The overall outlook for the region is positive mainly driven by road and infrastructure investments aimed at connecting far flung regions with the relatively more developed regions. This is the case for China, Vietnam and India. Long term projects with the greatest potential include the expansion of the Asia Highway network which plans to connect the countries in Southeast Asia towards China and a portion of key Central Asian economies. Visit http://www.tunneldesignconstruction.com and http://www.bridges-asia.com to keep track of the developments in the Bridge and Tunnelling sectors.
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Asia Infrastructure Outlook and Key Road Projects in Emerging Markets
1.
2. Contents
Executive Summary And 2012 Outlook ........................................................................................................ 3
Japan ............................................................................................................................................................. 4
South Korea................................................................................................................................................... 5
India .............................................................................................................................................................. 6
Hong Kong ..................................................................................................................................................... 8
Singapore ...................................................................................................................................................... 9
Malaysia ...................................................................................................................................................... 10
Thailand....................................................................................................................................................... 11
Indonesia ..................................................................................................................................................... 12
China ........................................................................................................................................................... 14
Vietnam ....................................................................................................................................................... 15
3. Executive Summary And 2012 Outlook
Project pipelines in the Asian road and bridges infrastructure segment have a strong emerging
market bias with the largest investments in the developing economies of China, Vietnam and India.
The three countries have the greatest potential for growth in the coming years as urbanization and
modernization initiatives continue to be pursued by their respective governments. In the developed
markets, there are a number of exceptions in the roads and bridges sector most notably the
US$9.7bn Seoul underground road network in South Korea and the US$11.3bn Hong Kong-Macau-
Zhuhai bridge.
A prevailing risk for infrastructure investments in the developing economies is the prevalence of
bureaucracy, intervention and corruption in governmental units which can serve to increase overall
costs and delay project implementation. One of the most prevalent examples of government
intervention in recent years is the Malaysian government’s populist and sometimes arbitrary
involvement in settling toll fees for highways. For example, in January 2011 Prime Minister Najib
Razak asked all highway concessionaires to either freeze, cut or abolish tol rates without
compensation. MTD Capital, the country’s second largest road operator, will freeze toll rates on the
KL-Karak highway and the East Coast Highway Phase 1 for five years without compensation and
without an extension on toll concessions.
Despite the risks though, the overall outlook for the region is positive mainly driven by road and
infrastructure investments aimed at connecting far flung regions with the relatively more developed
regions. This is the case for China, Vietnam and India. Long term projects with the greatest potential
include the expansion of the Asia Highway network which plans to connect the countries in
Southeast Asia towards China and a portion of key Central Asian economies.
4. Japan
Despite the March 2011 earthquake and tsunami, there are a limited number of road transportation
investments in Japan as of the moment. Most of the new investments will go into ports and
residential infrastructure in the coastal cities that have been severely damaged. In the transport
sector as a whole though, the largest investment is the construction of the 290km US$62 billion
magnetic levitation train that will connect Tokyo and Nagoya. This is part of the overall
modernization of Japan’s aging airports. Construction began in 2011 and the rail line is targeted to
be finished by 2027. In line with the modernization trend, the Haneda International Airport is also
set for a US$1.22 billion upgrade by 2013.
Japan has one of the most modern road ways in the world. As it is with most other countries, road
remains the dominant form of surface transport in Japan. The country has a total of 1.2 million
kilometers of roads of which almost 80% are paved. This is comparable to South Korea’s 80%
although lower than city-state Singapore’s 100%. Japan has 320 kilometers of roads per 100 square
kilometers of land area, one of the highest road density rates in Asia. The only prominent road
infrastructure in Japan in recent times is the Rinkai Ohashi Truss Bridgein Tokyo. Total value of road
and bridge infrastructure in the country is approximately US$20 billion.U
5. South Korea
South Korea’s total road network is approximately 104 thousand kilometers of which 80% is paved,
similar to that of Japan. The country’s road system connects its major cities, ports and industrial
complexes. The country’s road network is relatively strained however, especially in the capital Seoul.
About a third of South Koreans own a car and about half of freight transport in the country is done
through roads. In response to this, Seoul expects to spend 11.2 trillion won (US$9.7bn) to build six
underground roads beginning 2010 until 2017. From 2017 onwards, people in Seoul will be able to
drive on the underground roads. The following is a picture of the planned road infrastructure
investment from the Seoul Metropolitan Government .
