1.  The current state of the Vietnam’s seaport system and services

- Review of infrastructure and technical equipment and supplies of the Vietnam’s seaport system

 Vietnam boasts a coastline of over 3,200 kilometers, thousands of small and large islands, and numerous locations for building seaports along the coast. Also, the country is very close to the international seaway, which has now the highest density of vessel traffic in the world, as well as being a gateway to the sea for the landlocked neighboring countries, such as Laos and the hinterlands, including northwestern Thailand and south- eastern China.

In implementation of the open door economic policy, the Party and the Government of Vietnam have attached importance to the development of the country’s transportation system, particularly ocean shipping. Special policies have been introduced in a bid to expand the country’s ship fleet and seaport system, from technical infrastructure to auxiliary services. As a result, Vietnam’s seaport system has undergone radical changes partly in response to increasing imports and exports as well as the national economic growth.

 At present, Vietnam has in excess of 100 ports and harbors with a combined length of roughly 22,000 meters of quays, above 1 million square meters of warehouses, and over 2.2 million square meters of yards. It is estimated that the quantity of freight moved via Vietnam’s seaports annually increased by an average of over 12 per cent, of which exports and imports bounced by 14 per cent a year and even more than 16 per cent from 2004 to 2006 (See Table 1), meeting the requirements of increased import and export activities and the country’s economic growth, and well above the pace of investment in seaport construction.

 Among the more than 100 ports, export and import cargoes have moved through44 major ports, accounting for nearly 70 per cent of the quantity of freight passed via the country’s ports. The major harbors are unevenly distributed among the three regions, with 8 ports in Northern Vietnam, 17 ports in Central Vietnam, and 19 ports in Southern Vietnam. Over 102 million MT and 2,756,367 TEUs of freight were moved through the ports in 2006. Of these, port complexes in the south represented 50 per cent and 55 per cent of exports and imports by volume, while the northern seaport clusters controlled 38 per cent and 37 per cent of the quantity of import and export cargoes (See Table 2).

Overall, the cargo-handling capacity of Vietnam’s seaports is still low. There are three major ports in the three regions, namely Hai Phong Port, Da Nang Port and Ho Chi Minh City Port Complex, which comprises of Tan Cang Sai Gon (Sai Gon New Port) and Sai Gon Port. These are large and important harbors, which play a key role in the country’s seaport system. They are currently major traffic leads connecting the north, the center and the south of Vietnam with regional and worldwide seaports. In 2006 alone, the volume of freight handled at the port of Hai Phong totaled over 11 million MT and 464,000 TEUs, at the Da Nang Port reached 2,371 million MT and 37,404 TEUs, and at the ports of Sai Gon and Tan Cang Sai Gon amounted to 31, 127 million MT and 1,620,509 TEUs, making up over 60 per cent of the total cargo tonnage movements via the country’s ports. Moreover, the remaining ports are very small in scale, leading to  little cargo being moved via them .

 
Table 1. Cargo tonnages by type at the Vietnam’s ports, 2006

NO	PORT	NUMBER OF VESSEL	CARGO THROUGHPUT  (x 1.000 MT)
			MT	IMPORT	EXPORT	DOMESTIC	CONTAINER
NORTHERN VIETNAM
1	Quang Ninh	443	3.499	884	1.158	1.457	113.360
2	Cam Pha	1.506	15.500		13.434	2.066
3	Hai Phong	2.056	11.151	5.199	2.825	3.127	464.000
4	Doan Xa	198	1.789	285	263	1.241	96.000
5	Vat Cach	997	1.370			1.370
6	Cua Cam	230	321	33	1	287
7	Transvina	221	1.983	581	429	1.063	117.496
8	Oil port B12	222	2.931	2.486		445
CENTRAL VIETNAM
1	Thanh Hoa	917	1.155	1	58	1.096
2	Nghe Tinh	850	1.270	39	402	829
3	Ha Tinh	309	738	13	414	311
4	Quang Binh	119	70	1	10	59
5	Cua Viet	148	58		17	41
6	Thuan An	301	240	2	50	188
7	Chan May	170	526	46	447	33
8	Da Nang	1.312	2.371	415	892	1.064	37.404
9	Han River		0
10	Hai Son	74	100	10		90	3.000
11	Nguyen Van Troi	343	245	3		242
12	Ky Ha	250	170		50	120
13	Ky Ha – Quang Nam	230	200	5	210	85	3.500
14	Quy Nhon	1,091	2,671	641	1,303	727	51,946
15	Thi Nai	566	501	3	112	386
16	Nha Trang	658	1,078	6	157	915	4,819
17	Ba Ngoi	401	942		516	426

