1. 3/17/2010
1
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
2
2. 3/17/2010
2
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.
4
Study Objectives
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3
5
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:
Comprehen
sive
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 Reports
TR01: 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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4
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
8
Supplemental Traffic Surveys
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9
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
transportation
development
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.
10
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6
Future Demand
11
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)
12
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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13
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
14
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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15
Hanoi
Quang
Ninh
Hai
Phong
Hai Duong
HCMC
Dong Nai
Long Thanh
Thi Vai – Cai Mep
Vung 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
16
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
⑥⑦⑧⑨
⑩⑪
A 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
Economic
Benefit
(Without-
With)
Revenue
1.Traffic Demand
2. Economic
Feasibility (EIRR)
3. Financial
Feasibility (FIRR
or Demand/Cost)
4. Network
Connectivity
5. Impact on
Environment
6. Maturity
7. Government
Policy
AllocationofEvaluationWeights(Total100%)
Criteria
17
5GroupsofRanking
Budget Envelope
18
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)
Period
3% 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
Accumul
ated
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
20
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
22
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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12
Main Issues
23
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
24
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
25
Infrastructure Development Strategy (Road)
Identified Road and Road Transportation Projects
up to 2030
26
Expressway
Projects
National Highway
Projects
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Core Program (Road)
27
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
No.
Cost: USD million
No.
Cost: USD million
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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15
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
30
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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31
Key Strategies Specific Actions
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
32
Infrastructure Development Strategy (Railway)
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Identified Railway Transportation Projects up to 2030
33
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
34
Scope
Project
Code
Project Title Description
Cost
(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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18
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
Present Condition of Infrastructure and Services
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Current Situation
37
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
38
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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39
Key Strategies Specific Actions
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
40
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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21
41
Identified Port & Shipping Transportation Projects up
to 2030
Proposed Projects
CP01 Cam Pha Seaport Channel Development
CP02 Hon Gai Seaport (Cai Lan) Terminal Development (Committed Stage)
CP03 Hai Phong Seaport (Dinh Vu) Channel & Terminal Development
CP04 Nghi Son Seaport Channel & Terminal Development
CP05 Cua Lo Seaport Channel Development (Committed Stage)
CP06 VungAng Seaport Terminal Development (CommittedStage)
CP07 Dung Quat Seaport Terminal Development (Committed Stage)
CP08 Quy Nhon Seaport Channel & Terminal Development (CommittedStage)
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 Development
P02 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 Development
P06 VungAng Seaport Terminal Development
P07 Son Duong Breakwater Development
P08 Chan May Seaport Terninal Development
P09 Danang Seaport Terminal Development
P10 Dung Quat Seaport Terminal & Breakwater/RevetmentDevelopment
P11 Quy Nhon Seaport Terminal Development
P12 Van Phong InternationalTranship Terminal Development (Stage 2,)
P13 Van Phong InternationalTranship 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 Development
P18 Vung Tau Seaport (Cai Mep Thi Vai - stage2 + other) Terminal Development
P19 Ho Chi Minh Seaport (Hiep Phuoc - Stage2 + other) Channel and Terminal
Development
P20 Expansion of terminal in My Tho seaport
P21 Expansion of terminal in Dong Thap seaport
P22 Expansion of terminal in Can Tho seaport
P23 Expansion of terminal in My Thoi seaport
P24 Coal Fired Thermal Power Stations Port Facility Development
P25 Industrial Terminal Development
Committed/ On-going Projects
42
Scope
Project
Code
Project Title Description
Cost
(USD mil.)
Expansion
and
upgrading of
port function
P02 Hai Phong Seaport (Lach
Huyen) Development
(Stage 1, original
schedule: 2010-2015)
To upgrade navigation channel for Lach Huyen Area to -
10.3m including construction of sand dyke, develop new
deep-water terminals at Lach Huyen for container/general
and liquid cargo, and convert the function of part of Hoang
Dieu 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 the
terminal in Cua Lo seaport to handle cargo to/from the
northern central zone
26
P19 Ho Chi Minh Seaport
(Hiep Phuoc - Stage2 +
other) Channel and
Terminal Development
To upgrade navigation chalnnel for Hiep Huoc Area to
accommodate vessels up to 25,000-30,000 DWT, develop
new deep-water container terminal at Hiep Phuoc area to
handle container cargo, convert of the function of Nha
Rong-Khanh Hoi Terminal into cruise ship terminal and
others, and develop new terminal which will substitute for
Ben Nghe Terminal
220
P22 Expansion of terminal in
Can Tho seaport
To expand a terminal at Cai Cui and at Tra Noc in Can Tho
seaport to handle container/general cargo to/from Mekong
DeltaArea
25
Total 721
Core Program (Port)
1) excluding committed projects
22. 3/17/2010
22
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
Present Condition of Infrastructure and Services
23. 3/17/2010
23
Current Situation
45
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.
