Thaco proposes to build high-speed railway section Hanoi - Ha Tinh in advance

Thaco proposed to divide the North-South high-speed railway project into two implementation phases. In the first five years, the company will build two sections: Hanoi - Ha Tinh and Ho Chi Minh City - Nha Trang, which are areas with high transportation demand.

On May 26, Truong Hai Group ( Thaco ) sent a document to the Prime Minister, proposing to invest in the construction of the North-South high-speed railway line, in the form of direct investment.

The project proposed by Thaco has a total investment of more than 1.5 quadrillion VND (about 61.35 billion USD), not including compensation and resettlement support costs. This part will be implemented by the State as an independent project.

According to the plan, Thaco will contribute 20% of the total capital (nearly 12.3 billion USD) through equity and legally mobilized domestic capital. The remaining amount, about 49 billion USD, the enterprise will borrow from domestic and foreign credit institutions. Thaco proposed that the Government guarantee and support the entire loan interest for 30 years, secured by assets formed from the project.

The company said it would establish a project company, hold a controlling stake, and invite domestic corporations to contribute capital. The project will not be transferred to foreign investors, including shares or exploitation rights.

A bullet train moves through Hakusan city, Ishikawa prefecture, Japan, on March 16, 2024. Photo: AFP

Thaco proposed to divide the project into two phases and complete it within 7 years. In the first 5 years, the company will build two sections : Hanoi - Ha Tinh and Ho Chi Minh City - Nha Trang, which are areas with high transportation demand. In the next 2 years, Thaco will implement the middle section from Ha Tinh to Nha Trang, an area with complex terrain, requiring more time to survey and design suitable technical solutions.

The North-South high-speed railway will use electrification technology, international standards. Thaco said it will cooperate in transferring technology from European partners such as Germany, France and Asian partners such as Japan, South Korea, and at the same time train human resources to master the technology.

Not only aiming to complete the high-speed transport route, Mr. Tran Ba ​​Duong's enterprise hopes that the project will contribute to the formation of the domestic railway industry, promoting fundamental industries such as metallurgy, mechanics, and digital industry.

Regarding the business plan, the investor proposes ticket prices approved by the state agency, on the basis of ensuring the financial plan and payback period for the project. The proposed operating period is 70 years.

In addition, the enterprise wishes to be given priority in allocating land funds for urban development according to the TOD model (urban development associated with public transport). Other incentives include exemption from import tax on machinery, equipment, and vehicles that cannot be produced domestically; full application of specific mechanisms and policies, and investment incentives at the highest level according to current regulations.

Previously, at a working session with Thaco in early February, Prime Minister Pham Minh Chinh also asked the company to participate in research, technology transfer, and production of train cars and locomotives for high-speed railways.

The North-South high-speed railway project has been approved by the National Assembly in Resolution 172/2024. The project has a scale of 1,541 km, starting at Ngoc Hoi station (Hanoi), ending at Thu Thiem station (HCMC), passing through 20 provinces and cities.

This is one of the strategic infrastructure projects expected to create new growth momentum for the economy. The entire route is newly invested with a double gauge of 1,435 mm, a design speed of 350 km/h, a load capacity of 22.5 tons/axle; there are 23 passenger stations, 5 freight stations. The project is applied in the form of public investment, with a total preliminary investment of 1,713 trillion VND (more than 67 billion USD). The National Assembly requested the preparation of a feasibility study report from 2025, striving to complete the project by 2035.

Before Thaco, VinSpeed ​​also expressed its desire to participate in the investment of the North-South high-speed railway project. In particular, VinSpeed ​​proposed to invest in this project in the form of direct investment, instead of public capital or PPP. The enterprise also committed to self-arranging 20% ​​of the capital, equivalent to 12.27 billion USD (excluding site clearance costs), the remaining part proposed the State to lend 49 billion USD without interest for 35 years. The company also proposed the State to take care of site clearance and committed to put the project into operation after 5 years of construction.

Thaco is a multi-industry private enterprise founded by Mr. Tran Ba ​​Duong in 1997, initially developing from the field of automobile manufacturing and assembly. After more than 25 years of operation, the group has expanded into the fields of industry, logistics, agriculture and infrastructure investment. In Chu Lai (Quang Nam), Thaco built an industrial-urban complex of thousands of hectares, the largest automobile manufacturing facility in the country. In the field of infrastructure, the enterprise has invested in internal traffic routes, ports, logistics and recently started to propose large national projects.

Source: https://baohatinh.vn/thaco-de-xuat-xay-dung-truoc-duong-sat-toc-do-cao-doan-ha-noi-ha-tinh-post288723.html