 

SOUTHERN VIETNAM
1	Dam Wharf- Con Dao VT	*302	236			236
2	Vung TauCommercialPort	448	415	22	33	360
3	Phu My	419	2.633	2.124	51	458
4	Dong Nai	625	1.814	712	165	937
5	Cat Lai oil and petrol	93	1.306	1.306
6	Sai Gon Petro	157	942	942
7	Tan Cang Sai Gon	1.914	20.000	9.192	9.958	850	1.400.000
8	Sai Gon	1.905	**11.127	6.286	2.016	2.825	220.569
9	Eastern Tan Thuan	103	315	257		58
10	Ben Nghe	797	3.680	1.033	223	2.424	191.048
11	Vegetables	186	991	418	476	97
12	Bong Sen (Lotus)	341	865	705	160		17.583
13	Nha Be Oil & petrol	200	3.900	3.900
14	My Tho	112	280	16	4	260	76
15	Dong Thap	79	202	23		179
16	Vinh Long	103	207	17	2	188
17	Can Tho	159	876	286	53	537	17.097
18	Tra Noc – Can Tho	130	550	25	102	423	533
19	My Thoi	212	936	175	287	474	17.936
TOTAL		21.887	102.254	38.029	36.278	27.947	2.756.367

 

In recent years, seaports in Vietnam have experienced regular improvements and refurbishments. For example, the port of Hai Phong has had a US$ 150 million project on port improvement and refurbishment for phase II from 2004 to 2007. Also, an investment of US$ 46 million was made in the refurbishment of the Da NangPort in 2004, while nearly US$ 45 million was put in the refurbishment of the Sai Gon Port. However, the ports are generally small in size, with a limited length of quays and berths and the non-existence of a deep-water seaport. The distance from buoy No. 0 to the ports of Hai Phong, Sai Gon and Can Tho is 38 kilometers, 90 kilometers and 110 kilometers respectively. These ports cannot berth large vessels, and the dredging and rehabilitation of canals for medium-range ships to enter can be a very costly business. With a length of the three berths totaling 2,438 meters, the deepest berth being - 10.5 meters, the port of Hai Phong is capable of accommodating only 10,000-DWT ships at the main quay and 20,000-DWT vessels at the Dinh Vu Port, whilst the new transshipment terminal is well placed to receive 40,000-DWT vessels. The port of Da Nang, which is composed of 10 berths with 1,440 meters in total length and 12 meters in depth, can seat 45,000-DWT vessels. The SaiGonNewPort, which has six berths with a combined length of 1,677 meters and the deepest berth being -10,5 meters, is destined for 30,000-MT container vessels and 36,000-MT bulk carriers. The port of Sai Gon encompasses four berths with 2,685 in total length and the deepest berth being -10,5 meters, enabling to accept 32,000-DWT vessels (See table below)

- The current state of  Vietnam’s seaport service system

Seaport services have an important role in the development of seaport systems. These services underpin the expansion of transport operations and and improvement their efficiency, assisting carriers to enter and leave the ports, providing services to ships, such as loading, discharging, forwarding, tallying, and preservation of freight etc. Good service quality facilitates and lessens risks and costs occurred during the process of transport, raising efficiency of the seaport system.

 According to the WTO’s criteria, a seaport system comprises of three principal groups:

- Transport services, including carriage of goods and passengers.

- Maritime support services are composed of six sub-groups: Handling of cargo, warehousing and warehouse rental, customs clearance, container terminal, shipping agent and freight forwarding.

