Monday 11 February 2013

The Port of Cai Mep

The Port of Ho Chi Minh City has expanded to become the largest facility in southern Vietnam. It now accounts for more than 65% of port throughput in the Ho Chi Minh City area and 42% of throughput in Vietnam as a whole. In 2012, the port handled an estimated 3.22mn twenty-foot equivalent units (TEUs). The port comprises three cargo terminals, as well as depot and customs points, which are situated at different locations within the Mekong Delta area in south-east Vietnam, in an area measuring 60km in circumference.
#CaiMep is Vietnam's largest deep sea facility. The Port of Cai Mep was developed in response to the rapid growth in trade volumes at the Port of Ho Chi Minh, which caused congestion in the area. The Cai Mep facility is located approximately 85km south-east of Ho Chi Minh City, at the mouth of the South China Sea.
Connectivity
In 2012, Vietnam scored 4871 on UNCTAD's liner connectivity index - a considerable improvement on 2004's score of 12.86. Although the port is trailing far behind regional outperformer Singapore, it is well ahead of its neighbours Cambodia and the Philippines. BMI believes that this vast improvement in its connectivity score over seven years demonstrates Vietnam's growing importance in global containerised shipping. The country also now has direct links with major markets in the West. However, it should be noted that Vietnam's place in global container shipping is not yet assured, and that as the industry has struck difficulties Vietnam has been impacted more severely than more established ports of call. This has been demonstrated by the fact that Vietnam's score in 2012 marked a slight decline from 2011's peak of 49.71.
Getting Better Connected
Vietnam's Score On The Liner Connectivity Index, 2004-2012
?Vietnamese ports are well placed to take advantage of growing Intra-Asia trade volumes.
?The rapid growth in Vietnam's port volumes has attracted ample international investment in port terminals, giving rise to overcapacity concerns.
?Alleviating economic headwinds in the US and China will support Vietnam's export markets and container ports.
?We caution that Vietnam needs to invest in its freight transport network in its entirety to ensure efficiency at its ports.
Regional Role
The Port of Ho Chi Minh is a vital domestic and regional facility, with the port having rapidly expanded in response to sharp growth in the Vietnamese economy. Container traffic through the port accounts for over 65% of Ho Chi Minh City's market share and more than 40% of the entire country's.
Rapid Climber
Intra-Asian trade has been growing rapidly, with many shipping firms using this to cushion themselves from the slowly recovering big-money East-West routes. The Port of Ho Chi Minh has been a key part of this and it is not only regional trade for which Vietnam is becoming key. In 2009, Hanjin Shipping became the first carrier to launch a direct service between Vietnam and the US. In September 2010, Hanjin became the first line to launch direct Vietnam-Europe services, followed in October 2010 by CMA CGM making the country a port of call on its FAL3 service.
The Port of Cai Mep was developed in response to the rapid growth in trade volumes at the Port of Ho Chi Minh City, which caused congestion in the area. BMI notes that the terminal has a considerable advantage over Ho Chi Minh, in that it offers a draft of 14 metres (m), thereby enabling it to serve post-Panamax container vessels, which cannot call at other Vietnamese ports due to draft and turning restrictions.
The importance of the port's depth was reflected in December 2011, when Cai Mep International Terminal (CMIT) docked its largest ever containership. The 13,830TEU CMA CGM Laperouse is the biggest vessel to dock in the Vietnamese port, with its accommodation made possible by the post-Panamax cranes operating at the site.
BMI believes that Cai Mep's positive throughput growth outlook is in large part attributable to APM Terminal (APMT)'s operation of the terminal, as the company has poured in investment and attracted new clients operating on key trade routes. We believe APMT's presence will support continued growth at the port over the medium term (2013-2017) as it continues to improve the port's facilities and attract shipping lines keen to capitalise on Vietnam's positive macroeconomic outlook.
