Socialist Republic of Vietnam Hanoi People’s Committee (HPC) Hanoi Metropolitan Railway Management Board (MRB) Special Assistance for Project Implementation (SAPI) for Establishment of an Organization for the Operation and Maintenance of Metropolitan Railway Lines in Hanoi City Final Report November 2012 Japan International Cooperation Agency (JICA) Japan International Consultants for Transportation Co., Ltd. EI JR 12-204 Establishment of an Organization for the Operation and Maintenance Final Report of Metropolitan Railway Lines in Hanoi City (SAPI) Table of Contents Executive Summary····································································································································1 Objectives for the Study ·······························································································································1 Study Area and Counterparts ························································································································1 Current Conditions ·······································································································································1 Basic Institutional Policy······························································································································2 General Comments about the O&M Organization ························································································2 Establishment of Integrated OCC, Regulator and Comprehensive Management Structure····························4 Interoperable AFC and IC card ·····················································································································5 Proposed Financial Scheme and Roadmap····································································································6 Financial Analysis ········································································································································6 Financial Arrangement Proposal···················································································································7 Roadmap ······················································································································································8 Summary of Recommendations····················································································································8 Chapter 1 Background and Objectives·································································································10 1.1 Background ·······································································································································10 1.2 Objectives of the Study······················································································································11 1.3 Study Area and Counterparts··············································································································12 Chapter 2 Current Conditions and Outstanding Issues ······································································13 2.1 Current Status ····································································································································13 2.1.1 Socio-Economic Status of Hanoi Capital City ·········································································13 2.1.2 Hanoi Urban Railway Master Plan ··························································································14 2.1.3 Summary of Progress of On-going Projects·············································································17 2.2 Outstanding Issues·····························································································································23 2.2.1 Nature of the Railway Business·······························································································23 2.2.2 Lessons Learned from Other Countries ···················································································24 2.2.3 Financially Sustainable Organization ······················································································25 Chapter 3 Basic Institutional Policy ·····································································································27 3.1 Scheme of the O&M Organization·····································································································27 3.1.1 Operational Organizations of Metros in the World···································································27 3.1.2 Legal Study ·····························································································································29 3.1.3 Functional Study ·····················································································································30 3.1.4 Summary·································································································································31 3.2 The Domain of the O&M Organization······························································································32 3.2.1 Study on the Current Status of the Metro Systems throughout the World·································32 i Establishment of an Organization for the Operation and Maintenance Final Report of Metropolitan Railway Lines in Hanoi City (SAPI) 3.2.2 Meaning of the Integration of Lines into a Single Company····················································33 3.2.3 Study on a Plan for a Single Line by a Single Company··························································34 3.2.4 Study on the Status of Each Respective Line···········································································36 3.2.5 Options for the O&M organization (Summary) ·······································································38 3.3 Common Fare System and the Financial Scheme···············································································39 3.3.1 Meaning of Common Fare System for the Passengers·····························································39 3.3.2 Common Fare System in a Company ······················································································39 3.3.3 Common Fare System among Companies ···············································································41 3.3.4 Need for Discussion about Common Fare System in Hanoi ····················································44 3.3.5 Distribution of the Fare Revenue·····························································································44 3.3.6 Summary·································································································································46 3.4 Integration of AFC·····························································································································47 3.4.1 Necessity of Integration···········································································································47 3.4.2 Basic Requirement for the Specifications of AFC and Contactless IC card······························48 3.4.3 Interchange Stations in Hanoi··································································································50 3.4.4 Providing Interchange Stations Where Both Stations are Not Directly Connected···················51 3.4.5 Summary·································································································································53 3.5 Integrated Operation Control Center··································································································53 3.5.1 Reasons for Integrating the OCC·····························································································53 3.5.2 History of Integration of OCC in Japan ···················································································55 3.5.3 Required Specifications for the Integrated OCC······································································57 3.5.4 Objective Plan for Integrated OCC··························································································58 3.5.5 Summary·································································································································60 3.6 Role of the Regulator for Urban Railways ·························································································60 3.6.1 Necessity of the Regulator for Urban Railways·······································································60 3.6.2 Role of Regulator for urban railways in Hanoi ········································································62 3.6.3 Consolidation of the Regulator for Urban Railways to Public Transport Authority (PTA)·······63 3.6.4 Summary·································································································································64 3.7 Legal Study of the Related Laws and Regulations ·············································································65 3.7.1 Institutional Scheme of O&M Organization ············································································65 3.7.2 Legal Relationship among Relevant Parties·············································································66 3.7.3 Private Investment in Urban Railway Sector ···········································································67