- Port services comprise of nine sub-groups: Pilotage, towage, supply of food, oil and water, garbage collection and waste water treatment, port services, maritime guarantee, on-shore operating services needed for ships, including communication, water and electricity supplies, emergency repair of equipment, and berthing services.

In recent years, as a result of the open-door policy, the Vietnam’s economy as a whole and import and export trade in particular have experienced dramatic growth, with radical changes in seaport infrastructure and physical facility. Thus, the country’s seaport services have grown in both terms of volume and quality along the direction of diversifying types of service and involving various economic sectors. According the Enterprise Law of Vietnam, a business is eligible to concurrently trade in a wide range of services, such as transport, transport agent, customs clearance, freight forwarding and so on in order to make the best of all potentials related to fund, human resource, and time as well as to have a closed production line with a view to improving its operating efficiency.

Prior to 1990, state run businesses were responsible for seaport services. Each type of service was assigned to the respective monopolistic enterprises. For this reason, the quality of Vietnam’s seaport services is still below that of foreign countries.

Since 1990, as a result of the open door policy and economic growth, particularly after the introduction of the Enterprise Law in 2001, the number of enterprises engaged in seaport services have rapidly gone up, while many state, private and joint venture businesses having been established. In several fields of services, such as forwarding, handling, and towage, service operators have expanded by nearly 200 per cent in terms of volume from the figure recorded before 2001. The number of seaport service operators by type of service is shown in the table below.

Table 2. Vietnam’s seaport service operators by kind of service

As regards financial efficiency, the rate of profit per turnover of the transport industry only totalled over 2.3 per cent compared with  a ratio of 7.8 per cent reported for handling services and 10.1 per cent of some other services, according to trade data released by the Vietnam Maritime Corporation. Hence, the volume of enterprises involved in the fields of shipping agent, freight forwarding and several other services have gone up.

The rapidly growing number of seaport service operators and fierce competition became an important driver for their competitiveness improvement. The businesses have actively invested in refurbishment, technology --, personnel improvement, and application of modern management models in a bid to raise the quality of their services. Many state policies have been introduced in order to simplify administrative procedures, and the one-stop mechanism is put into place. Also, the quality of public services has been uplifted to best facilitate formalities for ships docking at ports. In general, the technical infrastructure for service delivery is, however, in poor condition. Additionally, the application of scientific and technological advances is limited and lacks in professionalism. Moreover, operating capacity of many service providers remains weak. As a consequence, the quality of Vietnam’s seaport services is not regarded high.

The seaport system is designed to serve the maritime transport sector.  To promote shipment by sea, seaports of nations must be expanded in a uniform manner. Therefore, the development trend of international maritime transport and seaport system has a great influence on seaport development strategies of the respective countries.

Since its advent since 1957/1958 in the United States, containerized shipping is widely accepted for the convenience and great benefits generated. It made the carriage, handling, delivery, preservation, inspection of cargo, customs clearance, and transshipment easier and applicable to special use equipment and advanced technology in the domains of transport, delivery and handling of containers, aiming to facilitate, reduce risks and costs, and improve the efficiency of business operations.

It can be said that the movement of cargo in containers has skyrocketed over the past two decades. This is the world’s big revolution only behind the Information Technology revolution. From 1975 to 1994, the volume of containers handled at the ports throughout the world increased by seven folds from 17.4 million TEUs to 126.6 million TEUs. This growth trend is expected to sustain until the early 21^st century. The Ocean Shipping Consultant forecasted container ports to rapidly expand worldwide. Global container port throughput is projected to range from 407 million TEUs to 525 million TEUs by 2010, it said.

As per a recent research study on international maritime transportation conducted by the JapaneseResearchCenter, Asia-Pacific is the busiest container traffic region in the world, accounting for 43.7 per cent of the world’s container tonnage movements and concentrating in major shipping routes with large and convenient seaports.