Cai Mep International Terminal (CMIT) at the Port of Ho Chi Minh City (also known as New Saigon Port), which is made up of a collection of terminals lying 50 kilometres (km) away from Vietnam's capital city, is on course to handle nearly 600,000 twenty-foot equivalent units (TEUs) in 2012 - its first full calendar year of operation - according to projections from Maersk Line sister company APMT. CMIT accepted its first vessel on March 30 2011 and in the following nine months to 2012 handled 186,000TEUs.
On The Up
BMI highlights the substantial investments APMT has made in CMIT since it opened in March 2011 as an important driver of growth. In addition to helping to construct the port, which it did through a joint venture (JV) with Saigon Port and Vietnam National Shipping Lines (Vinalines), APMT purchased two laden reach stackers, an empty reach stacker, two empty container handlers and a 25-tonne forklift - all of which were delivered by Konecranes in 2011. Weak infrastructure is one of the main factors holding back Vietnam's shipping sector - the country ranks 111th out of 145 countries on the World Economic Forum's Global Competitiveness Report on the Quality of Port Infrastructure. As such, APMT's commitment to improving CMIT's facilities is an important step both for the terminal and the country's shipping sector as a whole.
Investment in the port has allowed Cai Mep to attract a client base of some of the major players in the box shipping sector. While a foregone conclusion, given APMT's close connection with the company, Maersk Line began pulling into the port in August 2011, boosting throughput as expected. More significantly, CMIT has added CMA CGM and the Grand Alliance - comprising shipping lines Hapag-Lloyd, Nippon Yusen Kaisha (NYK), and Orient Overseas Container Line (CL) - to its client list. These lines not only provide positive prospects for the port given their direct impact on throughput volumes, but also because their presence signals the industry's confidence in the terminal's growth outlook and growing role in the region.
An important aspect of the addition of these lines to the terminal is that they have exposed CMIT to the two largest maritime trade routes: Asia-Europe and Asia-America. Maersk has added the port to its Transpacific string from Asia to North America, while CMA CGM and the Grand Alliance have placed it on their Asia-Europe routes, marking the first time Vietnam had been directly connected on either of these trade routes.
We highlight that Vietnam previously only played a role as a feeder port, relying on the transhipment of containers through one of Asia's larger, better-equipped ports such as Singapore. Exposure to these routes is in large part attributable to the port's ability to handle ultra-large container ships, which are becoming the standard for shipping containers on Asia-Europe trade routes. This was demonstrated in December 2011, when CMA CGM's 13,820TEU Laperouse docked at the terminal. We believe CMIT's proven capacity for handling these vessels marks an important step for the terminal and will be a key driver of growth over the medium term, though in the near term there are significant hurdles to be crossed.
Overcapacity Remains A Threat
The rapid growth in Vietnam's port volumes has attracted ample international investment in port terminals. However, concerns are being raised about the possibility of overcapacity in the country's container port sector. This a particular concern for operators at the Port of Cai Mep. In 2006, international terminal operators secured stakes in nine terminals at the port after the government invited foreign investment, believing that rising throughput volumes would be quickly soaked up by increasing capacity. Five of the nine planned terminals are in operation in the Cai Mep area, but are working well below capacity, with as little as 20% of capacity at CMIT being utilised. With additional new facilities due to come online, BMI believes this is a considerable cause for concern. Further, as container shipping lines look to consolidate their services Vietnam, as a relatively new addition, is at risk of being struck from the ports of call.
The lack of container traffic seen at the beginning of 2012 also poses problems for ports in the province of Ba Ria-Vung Tau. Ports in the region have a total container handling capacity of up to 8mn TEUs; however, the actual demand only comes to around 5mn TEUs. Ports in the Cai Mep-Thi Vai region of Ba Ria-Vung Tau have been failing to attract a significant number of vessels, despite a total investment of over US$7bn by the end of 2011, according to reports. The region contains several modern container ports and is set to open several more facilities in 2012 and 2013. Industry analysts attributed the failure to a lack of infrastructure, which has caused capacity to remain largely underutilised. Only 62.5% of overall port capacity in the province of Ba Ria-Vung Tau is in use.
