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

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