Another emerging trend is that the major shipping routes around the globe tend to use vessels in a large tonnage and size, as large vessels are believed to ensure safety and lower freight charges. Over the last decade, large-sized ships in the world with a capacity of 3,000 TEUs run in the route from the Far East to Europe. To date, vessels with a capacity of 6,000 to 7,000 TEUs have become popular in the Asia –Pacific’s territorial waters. In 2001, the CMA CGM firm launched a series of newly built ships of 6,600 TEUs in size to the French Asia Line (FAL), its main route connecting Asia with Europe. Soon afterwards, the Hamburg Express vessel with a size of 7,500 TEUs of the shipping line Hapag-Lloyd was put into operation and was considered as the world’s biggest vessel at that time. Today, a number of shipping lines, such as Maersk, planned to have 15,000 TEU-vessels built to put it into operation. As such, the construction of deep-water seaports, especially container ports to accept large-tonnage and sized vessels is still a question for the seaport system of all countries in the world, particularly countries in the Asia-Pacific region.

- Joint venture or association to become big carriers, integration of various transport modes - multimodal transport

In the light of the global general trend, a series of big mergers have taken place in the field of sea transport over the past few years in a bid to create efficient and large-scaled shipping giants. Examples are a merger between Maersk and SeaLand to take the lead in the world and a merger between P&O and Nedloyd to form the world’s third largest container shipping line. The similar scenario happened at shipping lines in developing countries in Asia. The next step is corporate integration into alliances. The participation of marine transport companies in global alliances is expected to make the best use of advantages associated with shipping, transportation services and marketing costs. Transportation companies are seen to rationalize their carriage capacities through contracts for exchange of ship holds and empty containers because around 20 per cent of containers shipped by sea are reportedly empty and the cost of moving them is estimated at roughly US$ 2 to 3 billion. Should shipping companies associate to push down the rate of moving empty containers, transportation charges are projected to decrease, resulting in an improvement of their competitiveness.

In this context, the integration between two modes of transport by land and waterway has seen a robust growth in recent years. Containerized shipping facilitates the development of this mode. Most ocean shipping routes are now interconnected to implement multimodal transportation, chiefly by combining sea, road and rail transportation. In Notice 91/40, the European Commission recognized multimodal transportation best appropriate for the liberalisation of rail carriage in Europe. For these reasons, it is necessary to build large ports and link ports to auto and train transport system of each nation, the region and the world.

In the framework of sea transport services round the world, vessels with a capacity of 3,000 TEUs or more are allowed to call only at some hub ports in the respective regions for handling a small volume of containers instead of entering too many ports. These ports have become regional transshipment hubs where containers are moved into and out of the feeder ports in small container ships or trains and trucks in a multimodal transport network.

As well as large ports, such as Singapore and Hong Kong, Asian countries have actively built large ports into international maritime transport hubs. A typical example of this trend is that China has invested in building the ports of Dai Lien, Thuong Hai and Thien Tan over a short period of time. Another example is project on the construction of a deepwater port near the estuary of the Yellow River in order to develop eastern China into one of the world’s leading shipping hubs. Additionally, ports of other countries in the region have been robustly invested to attract clients. For instance, the Northport of the Malaysian harbor of Klang has been further upgraded to accommodate the latest generation of container ships and vessels of over 7,500 TEUs.

Alongside investment in the development of large deepwater ports into international shipping hubs, the procurement of high-productivity specialized handling facilities has been stepped up, as the improved quality of loading and discharging services is one of positive factors in enhancing the efficiency of utilizing ports and attracting customers. In the Asian region, the port of Singapore is one among the most modern and best equipped in the world, and is known for a short handling time with a high productivity.

In the context of contemporary business, the adoption of JIT (Just in time) model is of great significance, thus it is really necessary to carry out “the mode of fast integration” between ports and other transportation hubs. Containers are moved to and from international transport centers either by ships, lorries or trains promptly, timely and taking a short waiting time. The ports where the above services are unavailable will be excluded from this fast transport system. Therefore, their competitiveness and attractiveness for clients will be impeded.

+ Trend in globalization and diversification of services, as well as provision of package services

Maritime services develop in tune with the growing trend in integration and merging of shipping lines. This is a finding of a recent survey on trends of corporations, including Inchcape, Wellem shipping, Barwill, Jardine, GAC.  These groups all have subordinate companies operating in various marine hubs and large ports across the world, like New York, Dubai, Singapore, Hongkong, Shanghai, Tokyo, and Taiwan. They can offer a full range of services, including shipping agent, multimodal transport, supply and repair of vessels, crew logistics, tallying and so on at the world’s major ports.

