Since 1995, the container cargo output via Vietnamese ports has increased 19 per cent a year and is the fastest-growing and most important segment toward the development of the Vietnamese port system. However, the cargo output increase is not in direct proportion to the development in size and infrastructure system of existing container ports.
Overloads leading to cargo handling delays
The container port is the top concern of producers and many companies like Nike, GAP and JC Penney. However, according to these companies, the Vietnamese container port system has not caught up with the growth of import-export activities. Ms Amanda Tucker, who works for the Infrastructure Group of the Vietnam Business Forum, said her group usually receives reports from shipping firms fof the tardiness in cargo transportation, even up to 10 hours, due to cargo ship obstruction, handling equipment insufficiency and low productivity. According to Nike Co., Cat Lai Port has begun unloading commodities mid-current on wharves to avoid congestion. However, Nike is afraid that this way of unloading is a slow and dangerous process. Hence, the company has informed its shipping firms not to discharging Nike goods mid-current.
Under the Vietnam Seaport Development Plant, to 2010 and vision 2020, the Government has introduced priorities for the seaport infrastructure development to meet the growing demand in the country. However, the demand has exceeded the capacity calculations of the plan. Mr. Tan Hua Joo, who works for the Port Subcommittee of the Infrastructure Group, said reports of international organisations underestimated container flows in Vietnam. According to Japan International Cooperation Agency (JICA)’s report in December 2002, the total dry cargo volume via the southern focal economic area (SFEA) is estimated at 50.13 million tonnes, including 2.27 million TEUs of container goods. However, Mr. Tan Hua Joo said this is an underestimation and needs reconsidering. The growth in cargo throughput in the past five years actually surpassed initial forecast for ports.
In 2005, seaports in the SFEA, mainly in Ho Chi Minh City (including Saigon, Newport, Ben Nghe, VICT and Phuong Long ports) handled 35 million tons of cargo, comprising of some 2.2 million TEUs of container goods or 70 per cent of total container cargo throughput of the nation. In fact, the dry container cargo transportation has exceeded 50 per cent of major ports in Ho Chi Minh City and Haiphong City. The growth rate of the container goods throughput far surpassed that of bulk cargo and liquid cargo. The statistics of the Vietnam Maritime Administration (Vinamarine) showed that the dry cargo throughput grew 9.9 per cent in 2005 while the container goods output rose 19.4 per cent.
According to the seaport development plan for the SFEA ratified by the Prime Mister on August 12, 2005, the dry cargo throughput by 2010 is 52.9 million tonnes a year, including 26.3 million tonnes through Ho Chi Minh City, 14.5 million tonnes via Ba Ria-Vung Tau, and 12.1 million tonnes via Dong Nai. These figures are exclusive of liquid cargos and passengers. However, at a growth rate of 15 per cent a year, the total throughput by 2010 must be 70-80 million tonnes. Hence, the SFEA alone exceeds 20-30 million tonnes by 2010 compared with the plan. The estimated output via seaports in the SFEA (basing on the 15 per cent annual growth rate) is 47 million tonnes in 2006, 54 million tonnes in 2007 and 82 million tonnes in 2010.
The most difficult period is from 2007 to 2010 when the current handling facilities will run at full capacity while new ones in Ba Ria-Vung Tau Province have not been ready. According to Tan Hua Joo, a ready deepwater port complex must be able to process a sudden-increase cargo volume in the 2010-2020 period. However, it is not the case for the 2007-2010 phase and Vietnam needs urgent measures to deal with the overloading matter.
Planning should calculate development reality
Mr. Tan Hua Joo stressed the planning of the Vietnamese seaports needs reconsidering and providing a more complete roadmap for the development of supportive infrastructure (building approaching roads, national roads and railways to link industrial parks with ports, supplying stable electricity and water, applying effective customs procedures and expanding warehouses, container cargo stations and empty container warehouses, etc.). These infrastructure items enable investors to introduce a full logistic plan.
Vietnam needs to upgrade existing container ports, including Cat Lai and VICT ports, by expanding parking areas for short-term demand. The parking areas of these two ports are estimated at 1.7 million TEUs and the actual needs will exceed the capacity. At the same time, the Government should also upgrade piloting devices on Saigon and Dong Nai rivers, enabling ships with lengths of up to 180 metres to operate at ports in Ho Chi Minh City around the clock.
Vietnam should also begin developing the Cai Mep-Thi Vai deepwater port project as soon as possible to meet the rising demand (estimated by 2009) and allow larger ships to dock at the SFEA. According to experts, Cai Mep-Thi Vai Port will be the centre of future development in the SFEA because this can receive larges ships, which is a major factor to reduce seaway transport costs.
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