24. 3/17/2010
24
47
Key Strategies Specific Actions
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.
48
Infrastructure Development Strategy (IWT)
25. 3/17/2010
25
49
Identified Inland Water Transportation Projects up to 2030
Proposed Projects
W01 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 a T-Junction - Hoa Binh Port Route (58.0km)
W11 Improvement of Ninh Binh-Thanh Hoa
W12 Various Regional/Feeder Routes
W13 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 Projects
CW01 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 Estuary
CW07 Inter-connecting canal between the Day and Ninh Co River
CW08 Improvement of Sai Gon-DongThap-Long Xuyen Route
CW09 Improvement of Thi-Vai-Nuoc ManCanal Route
CW10 Improvement of Viet Tri Port
CW11 Improvement of Ninh Phuc Port
CW12 Demonstration investment for provincial port facilities in Mikong Delta region
CW13 Invesgtment of small ferry boats stages
CW14 Institutionaldevelopment concerned with Mekong Delta Inland waterways
CW15 Institutionaldevelopment concerned with Northern delta Region Inland waterways
CW16 Pilot maintenance project
Core Program (Inland Water)
50
Scope
Project
Code
Project Title Description
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
W13
Upgrading 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 - Kien
Luong/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
W21
Improvement of Sai Gon - Hieu Liem
Route (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
W52
Database: 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
1) excluding committed projects
26. 3/17/2010
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
Present Condition of Infrastructure and Services
27. 3/17/2010
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
28. 3/17/2010
28
55
Key Strategies Specific Actions
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 Danang
runway 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 infrastructures
56
Infrastructure Development Strategy (Aviation)
29. 3/17/2010
29
57
Identified Aviation Projects up to 2030
Proposed Projects
A01 Long Thanh Airport
A02 T1&T2 Terminal Expansion at Noi Bai International Airport
A03 T3 Terminal Construction at Noi Bai International Airport
A04 Runway Construction at Noi Bai International Airport
A05 Cat Bi Airport Upgrading
A06 Phu Bai Airport Upgrading
A07 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 Expansion
A10 Runway Upgrading at Na San Airport
A11 Runway Improvement at Danang international Airport
A12 Taixway Construction at Danang international Airport
A13 Expansion of Tan Son Nhat International Airport
A14 Other Tertiary Airport Improvement
A15 Control tower Construction at Tan Son Nhat International Airport
A16 Air Navigation System
Committed/ On-going Projects
CA01 Phu Quoc Island Airport
CA02 Terminal Construction at Danang International Airport
CA03 T2 Terminal Construction at Noi Bai International Airport
CA04 Cargo Terminal Expansion at Noi Bai International Airport
CA05 Runway upgrading and terminal Construction at Can Tho Airport
CA06 Runway Extension and Apron Expansion at Danang International Airport
CA07 Passenger Terminal Expansion at Danang International Airport
CA09 Control Tower Construction at Noi Bai International Airport
CA10 Terminal Building and Control Tower Construction at Cam Ranh Airport
Core Program (Aviation)
58
Scope
Project
Code
Project Title Description
Cost
(USD mil.)
Construction
of new
airport
A01 Long Thanh Airport
To construct a new international airport
with the capacity of 8 to 10 mppa.
6000
Capacity
expansion of
existing airport
A11
Runway Improvement at
Danang international
Airport
Shifting of taxiway E6 to widen clearance
from 75 m to 150m
-
A13
Expansion of Tan Son
Nhat International Airport
To expand capacity of Tan Son Nhat
International Airport to handle 25 mppa
200
Improvement
of navigation
facility
A15
Control tower
Construction at Tan Son
Nhat International Airport
To construct a new control tower 50
A16 Air Navigation System
Modernization of the air traffic
management system
100
Total 6,350
1) excluding committed projects
30. 3/17/2010
30
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.
31. 3/17/2010
31
61
Key Strategies Specific Actions
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)
Scope
Project
Code
Project Title Description
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 improvement
L05: Moc Bai Cross-border gate improvement
Other identified projects up to 2030
32. 3/17/2010
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.
33. 3/17/2010
33
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.
