Logistics Railway
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Transcript of Logistics Railway
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Railway Logistics 2
PRESENTATIONS OUTLINE
1. Overview of Railway System in Vietnam (Ms.Cuong)
2. Roles of Government on Railway Logistics (Mr.Dung)
3. Demand and Supply of Railway Logistics (Ms.Van Anh+Ms Giang+Ms Dung)
4. Market structure (Mr. Hiep)
5. Market conducts (Mr.Hai)
6. SWOT analysis on Railway Logistics of Vietnam (Mr.Hieu +Mr.Viet)
7. Recommendations (Mr.Tuan)
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1. Overview of Railway system in
Vietnam1.1.History of Railway systems in Vietnam
1.2.Current Railway networkin Vietnam
1.3. Organization Chart of Vietnam Railways
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1. Overview of Railway system in
Vietnam1.1.History of Railway systems in Vietnam Long history with over 100 years of establishment with the
first route f rom Saigon to My Tho and vice verse started on
20th
July 1885 Main railway system was built during the period f rom 182 to
1936based on the French technology with the width of1metre
for railway lane.
During 2 wars, railway system was almost destroyed.
After unification, the railway system was repaired and
recovered since 1976 and started to modernize the railway
system between the North and the South since 1989.
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1. Overview of Railway system in
Vietnam
1.2.Current Railway network inVietnam
With a total length of 2600 km,
Vietnam Railways network connects
residential area to cultural,
agricultural and industrial center,except the Mekong river delta area
When it is more developed, Vietnam
railway network is possibly linked to
Cambodia, Thailand and Malaysia
railways network via which to
Singapore and Laos railways . Vietnam Railways is using 3 kinds of
gauge, namely 1000 mm-gauge, 1435
mm-gauge (standard gauge) as well
as 1435 mm and 1000 mm-gauge
(mixed gauge)
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1. Overview of Railway system in Vietnam
1.3.Organization Chart of Vietnam Railways
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2. Roles of Government on
Railway Logistics
Governmental bodies (MoT, other line Ministries, VRC)
acts as:
(i) investors forrailway infrastructure development;
(ii) management bodies in actual operation of the railwaysystem;
(iii) regulators in issuing regulations foroperation ofrailway
system and railway logistics
(iv) sponsors in providing the subsidies;
(v) Plannerin masterplan forfuture development;
(vi) Operatorfordaily management of subsidiaries and sub-units
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2. Roles of Government on
Railway Logistics (cont.)
Role of VRC:
Vietnam Railways re-organized into a national corporation,namely Vietnam Railway Corporation, at Decree No.34/2003/Q-TTg dated March 04, 2003 by the Prime
Ministerconsists of different self-sufficing and financially
dependent enterprises
VRC acts as the coordinatorin consulting forMoT andcooperation among companies, sub-units and railwayoperations centers underthe VRC
VRC is responsible forsetting up the long term masterplanformodernization ofrailway system
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3. Demand and Supply of
Railway Logistics
3.1.Features of demand in Railway Logistics
3.2.Current Supply of Railways Logistics in
Vietnam
3.3. Features of Supply of Railway Logistics
in Vietnam
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3. Demand and Supply of
Railway Logistics
3.1.Features of demand in Railway Logistics Cost forrailway freight is reasonable in comparison with China and
Thailand.