It is in this atmosphere of concern over having grown too much too soon that the construction of Van Phong International Transshipment Port has been halted at the behest of the Vietnamese Transport Ministry. The decision to shelve the planned port - originally proposed to be completed by 2020 - was undertaken by the Vietnamese Deputy Prime Minister, Hoang Trung Hai and was made public in September 2012.
The estimated cost of the project was set to be US$3.6bn and the construction work would have included 37 wharves at length of 12.5km. The initial stage of the project began in October 2009 and was pencilled in to be completed by the end of 2012; however, financial mismanagement meant that the project fell way behind schedule. Vinalines, the project's investor, was urged to alter its plans by the Vietnamese government and so the company came up with the idea of expanding the port in order to handle container vessels up to 12,000TEUs.
The deputy prime minister asked the Transport Ministry to look into the feasibility of raising domestic and foreign investment to fund the project, which is located in Hon Gom peninsula. The Van Phong port has become the target for criticism, as Vietnam's attractiveness for potential investors weakens. The Van Phong site was described as too far from any major manufacturing companies, and the state's role in neglecting better infrastructure at strategic locations is being highlighted.
Global Headwinds Alleviating In 2013
We forecast Vietnam's real GDP growth figure to climb to 7.0% in 2013 following an expansion of 5.0% in 2012; this expansion in 2012 was the slowest since 1999, and reflected the headwinds buffeting Vietnam's key trade partners, namely the US and China. However, the outlook for 2013 is looking more sanguine, resulting in our growth rate of 7.0%. This is in keeping with our more buoyant general outlook for the global economy which has seen us make a significant upwards revision to our China growth forecast for the year from 7.1% to 7.5%, and bump the US's growth projection up to 2.3% following the avoidance of the fiscal cliff.
However, over the longer term, imports will be boosted by Vietnam's young population, as younger populations are generally more supportive of private consumption. The country has a population of 90.7mn, according to estimates for 2013 by BMI, 60% of which is under 35. We forecast that the population will be 94.1mn by 2017, with 57% under 35, and will rise to 97.7mn by 2022.
Road And Rail Links Need Investment
The Vietnamese government plans to deepen the Port of Ho Chi Minh City's draught, allowing larger vessels to access the facility. BMI notes that these works are badly needed, as we are seeing a growing trend of lines ordering larger container vessels. Recognising the need to cater for bigger vessels, Vietnam's prime minister has directed the country's ministry of transport and its Maritime Administration to focus on developing deep water ports. A channel depth of about 14m is required for non-tide restricted access for vessels with capacity of up to 8,000TEUs.
BMI notes that while Vietnam's port sector has received plenty of investment, due to growing Intra-Asia trade volumes, the freight transport networks that link the ports with production and consumer centres are badly in need of investment. Growth in box throughput at the nation's ports has far outpaced investment in its freight transport network. In 2010 (latest available data), total container throughput at the country's ports reached 5.98mn TEUs, up 550% from the 919,264TEUs handled in 1999.
With a rating of 123 out of 142 in the World Economic Forum's 2011-2012 Global Competitiveness Report, Vietnam's road infrastructure is the regional underperformer, trailing well behind regional leaders Singapore and Hong Kong. The country's rail infrastructure fares slightly better, with a score of 71 out of 123, placing it just ahead of the regional underperformer the Philippines. BMI believes there must be more private and state investment in developing these links if the country's ports are to take full advantage of increasing trade volumes. - --Business Monitor International.---

