Many countries have been successful with TOD.
The project implementation consultant affirmed that the Transit-Oriented Development (TOD) model is applied in many countries and brings many benefits.
Citing the example of Odakyu Railway Company (Japan), the consultant stated that in the company's 2022 revenue structure, transportation accounted for only 32%, while retail (37%), real estate (12%), and other activities accounted for the remainder. Similarly, for Hanyu Railway Company, transportation accounted for 30% of revenue, real estate 30%, entertainment 16%, and transportation and tourism 15%...
The Odakyu Railway (Japan) reaps many benefits related to urban development and commerce from its investment and operation (Image: illustration, source Pop Japan).
Experience from other countries shows that in most cities, land and property values along public transport corridors increase. For example, in Helsinki Metro (Finland), properties within walking distance of a station are worth 7.5% more than those in other areas. Similarly, in the Tyne & Wear underground area of Newcastle, UK, house prices increase by 2% within 200 meters of a subway station...
Based on the experience of TOD development in other countries, consultants suggest that to successfully implement TOD in Vietnam, there needs to be synchronization among various legal documents.
Specifically within the scope of the Railway Law, the consultant recommends adding the concept of TOD (Transit-Oriented Development) in the railway sector, such as investment projects for the development of housing, services, commercial, and office buildings at railway stations and surrounding areas.
Furthermore, the regulations clearly define the coordination between the investment and management units of railway infrastructure assets and local authorities in urban planning and development; determining the exploitation space, building density, development scope, and land acquisition when implementing railway projects.
Allow railway infrastructure management and railway transport businesses to invest in existing assets and new assets in the areas surrounding stations to increase revenue.
Plan first, then auction.
According to Mr. Tran Thien Canh, Director of the Vietnam Railway Department, experience from other countries shows that TOD (Transit-Oriented Development) is effective for urban railways and involves the participation of non-state organizations.
The MTR (Mass Transit Railway) Corporation of Hong Kong has been very successful in investing in and developing land around the Metro (Image: illustration, source Pixabay).
However, other countries still apply this model to national railways, particularly on high-speed rail lines. Therefore, in drafting the revised Railway Law, Vietnam hopes to include the TOD model for national railways, specifically at railway stations.
"The TOD (Transit-Oriented Development) model in the railway sector is a complex issue that requires further research. This includes identifying the entities investing in and constructing national and urban railway infrastructure; the responsibilities of relevant entities; and the allocation of benefits from TOD...", said Tran Thien Canh, Director of the Vietnam Railway Authority.
In terms of organizational structure, it's not feasible to use funds allocated for TOD (Transit-Oriented Development) projects to invest in railways from the outset. This means you can't use land, sell land, and use the proceeds to invest in railways.
The TOD (Transit-Oriented Development) plan must be done first. Only after the railway is invested in and put into operation will added value arise. At that point, stakeholders (local authorities, investors, railway businesses) will participate in and invest in land and real estate development.
"The station is expected to be located at a specific site. The local authorities will adjust the zoning plan for that area, clearly defining its purpose and function. Afterward, the local authorities will conduct an auction for the land. Railway businesses must also participate in the auction if they wish to invest. Land for railway construction and operation is private land and is not subject to auction," Mr. Canh explained.
It's not a "miracle cure".
Speaking to Giao Thong Newspaper, Mr. Nguyen Ngoc Dong, former Deputy Minister of Transport, said that currently in Vietnam there are many different interpretations, and no common understanding, of the TOD model.
However, it's important to understand that TOD (Transit-Oriented Development) is not a "magic bullet." In fact, for existing cities like Ho Chi Minh City and Hanoi , building railways in densely populated urban areas will not allow for true TOD development.
To mobilize investment resources for railways, especially urban railways, the TOD model is one of the effective options (Image: illustration).
"Like in Hanoi, with Line 1 Yen Vien - Ngoc Hoi and Line 2 Cat Linh - Ha Dong, should we really clear the land around the stations to build new urban areas according to TOD (Transit-Oriented Development)? In reality, we can only renovate the urban areas around the stations."
"To build a new urban area, you need vacant land. For example, on the Thang Long to Noi Bai route, there is still vacant land around some of the terminals. If planned well, it could be developed into an urban area, forming a true TOD (Transit-Oriented Development) model," Mr. Dong cited as an example.
Regarding the process, according to Mr. Dong, land acquisition for railway stations is carried out by the State for the construction of public works. Land acquisition for TOD (Transit-Oriented Development), on the other hand, is urban development. Therefore, typically, the State invests in land clearance and then conducts a bidding process to select an investor.
"It is necessary to determine how the TOD model is understood in the railway sector, in what cases railway infrastructure development should be combined with urban development, and what the roles of the stakeholders are... Regarding mechanisms and policies, further thorough research is needed because it involves many laws and issues," Mr. Dong emphasized.
Source: https://www.baogiaothong.vn/ap-dung-tod-voi-duong-sat-the-nao-192240713150121589.htm
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