South Korea’s plan to build its underground road network is the first ever in the world to construct something of
that scale and there have been concerns regarding ventilation and safety. The giant underground roads will be 40
to 60 meters below the ground. Another prominent road project is the 234 kilometer Incheon-Seoul-Gangneung
Expressway that began construction in 2011. Total road and bridge infrastructure value in the country is
approximately US$2 billion as of 2010 although this is expected to more than quintuple to US$10 billion once
Seoul’s ambitious underground road network is finished.
6. India
India’s road network stretches a total of 4.2 million kilometers, of which about 50% is paved. The country’s road
density is at 129 kilometers per 100 square kilometers of land area, at par with other developing nations in Asia.
th
For India’s 12 Five-Year Plan which will run from 2012 to 2017, India plans to spend a total of US$1 trillion in
th
infrastructure investments. This is double that of the US$500 billion set out during the 11 Five-Year Plan (2007
to 2012). Of the US$500 billion of projected spending from 2007 to 2012, US$167 billion will go into electricity,
US$65 billion into railways, US$92 billion into roads and highways, US$22 billion into ports and US$8 billion into
airports. India will narrowly miss this target as according to provisional estimates by Gajendra Haldea, Advisor to
the Deputy Chairman of the Planning Commission, total infrastructure investments for the period 2007 to 2012
will likely hit US$480 billion.
th
Below is a table of road infrastructure investment during the 11 Five-Year Plan (in US$ million).
National Highways State Roads (Highways, Rural North Total
Major District Roads, Other Roads East
Roads)
Year NHDP NHDP Non- Total Public Private Total
Public Private NHDP
(Public)
2007-2008 3,173 3,702 463 7,338 4,347 1,333 5,680 1,875 212 15,104
2008-2009 3,305 3,966 486 7,757 4,528 1,428 5,956 2,025 238 15,976
2009-2010 3,464 4,495 510 8,469 4,745 1,618 6,364 2,150 291 17,273
2010-2011 3,834 5,685 536 10,588 5,253 2,047 7,299 2,300 317 19,971
2011-2012 4,707 6,478 563 11,747 6,488 2,345 8,834 2,463 344 23,387
Total 18,483 24,326 2,557 45,365 25,361 8,771 34,132 10,813 1,401 91,711
Source: PWC
One of the key risks of the US$1 trillion investment plan for 2012 to 2017 is the estimate by government officials
that half of this amount will come from the private sector. Although the country’s ports and airports were
successful in attracting private investments, that is not the case for investments in roads. Only 16% of the
investments in roads have come from the private sector. In recent years, India’s former minister for road transport
and highways had targeted to attract US$70bn of investments into road infrastructure but has failed to reach so
far. Difficulty in gaining environmental permits, inconsistencies and issues with land rights, and the difficulty of
acquiring proper project financing have been the key reasons of the anemic state of investments into road
infrastructure.
India’s roads are getting more congested by the day. Passenger traffic is projected to grow at 12% and over 15%
for cargo traffic. The Indian government, via the National Highway Development Program (NHDP) has planned
more than 200 projects during the 207 to 2012 period representing 13,000 kilometers of roads. Large projects are
likely to reach US$700 million to US$800 million in size. Overall, more than ten states have planned to develop
their respective highways.
Below is a list of upcoming road infrastructure investments in the country.
