Hanoi(VNS/VNA) - Vietnam Railways (VNR) plans to upgrade rail infrastructure tosatisfy passenger demand by building 300 new carriages and purchasing morelocomotives by 2023 to provide better services.

Vu Anh Minh, Chairmanof VNR’s Member Council, said that outdated locomotives and carriages led tohigher fuel consumption and maintenance costs.

In accordance withthe 2017 Railway Law, the lifespan of locomotives and carriages should notstretch beyond 40 years for passenger trains and 45 years for cargo trains.This necessitated the purchase of new equipment, he said.

Of the 257locomotives in operation, 115 locomotives had been in use for less than 20years; 18 for 20-30 years; 89 for 30-40 years; and 45 for more than 40 years.

About 667 carriagesof the 1,008 in use were less than 30 years old, while 103 had been inoperation for 35-40 years and 163 for 40 years or more.

According to Minh,the VNR had been working with foreign partners on an investment solution forthe plan.

“The partner willbuild the trains and offer them to the VNR on a lease-purchase agreement."

In the meantime, thecost of building carriages would be cut by 10 percent, Minh said.

For example, it costsabout 300 billion VND (12.9 million USD) to build a carriage and 40 billion VNDfor lifetime maintenance. The VNR would have to spend 300 billion VND insteadof 340 billion VND without taking out loans.

“We expect 50 newtrains to go into operation in the next 3-5 years,” he said.

Minh also said theVNR would ask its partner to form a joint venture with Gia Lam Train Company orDi An Train Company to lower the cost of building trains, while ensuringdomestic workers, machines and materials were utilised.

Along with the newcarriages, the VNR would upgrade old ones to save money./.