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Railway industry to reduce fares to compete with buses
(03-05-2008)

HCM CITY — Sai Gon Railways Passenger Transportation Company has announced plans to lower ticket prices and improve services, targeting a dramatic rise in the number of customers.

Railroad workers this week met to discuss the industry’s share of the entire transport market, which accounts for only 8 per cent.

The industry cannot meet demand during peak times such as holidays, while it has an insufficient number of passengers in September, October and November, contributing to an imbalance in revenue.

"Trying to attract more customers is the only solution," said Vu Ta Tung, the transport company’s CEO.

Nguyen Huu Tuyen, head of the Department of Transport Trade, said reduction of fares was key in competing with passenger buses.

Buses are the train industry’s chief transport rival for distances within 200 km.

"Train tickets should cost the same or less than buses, and should be used for one-way trips," Nguyen Thi Thanh Phuong, head of the Sai Gon Railway Station.

According to Doan Long, director of Sai Gon Railroad Car Factory, people often think that buying tickets is very difficult.

"The rail industry has to change that assumption. In order to do so, train stations or captains should be allowed to sell tickets themselves. Moreover, tickets should be booked on the phone and delivered at home for free," Long said.

Selling tickets to a group would also be offered, he added.

Nguyen Van Thanh, deputy head of the Sai Gon Railway Station, said bank transactions would be used so that organisations or companies could not resell their tickets on the black market.

The rail transport company would also begin to sell tickets for next year’s Tet holiday in July, with discount tickets available on a first-come, first-serve basis.

Both the name and identification number of customers would be printed out on tickets instead of being hand-written as before. — VNS