Government Must Delay Launch Of Cai Mep-Thi Vai Port Complex

Government Must Delay Launch Of Cai Mep-Thi Vai Port Complex
The launch of the Cai Mep-Thi Vai port complex in the southern region must be postponed by the government of Vietnam. This was proposed by Vietnam Business Forum 2012's Infrastructure Working Group and representatives from some foreign-invested businesses providing port services, it was reported in December 2012. The complex is designed to handle the capacity surplus at seaport group 5, covering Ho Chi Minh City and Southern Ba Ria-Vung Tau province. An investment of US$660mn is required for the Cai Mep-Thi Vai project and a major share of the total investment has been received from ODA funds. Meanwhile, up to 90% of the construction work on the project has been reportedly concluded so far. However, the Ministry of Transport is still requesting that the Vietnam Maritime Administration go ahead with a bid to lease the port, which is scheduled to be completed in June 2013. Meanwhile, the businessmen said that the launch of the port in June 2013 would result in worsening the surplus situation in southern deep-water container ports.
CSCL Launches New Container Service
Chinese shipping company China Shipping Container Line announced that it has launched a new service between Haikou and Ho Chi Minh in Vietnam, reported Transport Weekly in November 2012. Haikou is located on the island of Hainan. The direct container service will operate on a weekly basis. It is intended to facilitate the transportation of products, including coconuts, fruit, rice and rubber, between Hainan and Vietnam.
Saigon Port Relocation Project Update
The Saigon Port relocation project in Vietnam has not made any considerable progress, owing to capital shortages, reported the Saigon Times Daily in December 2012, citing Saigon Port Company Deputy Director Huynh Van Cuong. The relocation work is moving at a slow pace despite financial assistance from the Vietnamese government. The Hiep Phuoc Port construction project is required to be finished first in order to relocate the Saigon Port from Ho Chi Minh City; however, construction work is only 38% completed.
The company is due to complete the construction of a 200m pier, but the road linking Hiep Phuoc Industrial Park with the current port has yet to be expanded. The company is preparing a proposal that is to be lodged with the transport and finance ministries, which will invite companies for the construction of the road to the Hiep Phuoc Port. Companies will be required to use their own capital for the road construction project.
DP World Praises Dredging Project
The official start of dredging work taking place at the Soai Rap river in Vietnam at the end of November 2012 was welcomed by global marine terminal operator DP World. The USD134mn project is aimed at improving transportation, reduce costs and should ensure that the navigation channel will become operational by the final quarter of 2014.The project is expected to take some 10 months and will encompass the dredging of an area some 54 kilometres in length, which will enable 50,000 to 70,000 gross tonnage ships to traverse the river, once the channel has been deepened to a 9.5 metre draft. A joint venture, Dredging International NV - Construction Consultation JSC for Maritime Building, was awarded the dredging contract back in June 2012.Senior Vice President and Managing Director DP World, Asia Pacific Region, Peter Wong explained: 'We are delighted to witness the start of this project. The deepened channel will be of great benefit to our customers who will be able to transport their products in larger ships and reach markets more quickly thanks to the new channel capacity.'It will also contribute to the development of the economic zones of HCMC and the South Economic Focus area, providing a new major transport artery for trade to develop and grow. The Saigon Premier Container Terminal (SPCT) was designed with this project in mind and we look forward to its completion,' he added.
Foreign Ships To Be Limited In Vietnam
Vietnam began the process of limiting foreign vessels operating in the country as of January 1 2013 in a bid to provide a boost for the domestic ship fleet. Vietnam's Ministry of Transport issued the ruling that will suspend licensing for foreign container ships in either three or six months from January 1, according to Vietnam News Briefs Service.
It is hoped that the regulation will provide a shot in the arm for around 24 domestic vessels and give them a foothold into an arena that is estimated to generate around US$47.6mn at present for foreign ships. The Vietnam Maritime Administration reckons that only 50% of the country's domestic container shipping fleet is being used at present, Vietnam News Briefs Service reports.
Business Monitor International

