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.

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