34. 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 MekongRiverDeltaDanangHanoi
221,663
North South
100
200
300
400
(000)
263 266
353
332
362
2008
Current
Situation
2030
Do-nothing
Scenario
Vinh HCMC Mekong River DeltaDanangHanoi
58 59
72
65
79
100
50
North South
(Representative mode of travel)
(000)
2030
Improved CR
+ Expressway
+ HSR
300 km/h,
Equal to Air Fare
Vinh HCMC Mekong River DeltaDanangHanoi
263 266
353
332
362
100
200
300
400
North South
(000)
(Representative mode of travel)
HSRCar Bus CR Air
(Representative mode of travel)
Traffic Demand and Modal Share along the North-South Coastal
Corridor (Passenger) Pax/day (000)
Pax/day (000)
Pax/day (000)
68
35. 3/17/2010
35
Traffic Demand and Modal Share along the North-South
Coastal Corridor (Freight)
2008
2030
Vinh HCMC Mekong River DeltaDanangHanoi
76 76 73
226
100
200
300
North South
95
ton/day
(000)
Vinh HCMC Mekong River DeltaDanangHanoi
301 325 345
100
200
300
North South
Truck Rail IW Shipping
(Representative mode of travel)
Air
400
500
600
700
353
685
ton/day
(000)
69
NORTH-SOUT HIGH-SPEED RAIWAY
(NSHSR)
36. 3/17/2010
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
37. 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
300
Quarter 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 Case
② 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 Case
② 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.
38. 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.)
39. 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
40. 3/17/2010
40
NORTH-SOUTH EXPRESSWAY
(NSEXY)
North-South Expressway (NSEXY)
Expressway Network NS Expressway
E02
E03
E04
E05
E06
E07
E08
E09
E10
E12
E14
E42
E44
E01
E11E13
Code Section
Length
(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 ongoing
E13 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 ongoing
E43 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
42. 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.
43. 3/17/2010
43
IDENTIFICATION AND EVALUATION
OF THE PROJECTS
86
Subsector Project Proposed Committed
1. 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
-
3
2. Railway • Improvement of existing lines for capacity expansion
• Construction of new lines
6
5
2
3
3. Ports & Shipping • Expansion and upgrading of ports 25 13
4. 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
1
5.Aviation • Construction of new airport
• Capacity Expansion of existing airport
• Improvement of navigation facility
1
13
2
1
7
2
6. 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.
45. 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
R01
R03
R07
R02
R06
R09
R08
R04
R05
EconomicIRR(%)
0
5
10
15
20
25
30
35
40
45
CumulativeCost(USDBillion)
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
7
Consistency with higher plan or
national 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 rank
C: medium rank
D: med-low rank
E: low rank
(considered as long term projects with high priority after 2020)
(considered as long term projects with low priority after 2020)
46. 3/17/2010
46
Summary of Transportation Sector Investment
91
Sector
Core Program
Sub total
Long Term Projects
Total
Committed A B-C D-E
Road
20,762
(77.1%)
9,916
(44.8%)
30,678
(62.5%)
39,256
(42.9%)
19,466
(74.3%)
89,399
(53.6%)
Rail
1,502
(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%)
IWT
265
(1.0%)
600
(2.7%)
864
(1.8%)
3,030
(3.3%)
284
(1.1%)
4,178
(2.5%)
Air
1,321
(4.9%)
6,350
(28.7%)
7,671
(15.6%)
3,750
(4.1%)
460
(1.8%)
11,881
(7.1%)
Logistics
0
(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
47. 3/17/2010
47
93
Subsector
0. Candidate Projects
(2009–2030)
1. Committed Projects3
2. 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
ExistingAirport 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
Program
Amount
(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 18.4
With NSHSR 37.5
Subtotal Without NSHSR 40.7
With NSHSR 59.8
Total Without NSHSR 70.0
With NSHSR 89.1
Possible Available Fund (2009–2020) 37.02–96.03
1 Medium GDP growth scenario + 5% of GDP for transportation sector
2 Low GDP growth scenario + 3% of GDP for transportation sector
3 High GDP growth scenario + 7% of GDP for transport sector
48. 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
Total
70.0
$ billon
Possible Available Fund
USD 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
Total
89.1
$ billon
Short-term Investment Plan
49. 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'l
Highway
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
Existing
Airport
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
Program
Amount
(USD bil.)
1. Budget outside VITRANSS 2 a. Maintenance/minor projects
(20% of budget envelope)1
6.4
b. Urban Transportation
(20% of budget envelope)1
6.4
c. Rural Transportation
(5% of budget envelope)1
1.6
Subtotal 14.4
2. VITRANSS 2 Projects a. Ongoing/ Committed 17.6
b. New Projects 8.7
Subtotal 26.3
Total 40.7
Possible Available Fund (2009-2015) 192 – 463
1 Medium GDP growth scenario + 5% of GDP for transportation sector
2 Low GDP growth scenario + 3% of GDP for transportation sector
3 High GDP growth scenario + 7% of GDP for transportation sector
50. 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.
51. 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.
52. 3/17/2010
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 Noi
Bai, 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.
53. 3/17/2010
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
