USD million at 2008 price)

0

500

1,000

1,500

2,000

2,500

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

H96

H82

H129

H126

H112

H104

H119

H85

H92

H128

H111

H87

H134

H90

H131

H123

H113

H114

H108

H79

H107

H133

H120

H116

H93

H95

H124

H97

H130

H88

Cum

ula

tive C

ost

(U

SD

Mill

ion)

EIR

R (%

)

EIRR Cumulative Cost

0

10

20

30

40

50

60

0

10

20

30

H2

1

H0

3

H2

3

H1

0

H0

1

H3

0

H3

2

H1

6

H0

5

H2

2

H0

2

H2

5

H0

7

H0

6

H0

4

H2

4

H2

6

H1

5

H1

9

H0

8

H2

7

H0

9

H3

1

H2

8

H1

7

H1

2

H1

4

H1

1

H1

3

H2

0

H1

8

H2

9

Cu

mu

lative

Co

st (

US

D B

illio

n)

E IR

R (

%)

EIRR

Cumulative Cost

88

Economic Evaluation of Expressway and Road/ Bridge projects

Expressway

Road/ Bridge

Source: VITRANSS 2 Study Team

3/17/2010

45

89

Economic Evaluation of Railway Projects

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

R0

1

R0

3

R0

7

R0

2

R0

6

R0

9

R0

8

R0

4

R0

5

Eco

no

mic

IR

R (

%)

0

5

10

15

20

25

30

35

40

45

Cu

mu

lative

Co

st (U

SD

Billio

n)

EIRR

Cumulative Cost

Source: VITRANSS 2 Study Team

R01 Function-Improvement Items (Hanoi-Saigon Line)R03 Function-Improvement Items (Hanoi-Dong Dang Line)R07 Trang Bone – Vung Tau New Railway Construction (SRI & SMI) R02 Function-Improvement Items (Hanoi-Lao Cai Line)

R06 System Modernization Items (Hanoi-Saigon Line)R09 Hanoi-Hai Phong New Railway Constrcution (SRI &SMI)R08 Hanoi-Lao Cail New Railway Constrcution (SRI &SMI)R04 System Reinforcement Items (Hanoi-Saigon Line)

90

Multi-criteria analysis for project prioritization

Criteria Indicator

1 Demand (ton-km + pax-km)/km

2 Economic feasibility EIRR

3 Financial feasibility FIRR or demand/cost

4 Network characteristics

● Trunk line/main corridor

● Semi-trunk line/secondary corridor

● Local

5 Natural Environmental Impact % of Length passing restricted area

6 Maturity/Progress DD > FS > Pre-FS > MP > Concept

7Consistency with higher plan ornational development policy

● Listed in Formal Plan

● Consistent with policy

● Unknown/ Inconsistent

A: Highest rank (included as master plan projects up to 2020)B: Med-high rankC: medium rank D: med-low rankE: low rank

(considered as long term projects with high priority after 2020)

(considered as long term projects with low priority after 2020)

3/17/2010

46

Summary of Transportation Sector Investment

91

SectorCore Program

Sub totalLong Term Projects

TotalCommitted A B-C D-E

Road20,762

(77.1%)

9,916

(44.8%)

30,678

(62.5%)

39,256

(42.9%)

19,466

(74.3%)

89,399

(53.6%)

Rail1,502

(5.6%)

4,313

(19.5%)

5,815

(11.9%)

37,135

(40.6%)

4,102

(15.7%)

47,051

(28.2%)

Port & Shipping

3,076

(11.4%)

721

(3.3%)

3,797

(7.7%)

8,293

(9.1%)

1,890

(7.2%)

13,980

(8.4%)

IWT265

(1.0%)

600

(2.7%)

864

(1.8%)

3,030

(3.3%)

284

(1.1%)

4,178

(2.5%)

Air1,321

(4.9%)

6,350

(28.7%)

7,671

(15.6%)

3,750

(4.1%)

460

(1.8%)

11,881

(7.1%)

Logistics0

(0.0%)

246

(1.1%)

246

(0.5%)

18

(0.0%)

0

(0.0%)

264

(0.2%)

Total

26,925

(100.0%)

22,146

(100.0%)

49,071

(100.0%)

91,481

(100.0%)

26,201

(100.0%)

166,753

(100%)

16.1% 13.3% 29.4% 54.9% 15.7% 100.0%

(USD million at 2008 price)

MASTER PLAN PROJECTS

3/17/2010

47

93

Subsector

0. Candidate Projects (2009–2030)

1. Committed Projects32. Rank A Projects

(2009–2020)

1+2. Master Plan

(2009–2020)

No.