7. Value
Project Name US$ million Companies Involves/Status
Gujarat state road improvement $ 6,600 Bidding stage
MoU with Malaysia to construct highways $ 5,000 NA
Jaipur-Delhi expressway $ 3,000 Planning stage
Chandigarh-Delhi expressway $ 3,000 Planning stage
Sanauta Bridge to Purkazi expressway $ 1,800 Awaiting proposals
Mumbai Metropolitan Region Development
Eight lane bridge between Sevri and Nhava Shevra $ 1,670 Authority
Agra-Etawah, Rampur-Kathgodam and Raipur-Bilaspur roads $ 1,400 Project approved, awaiting proposals
Gujarat-Rajasthan expressway $ 1,260 GMR Infrastructure
Jharkand road development project $ 1,100 August 2011 construction
Maharashtra-Amravati-Gujarat expressway $ 1,000 September 11 construction
3 road projects in Rajasthan, Maharashtra and Gujarat $ 938 Project approved
Kathmandu-Birgunj road $ 900 Reliance Infrastructure/Landmark Worldwide
IRB Ahmedabad-Vadodara Super Express, IRB
Ahmedabad-Vadodara road $ 817 Infrastructure Investors
Gujarat road development $ 813 IRB Infrastructure Developers
Tunnel between Chennai and Nashri $ 810 Leighton Welspun Contractors
Barwa Adda-Panagarh, Barasat-Krishnagar and Ambala-Kaithal road
widening project $ 800 Project approved
Road widening project for Orissa and Madhya Pradesh $ 790 Project approved
Shivpuri-Dewas expressway $ 633 GVK Power and Infrastructure (GVKPIL)
Delhi-Agra highway $ 626 Reliance Infrastructure
Widening project for the Admedabad-Rajkot and Bamanbore-
Samakhiali highways $ 596 Tendering stage
Upgrade for Chenani-Nashri road $ 549 IL&FS Transportation Networks
Chhattisgarh road development project $ 499 Asian Development Bank (ADB)
Hyderabad-Vijayawada road $ 497 GMR Infrastructure
Mumbai-Jawaharlal Nehru highway $ 478 Announced by NHAI
Delhi-Saharanapur-Yamunotri and Bareilly-Almora-Bagheshwar road $ 467 SEW-Prasad Consortium, PNC-Infratech
Karnataka highway improvement $ 463 Asian Development Bank
NH-7 laning project $ 434 Indian Cabinet Committee on Infrastructure
Bihar state highway $ 424 ADB
Mdhya Pradesh State road $ 375 Asian Development Bank (ADB)
Pune-Satara highway $ 373 Reliance Infrastructure
Automation project in Maharashtra $ 370 Sadbhav-Srei-Srei Sahaj
GMR Infrastructure (GMR), Oriental Structural
Hungund-Hospet road $ 365 Engineers (OSE)
Andhra Pradesh highway $ 362 KMC Constructions, SNC-Lavalin
West Bengal- Gangtok highway $ 361 Bid from Star Universal Resource
Karnataka highway improvement $ 350 World Bank
Sadbhav Engineering, Hindustan Construction,
Maharashtra highway $ 340 Laing
Indore-Admedabad road $ 339 IVRCL Infrastructure & Projects
Bakhtiapur -Tajpur bridge $ 322 Final tender stage
Hyderabad - Sangareddy highway widening project $ 296 GMR Infrastructure
Source: News reports
8. Hong Kong
Due to Hong Kong’s mountain ranges, the region has a relatively low road density when of 187
kilometers of road per 100 square kilometers when compared to the rest of developed Asia. Road
density is one of the highest in the world however with 248 vehicles per kilometer of road. In total,
the region’s road network stretches 2,040 kilometers. The largest bridge project in Hong Kong right
now is the US$11.3 billion Hong Kong-Macau-Zhuhai bridge that was awarded to a consortium led by
China Communications Construction. The bridge is a series of hanging bridges and tunnels that will
connect Hong Kong, Macau and Zhuhai, three major cities situated close to the Pearl River Delta.
With a proposed length of 50 kilometers, the structure would become one of the landmarks in the
area. Construction formally began in 2009 and is due to be completed 2015 to 2016.
Hong Kong’s government has argued that the bridge will alleviate congestion in existing cross-border
checkpoints as a minimum benefit. More importantly, it will encourage deeper economic integration
between Hong Kong and the Pearl River Delta Region, more importantly with Zhuhai, Guangdong.
For Hong Kong, the project will enable the city to continue its status as an international aviation and
shipping centre. The bridge will substantially shorten the travelling time between the eastern and
western sides of the southern tip of the PRD. Faster economic integration between Hong Kong and
the region is expected with the increasing flows of people, goods and even capital. Below is a list of
other Hong Kong road infrastructure projects due to be finish construction by 2015.
