Experts from JICA and the Ministry of Rail Transportation survey the circular railway in Yangon. (Photo-EMG)
The Ministry of Rail Transportation will spend more than US$700 million to upgrade Yangons circular railroad, according to its estimate.
This estimate amount does not include the cost for the sky train. An estimated $700 million will be spent only on the upgrade of the railway and train coaches, said Tun Aung Thin, general manager for lower Myanmar at the ministry.
The ministry is planning to upgrade the railway next year in cooperation with the Japanese International Cooperation Agency (JICA). The move covers the extension of the railway section as well as replacing coaches.
The circular trains speed will be more than doubled, from 30 to 80 miles per hour, and once the project is completed the ministry plans to start building a sky train with foreign loans, Tun Aung Thin added.
The upgrade is part of the plan to make rail travel the main mode of transport in Yangon. The ministry has sought assistance from countries with highly developed train transport systems, including Japan.
The project will begin soon as the ministry has already received approval from communities living near the rail tracks and it will be built in conformity with the environmental and social impact assessments that were conducted, the ministry said.
Besides upgraded the rail lines and replacing the coaches, the project includes upgrading stations, fencing, and installation of an alarm system and automatic gates.
The ministry has already opened a tender for the upgrade of Yangon railway station for both local and foreign companies. The tender winners will be announced soon, officials said.
Yangons circular train route will be expanded to Hlinethaya and Thilawa townships and 11 overpasses will be upgraded to make it easier to access the system, which is intended to become the key mode of transport in the Yangons evolution to a commuter-friendly city, the Ministry of Rail Transportation has said.
The expansion and upgrades will begin next year, officials from the ministry said. Previously, they said the speed of trains would more than double, and safety would become a critical component of the service rather than the afterthought it is now.
The ministry has claimed that it has already negotiated with people living along the railways to ensure the upgrade does not damage their lives. Everyone living along the tracks is supportive of the upgrades, officials have said.
The ministry says its work will adhere to recommendations detailed in the environmental and social impact assessment. Not land grabs will be permitted, it said.
We are working with the Japan International Cooperation Agency for land assessment for new routes extending to Hlinethaya Township and Thailawa special economic zone, and upgrading overpasses. The implementation will begin next year, Tun Aung Thin, general manager for the ministrys construction department said.
The upgrade estimated to cost about US$700 million will see stations and tacks refurbished, coaches replaced, new fencing placed along the routes and automatic gates installed for commuters.
Eleven new train carriages for the Yangon-Pyay route were launched Saturday.
The new carriages cost 800,000 US dollars manufactured by Myit Nge Factory. More locally made carriages are expected to be on the rail tracks soon.
Ministry of Rail Transportation, Uni0n Minister, Than Htay: 15 first class carriages left to manufacture for this year by Myit Nge Factory. The new 15 carriages for the railways running in the mountainous regions will be finished soon. The new 40 carriages similar to these ones will be manufactured in the next year.
Train ticket range from about 2 US dollars to 4 US dollars and is complete with facilities for travelers convenience.
Deputy General Manager, Myanma Railway, Zaw Pe Sein: The carriages are clean and installed with lights and electric fans. It starts to run at 1 pm from Yangon to Pyay and at 11 pm from Pyay to Yangon. It will stop at 13 stations along the route.
Recently, the parliament has agreed to loan 45 million USD from Korea to buy more carriages, as the ministry continues to improve the countrys rail transport system.
Commuter, Khin Cho Than: Ive travelled by train but it was not convenient for travelers, previously. Now, the trains are really tidy and they have better standard than before. Mostly, I rely on train to travel. I just feel traveling by train is safe.
About 500 passengers take the train from Yangon to Pyay and Pyay to Yangon daily.
Yangons circular rail lines are running at a loss to the tune of K1.5 million ($1,500) per day as the operators are forced to keep the ticket prices low to allow the majority low-end commuters use the service.
We are unable to raise rates because most riders would no longer be able to afford to use the train [if we do], U Zaw Phay Sein, assistant general manager for transportation, Myanmar Railways (Region 7), told Myanmar Business Today.
Diesel, brake and engine oil prices continue to increase. Our daily operations cannot even cover the fuel costs. We need to earn twice the amount used for fuel to break-even, he said.
Three circular lines and 13 others run daily, travelling over 150 miles each, which is almost equivalent to the distance from Yangon to Taungngu in Bago region. Everyday, each train burns over 100 gallons of diesel fuel, a train conductor who works on the Yangons central stations Hlawga track, said.
The train lines earn daily K7 million ($7,000) from fares, while the expense from fuel amounts to K8.5 million. Fares for train lines vary from K100 for an ordinary class ticket up to K200 for upper class and K300 for air-conditioned cars. Currently, three air-conditioned trains, two upper-class trains and 18 ordinary class trains do a combined 216 daily runs through 80 stations.
According to Myanmar Railways, on average 85,000 commuters rely on the train service on a daily basis.
The plight of the circular trains is bound to be an issue not easily solved. The economic profile of the average Yangon train commuter is that of a low-income earner that relies on the inexpensive service to travel to work and around town. It also puts into question the governments ability to privatise Myanmars rail service given its consumer profile.
I take the ordinary train to work everyday. I have to buy the ticket only one time because it is valid for the round-trip. I cant afford to buy K200 or K300 tickets, said one daily commuter who rides the train to and from South Okkalapa and Bogyoke Market for work.
U Zaw Phay Sein said collecting the fare for each trip instead of applying round-trip tickets could almost double fare revenue, which can help cover the fuel costs and even help the department attain break-even.
Tin Mg Oo
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