Friday 8 February 2013

Net exports remain the biggest downside risk to our outlook for the Vietnamese economy given that we expect external demand to remain sluggish as we head into H113; this will undoubtedly have a detrimental impact on the country's shipping sector. Despite recording an average monthly trade surplus of US$172mn since June 2012 (resulting in a year-to-date surplus of US$77mn), we do not see the case for a substantial pickup in external demand in the near term. Accordingly, we expect exports to expand at a moderate pace of 6.5% in 2013. We expect private consumption to grow at a relatively subdued pace of 4.9% in 2012 before accelerating towards 5.6% in 2013. However, we note that the risk of a sustained collapse in exports and further bankruptcies among SMEs, could potentially lead to widespread job losses in export-driven sectors. Indeed, the problems currently experienced at Vinalines are indicative of a deeper malaise in the Vietnamese shipping sector. State-owned shipbuilder Vinashin was bailed out in 2010 when its US$4.5bn debt threatened to bring down the entire Vietnamese economy.That said, we are sticking to our forecasts from last quarter for the Vietnamese shipping industry for 2013. Therefore, the Port of Ho Chi Minh City remains by far the country's largest port and will also be Vietnam's outperformer in terms of tonnage handled this year - forecast to increase 7.56% year-on-year (y-o-y) in 2013 to reach 38.75mn tonnes, compared with the Port of Da Nang's predicted annual growth of 4.33% (4.16mn tonnes). On the other hand, it will be the Port of Da Nang that will enjoy the higher levels of annual growth in terms of containers handled, with y-o-y growth set to come in at double figures in 2013, as opposed to the Port of Ho Chi Minh City's protracted growth of 8.03%.
Headline Industry Data
2013 tonnage throughput at the Port of Ho Chi Minh City is forecast to grow 7.56% to 38.75mn tonnes.
2013 tonnage throughput at the Port of Da Nang is forecast to increase 4.33% to 4.16mn tonnes.
2013 container throughput at the Port of Ho Chi Minh City is forecast to rise 8.03% to 3.48mn twenty-foot equivalent units (TEUs).
2013 container throughput at the Port of Da Nang is forecast to increase 10.54% to 133,366TEUs.
2013 total trade real growth is forecast to increase 5.70%.
Key Industry Trends
Government Must Delay Launch Of Cai Mep-Thi Vai Port Complex The government has announced that it is to delay the launch of the Cai Mep-Thi Vai port complex in the southern region, a scenario that was proposed by Vietnam Business Forum 2012's Infrastructure Working Group and representatives from some foreign-invested businesses providing port services, it was reported in December 2012. The launch of the port in June 2013 would result in worsening the surplus situation in southern deep-water container ports according to the group. CSCL Launches New Container Service
Chinese shipping company China Shipping Container Line has established a new service between Haikou and Ho Chi Minh in Vietnam, reported Transport Weekly in November 2012. Haikou is located on the island of Hainan. The direct container service will operate on a weekly basis. It is intended to facilitate the transportation of products, including coconuts, fruit, rice and rubber, between Hainan and Vietnam. Saigon Port Relocation Project Update
Progress has been slow at the Saigon Port relocation project in Vietnam, owing predominantly to capital shortages, the Saigon Times Daily reported in December 2012, citing Saigon Port Company Deputy Director Huynh Van Cuong. The relocation work is moving at a slow pace despite financial assistance from the Vietnamese government. The Hiep Phuoc Port construction project is required to be finished first in order to relocate the Saigon Port from Ho Chi Minh City; however, construction work is only 38% completed.
Key Risks To Outlook
The Thai and Vietnamese transport ministries have recommended that their governments extend the Khon Khen-Tien Sa Port road from the Laem Chabang Port in Thailand to Hanoi and Haiphong in Vietnam, reports the Saigon Times. The statement was made by Phan Thi Thu Hien, the deputy director of the Department of Transport and Legislation under the Directorate for Roads of Vietnam. The suggestion is aimed at improving the efficiency of the road as it is not being efficiently used by enterprises and if completed, this will provide upside risk to the industry going forward. The road, which will cover approximately 900km, will run along Ho Chi Minh Road from Lao Bao in Quang Tri to Hanoi and Haiphong. Hien added that the road was opened for traffic in June 2009; however, it was not used by any enterprise due to problems faced by transporters in supplying goods to deep inland areas. Ongoing upgrade work is a necessity if Vietnam's ports are to remain competitive and begin to make a foothold in what is an ever competitive region.In terms of downside risk, Vietnam's fortunes are very much intertwined with those of the US, considering the States are by far Vietnam's largest export partner so news of a sustained downturn in the US will come as bad news in difficult times. There are some risks to the US foreign trade outlook. While the Bush administration was firmly committed to broadening the US's free trade ties, the weakened domestic economy has put some pressure on the Obama administration to hold off on future deals for the time being. Nonetheless, the federal government approved two major free trade deals with South Korea and Panama in Q411 that had previously been put on the back burner. That said, there are some worrying signs, including the use of a 'buy American' clause in the recent fiscal stimulus package, and vocal concerns from the Treasury Department over the Chinese currency regime.
Downside risk also presents itself due to poor infrastructure in Vietnam as delays in the completion of road works to container terminals are hampering any attempts to make the country's biggest and deepest port, Cai Mep, use anything close to full capacity, according to the CEO for Asia Pacific of APM Terminals.
Henrik Lundgaard Pedersen said: 'There is a lot that can be done and should be done to attract larger vessels to make sure that you use the most modern port facility you have in Vietnam.'
Business Monitor International

Wednesday 6 February 2013

Cargo via Vietnam Ports Forecast to Rise in 2013: U.K. BMI

Cargo via Vietnamese ports is forecast to rise in 2013, the U.K. market researcher Business Monitor International (BMI) said.
Specifically, the cargo output via ports in the southern economic hub of Ho Chi Minh City will rise by 7.56% to 39 million tons this year while the container cargo output via the ports expected to rise by 8% to 3.48 million tons.
Meanwhile, ports in Danang forecast to handle 4.16 million tons of cargo in 2013, rising by 4.3% and 133,000 TEUs tons of container commodities during the year, up 10.54%, it noted.
According to BMI, in 2013-2017, Vietnamese seaports will act as transshipment ports, just like Singaporean ports do, thus they will receive more large ships instead of just the small vessels as before.
Vietnam now has over 100 ports of different kinds. However, it has a surplus of small ports and a shortage of large ones. Port construction boom without planning has led to a situation where many ports are operating at 20% or 30% of their capacity.