Value
Project Name US$ million Companies
Tolo highway
widening $240 China State Construction Engineering
Tolo and Fanling
highway widening
project $307 Gammon Construction
Tuen Mun road
improvement $363 Gammon Construction, Balfour Beatty
Tuen Mun road
upgrade $1,550 Construction underway
Central-Wan Chai
Bypass (CWB) -
Islang Eastern
Corridor link $3,600 AECOM
China Communications Construction Co, AECOM Asia Company
Ltd, Shanghai Urban Construction (Group) Co, China Highway
Hong Kong- Planning and Design Institute Inc, COWI A/S, Shanghai Tunnel
Zhuhai-Macao Engineering and Rail Transit Design and Research Institute and
bridge $11,300 CCCC Fourth Harbor Engineering Investigation and Design Institute.
9. Singapore
The city-state boasts almost 3,400 kilometers of roads, of which 100% are paved. Owing to its size,
the country has one of the highest road density rates in the world with almost 500 kilometers of
roads for every 100 square kilometers of land area. Car ownership in the country is also expected to
increase from 115 per 1,000 residents in 2010 to around 140 per 1,000 residents in 2015. This has
led to the government initiating and planning new road transportation infrastructures despite the
developed nature of the country.
In recent years, the construction of Singapore’s two integrated resort-casinos was the main driver
for growth in road and bridge infrastructure spending. New sources of growth include the still
unfinished Marina Bay area and the Jurong Lake district. The Urban Redevelopment Authority
announced in 2008 the master plan for the Jurong Lake District. The Jurong Lake District is set to
become a 360 hectare lakeside destination for business and leisure in the next 10 to 15 years. It will
become the largest commercial hub outside the city center. Gardens by the Bay is an ongoing
projects that involves the building of three major parks at Marina Centre, Marina South and Marina
East, mostly on the coastal areas of Marina Bay. The first phase of the Marina South Gardens was
completed in 2010 and surround the coasts of Marina Bay. It is linked by bridges over the bay and
rivers, such as the Marina Barrage and The Helix Bridge. All in all, Gardens By The Bay will take up to
94 hectares with 54 hectares for Marina South, 30 hectares for Marina East and 10 hectares for the
Marina Centre.
The 5 kilometers Marina Coastal Expressway (MCE) wil be built along the coastal lines of the new
downtown area and will link the area to the eastern and western parts of Singapore. The expressway
is slated for completion by 2013 and will connect the Kallang-Paya Lebar Expressway and Ayer Rajah
Expressway. The MCE began construction in 2009 and has an estimated cost of US$4bn and will
also include an undersea tunnel. Current contractors of the project include Hock Lian Seng,
Ssangyong Engineering and Construction, Samsung C&T, Penta-Ocean Construction, Sato Kogyo
and Daelim Industrial.
In early 2011, the government approved the construction of the 21 kilometer North-South Expressway (NSE)
that will run side-by-side with the congested Central Expressway (CTE). The 21 km North–South
Expressway will stretch from Woodlands and Sembawang to the western end of the East Coast
Parkway, relieving traffic on the congested Central Expressway. The CTE is currently the only expressway
in Singapore that connects the central, northern and north eastern parts of the country. Land acquisition
activities have already begun for the NSE with current affected land owners being compensated and asked to
relocate to other areas. Construction of the NSE will begin by 2013 and will be finished by 2020.
Other smaller projects include a US$29mn road widening project for the Old Choa Chu Kang Road by OKP
Holdings to be finished by 2014 and a US$50mn Alexandra Canal rehabilitation by OKP Holdings.
10. Malaysia
Malaysia’s road network totals more than 100,000 kilometers, of which more than 80% are paved.
As one of the richest countries in South East Asia, Peninsular Malaysia is actually well connected by
an extensive road network. The major enclaves of Klang Valley, Penang and Johor Bahru are all
connected through the 1,630 kilometer long Malaysian expressway network, of which another 220
kilometers is under construction.
In fact, the expressway network of Malaysia is considered the best expressway network in Southeast
Asia. The North-South Expressway in West Malaysia passes through all the major cities and towns
such as Penang, Ipoh, Klang Valley and Johor Bahru. The Pan Borneo Highway connects the
Malaysian states of Sabah and Sarawak with Brunei. A few major expressways in Malaysia are part of
the larger Asian Highway Network, an international project between Asian nationsl to connect their
national highway systems. There are three Asian Highway routes passing through Malaysia: Asian
Highway Route 2, Asian Highway Route 18 and Asian Highway Route 150.
