Govt 'facing difficulties' over spending on rail operations
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The government is spending Ks 45 billion (nearly US$463,717) a year on the railway operations, according to Myint Thein, Deputy Minister for Rail Transportation.
He attributed the huge spending to the fact that the government has to take care of the operations and maintenance of the nationwide rail network.
“The travellers, who are working class people in Myanmar, depend on the train and only they are riding it,” said Myint Thein, who spoke at a press conference to discuss the upgrade of the Yangon Railway Station.
“That’s why our government is spending Ks 40 or Ks 45 billion yearly for the public. On the other hand, we are facing difficulties because the government has spent money for the upgrading of railroads and the renovation of coaches and locomotives.”
“There are 215 circular trains plying regularly into downtown Yangon and nearly 90,000 travellers are riding the train daily,” said Kyaw Myo, Assistant Manager of Yangon Railways Station.
More than US$2 billion will be spent upgrading the 62-acre property at the Yangon Railways Station and the construction task will commence in 2015.
Earlier this month, the Ministry of Rail Transportation put four enterprises and land plots held under the financially ailing railway unit on auction, hoping to improve the operations through private sector involvement.
The enterprises include the one operating taxi at Yangon Railway Station. Meanwhile, it also looks for the private developers of land plots - 1.04 acres near Insein railway station and its football field, and more land plots in Lanmataw, Mayangone and North Dagon townships.
According to a press release from the Ministry of Rail Transportation, a car park enterprise permit of one-year duration will be given out, while the land will be leased from 15 to 30 years.
Entrepreneurs who are willing to bid for the enterprise and the land must apply by May in the lower Myanmar railway offices, including Yangon Railway Station, the Ministry announced.
With the Yangon circular rail system losing millions of kyats per day, the Ministry has made efforts to cooperate with private firms and invite tenders, since late 2013.
The Ministry is planning to establish a rail accessory production factory in Myanmar in order to cut the maintenance cost, the Union Minister for Rail Transportation Than Htay said recently
At present, extended cooperation with private firms is in the works for railway operations and arrangements are underway to turn Yangon Railway Station into a facility that meets international standards.