Cost (USD mil.)

No.

Cost (USD mil.)

No.

Cost (USD mil.)

No.

Cost (USD mil.)

Total To Gov't2 Total To Gov't2 Total To Gov't2 Total To Gov't2

1. Road Expressway 44 67,648 47,354 12 11,691 8,184 7 7,169 5,019 19 18,860 13,202

Nat'l Highway 187 19,815 19,815 72 8,935 8,935 40 2,057 2,057 112 10,992 10,992

Others 12 1,936 1,936 3 136 136 8 690 690 11 826 826 Subtotal 243 89,399 69,105 87 20,762 17,255 55 9,916 7,765 142 30,678 25,020

2. Railway (Excluding NSHSR) 16 47,051 47,051 5 1,502 1,502 2 4,313 4,313 7 5,815 5,815 3. Maritime 38 13,980 9,786 13 3,076 2,153 4 721 505 17 3,797 2,658 4. IWT River Port 9 267 240 3 7 6 0 0 0 3 7 6

Waterway 46 1,647 1,647 9 245 245 7 455 455 16 700 700 Others 13 2,263 2,263 4 12 12 3 145 145 7 157 157

Subtotal 68 4,178 4,151 16 265 264 10 600 600 26 864 864 5. Aviation

New Airport 2 6,056 4,845 1 56 45 1 6,000 4,800 2 6,056 4,845

Existing Airport 20 5,562 4,450 7 1,152 922 2 200 160 9 1,352 1,082

Navigation Facility 4 263 263 2 113 113 2 150 150 4 263 263

Subtotal 26 11,881 9,557 10 1,321 1,079 5 6,350 5,110 15 7,671 6,189 6. Logistics 5 264 132 0 0 0 3 246 123 3 246 123

Total 396 166,753 139,782 131 26,925 22,253 79 22,146 18,416 210 49,071 40,669

NSHSR1 4 44,531 44,531 0 0 0 2 19,094 19,094 2 19,094 19,094

Candidate Projects and Master Plan Projects

1 NSHSR was tentatively assumed to have four sections; i.e., Hanoi-Vinh, HCMC-Nha Trang, Vinh-Da Nang, and Nha Trang-Da Nang. The former two sections are included. The cost of NSHSR excludes that of rolling stock that is likely to be acquired by the operator.

2 % of cost to government: expressway - 70%, maritime - 70%, river port - 90%, airport - 80%, logistics - 50%.

Investment Requirements of Master Plan vs. Fund Availability

94

ProgramAmount

(USD bil.)1. Budget Requirement

Outside VITRANSS:a. Maintenance/ minor projects (20% of

budget envelope)13.0

b. Urban Transportation (20% of budget envelope)1

13.0

c. Rural Transportation (5% of budget envelope)1

3.3

Subtotal 29.3

2. VITRANSS 2 Projects

a. Ongoing/ Committed Projects 22.3

b. New Projects Without NSHSR 18.4With NSHSR 37.5

Subtotal Without NSHSR 40.7With NSHSR 59.8

Total Without NSHSR 70.0With NSHSR 89.1

Possible Available Fund (2009–2020) 37.02–96.03

1 Medium GDP growth scenario + 5% of GDP for transportation sector2 Low GDP growth scenario + 3% of GDP for transportation sector3 High GDP growth scenario + 7% of GDP for transport sector

3/17/2010

48

Ongoing/

Committed

Projects , 22.3

New Projects ,

18.4

Maintenance/

minor projects,

13.0

Urban

Transportation,

13.0

Rural

Transportation,

3.3

95

Investment Requirements of Master Plan

Total70.0

$ billon

Possible Available FundUSD 37.0 – 96.3 billion

Without NSHSR With NSHSR

Ongoing/

Committed

Projects , 22.3

New Projects ,

37.5

Maintenance/

minor projects,

13.0

Urban

Transportation,

13.0

Rural

Transportation,

3.3

Total89.1

$ billon

Short-term Investment Plan

3/17/2010

49

97

Investment Requirement in the Short-term Plan (up to 2015)

Master Plan Projects

(2009–2020)

1. Committed Projects

(2009-2015)

2. New Projects

(2009–2015)

1+2. Short-term Plan

(2009–2015)

No.