Here is another example of shipping agent service. Multiport is a London-based association that groups over 1,200 seaports from nearly 100 countries all over the world. Given the Multiports membership, shipping agents are --ed by conducting a thorough examination of their capacities and finances in order to ensure client’s confidence.  They provide a host of essential services, such as provision of lubricant oil, insurance, ship repair, handling, and forwarding etc. worldwide with a motto: Integrity, quality, and professionalism.

To face intensified competition amidst globalization, service providers at seaports tend to diversify their service types and offer package services, such as door- to- door delivery and transportation services in a bid to best facilitate clients, making services to lend support to each other during a closed process, utilizing the availability of technical infrastructure and human resource, and eventually lowering costs and improving competitiveness.

+ Improving the quality of services by means of IT

Countries, particularly developing countries, aim at lessening cumbersome and complicated administrative procedures, facilitating ships to dock at ports and uplifting the quality of port-related services.

At present, international ports step up IT applications to port management and service provision. With the Tradenet project, the port of Singapore has reduced a huge amount of papers and dossiers, saving it from lots of expenses and time. IT modernization at seaports to communicate with clients and ports is at issue for the seaport system.

Granted a long coastline and over 100 small and large ports, more than 85 per cent of Vietnam’s import and export commodities are shipped by sea. In implementation of the open-door policy, the economy of Vietnam has witnessed leaps in recent years, with a growth of nearly 7 per cent a year in its GDP and an increase of over 15 per cent in its annual import and export values.

The country’s principal exports are crude oil, textiles, garments, fishery products, farm produce, wooden furniture, electronic appliances and plastic articles, while its main imports are equipment, machinery, raw materials, petrol and oil, iron and steel, and fertilizers.

Major markets for Vietnam’s exportable commodities include Asia, taking up around 50% of the country’s commodity exports, followed by Europe (roughly 25 per cent), Australia and Africa  (13%), and America, primarily North America (12%). In , the country imports mainly from Asia (controlling nearly 55% of Vietnam’s imports), Europe (25%), America (14%) and other continents.

With its WTO official membership, Vietnam is expected to maintain its GDP growth at 7-8% a year. The country’s GDP per capita is projected to increase by roughly 3.5 times from current level, bringing its total GDP to roughly US$ 150 billion in 2020. Imports and exports are forecast to further accelerate. It is predicted that the country’s annual GDP growth will be 13% in the 2006-2010 period and 11% in the 2011-2020 period. Its yearly exports are seen to go up 14% to US$ 52.8 billion by 2010 and 10% to US$ 119.2 billion by 2020.

The following tables show projections of total cargo throughput at Vietnam’s seaports by 2010 and 2020 (Table 6), total freight tonnage by market of destination (Table 7), and total cargo throughput at Vietnam’s major port complexes (Table 8):

No.	Kind of cargo	Year 2005	Year 2010	Year 2020
I	Total exports and imports	80,790	108,100	210,000
1	Exports	47,309	59,100	110,000
	Liquid	20,800	10,000	8,000
	Container	11,916	25,000	54,000
	Dry	14,593	24,100	48,000
2	Imports	33,481	49,000	100,000
	Liquid	11,100	8,000	18,000
	Container	10,267	21,000	47,000
	Dry	12,114	20,000	35,000
II	Domestic	35,186	63,950	98,100
	Liquid	15,452	34,366	51,938
	Container	3,468	5,476	12,676
	Dry	14,266	24,108	33,486
III	In-transit and transshipped cargo	12,626	19,000	40,000
	Total I+II+III	128,602	191,050	348,100
IV	Passengers (people)	700,000	1,000,000	1,500,000

 

In 1,000 MT
 

 
Table 5. Forecast of total cargo throughput at Vietnam’s major port complexes (In 1,000 MT)
 

