Remarking port logistics investment in
Ba Ria - Vung Tau province, Ms Le Thi Kim Huong, Director of the
Department of Planning and Investment, said: "Logistics is a vital
sector but is was not satisfactorily invested and developed previously.
In the past two years, central and provincial authorities have kicked
off many programmes to instruct investment in this field. Big projects
are being carried out and I hope logistics projects will supplement and
facilitate import and export activities to develop."
Inseparable logistics
In
early 2010, Ba Ria - Vung Tau province licensed many port-related
projects, including three port logistics services projects worth VND950
billion (US$50 million). These three projects are considered a timely
supplement for the incomplete port development plan. Previously, when
the Port Complex 7 development plan was announced, Ba Ria - Vung Tau
province became the centre with eight container ports with an annual
capacity of 2 million TEUs a year each. However, planners only cared
about the locations for ports, not inseparable services for ports,
specially container terminals. Thus, when the first phase with two
international terminals, namely SP-PSA and Tan Cang Cai Mep, started
operations, port operators have to take care of logistics services on
their own.
A
container wharf, with an inpidual length of 300-500 metres, can serve
only one vessel at a time. In the future, when all eight container
wharves are operational, the arrangement of empty containers will be
much more difficult because the complex will handle nearly 20 million
TEUs of cargo a year. Congestion is foreseeable. This shortcoming
actually concerns port operators. Mr Tran Huu Trung Tin, Deputy Director
Cai Mep Agricultural Product Port, said: "There are many ports but
there are no transhipment terminals or warehouses. If we do not do right
now, congestion will be very serious here. This has also happened to
Hai Phong ports and Ho Chi Minh City ports. Without supporting services,
ports cannot operate effectively." Mr Tran Khanh Sinh, Director of Tan
Cang - Cai Mep Port, said: "Seaports are never separated from logistics
activities as logistics will reduce distribution costs of
manufacturers."
Port logistics system
To
ease concerns of port operators, provincial authorities have actively
proposed the central government to supplement logistics service centres
to the port development plan in Ba Ria - Vung Tau province. To date, 15
port logistics services projects have been agreed, including five
licensed. Three newly licensed projects in 2010 were a port service yard
and warehouse invested by Asia Infrastructure Investment and Services
Joint Stock Company, a container yard and warehouse invested by Hoang
Lam Co., Ltd and a Cai Mep container reception and distribution centre
invested Vietnam Port Investment Consulting and Development Joint Stock
Company. These projects are mainly located in Tan Thanh district and
along ports. This is really a good sign for port investors and operators
as well as local authorities.
However,
licensed port logistics services projects have small scale, especially
areas. Hung Long Construction Company operates the largest logistics
service centre on an area of only 71 hectares. The investment capital
for these projects is also limited, with just VND800 billion (US$42
million) for the biggest. Before ineffective port logistics service
development, the People's Committee of Ba Ria - Vung Tau province
assigned the Industrial Zone Management Board to calculate the area for
this. The board intends to allot over 1,000 hectares in Cai Mep Ha
Industrial Park to build a large-scale logistics service centre to serve
ports in Cai Mep - Thi Vai port complex, Long Son area and Vung Tau
city.
Mr
Le Minh Chau, Director of the Ba Ria - Vung Tau Industrial Zone
Management Board, said: "We expected to take the entire area of Cai Mep
Ha Industrial Park for a port logistics service centre. Investors must
have enough finance and experience in logistics services, etc. Upcoming
port logistics services projects are believed to add wings for deepwater
seaports in Ba Ria - Vung Tau province.