Cost (USD million)

No.

Cost (USD million)

No.

Cost (USD million)

No.

Cost (USD million)

Total To Gov't2 Total To Gov't2 Total To Gov't2 Total To Gov't2

1. Road Expressway 19 18,860 13,202 12 8,573 6,001 7 4,148 2,903 19 12,721 8,904

Nat'lHighway

112 10,992 10,992 72 6,757 6,757 40 1,637 1,637 112 8,394 8,394

Others 11 826 826 3 136 136 8 690 690 11 826 826

Subtotal 142 30,678 25,020 87 15,498 12,926 55 6,475 5,230 142 21,973 18,157

2. Railway 7 5,815 5,815 5 1,262 1,262 2 0 0 7 1,262 1,262 3. Maritime 17 3,797 2,658 13 3,076 2,153 4 427 299 17 3,503 2,452

4. IWT River Port 3 7 6 3 7 6 0 0 0 3 7 6

Waterway 16 700 700 9 245 245 7 278 278 16 523 523

Others 7 157 157 4 12 12 3 85 85 7 97 97

Subtotal 26 864 864 16 265 264 10 363 363 26 628 627

5. Aviation New Airport 2 6,056 4,845 1 56 45 1 3,000 2,400 2 3,056 2,445

ExistingAirport

9 1,352 1,082 7 1,022 818 2 200 160 9 1,222 978

Nav’l Facility 4 263 263 2 113 113 2 150 150 4 263 263

Subtotal 15 7,671 6,189 10 1,191 975 5 3,350 2,710 15 4,541 3,685

6. Logistics 3 246 123 0 0 0 3 246 123 3 246 123

Total 210 49,071 40,669 131 21,258 17,547 79 10,860 8,725 210 32,119 26,273

1 Partially spent before 2009.2 % of cost to government: expressway - 70%, maritime - 70%, river port - 90%, airport - 80%, logistics - 50%.

Required Investment of Short-term Plan v.s. Fund Availability

98

ProgramAmount

(USD bil.)1. Budget outside VITRANSS 2 a. Maintenance/minor projects

(20% of budget envelope)16.4

b. Urban Transportation


c. Rural Transportation


Subtotal 14.4

2. VITRANSS 2 Projects a. Ongoing/ Committed 17.6

b. New Projects 8.7Subtotal 26.3

Total 40.7Possible Available Fund (2009-2015) 192 – 463

1 Medium GDP growth scenario + 5% of GDP for transportation sector2 Low GDP growth scenario + 3% of GDP for transportation sector3 High GDP growth scenario + 7% of GDP for transportation sector

3/17/2010

50

Roads

100

� Develop VRA to becoming the road authority in Vietnam by resolving its conflicts with VEC (with regard to overall network planning and determination of expressway scale) and MOC (with regard to inter-urban transportation).

� Take out the regulatory function over toll roads from VEC and let it focus on becoming the developer and partner of private investors in expressways.

� Institutionalize a Five-year Road Investment Program;

� Create a project management bureau to formalize the status of PMUs and leverage the accumulated experiences of the staff;

� Spin off the CIENCOs into joint-stock companies one at a time, so that they can evolve into competitive civil works contractors on arms-length relationship with the MOT and its associated agencies;

� Study the merging of the unit responsible for developing technical standards and that for keeping the quality of construction into a “Road Technology Research and Development Institute”; and

� Formalize the use of the road maintenance fund.

3/17/2010

51

Railways

101

� Give more resources to railway to allow it to compete with other modes but limited it to corridors where railway is the more efficient energy- and cost-wise.

� Target market niches where railway has the best chance of becoming competitive line by railway line, e.g., the North–South Line which is competitive in container transportation.

� Keep existing railway assets functioning at a capacity of 50 trains for both directions a day. With additional funding, further railway improvements can be pursued, involving system rehabilitation and selective double-tracking that will result in a step-increase in capacity and improved services. Substantial technology upgrades should be last in priority.

� Defer full NSHSR development beyond 2030 because it is very capital-intensive. Instead, pursue more realistic stepwise development including Dnang - Hue section as the initial stage

Ports and Shipping

102

� Improve the connectivity of ports to roads, railways, and inland waterways because they are vital to the success or viability of new deep-sea ports.

