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Leveraging the Largest Seaport Advantage in Dong Nai

(News Portal – Dong Nai) - The Phuoc An Port project in Nhon Trach district is expected to become operational from July 2024. This will be the largest seaport in Dong Nai, aiming to exploit the advantages of import-export cargo transportation, enhance local competitiveness, and increase revenue for the state budget. 

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Phuoc An Port project in Nhon Trach district is under construction. 

Phuoc An Port, managed by the Nhon Trach Customs Branch (Nhon Trach Customs), spans nearly 800 hectares with a total investment of nearly 20 trillion VND, making it the largest seaport in Dong Nai. Once operational, Phuoc An Port can simultaneously accommodate 10 ships with a load capacity of 60,000 tons. The port's projected handling capacity is 6.5 million tons/year for general cargo and 2.5 million TEU/year for container cargo.

Nhon Trach district currently hosts 10 industrial zones with thousands of active enterprises. To meet the storage and customs clearance needs of these businesses, Nhon Trach has established a system of bonded warehouses, inland container depots (ICDs), specialized ports, and general ports.

In recent years, the number of businesses registering customs procedures at Nhon Trach Customs has consistently increased. This is a significant effort, given that Nhon Trach lacks a border-gate customs office and faces limitations on the import-export goods requiring customs clearance procedures. Most imported goods of businesses in Nhon Trach still have to be transported via detours, undergoing customs procedures at border-gate ports in Ba Ria - Vung Tau and Ho Chi Minh City, incurring high costs and time for cargo transportation.

When Phuoc An Port becomes operational, the transportation costs for businesses in the Nhon Trach area are expected to decrease, as the route from Phuoc An Port can directly connect to the 10 industrial zones in Nhon Trach. Additionally, Phuoc An Port will benefit enterprises in industrial zones in Long Thanh district, Bien Hoa city, Thong Nhat district, and others by reducing transportation costs due to shorter distances compared to routes from Cat Lai and Cai Mep ports.

Petro Vietnam Phuoc An Port Investment & Operation Joint Stock Company (Phuoc An Port Company) is the entity currently managing, exploiting, and operating Phuoc An Port. The company has announced that in preparation for the operational conditions of Phuoc An Port, the construction of phase 1 of the port is nearing completion with most of the workload already done. According to the plan, from July this year, the company will put into operation two berths, accommodating vessels with a capacity ranging from 30,000 to 60,000 tons, simultaneously handling container and general cargo. It is projected that from the start of operation until 2030, Phuoc An Port will reach an exploitation capacity of 2.2 million TEUs (1 TEU equals 1 20-foot container) and 4 million tons of general cargo per year.

Mr. Le Van Thung, Director of the Dong Nai Customs Department, stated that if the Nhon Trach Customs Branch is converted into a port customs branch, the types of goods allowed to be processed at Phuoc An Port will contribute to increasing the volume of goods at the Dong Nai seaports. Previously, Dong Nai seaports did not have the capability to accommodate vessels with a capacity of 30,000 to 60,000 tons docking at the port.

Moreover, the cost of transporting goods to Dong Nai through the ports in Ho Chi Minh City and Ba Ria - Vung Tau province is very high compared to the cost of processing import and export procedures at Dong Nai seaports. However, businesses in the province have long had to accept this, which is an unreasonable issue that requires a mechanism to alleviate difficulties for enterprises and the locality.

To manage the nation's type I international seaport, the current organizational model of the Nhon Trach Customs Branch as an external customs branch has revealed limitations in customs management as well as in the fight against smuggling and commercial fraud. Therefore, the conversion from Nhon Trach Customs Branch to Nhon Trach Port Customs Branch is necessary to increase storage capacity and resolve administrative procedures for import and export goods. The establishment of Nhon Trach Port Customs Branch will facilitate customs reform and modernization, boost economic development, attract investment, and enhance Dong Nai province's competitiveness in the coming years.

Mr. Le Van Thung emphasized that transforming the Nhon Trach Customs Branch into a port customs branch will enable a large volume of import and export goods in Dong Nai to be transported directly by sea. Enterprises will reduce loading, unloading, and transportation costs and avoid infrastructure and port usage fees in other provinces and cities, creating a competitive advantage in business. Additionally, it will help reduce the burden on road traffic, which is often the primary cause of catastrophic traffic accidents on national highways 1, 51, and the gateways to ports in Ho Chi Minh City.

Furthermore, around Phuoc An Port, the transportation system, including Ring Road 3, inter-port roads, and the Bien Hoa – Vung Tau expressway, is being developed to match the growth rate of industrial zones, export processing zones, warehouses, Long Thanh International Airport, and seaports. Therefore, operating the customs apparatus according to the port customs branch model will significantly contribute to the economic development of localities, especially secondary growth driven by this system in the long term from service, urban, and industrial development. This aligns with the economic and social development orientations of Dong Nai province and the region. ​

Author: Nam Huu

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