As Vietnam is geographically shaped as S, the sea/waterways
freight forgoods and cargo are more preferable than railway freight
Railway system is not available forall parts of the countries -> not
develop the local logistics
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3. Demand and Supply of
Railway Logistics3.2.Current Supply of Railways Logistics in Vietnam
Table: Railway freight carried, Domestic, from 2005 to 2013
Criteria 2005 2006 2007 2008 2009 2010f 2013f
Rail (tonnes-km,
bn)
1,448 1,573 1,715 1,870 2,049 2,240 5,630
% change y-o-y 8.4 8.6 9.0 9.0 9.6 9.3 8.8
% change 5-yearaverage
2.8 6.7 7.4 8.0 8.9 9.1 6.9
Source: Vietnam Freight Transport Report 2009
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3. Demand and Supply of Railway Logistics
3.2.Current Supply of Railways Logistics in Vietnam
Table: Volume of freight by type of transport
Source: G
SO2009
Of which:
Railway RoadInland
waterway
Maritine
transport
Aviation
transport
%
2000 2.80 64.59 25.64 6.95 0.02
2001 2.56 65.05 25.70 6.67 0.03
2002 2.41 65.67 25.59 6.31 0.02
2003 2.41 64.88 24.77 7.90 0.03
2004 2.20 65.70 24.30 7.77 0.02
2005 1.91 64.77 24.15 9.14 0.02
2006 1.78 65.93 23.95 8.31 0.02
2007 1.52 67.59 22.67 8.21 0.02
2008 1.30 68.34 21.15 9.20 0.02
2009 1.26 7.03 18.29 73.40 0.02
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3. Demand and Supply of
Railway Logistics
3.3. Features of Supply of Railway Logistics in
Vietnam
Depends much on the rights and obligations regulated by the
Governmental bodies
Mixture between the management ofrail infrastructure from
passengers and cargo services
Involvement of private sectors almost zero, only supporting
services
Have connection with othertypes of logistics (waterway,airlines, roadways, etc) forprovision of multi-modal
transportation
Currently, provide forlocal transport only, but in future can
cooperate with neighboring countries
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4. Market structure
RAIL STATIONS/
OPERATORS
VIETNAM RAILWAY
CORPORATIONS
LOCAL
GOVERNMENTS
MINISTRY OF
TRANSPORTATION
CUSTOMERS
OTHER LINE
MINISTRIES
FREIGHT
FORWARDERS
Direction
Direction
Subsidies
Fares/ Freights
Fares/ Freights
Co-operation
Regulation
Fares/ Freights
Monopoly market: The Government bodies monitor and manage the
infrastructure, operation and improvement of railway systems andlogistics
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5. Market conducts
Market forrailway services are operated under
the supervision of Vietnam Railway Corporation
Ministry of Transportations, otherline Ministries
(MoF, MoIT, MONRE, etc) and local
governments regulate the fundamental rules for
operation ofrailway logistics
All participants in railway logistics co-ordinate
with each otherin both administrative and market
relationship.
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6. SWOT Analysis
6.1. Strengths of Railway logistics in Vietnam
6.2. Weakness of Railway logistics in Vietnam
6.3. Opportunities of Railway logistics in
Vietnam
6.4. Threats of Railway logistics in Vietnam
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6. SWOT Analysis
6.1. Strengths of Railway logistics in Vietnam Cost less in infrastructure repairing as used forthe
typical transport vehicles
Save the energy and protect the environment
Less be affected by the weatherand climate Relatively safe in comparison with othertransportation
means
Lowercosts in comparison with othertypes of
transportation (road, airway) More preferable in short and fixed routine
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6. SWOT Analysis6.2. Weakness of Railway logistics in Vietnam
Infrastructure is not well developed due to the low startingpoint for infrastructure development-> limited in availableroute
Services are relatively less professional than othertransportation means due to the lackof professional human
resource
Participation of private sectoris limited -> less competitiveand slow in services and operation improvements
Provide services for local market only ->> hard forfuturecompetition underthe open market condition according to the
WTO commitments Though all participants are controled by Governmental
agencies, the linkage and connection among them are stillloose, not strong enough
Lackof a good strategy forbuilding up the trademarkfor
railway logistics industry in Vietnam
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6. SWOT Analysis
6.3. Opportunities of Railway logistics inVietnam
The development of local trade and internationaltrade ->> increase the demand forrailwaylogistics services
The policy formodernization ofrailway systemstated by the Government
The policy allowing the participation of privateand foreign sector->> improve much the
infrastructure
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6. SWOT Analysis
6.4. Threats of Railway logistics in VietnamFace with the tuff competition underthe
commitment formarket openness of WTO
The regulations and legislation standards are
complicated
Multiple layers of administration management
among ministries and local government leads to
corruption and/ortime-consuming
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7. Recommendations
Improving the current railway systems by callingforthe investment from local and foreigninvestors
Set up and build more new and convinient routeforcargo transportation
Separate the management and operation ofpassengertransport and cargo transport
Conduct some market survey to analyze the localmarket and potential forrailway logistics services
Promote the trade markofrailway logistics tomake it familiarwith the logistic demanders
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THANK YOU!
Thankyou!