Expansion of railway system to facilitate agricultural product transport in the Southeast region

Song Than Station - a highlight in Vietnam's railway system

According to Vietnam Railways, Binh Duong is one of the most dynamically developed provinces within the Southeast region. Notably, the local Song Than Station serves as a pivotal hub for freight traffic along the southern railway corridor. Situated on National Highway 1A, Song Than Station is strategically positioned at the heart of the Song Than Industrial Park, facilitating uninterrupted connectivity with other provinces in the Mekong Delta region such as Long An, Can Tho, Dong Thap; and provinces in the Southeast region such as Binh Duong, Dong Nai, Binh Phuoc.

The first international intermodal train in 2024 transported nearly 500 tons of agricultural products from Song Than Station, Binh Duong province to Zhengzhou, Henan province, China. This agricultural export shipment by railway has indicated a positive trajectory for the railway sector as well as Vietnam's import-export activities as a whole.

In addition to official fruit exports to the Chinese market, Vietnam Railways is currently transporting various seafood products including basa fish, shark catfish among many others. Furthermore, the railway sector provides freight services to multiple countries around the world, including Mongolia, Kazakhstan, Uzbekistan, Russia, and the EU (Germany, Belgium, the Netherlands). These railway routes currently support the transportation of Vietnam's key export commodities such as tea, coffee, rice, textiles, footwear, and electronics.

With the facilitation of international intermodal activities at Song Than Station, businesses can complete their customs procedures on-site, eliminating the need to transport goods to seaports in Ho Chi Minh City and Vung Tau. Subsequently, these businesses can transport their products to markets in Russia and the EU via railway, resulting in a two-thirds reduction in transit times compared to conventional maritime transportation. The reduction in transit times will also lead to cost savings for businesses.

According to the Binh Duong province's Department of Customs, the transport of agricultural products via railway from Song Than Station provides new opportunities for local production activities in Binh Duong province and the Southeast region. The Department has collaborated with project investors to facilitate the first export shipment by railway, and provide effective support to businesses. Additionally, the Department of Customs is engaging in dialogues with local businesses to address their concerns, thereby promoting import-export operations via Song Than Station.

According to Mr. Hoang Gia Khanh, General Director of Vietnam Railways, transportation via railway has become a preferred choice among businesses engaging in trade activities with Asian and European markets. The volume of international intermodal transportation has experienced a steady growth over the years, peaking at 1.33 million tons per year. With an economic rebound projected for 2024, the volume of export commodities transported by railway is expected to continue its strong momentum.

"However, one of the limitation of the current railway system lies in the lack of connection to major port warehouses, industrial parks, factories, etc. These connections help to reduce transshipment costs, expedite cargo release, and limit the number of trucks transporting goods between locations. As a result, we can reduce accidents and environmental pollution," emphasized General Director Hoang Gia Khanh.

Supplementary planning for Binh Duong - Tay Ninh railway route

During the third Coordination Conference for the Southeast region, the Ministry of Transport issued a document reiterating their support for the provinces of Binh Duong and Tay Ninh provinces in reviewing local transportation needs to implement supplementary planning for the Bau Bang - Moc Bai railway route.

Regarding supplementary planning for the Bau Bang - Moc Bai railway route, the Ministry of Transport stated that the national railway system planning from 2021 to 2030, with a vision towards 2050, was conducted on the foundation of major economic corridors and key national transport hubs, featuring interregional or international intermodal connectivity.

The national railway system planning from 2021 to 2030, with a vision towards 2050, has designated an overseeing body to coordinate regional and provincial planning activities. Furthermore, the responsible party will utilize the approved railway system planning to establish railway routes connecting key transport hubs (major seaports, dry ports, inland waterway ports, economic zones, tourist areas, etc.) with the national railway system. This initaitive aims to fulfill national transportation needs and mobilize investment resources from various local budgets.

"The Ministry of Transport supports the provinces of Binh Duong and Tay Ninh in reviewing local transportation needs to implement supplementary planning for the Bau Bang - Moc Bai railway route. Subsequently, the supplementary planning will be integrated into their respective provincial planning and the Southeast region planning as a basis for land fund management and proactive mobilization of investment resources for the aforementioned railway route." detailed the document from the Ministry of Transport's.

Regarding the planning of An Binh station and the merging of Di An station into An Binh Thuc station, the Ministry of Transport has designated the Vietnam Railway Authority as a consultant for these initiatives. In addition, the Ministry has integrated the supplementary planning initiatives into the midterm report of railway system and station planning in Ho Chi Minh city.

The Vietnam Railway Authority recently issued a document requesting feedback from the Binh Dinh province's Department of Transport; however, the department has not provided input regarding the planning documentation as of date. Consequently, the Ministry of Transport requested that Binh Duong Provincial People's Committee urge its local Department of Transport to provide feedback on the aforementioned planning documents, and closely coordinate with the Vietnam Railway Authority in negotiating infrastructure connectivity and other issues pertaining to the two aforementioned stations. The collected feedback will provide the groundwork for enhancing the planning, prior to submission to competent authorities for evaluation and approval.

During the third Coordination Conference for the Southeast region, the Ministry of Planning and Investment provided updates on 29 key projects aimed at regional connectivity. Among these projects, four have commenced construction, five are currently undergoing investment procedures, and the remaining 20 are in various stages of research and development. According to Minister of Planning and Investment Nguyen Chi Dung, the planning for the Southeast region, approved by the Prime Minister, has demonstrated the Prime Minister's decisive leadership in executing the tasks and strategies outlined under the Politburo's Resolution.

Accordingly, Minister Nguyen Chi Dung highlighted the need to focus resources on upgrading the region's infrastructure in a synchronized and contemporary manner, with an emphasis on expediting in-progress key national projects. The Minister also listed several notable projects, including the construction of expressways, the Ho Chi Minh City's Belt Road 3, Tan Son Nhat International Airport, Phase 1 of Long Thanh International Airport, and the Bien Hoa - Vung Tau railway.

Additionally, he emphasized the importance of streamlining investment procedures to facilitate the implementation of new projects, such as Can Gio International Transshipment Port, Ho Chi Minh City - Nha Trang high-speed railway, Ho Chi Minh City - Can Tho railway, Ho Chi Minh City - Dong Nai - Binh Duong - Tay Ninh urban railway.

The Ministry of Planning and Investment proposed investing in focal and key areas to develop the dynamic Southeast region into the leading economic center of Vietnam and the Southeast Asia; developing economic corridors to expand development space, thereby fostering regional connectivity.

Prime Minister Pham Minh Chinh recently issued Circular No. 13 on enhancing the export of agricultural, forestry, and fishery products via railway. Accordingly, the Prime Minister encourages solutions to improve railway capacity and construct dedicated railway routes to increase the export of agricultural products to China. The Ministry of Transport and the Ministry of Industry and Trade will collaborate with China on optimizing costs and transit times for agricultural, forestry, and fishery export shipments.

These strategic directions mark a pivotal milestone for the resurgence of Vietnam's railway system. They represent a promising trajectory as Vietnam moves towards the modernization of its railway infrastructure, with a focus on the Southeast region's high connectivity with various modes of transportation. Notably, Vietnam has made an active effort to enhance railway connections with China and other Southeast Asian countries along the Trans-Asian corridor.

Deputy Minister of Agriculture and Rural Development Phung Duc Tien also emphasized the significant potential in China's market demand for agricultural products. Consequently, smart placement of border checkpoints, railways, roads, and maritime routes connecting border provinces with China are necessary to fully capitalize the potential of this populous market,.