Vietnam Railways and VinaChem sign new co-operation agreement for 2020

Vietnam Railways and VinaChem agreed to draw co-operation ties closer with more preferential policies for each other

The signing was part of a conference to review the four-year co-operation between the two sides.

According to deputy general director of VNR Phan Quoc Anh, between 2016 and 2019, the total volume of apatite, fertiliser, and chemicals transported by railway reached nearly six million tonnes, making up 27 per cent of VNR’s total volume of goods.

As planned, in 2020, the volume is likely to hit 1.6 million tonnes, surpassing the 2019 figure by 19.7 per cent.

Addressing the event, Phung Quang Hiep, general director of VinaChem, said that this co-operation is meaningful to operations of his company and VNR, as well. He proposed the railway giant to give priority to seasonally-natured fertiliser, especially for the transportation from the north to the central and the southern regions, while considering better quality and price.

VNR chairman Vu Anh Minh, in response, said that VinaChem is a long-standing big client of VNR, so it should receive a supporting policy. He proposed units of VinaChem to soon draw up a detailed timeline for transportation so that the two sides can work on price reduction and improve service quality.

The agreement for 2020 is part of VNR’s efforts to fulfill the annual targets amid the effects of COVID-19 on the industry.

According to a recent VNR report on the effect of COVID-19, between January 25 to February 12, 2020, Hanoi Railway Transport JSC (Haraco) and Saigon Railway Transport JSC (SARATRANS) saw a decrease of 14,000 and 47,000 passengers on-year. As a result, Haraco and SARATRANS – the two largest passenger train operators in Vietnam under VNR – suspended a total of 75 passenger trains, resulting in a loss of VND46 billion ($2 million) during this period.

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