Project Length (km) Construction Start/End Maintained by
Date
Shamelin Expressway 12.3 2009-2012 Besraya Sdn Bhd
JB Eastern Dispersal 8.1 2007-2011 MRCB Lingkaran
Link Selatan Sdn Bhd
Penang Second Bridge 23.4 2008-2012 Jambatan Kedua Sdb
Expressway Bhd
Section 2 and 3 of Section 2 – 13.0 2007-2011 SKVE Holdings Sdn Bhd
South Klang Valley Section 3 – 18.8
Expressway
E28 Expressway na 2008-2013 Lebuhraya Pantai Barat
Sdn Bhd
Penang Outer Ring 17 Suspended indefinitely Peninsular Metroworks
Road Sdn Bhd
Kuala Lumpur Outer 39.5 2012 – na *currently at land
Ring Road acquisition stage
Malaysia-Singapore Na Proposed bridge na
Third Crossing connecting Changi,
Singapore and Johor,
Malaysia
Malacca Strait Bridge 48 10 years Awaiting government
approval
Toll prices are a political issue in Malaysia and there have been cases where the government has set
out ordinances to cancel toll collection. Investors are at risk of populist measures, such as the
cancellation of toll fees, when investing in Malaysian highways or expressways. For example, in
January 2011 Prime Minister Najib Razak asked all highway concessionaires to either freeze, cut or
abolish tol rates without compensation. MTD Capital, the country’s second largest road operator,
will freeze toll rates on the KL-Karak highway and the East Coast Highway Phase 1 for five years
without compensation and without an extension on toll concessions. The toll concession for a
section on the East-West link was also abolished in May 2010, eight years ahead of its 2018 expiry
date.
11. Thailand
Thailand’s road network stretches more than 180,000 kilometers but, only 450 kilometers are
expressways despite the country’s size. Outside Bangkok, the country remains relatively
underdeveloped as evidenced by the fact that over 40% of the country’s GDP comes from the
Bangkok region. The capital city’s infamous traffic jams are the result of years of the government
focusing on rail transport and under investing in road infrastructure.
In May 2011, construction for the Baht 27 billion Sri Rat-Outer Ring Road Expressway was put up for
bidding by the Thailand government. The project is slated to begin construction by 2012 and will
begin commercial operations by 2016. The new expressway is expected to generate 83,319 trips a
day in the first year alone, which has the potential to give the winning bidder THB 1.43 billion. The
toll rate will be under the Open System Toll Collection scheme in which the forecasted toll rate in the
first year of operation (Year 2016) will be Baht 50 per 4-wheel vehicle and the rate will be increasing
adjusted at every 5 years in accordance with the consumer index. The approximate investment cost
is Baht 27 billion comprising of Baht 17 billion for construction work, Baht 300 million for design
review and construction supervision, and Baht 9.6 billion for land acquisition. The government’s
forecast of daily traffic in the expressway can be seen in the table below. The traffic in the road will
touch 100,000 trips by 2021. This figure comprises only 20% of the population in the relevant area,
low compared to the 30% - 45% for existing expressways.
Year Daily Traffic Volume
2016 83,319
2021 96,548
2026 109,048
2031 123,660
2036 138,725
2041 150,878
Unit: Passenger car unit/day Source:
The project will be developed under a public-private partnership with the government paying for
expropriation costs for the 16.7-kilometer expressway. So far, Bangkok Expressway (BECL) has
shown interest in this project. The investor who is selected by the Expressway Authority Of Thailand
Ministry Of Transport (EXAT) to be the Concessionaire for Sri Rat-Outer Ring Road Expressway
Project shall be responsible for the execution of the engineering detailed design work, construction
work, procurement and installation of electrical and mechanical system, toll collection system,
communication system and traffic control system including environmental protection and mitigation
work, and operation and maintenance work in exchange for the right in toll revenue receiving and
any other related revenue (if any) of the Project during the approximate 30 years concession period
including any sharing benefit with the state as agreed under the concession contract.
