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VIETNAM WATER TRANSPORT IS "STRANDED"
Tuesday, 16 April 2019 09:22

As a country with large rivers and seas, only about 50% of inland waterway transport networks are counted in kilometers in our country. Transporting goods by coastal waterways is also very limited, accounting for only about 39% of cargo volume transported by sea. 

Waterway BOT is also very problematic, 10% increase in service charges at seaports

Inland Waterways Department said that in 2017, only about 50% of the inland waterway transportation network in kilometers can be easily navigated. It means that only about half of the 19,000km of waterways are convenient to travel, so many shippers in Vietnam only choose to go to waterways if the goods are large like coal, construction materials, fertilizer and cement .

Rice is a commodity that has the potential to be transported by waterway but only 4% of the rice produced in the Mekong Delta follows this path. Left to choose other options.

Referring to infrastructure, a recent report by the World Bank (WB) pointed out that most of the transport is done on 7,000km of nationally managed inland waterways. However, less than 30% of this network is suitable for barges with a tonnage of over 300 tons. This is a very modest rate compared to the successful commercial waterway transport network in the world.

The size of boats in Vietnam is not large due to the shallow depth of the canal, the small size of the navigation channel and low bridge clearance. Many ports have outdated facilities and low mechanization or poor maintenance, poor domestic connectivity.

In China, Europe or the United States, the inland waterway transport network is well developed to accommodate ships and boats with a tonnage of over 1,000 tons. Even the tonnage of these vehicles is even greater.

Recently, container shipping services have begun to be deployed in the Mekong Delta region with positive results. Saigon Newport Company said that the cost of transporting goods by barge from ports in the Mekong Delta to Cat Lai, Ho Chi Minh City decreased by 7% for each 40 feet container and 20% for 30-foot containers.

But in general, inland waterway ports in Vietnam have not yet met the container loading and unloading facilities. Approximately 15% of goods arriving at ports do not have an operating license and are not safe, according to the statistics of Inland Waterway Bureau in 2017.

Since the North does not have a domestic container terminal to handle container cargo at river ports, container cargo is mainly transported by road to industrial parks and export processing zones. Therefore, only about 15% of goods in Hai Phong port and about 35% of cargo transport by container in the Mekong Delta region are transported by inland waterways.

Over the past decade, investment in inland waterway infrastructure has almost completely come from ODA with very little direct budget allocation from the Government. No new infrastructure construction projects with ODA or Government capital have been implemented recently.

Meanwhile, the World Bank warned that many ministries participating in management made Vietnam's inland waterway transportation more difficult to develop. This overlap is reflected in the competition issues of traffic flow management, water supply and drainage, irrigation, fishing and aquaculture, recreational tourism ... Even Vietnam Inland Waterway Association Nam also statistics over 100km of rivers with 13 control stations of all kinds, hindering the development of water transport.


 
APL STARTS REEFER SHIPMENTS FROM CENTRAL VIETNAM
Monday, 08 April 2019 09:46

 

The APL Chu Lai Express (CHX) service will depart today, Monday for China with the first reefer shipment of bananas from the Chu Lai Tam Hiep Port in Vietnam’s central province of Quang Nam.

 

This marks the beginning of more reefer shipments from the port as Truong Hai Automobile Joint-Stock company (THACO) recently inaugurated a new cold storage facility and further develops its logistics infrastructure in the Chu Lai Open Economic Zone.

APL started its Chu Lai service in March 2018.   “The service is dedicated to serving Chu Lai’s emerging industrial zones in Quang Nam and her neighbouring Central Coast and Central Highlands provinces. APL’s CHX service has been growing as part of the business ecosystem that enables Vietnamese exporters and importers to gain immediate access to South China and Hong Kong where cargoes are relayed worldwide,” said Arnaud Coudray, APL cco

The weekly CHX service calls the ports of Chu Lai, Hong Kong and Shekou in China.  From the latter two transhipment hubs, shippers get connected to more Intra-Asia markets such as Japan, Korea and Singapore; as well as farther destinations such as North America, the Middle East and Europe among others via APL’s service network.

Among APL's reefer solutions include SMARTcare+, an atmospheric regulating technology that preserves the quality of perishable cargoes over time and distance. Meanwhile, APL’s SMARTcool eradicates pests without the need for fumigation. The cold treatment solution ensures fresh produce arrive in their finest conditions and meet stringent quarantine requirements at destinations.

 
CẦN THƠ SEEKING LOGISTICS CENTRES FOR AIR TRANSPORTATION
Thursday, 04 April 2019 01:57

Can Tho needs to develop logistics centres to meet increasing demand for the transportation of goods by international and domestic airlines. Four businesses have put forward proposals to develop such centres in cooperation with the city.

Vo Thanh Thong, chairman of the People’s Committee of Can Tho City, made the statement at a meeting with the Ministry of Industry and Trade (MoIT)’s delegation on March 21 in Can Tho.

Logistics services for the transport of goods by air are very important for Can Tho and the Mekong Delta region, Thong said, because agricultural products, especially farming and fishery products, must be fresh if they are to be sold at high prices. Therefore, besides preservation, the moment of transport for those products is very important.

At present, Can Tho International Airport is connected with Ha Noi, Đa Nang, Phu Quoc and Con Đao. In 2019, the airport will be connected through five new domestic routes to Hai Phong, Thanh Hoa, Vinh, Đa Lat and Nha Trang and two international routes to Bangkok (Thailand) and Kuala Lumpur (Malaysia).

Can Tho expects to exploit these routes for both transporting passengers and cargo, Thong said. Therefore, demand for logistics services is high, especially demand for the transport of fresh agricultural products.

Municipal authorities are in the process of studying the four investors that have made proposals to choose suitable partners, Thong said.

He said the projects need support from the Ministry of Industry and Trade and the Ministry of Transport to ensure efficiency, especially in terms of selecting partners.

At the meeting, minister of industry and trade Tran Tuan Anh said the ministry would continue to discuss more details about the development of air logistics centres with Can Tho’s authorities.

He said now the MoIT is in the process of talking with a Japanese partner about the development of a food processing centre in the Mekong Delta region. Under the project, an air logistics centre will be developed to serve the food processing centre.

The minister also asked Can Tho to pay more attention to attracting enterprises, especially from South Korea and Japan. The MoIT would cooperate with Can Tho to develop a plan on approaching the locality for both local and foreign enterprises.

In addition, the ministry wants to introduce to Can Tho some domestic businesses in promoting those projects such as Vietjet Air and SHB, he said.

This is a bridge connecting the businesses with the locality in developing those projects and creating value chains relating to market development in Can Tho and the Mekong Delta region.

In August 2018, Can Tho City People’s Committee and Vietnam Airlines Corporation (Vietnam Airlines) signed an agreement to develop the Can Tho Air Logistics Centre on an area of about 27 hectares next to Can Tho airport.

 

 
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