Tan Cang - Hiep Phuoc Terminal: Potential Critical Logistics Center in Southern HCM City

9:57:33 AM | 7/21/2022

Port-centric logistics developing in Nha Be district

With a convenient location on the world's maritime route, Ho Chi Minh City (HCMC) and Nha Be district have the potential to grow as a logistics center, a seaport of Vietnam and Southeast Asia.

According to the Master Plan for the Development of Vietnam's seaport system 2021 - 2030 and a vision for 2050, Ho Chi Minh City Seaport belongs to the group of seaport No.4. Nha Be district includes Hiep Phuoc's terminals on the Soai Rap River and Nha Be's terminals on the Nha Be River, which will benefit the socio-economic development of the southern region. Regarding the capacity, terminals in Hiep Phuoc would welcome vessels with up to 70,000 DWT, terminals in Nha Be area would accommodate vessels with up to 45,000 DWT, and cruise ships up to 60,000 GT.

Therefore, the development orientation of seaports in HCMC would shift the cargo flows out of the central area. Furthermore, develop the "rear ports" connecting the Mekong Delta and Cai Mep area and simultaneously generate the large-scale ports to receive transshipment flows from neighboring regions.

Therefore, the advantages of geographical location and investment plans for lands around ports, Hiep Phuoc cluster port generates the incredible potential to become a critical logistics center south of HCMC, which connects the terminals in the Mekong Delta and Cai Mep area. As a robust backend for logistics activities in the South, it contributes to leveraging breakthrough opportunities for urban economic growth in the Nha Be district. Furthermore, this is Saigon Newport Corporation's vision for the potential development of the Nha Be district into a "satellite city" from the perspective of a leading port and logistics enterprise in Vietnam.

This orientation aligns with the Development Plan for Logistics Industry in HCMC to 2025 and the vision for 2030. Ho Chi Minh City's vision also follows the world's trend in developing a logistics center connecting port operations (port-centric logistics) to maximize the multi-potential in the logistics chain. Accordingly, the Nha Be District is planned to retain Hiep Phuoc Logistics Center on a scale of more than 250 hectares as a distribution hub for e-commerce and domestic goods.

Tan Cang - Hiep Phuoc Terminal – A potential critical logistics center in the South of Ho Chi Minh City

Currently, Tan Cang - Hiep Phuoc Terminal (TCHP) is the only port to operate container cargo in Nha Be - Hiep Phuoc area, and is considered the best "extension arm" for Cat Lai port cluster and Cai Mep port cluster (Ba Ria - Vung Tau).

With an area of 17 hectares, 02 container berths and 04 barge berths, the main berth length is 420 m, located on the Soai Rap River, and capable of receiving ships with a capacity of up to 50,000 DWT; Tan Cang - Hiep Phuoc Terminal currently receives 07 international shipping routes and 01 domestic route weekly, providing optimal time and cost advantages when bringing vessels into the port, such as: No limit time for the early dropping off; Free storage; Free barging between TCHP and TCCL/associated ICD for international container vessels at TCHP; Free barging for empty containers from TCCL to TCHP for stuffing and loading onto vessels at TCHP; Free 12-hours operation charge for reefer containers dropped at TCHP then transported and loaded at TCCL

Additionally, with seven pairs of buoys on the Soai Rap River, which are capable of receiving vessels from 30,000 tons to 40,000 tons, and modern types of equipment investment, TCHP also operates numerous bulk cargo and general cargo services for items, as follows: rice, seafood, fertilizers, iron and steel, gypsum, cement and OOG project (wind turbines) with a productivity of over 350,000 tons/year for significant consumers (Vinafood 1, Phu My Fertilizer, Ninh Binh Fertilizer, Southern Fertilizer, DAP Dinh Vu, Mekong logistics, Ton Hoa Sen, Ton Nam Kim, IPC) ….

With the advantage of a strategic location: Approx. 10km distance from the centric of HCMC; It is located at Hiep Phuoc Industrial Park and close to client warehouses (Lotte, Alpha, Dory warehouses, Saigon Food factories, etc.)

Along with the growth in exports of Vietnam's essential products, TCHP has added its development potential, which is becoming a hub of goods connection and being a convenient place for goods clearance in the critical southern economic region and the Mekong Delta.

Due to the demands of the ocean freight market, Tan Cang - Hiep Phuoc Terminal welcomes attention from primary shipping lines such as COSCO, TSL, WANHAI, OOCL, and ONE to exploit stable empty container sources and extend new services. This will develop opportunities to encourage the region's port operations and “rear port” services.

By Pham Linh, Vietnam Business Forum