Railway company asks for subsidy after running into losses

HÀ NỘI — Hà Nội Railway Transport Joint Stock Company has asked for a Government subsidy after suffering losses due to a lack of passengers.

According to the company, last year it suffered a loss of VNĐ8 billion (US$350,000) on the Hà Nội- Đồng Đăng route, VNĐ 5.7 billion ($248,000) on the Hà Nội-Quán Triều route and nearly VNĐ7.5 billion ($327,000) on the Yên Viên-Hạ Long route.

In the last six months of this year, it has forecast a loss of VNĐ12 billion ($523,000)

Director Nguyễn Viết Hiệp said that the company had to operate trains on the three routes despite the fact that few passengers used the routes, resulting in low revenue.

“The company tried to attract passengers and increase revenue but is still failing to meet operation costs,” Hiệp said.

He emphasised the need for a Government subsidy to continue offering services on the routes to ensure social security and public benefits. — VNS