customs brokerage, freight forwarding and truck transportation

Overloaded Ports Weigh Down Vietnam

: Transport

Local Port Unable to Keep Pace With Container Shipping Volume in Ho Chi Minh City 2018-01-11

Vietnam’s over-burdened shipping infrastructure is taking a big toll on freight operations; the port authority estimates the industry loses US$2.4 billion a year because it can’t reach the country’s best docks.
 
Cai Mep International Terminal (CMIT), 50 km southeast of Ho Chi Minh City, the nation’s commercial hub, provides deep-water access for larger vessels, with capacity of 18,000 TEUs.
 
But shippers prefer to use the far smaller Cat Lai Port, which is closer to the manufacturing districts of Binh Duong, Ba Ria-Vung Tau, Dong Nai and Ho Chi Minh City itself.
 
Containers must be offloaded onto more compact vessels at sea or transshipped through larger Hong Kong and Singapore ports so they can access Cat Lai, which creates delivery delays and hikes costs. Shipping through Hong Kong can add 30% to the cost of a container.
 
The Vietnam Port Association says the estimated losses of US$2.4 billion a year are based solely on the industry’s inability to access CMIT, which is operating well below its capacity while congestion steadily builds at Cat Lai. There is no effective road or rail infrastructure linking CMIT to Ho Chi Minh City.
 
Excess capacity exists at ports in Da Nang in the central region and Haiphong in the north, but they are too distant to serve Ho Chi Minh City. Haiphong’s new Lach Huyen port, due to be completed in 2020, has been designed to accommodate container ships of only up to 8,000 TEUs.
 
In the meantime, Cat Lai, handling 50% of Vietnam’s container freight, is facing its own transport snarls because of chokepoints at weigh stations and gridlock at a major road intersection. Drivers partly blame a ban on trucks using the most direct route, which diverts traffic to side streets.
 
Read more in an article from Asia Times.
 

Source: CIFFA

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