The work period is divided into 2 phases. For the first phase, the design and construction work
including the procurement and installation of the electrical-mechanical system, toll collection system,
communication system and traffic control system under the scope of work as specified the TOR shall
be completed within an approximate of 36 months from the contract signing date or the effective
date of the contract.
12. For the second phase, the work management, toll collection, traffic management and operation and
maintenance work shall be commenced from the service opening date as approved by EXAT until the
completion of date of the concession contract.
The objective of the Sri Rat-Outer Ring Road express way is for the expansion of the expressway
nnetwork in Bangkok and its vicinity in the west direction from Sri Rat Expressway to the west side of
Bangkok with thedestination at the Outer Ring Road (West Side). This will assist in the traffic volume
releasing on at-grade roads including effective flow of traffic in the west of Bangkok and adjacent
provinces. The Project is a 6-lane elevated expressway, to be mostly constructed in the existing right
of way of the Red Line Mass Transit Railway (Bangsue-Talingchan Section) route with the total length
of 16.7 kilometers. The Project starts from Karnchanaphisek Road (Outer Ring Road) at a location
near
Mahasawat Water Treatment Plant and the route runs through the east direction along the existing
right of way of the southern railway route and crossing the Chao Phraya River at Rama VI Bridge
prior to ending at Section A of Sri Rat Expressway at a location on the north side of (Mochit 2 Bus
Terminal).
Indonesia
13. Indonesia’s road network stretches a total of more than 4.2 million kilometers of roads, of which a
little more than half is paved. The country has about 130 kilometers of roads for every 100 square
kilometers of land area. Within the archipelago, the most developed road networks can be found on
the main population centers of Java, Sumatra and Bali. One of the more interesting sights in Jakarta,
the capital city of Indonesia, is the presence of exclusive lanes for buses. The capital uses an
extensive network of buses in lieu of trains. The country’s road system has been given high priority
in government spending programmes but despite this, road construction as a whole has not kept up
with the boom in vehicle demand and usage. The discrepancy in growth between road construction
and vehicle usage is not only because of the positive dynamics in the autos sector but also because
of graft and corruption and inefficiencies in infrastructure spending implementation, a key feature of
developing country economics.
Indonesia’s road infrastructure situation is very severe and is in need of significant billion dollar
investments. Average speeds during rush hours in Jakarta’s roads run at a blazing 10 kph (kilometers
per hour). In February 2011, 2,000 trucks got stuck in an 11 kilometer traffic jam for more than a
week. According to the Indonesian Ministry of Transportation, 91% of cargoes in the country were
transported through roads in 2005. Indonesia’s National Development Planning Agency responded
to this issue with the plan to procure 18 toll road projects through public private partnership (PPP)
agreements between 2010 and 2014. Beyond the PPP framework, the Indonesian government also
placed for tender 31 toll road construction projects during the Indonesia International Infrastructure
2011 exhibition last April 2011. The country plans to construct 800 kilometers of new roads by 2014
with the 650 kilometer Trans-Java toll road as the main centerpiece investments. Bakrie Brothers
company Bakrieland Development and Bakrie Toll Road are involved in the Sukabumi-Ciranjang and
Ciranjang-Padalarang toll roads. The first section of the Surabaya-Mojokerto toll road by Marga
Nujyasumo Agung (MNA) , Jasa Marga, Wijaya Karya and Moeladi was completed last August 2011
and is slated to be finished in 2013. The following are up and coming toll roads in the country:
Value
Toll Road US$ Million Length Status
Medan-Kualanamu-Tebing Tinggi 670 60 km Awaiting financing
Betung Banyuasin - Kayu Agung, Markmore Labuan, Prodexim, PT Sriwijaya Markmore
Oki 880 137km Persada
Cileunyi-Dawuan 400 59km Awaiting financing
Other prominent non-toll road projects include the government’s US$4 billion plan to build elevated roads in
Jakarta and the US$25 billion Sunda Strait Bridge (costs can come down once the feasibility study is completed).
Relatively smaller projects include a US$350 million coastal road linking the Semayang harbor with the
Sepinggan International Airport (seeking private investors for financing) and US$380 million of road improvement
projects in northern Kalimantan and southern Java by the Asian Development Bank.
