Myanmar Railways 'deep in the red'

[webfact]

Myanmar Railways 'deep in the red'



MYANMAR: -- The huge influx of cars and trucks into Myanmar over the past few years has driven the country’s railways deeper into the red, parliament heard on Dec 3, as reported by The Myanmar Times.

U Myint Thein, deputy rail minister, told parliament that ministry-owned Myanma Railways had lost K65.4 billion last year.

The deputy minister was trying to justify Myanma Railways’ request for K10.11 billion in the supplementary budget, which has come under fire from some members amid criticisms of waste and a more robust approach to scrutiny.

From 1989 until 2006, the railways regularly made a profit, U Myint Thein said.

For the first time, the department lost K12.5 billion in 2006-2007 financial year, and the amount has grown every year since, reaching K65.4 billion in financial 2014-2015,” he told MPs, adding, however, that the “profits” of earlier years depended in part on government fuel and other subsidies.

For instance, the railways were not required to pay interest on the state’s investment to Myanma Economic Bank, and foreign exchange was calculated at the then-official rate of K6 to the US dollar.

U Myint Thein said passengers had largely abandoned the railways as roads had improved and large numbers of vehicles, including buses and tractor trailers, had been imported as the country’s economy was liberalised, starting in 2011.

Efficiency had also been impaired by the use of different locomotives and rolling stock imported from different countries, leading to servicing difficulties and higher costs for maintenance.

Source: http://englishnews.thaipbs.or.th/myanmar-railways-deep-in-the-red


-- Thai PBS 2015-12-08

[JoePai]

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