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Vietnam’s state-owned railway system reports loss of over $1mn due to flooding

Friday, October 23, 2020, 18:07 GMT+7
Vietnam’s state-owned railway system reports loss of over $1mn due to flooding
This supplied photo shows a train car running on a section of the North-South railway system through a flooded area in Vietnam’s central region, October 2020.

Vietnam Railways (VNR), the state-owned operator of the railway system in Vietnam, incurred a loss of nearly VND27 billion (US$1.16 million) between October 7 and now, when heavy rain lashed the country’s central region, leading to flash floods and landslides.

The VNR’s North-South railway system was temporarily closed twice during that period.

From October 8 to 14, rain-triggered flooding blocked VNR’s railway section from Hue City in the central province of Thua Thien-Hue and Dong Ha City in north-central Quang Tri Province.

From October 17 to 19, the sections from Dong Ha to Dong Hoi City in north-central Quang Binh Province and from Dong Hoi to Vinh City in north-central Nghe An Province were also clogged.

The revenue decline and arising costs caused by those two unexpected suspensions reached VND26.9 billion, according to VNR’s statistics.

Of that amount, VND16.2 billion ($698,000) came from the decrease of passenger transportation.

Particularly, 72 passenger trains were suspended, causing a revenue reduction of about VND9.6 billion ($413,000).

As many as 12,158 tickets were returned, equaling a total refund of VND6.2 billion ($267,000).

Transit costs and free meals for passengers made up VND400 million ($17,200) in loss.

Cargo transportation suffered a loss of about VND10.7 billion ($463,000), of which VND10.1 billion ($436,000) was caused by 63 terminated trips and arising costs topped VND600 million ($26,000).

The track, over 30 points in the system, and other railway properties were also damaged by floods.

Some damage was already fixed so the North-South railway services have resumed since 7:00 pm on Tuesday, with the train running at five kilometers per hour through the aforementioned areas.

The VNR currently continues repairing the damaged facilities for the complete resumption of its railway services.

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