� Establish a multisectoral Port Management Board for local ports to regulate and concession terminals, set performance targets, maintain harbors and common navigation channels, and provide ship traffic management around the ports.

� Practice caution in accelerating the development of Lach Huyen Port and Van Phong Transshipment Port in view of the global economic meltdown.

� Separate ports development from the shipping business as a long-term direction for VINALINES.

� Establish a special financing facility for domestic fleet expansion and make it available to other shipping companies to develop greater competition and efficiency in the domestic shipping services.

� Improve the capacity of the MOT and its maritime arm, VINAMARINE, as a planning and regulatory body which should develop a system of ports hierarchy to avoid surplus capacities co-existing with shortages.

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52

Inland Waterways

103

� Concentrate limited resources on river corridors where IWT can be most competitive and which it can defend and maintain adequately. This means: (i) devolving responsibilities over most river ports to provinces, (ii) focusing on improving road–river and river–seaport interfaces, (iii) leaving ferry/barge services to the private sector, and (iv) allocating its full resources on channel navigability.

� Give highest priority to maintaining a core set of waterways to meet the technical standards to which they have been classified.

� Establish a river maintenance fund by harnessing the support of primary customers, i.e., industrial enterprises located along riverbanks which use the waterway as lifelines for their viability. Two alternative sources of maintenance funds can be tapped: (i) annual fees on river fleet registration and inspection, and (ii) frontage tax on commercial and industrial properties along rivers. The first would require improved vessel registration system, while the second would need the support of local governments as it partakes of a land-use charge.

� Boost the safety of river navigation through annual vessel inspection and registration, as well as a more rigorous pilot licensing and training program.

Aviation

104

� Aside from building bigger terminals and/or more runways, pursue low-cost system innovations to improve productivity.

� Adopt standards to guide airport planning and development using ICAO and international best practices as templates.

� Review and revise the capital recovery mechanism in the light of changes in the institutional setup to improve the sector’s financial sustainability. Define a subsidy policy for “missionary routes.”

� Exercise caution in developing tourist-dependent airports (since traffic is seasonal and uncertain) and a cargo hub airport (in Chu Lai) (as its success hinges on the presence of large cargo volumes generated internally and on the entry of a global logistics player specializing in air express delivery).

� Reexamine priorities and back them up with a realistic 10-year capital investment program that takes into account the budget envelope. Pursue private sector participation in developing, e.g., a new passenger terminal in NoiBai, a new cargo terminal in Noi Bai and in Tan Son Nhat, and the new Long Thanh International Airport. For the smooth development of Long Thanh, the airport manager at TSN should be involved closely.

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53

Logistics

105

� Encourage a wider appreciation of supply chain management in government and private circles to promote reforms in policies and management practices One way to do this is to organize a public-private logistics forum, spearheaded by the freight forwarders’ association.

� Proceed with the full-scale implementation of electronic data interchange (EDI) and paperless transaction system at Customs and border gates.

� Amend laws and regulations on foreign participation in logistics services because they are restrictive and will only delay the country’s logistics development.

� Recalibrate the subsector’s infrastructure program by prioritizing the multimodal needs of its large and growing FDI enterprises. Promote containerization in shipping and railway. Establish two international logistics parks that can also be multimodal transportation hubs: one in the northeast of Hanoi and the other between HCMC and Cai Mep–Thi Vai.

Need for Further Technical Assistance

� Transportation Sector Management Capacity Strengthening Projects

� Road Maintenance and Asset Management Project:

� Project on Upgrading and Management Improvement of Existing Railways:

� Capacity Building for Railway-related Business Development:

� Port Management Strengthening Project:

� Comprehensive Inland Waterway Transportation Development and Management Plan for the Red River and Mekong River Deltas:

� Aviation Subsector Capacity-development Projects;

� Multimodal Transportation Development Project:

� Urban Transportation Air Pollution Control Plan:106

Responsible Agency

�MOT and related subsector agencies

�MOD and VNR, VEC

�VNR

�VNR

�VINAMARINE, model sea ports�MOT/ VINA, related Provinces

�CAAV, VANSCORP, Airport Corporations, Airlines

�MOT. VNR

�MOT, Hanoi PC, HCMC PC, Others

3/17/2010

54

End

Thank you for attention

Documents

Vitranss2 final seminar-en