Hence, the volume of import and export cargoes moved via Vietnam’s seaports in is anticipated to bounce 6.8% per year to 108 million MT in 2010 and 210 million MT in 2020 in line with the economic growth rates expected for the corresponding periods. The movement of freight in containers  is seen to rapidly accelerate as Vietnam exports mostly textiles, garments, farm produce, fisher products, wooden furniture, electronic appliances and plastics, and in imports equipment and machinery. That is also a result of rapidy growing containerization in the world. Shipments of general cargo are projected to significantly increase, while a slowdown is forecast for liquid freight on a sharp decrease in exports of crude oil, as Vietnam will build oil refineries with a designed capacity of 13.2 million MT of crude oil in 2010 and 19.8 million MT in 2020. Thus, the country’s oil and petrol imports are expected to fall by volume. However, Vietnam’s imports of oil and petrol are seen to bounce back owing to increasing domestic oil and petrol consumption.

The volume of freight shipped from Vietnam to Asia is seen to gradually decrease by 2010. Asia is expected to account for 48% of the country’s exports in 2020 from a current rate of over 50%. In contrast, cargo shipments to countries in Western Europe and North America are anticipated to boost. Deliveries of cargoes to America are projected to represent 20% of Vietnam’s exports in 2020.

The cargoes are moved mainly through the major port complexes, including Quang Ninh and Hai Phong port complexes in Northern Vietnam, Da Nang Port Complex in Central Vietnam, and the port complex of Ho Chi Minh City and Vung Tau - Thi Nai Area in Southern Vietnam. By 2020, the volume of cargo passing through  the Quang Ninh Port Complex is forecast to total 30 million MT, in excess of the amount recorded at the Hai Phong Port Complex and accounting for nearly 15% of the country’s freight tonnage movements. The quantity of cargoes shiped via  the Vung Tau - Thi Nai Port Complex is seen at 80 million MT, representing nearly 40% the country’s freight tonnage movements and double from the amount of goods handled at the port of Ho Chi Minh City.

Berth name & number	Berth Length (m)	Depth alongside (m)	Type of vessel/ cargo
Main port area - 11 wharves	1,713	-8.4	General, bagged, bulk, and container cargoes
Chua Ve Port - 4 wharves	480	-8.4	General and container
Dinh Vu Zone- 1 wharf	245m	-10.5	General and container 20,000DWT

 

3 buoy berths on the BachDangRiver with a depth of -7.5m 9 anchorage points at the Ha Long - Hon Gai area and 3 anchorage points at the Lan Ha area with a depth of -14m.

Whaf name & number	Length (m)	Depth alongside (m)	Type of vessel/cargo
Wharf 1 Tien Sa	185m	-11 m	<=30.000 DWT
Wharf 2 Tien Sa	185m	-11 m	<=30.000 DWT
Wharf 3Tien Sa	185m	-11 m	<=30.000 DWT
Wharf 4 Tien Sa	185m	-11 m	<=30.000 DWT
Wharf 5 Tien Sa	225m	-12 m	Container vessels
Wharf 1 Han River	140m	-7m	General cargo vessels 5,000 MT
Wharf 2 Han River	100m	-7m
Wharf 3 Han River	100m	-7m
Wharf 4 Han River	92m	-7m
Wharf 5 Han River	93m	-7m

- 3 wharves at the buoy berth of Cat Lai, 10,5m to 12,0m deep. - Size of vessel: 30.000-ton container vessel and 36.000-ton bulk carrier

Name of berth	Berth Length (m)	Depth alongside (m)	Type of vessel/ cargo
Nha Rong Terminal	842	8.2~9.1	General / Passenger
Khanh Hoi Terminal	908	8.2~10	General/ Container
Tan Thuan I Terminal	713	11	Roro / Cont. / Bulk cargo
Tan Thuan II Terminal	222	10.5	Bagged/ Bulk cargo

  34 bouy berth with 3,3 to 13,5 m in depth

The total floor area of the main ports’ warehouses and yards is still small (See Table 4). The SaiGonNewPort has the largest ground area of 972,0700 sq. meters. Yet the ports lack space for warehouses, especially CFS warehouses and customs bonded depots. While the SaiGonNewPort has 122,000 sq. meters of warehouses, including 40,000 sq. meters of CFS warehouse covers and 12,000 sq. meters of customs bonded depot, these facilities are not available in many other major ports.

