On the morning of June 8, at the National Assembly's session on question and answer, Minister of Transport Nguyen Van Thang emphasized that public transport is very necessary for large cities such as Hanoi and Ho Chi Minh City.
The Minister shared that he was very surprised that after 19 months of operating the Cat Linh - Ha Dong urban railway, there were 31,000 - 33,000 people traveling every day, with 55,000 people at peak times. The train ran every 6 minutes, reporting a profit of nearly 100 billion VND for the first time.
Previously, in mid-May, the audited financial report for 2022 of Hanoi Metro One Member Co., Ltd. (the operator of the Cat Linh-Ha Dong urban railway line) announced that the company's business results reached a total revenue of sales and service provision of VND 483 billion, 7 times higher than in 2021.
For the whole year of 2022, Hanoi Metro recorded subsidy revenue of VND417 billion, 6.6 times higher than in 2021. This revenue helped Hanoi Metro escape the loss-making business situation and have a gross profit of VND109.5 billion. Previously, in 2021, when the line was just put into operation, the company had a loss of VND64 billion.
Currently, Hanoi Metro's cost structure includes: Operating depreciation accounts for 60%, equivalent to 225 billion VND; labor costs of 99.4 billion VND (nearly double last year); outsourced service costs of nearly 60 billion VND (3.7 times higher)... After deducting all expenses, this enterprise's pre-tax profit is 96.8 billion VND.
Cat Linh-Ha Dong railway attracts many users (Photo: Dinh Hieu)
On June 12, speaking with VietNamNet reporters about the nearly 100 billion VND profit that surprised the Minister of Transport, Mr. Vu Hong Truong - General Director of Hanoi Railway One Member Co., Ltd. affirmed that the difference between revenue and expenditure in the company's financial report of over 96 billion VND is not yet profit. However, according to financial regulations, if revenue and expenditure are positive, it is called profit.
Explaining why there was a difference of over 96 billion VND, Mr. Truong pointed out the reasons:
First, the City's standards and unit prices for ordering are averaged over the entire process.
“However, in the first two years, the trains, equipment and infrastructure are still new, so the costs incurred are not many. Especially, many types of expensive repair spare parts are paid for by the warranty unit,” said Mr. Truong.
The second reason is that after the warranty period, these costs will arise and increase gradually. Therefore, according to Hanoi Metro's 2023 financial plan, the expected profit is lower than the standard profit in the City's order price.
“Currently, the company has reported to the inter-sectoral agencies on the plan to handle the revenue and expenditure difference of 96 billion in 2022 on the basis of reasonably balancing resources to ensure the maintenance of route operations, ensuring the rights of passengers and the rights of employees according to regulations,” said Mr. Truong.
The General Director of Hanoi Metro also emphasized that investment in developing public passenger transport in general and urban railways in particular is a public investment not for profit purposes.
Accordingly, the development of public passenger transport brings great social and environmental benefits such as reducing traffic congestion, environmental pollution and the risk of traffic accidents.
According to calculations, every 1 million trips switching from using personal vehicles to using urban railways will reduce 487,000 hours of traffic on the road, bringing economic efficiency of over 30 billion VND. Moreover, this will also reduce about 100 tons of CO, HC and NOx emissions.
Transported over 13.7 million passengers
On November 6, 2021, Cat Linh - Ha Dong urban railway line No. 2A is the first urban railway line in Hanoi as well as the whole country to be officially put into operation.
By June 11, 2023, the route had operated safely for 583 days, transporting over 13.7 million passengers.
(Source: Vietnamnet)
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