14. China
As of 2010, China’s highways stretched a total of 4,008,229 kilometers. This is an amazing
achievement as the country only had 3,345,200 kilometers of highways in 2005 and 1,402,700
kilometers of highways in 2010. The amount of roads built in the rural sector is even more
astounding as during the 11th Five-Year Plan (2006-2010), more than 1.2 million kilometers of rural
road networks were either built of renovated.
China will continue with its large-scale road build up for at least the next 15 years and presents a
vast area of opportunity for commodity and service providers in the road infrastructure industry.
The country’s highways are the second most important route for freight transportation. Using
freight-ton kilometers as a measure of total freight activity in the country, waterways were
responsible for 48% of total activity, highways 31%, railways 19% and the balance through air and
gas pipelines. The country’s roads are also the dominant form of passenger transportation despite
the rapid buildup of China’s railway network. Using passenger-kilometers as the measure of total
passenger activity, highways were responsible for 54% of total movement, railways 31% and the
remaining balance to the country’s waterways. Total vehicles in the country have more than tripled
from 18.5 million in 2005 to 59.4 million in 2010. The following are select road investment projects
in the country:
Project Value US$ million Status
Four expressways in the 14,200 Planning stage
Sichuan province
Dalian Bay 430 Planning stage
Upgrade of Quanzhou city road 1,000 Planning stage
network
Nanchang-Zhangshu 885 Planning stage
expressway
Shenzhen road network 21,000 Planning stage
expansion
Rizhao highway upgrade 134 Planning stage
Anhui province road expansion 1,350 Under construction
Guangxi- Vietnam road 1,870 Under construction
Upgrade and repaid of Yunnan 1,800 Under construction
road network
15. Vietnam
Vietnam’s road network stretches for a total of 171,392 kilometers, of which 125,789 kilometers are
paved. The country has the 29th longest network of roads in the world. Vietnam’s road and bridges
infrastructure segment is undergoing an investment boom with a number of billion dollar contracts
set to be won in the coming years. Of note is the US$8 billion Ring Roads 3 and 4 project that will
connect Ho Chi Minh city with the proposed Ben Luc-Long Thanh and Bien Hoa-Vung Tau highways.
The bulk of the projects in Vietnam are the expressways that connect provinces with the high growth
regions of Hanoi and Ho Chi Minh. The country’s Ministry of Transport and Communications
estimates that it will require about US$60 billion until 2020 to fund new road infrastructure projects.
In line with the country’s ambitious electrification program to further spur industrialization and
modernization in the country, road infrastructure investments are key to making modernization
possible. The government’s long term 2030 plan include the development of a 3,262 kilometers road
that will connect the country’s northern and southern regions.
Value
Project US$ million Status
Ring roads connecting Ho Chi Minh with Ben Luc-Long Government to start procedural
Thanh and Bien Hoa-Vung Tau 8000 call
30% government financing;
Ninh Binh-Than Hoa road 2800 70% private investors
Ring road 4 Hanoi 1970 Plans submitted
Da Nang-Quang Ngai expressway 1500 Main contractor assigned
Dau Giay-Phan Tiet expressway 1130 Undergoing feasiblity study
Thuan An-Ben Cat highway 800 Approved by covernment
Mekong delta roads 750 Undergoing feasiblity study
Deo Ca tunnel 500 Under construction
Vam Cong bridge 500 Financing achieved
My Thuan-Cun Tho expressway 442 Financing achieved
No.39 B road upgrade 106 Financing pledges achieved
Under negotiations for a joint
Phap Van-Cau Gie expressway upgrade 87 venture
Tran Thi Ly- Nguyen Van Troi bridge 86 Under construction
Noi Bai International Airport-Nhat Tan bridge
interconnecting road 83 Under construction
Hoa An bridge 56 Under construction
National Road No. 14 50 Under construction
Last August 2011, the Binh Minh Import Export Production and Trading Group was chosen to be an investor at
the US$1.13 billioin Dau Giay-Phan Tiet expressway project. International tenders will be launched in 2012 to
select a second investor. In September 2011, US$1.2 billion of funding was secured from the World Bank and the
Japan International Cooperation Agency to fund a part of the Dau Giay-Phan Tiet project. Chinese companies
such as Guangdong Provincial Changda Highway Engineering have been able to win contracts in the country.