The driving force of "transformation" of deep-water ports

	Thirty-five containers of imported electronic products and motorbikes are “forgotten” at seaport
	Hasten progress of handling backlogged goods as scrap at seaports
	Payment of seaport fees at Hai Phong via personal account allowed

It is necessary to upgrade the capacity of navigation channels leading ships into deep water ports such as: LachHuyen, Cai Mep - ThiVai. Photo: Thai Binh

Port scale has not kept pace with the increase of cargo volume

According to Mr. Hoang Hong Giang, Deputy Director of the Vietnam Maritime Administration, the EVFTA’s signing is committedto open the door widely for both the shipping and seaport sectors in Vietnam. Specifically, the EVFTA eliminates tariffs almost completely between the two sides. Import and export between Vietnam and EU countries is expected to increase significantly. Meanwhile, up to 90% of import and export goods of Vietnam are transported by sea which means that transport services have increased significantly, including shipping.

In addition to favorable conditions from the EVFTA’s signing, seaport and shipping enterprises are estimated to face many difficulties and obstacles. Although in recent years, Vietnam's fleets have increased in both number and size, Vietnamese seaports have also welcomed large ships (over 20,000 TEU), the development of a fleet of container ships in Vietnam is still limited in terms of quantity and size.

In addition, many EU businesses also suggested that shipping by containers will become the future trend worldwide so Vietnamese shipping enterprises should build new large-capacity containers from 15,000 to 20,000 TEU.In order to follow the trend of the world, Vietnam's seaports also need to focus on strengthening their operational capacity capable of welcoming many large-sized containers landing to their ports.

To make the best use of the EVFTA as well as increase the competitiveness of the seaport system in Vietnam, especially to maximize the potential role of the deep-water port clusters in accordance with the development trend of the international maritime market, Mr. Truong Tan Loc, Head of Marketing Department, Saigon Newport Corporation, said that state management agencies also need to study the seaport development investment planning carefully and uniformly. These deep-water seaports are plannedto welcome mega vessels (over 18,000 TEU). On the other hand, seaport development planning should be holistic and synchronous with the development of the logistics systems behind the port, closely linked with the comprehensive development planning of industrial zones and in harmony with the economic development plan of regions and localities with the port. Moreover, it is necessary to upgrade the capacity of navigation channels leading ships into deep water ports such as: LachHuyen, Cai Mep – Thi Vai.

“For example, in Cai Mep deep-water port cluster in spite of positive changes in the port logistics services with an additional 152ha of warehouse being put into operation in the past five years, the capacity of seaports has not kept up with the regional commodity growth speed. Currently, the Cai Mep area still lacks empty container gathering yards, warehouse system for CFS, bonded, dry ports, barge terminals,” the representative of Saigon Newport Corporation added.

Enhance connection and application of scientific technology

As a business operating both in the field of sea transport and seaports - Vietnam National Shipping Lines (Vinalines) assesses that there are currently only about 10 ports that are eligible to receive medium-sized ships in the world.

Meanwhile, two deep- water ports LachHuyen (Hai Phong) and Cai Mep - ThiVai (Ba Ria - Vung Tau) are planned by the Government as transshipment port systems which are capable of receiving ships up to 150,000 DWT and aim to attract goods from European countries and the Americas. These two port clusters are hoped tobenefit as soon as this agreement comes into effect.

Currently, thanks to a wave of investment shifting into Vietnam, the enterprises investing in seaports optimized the operational capacity of seaports by a half or even double to attract goods. This not only consolidates stable mood for foreign corporations that want to make long-term investments and expand operations in Vietnam, but also attracts other investors. At the same time, it is also necessary to apply scientific and technical advances in managing and exploiting seaports; controlling the connection of sea transport activities and seaports, shipping lines and manufacturing enterprises, reducing unnecessary procedures in order to improve the quality of shipping services, suggested Mr. Le Quang Trung, Deputy General Director of Vinalines.

Furthermore, Vinalines also proposed to accelerate the dredging of Cai Mep channel to a standard depth of -15.5m so as to promptly catch the trend of large container ships entering Cai Mep directly; complete the traffic system connecting the Cai Mep-ThiVai port area, including the ring roads 3, 4, National Highway 51, Bien Hoa - Vung Tau expressway; adjust the minimum price of import-export container loading and unloading service in Hai Phong, LachHuyen, Cai Mep - ThiVai areas by 10% increase. The application time is estimated from January 1, 2021,with a roadmap to increase prices within thenext three years to get close to the prices of countries in the region.