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Removing bottlenecks for seaports

(News Portal – Dong Nai) - As the region with the highest number and scale of seaports in the country, the Southeast region plays a particularly important role in Vietnam's import and export. However, currently, optimal exploitation of the seaport system in the region is still an challenging issue. 

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Super container ship OOCL Spain docked at a port in the Cai Mep-Thi Vai port cluster 

Synchronously investing in connection infrastructure, cooperating to turn seaports “green", applying technology, avoiding resource dispersion is the common desire of localities as well as businesses investing in seaport infrastructure.

Largest scale in the country

Currently, the Southeast region has the largest seaport cluster in the country (Tan Cang Cat Lai port, Cai Mep - Thi Vai port cluster in Ho Chi Minh City and Ba Ria-Vung Tau) and a variety of road transport methods, railways, waterways, and airways connecting the whole country with a diverse warehouse system. Nearly 90 industrial parks developed with goods from provinces and cities in the Southern region have been creating abundant sources of goods for import and export activities through the region's port cluster.

In addition, the region also has 6 active public navigation channels including: Saigon - Vung Tau navigation channel, Vung Tau - Thi Vai navigation channel, Song Dinh navigation channel, Soai Rap navigation channel, Dong Tranh - Go Gia navigation, Dong Nai navigation channel. Binh Duong and Dong Nai provinces have also developed their seaport systems.

In Dong Nai, along with ports in Long Binh Tan and Go Dau, the province is also investing in large-scale Phuoc An seaport. Not to mention Long Thanh International Airport, the largest airport in the country, is currently being built. These projects, when put into operation, will contribute to creating and promoting new growth drivers, as businesses in Dong Nai will have more advantages in importing and exporting goods, and the provincial budget will also receive a great source of revenue.

However, according to experts, the Southeast seaport group is revealing many shortcomings. In particular, the lack of synchronization of infrastructure and the imbalance of supply and demand between ports. The role of international gateway of ports in Ba Ria-Vung Tau area is not exploited effectively... Although Cat Lai Port (Ho Chi Minh City) is operating beyond its capacity, in the long term it will gradually lose existing advantages. Seaports in Ho Chi Minh City, Dong Nai, Ba Ria-Vung Tau are also competing with each other, instead of cooperation for joint exploitation.

Mr. Dao Trong Khoa, Vice Chairman of the Vietnam Logistics Business Association, said that one of the reasons why the seaport system has not reached its full potential is because the infrastructure connecting port clusters is still lacking in synchronization and is not yet fully developed, especially key traffic route and highways. This transport infrastructure must ensure the development of multi-modal transport, from roads to railways, waterways... to meet the needs of transporting many types of goods at seaports. However, this requirement in the Southeast Seaport cluster has not been achieved. Newly invested ports are closer to the sea but are far from production and consumption centers and have not been properly invested in infrastructure.

It is necessary to quickly and promptly remove "bottlenecks"  

Besides the biggest bottleneck which is connection infrastructure, the seaport system in the Southeast region also has problems that need to be resolved. Many Southeast ports do not have accompanying goods supply services. There is no centralized specialized inspection center, so shippers have to spend more time and storage costs; lack of connection with urban development planning and social security of each locality.

Although the seaport system has developed rapidly, the warehouse service system and logistics centers have not kept up with the trend, and there is a shortage of logistics services such as general cargo warehouse service network, ICD, refrigeration, container services such as cleaning, repairing, providing pallets, packaging goods as required... In addition, the connection between manufacturing, import-export and logistics service enterprises is still weak and ineffective. For example, in Ba Ria – Vung Tau region, seaport activities, ICD, warehousing, logistics... are relatively independent and lack connection with each other. Therefore, the connection with Ho Chi Minh City, Binh Duong, and Dong Nai is even more limited. The requirement is that the connectivity of infrastructure for this area needs to be strengthened, and at the same time have synchronous policies to have an ecological environment for logistics linkage activities.

Mr. Nguyen Xuan Ky, General Director of Cai Mep International Terminal Co., Ltd. (CMIT), Ba Ria - Vung Tau province, said that in recent years, the Cai Mep - Thi Vai international port cluster has made great progress in terms of cargo. What the business want is for provinces and cities in the region to cooperate more closely with each other in investing in connecting transport infrastructure. In the long term, the construction of the Bien Hoa - Vung Tau expressway will help remove bottlenecks for the Cai Mep - Thi Vai port area. This will improve connectivity and shortens freight and logistics transportation time from industrial parks in the region to the largest deep-water port cluster in Vietnam, especially when combined with Long Thanh International Airport, thereby creating a boost for seaports in the region.

Meanwhile, Mr. Tran Khanh Hoang, Vice Chairman of the Vietnam Seaports Association, said that the Association and its members, especially those in the Southeast region, need to strengthen cooperation, online information exchange, and cooperation to quickly resolve tasks to serve the needs of seaport management and exploitation. The association has requested state agencies to prioritize investment in channels and traffic connecting seaports, including railways and riverways according to planning and quickly complete detailed planning for seaport groups. There are enough mechanisms to innovate and develop seaports on a regional scale, with a focal organization responsible for overall efficiency, and with market regulation for transparent competition.  

In addition, businesses in the port exploitation industry also need to cooperate and develop together, strengthen connections and increase the competitiveness of Vietnam's logistics services. Deputy General Director of Dong Nai Port Joint Stock Company Nguyen Van Ban said that cooperation between businesses and seaports would contribute to avoiding risks of infrastructure excess, unnecessary competition, and dispersion of resources leading to underutilized potential, increasing costs and financial risks.​

Author: Bao Nguyen

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