नयप्यिडव Naypyidaw: Myanmar needs to privatise the railway operations given a huge loss in the operations, said Rail Transportation Minister Than Htay.
The privatisation plan will allow private companies to operate the railway network under the ministry’s supervision, including the Yangon Railway Station. For the operations, joint ventures with the private companies will be established.
The minister noted the decision was driven by the operating losses, of about Ks 45 billion per year.
“Railway services are operating at a loss. This is a global phenomenon. Japan’s system, considered to be the best in the world, is also making losses. Our system also suffers a loss of Ks 45 billion per year,” he added.
The ministry is in the process of attracting investment bids from private companies. Joint ventures are planned for the operations of the Bagan-Kyaukpadaung and Mandalay-Myitkyina routes.
To make the deal more attractive, the ministry has given the green light to the bid winner to run advertisements on the Yangon circular trains.
In the past three years, the ministry has accelerated its efforts to upgrade the railway network, mainly with assistance from Japan.