Saturday 2 February 2013

Developing Seaport Infrastructure In Vung Tau

Due to the woes continuing to plague the economy, the seaport performance in Ba Ria-Vung Tau Province and the country as a whole was poor last year. However, four new seaport projects are going to be put into operation in the province this year, contributing to improving the seaport infrastructure, and may make some headway this year.
Ba Ria-Vung Tau Province Department of Transport has announced that four more seaport projects, namely Vung Tau Petro, Cai Mep-Thi Vai International, SSIT and the first phase of Gemalink, will be put into operation this year.
The seaports will have a combined design capacity of about 20-25 million tons of cargo. The southern coast province in 2013 looks to achieve cargo throughput of around 50.7 million tons and serve roughly 125,000 passengers at local seaports. It will spend more than VND4.2 trillion developing the new seaports this year, up some 10% against last year.
Ba Ria-Vung Tau is now preparing to invest in 15 seaport projects at a total cost of about VND56 trillion, with 10 in Thi Vai-Cai Mep area, four in Long Son-Vung Tau area and one on Con Dao Island.
Ryoichi Matsuno, general director of Thi Vai International Port Co., told Ba Ria-Vung Tau newspaper that work on the international seaport would start in the second quarter and would be completed two years later. "Although the project is being completed during the tough times, we are still optimistic about the port's potential,?he said. "We believe that when the port is put into use, the economy will also recover.?
Matsuno added that ports around the Thi Vai-Cai Mep area are mainly container ports. So, when the Thi Vai seaport opens, it will be the only big port with various activities, including loading steel products. This is really an advantage.
There are 26 operational seaport projects in Ba Ria-Vung Tau Province with a total capacity of more than 76 million tons annually. However, these ports handled just 50.46 million tons of cargo in 2012, equivalent to some 94% of the 2011 figure. The Thi Vai-Cai Mep complex has 14 projects and the Vung Tau-Long Son area has 11 projects. Ben Dam Port on Con Dao Island serves as a general port, including seafood handling.
Cargo throughput at the ports was 50.46 million tons in 2012, down 6% compared to 2011. Container throughput increased to 7.58 million tons (6.42 million tons in 2011) but transit container throughput decreased by 30%. The number of international passengers going to the country through the ports was put at more than 82,000 people last year, or 88% of the number recorded in 2011.
Overcoming difficulties
Since container seaports around the Cai Mep-Thi Vai area have been put into operation, particularly after successfully accommodating big vessels, some firms started to bring their mother vessels to the area to load containers. Especially, 16 new maritime routes have been set up to ship containers from Vietnam to Europe and the U.S. However, due to the ongoing economic crisis, over the past year, some foreign shipping firms have cut at least seven direct routes from Europe and the U.S. to the Cai-Mep Thi Vai area. The remaining nine routes are enough to create fierce price competition among seaports. This makes the prices of stevedoring services go down strongly, costing less than US$40 per 20-foot container, impacting business operation of ports, especially newcomers.
In addition to the economic turbulence, the slow relocation of seaports along the Saigon River and Ba Son Shipyard has a negative impact on seaports?activities of Ba Ria-Vung Tau. By this time, only Saigon New Port had completed the relocation while others had removed a part. Due to the delay, many container ships still flock to ports in HCMC, instead of those in the Cai Mep-Thi Vai area, which have had infrastructure ready to welcome the relocated seaports from HCMC as well as container ships. So there is a big gap between supply and demand here.
Talking with Ba Ria-Vung Tau newspaper, Nguyen Xuan Ky, deputy general director of Ca Mep International Seaport, said that to handle the long-lasting difficulties, enterprises must proactively carry out proper solutions, limiting mistakes. "Besides, the Government should quickly approve suggestions or master plans as well as issue new breakthrough policies to better the performance of the port complex,?he said. Some of the policies are reducing maritime charges, setting up a seaport authority and creating favorable conditions for the transportation of exports from the northern and central regions.
Meanwhile, Nguyen Thu Trang, deputy general manager of Baria Serece Joint Stock Company, the operator of Phu My deepwater port, said the port only handled 4.7 million tons of containerized goods, down 14.5% compared with the initial target. To solve the problem, the port has boosted marketing, reduced some spending and applied advanced technology. "It is forecast that the economic difficulty still exists in 2013, so port operators need to improve marketing, reduce expenditures and improve customer care,?she said.
To enable the Southern Focal Economic Hub to play a real part in the country's development and to help localities in the hub develop, it is necessary for the Ministry of Transport to boost the relocation of seaports along the Saigon River. The ministry also needs to issue a new policy to connect localities in the region in seaport cooperation. This not only helps bring benefits for each locality but also avoids overlapping and weak performance of each locality.
Saigon Times Group