Handling facilities at the ports in Vietnam have been frequently renewed. The major ports, including Hai Phong, Da Nang and Ho Chi Minh City Port Complex, had their berth systems upgraded and have been furnished with relatively advanced equipment and supplies for loading and discharging cargoes. In 2006, the port of Da Nang spent nearly US$ 6 million on the procurement of 100-MT cranes and two ships, while the new port of Sai Gon bought overhead cranes and frame cranes used for handling containers and special use vehicles for nearly US$ 30 million. Though the stevedoring of containers has been highly mechanized with modern specialized equipment to ensure handling productivity, the loading and discharging of general and bulk cargoes by means of multipurpose devices greatly restrain handling productivity compared to specialist equipment. A shortage of equipment and supplies in the ports combined with backward technologies inappropriate to freight varieties have so far hindered their capacities. Tan Cang Sai Gon is one of the largest, most modern and best-equipped ports in Vietnam. The port has had so far only ten mobile gantry cranes (KE) for handling containers with a capacity of 35 containers an hour. Its annual handling capacity is estimated at 2,500 to 3,000 MT per meter of quay, equal 70% of the capacity of ports in regional countries. A yearly capacity of 3,500 to 4,000 MT per meter of quay is recorded for a number of newly built wharves.

 The specialized ports, such as oil port B12 (Quang Ninh), My Khe Port (Da Nang) and Nha Be Port (Ho Chi Minh City) are capable of receiving vessels of 10,000 to 30,000 DWT. Principal import and export equipment are pumping systems placed in oil tankers or depots with a capacity of 1,300 to 2,000 cubic meters an hour and pump systems D215 and D273. Currently, oil pumping technologies at oil depots are rated in three grades:

-   1^st grade technology refers to outdated technology with the manual operation of the technology system for imports, exports, measurement, and cargo survey etc.

-     2^nd grade technology implies partial mechanization.

-    3^rd grade technology relates to the mechanization of most technological operations.

Vietnam’s oil entrepots mostly qualify for the second grade, and local oil ports are even more backward. In the meantime, coal export ports, like CamPhaPort in QuangNinhProvince, have relatively advanced facilities. Whilst the export wharf is equipped with two modern specialized conveyor belts with a throughput of 800 MT an hour, conveyor belts at the domestic coal ports seem older with a capacity of 150 to 250 MT an hour.

The country’s maritime security guarantee system has been taken into special account and further reinforced but is still lacking, with low technical specifications, for instance, the signal density averaging one signal per kilometer, meeting 50 per cent of the required minimum level. There are a small number of coastal radio stations against the coastline length, with merely five international radio channels and six national radio channels, low technical standards, having not met Global Maritime Distress and Safety System (GMDSS) qualifications.

 The three large ports, namely HaiPhongPort, Da NangPort, and Ho Chi Minh City Port Complex, all are located near the center of the cities. SaiGonNewPort and SaiGonPort are situated close to downtown Ho Chi Minh City, Vietnam’s biggest city by area, enjoying its highest rate of economic growth and largest import and export turnovers. That to some extent facilitates and helps reduce freight rates for enterprises. However, the ports at a short distance to the city’s heart often experience traffic jams. On the other hand, most large harbors have had no rail connections, thus not ensuring the timely and safe movement of cargoes to and from the ports as well as somewhat impeding the ports’ development.

The aim of the strategy is to develop Vietnam’s seaport system according to a national master plan. Under the strategy, hubs linking transport infrastructures in regions, especially key economic zones, shall be set up to provide seaport-related technical  infrastructure in service of economic development, affirming the country’s predominant position in the regional and global marine economy, and creating major focal points for economic exchange at home and abroad.

The plan on development of Vietnam’s seaport system is designed to meet the requirements of industrialization and modernization of the country on the basis of technological and scientific advances in maritime in relation to scale, equipment and supplies, technological chains, management system for the purpose of gradually enabling its integration and making it competitive with foreign countries in seaport operations.

The country’s seaport system must ensure the movement of all import and export cargo as well as freight in transit by sea in response to the requirement of the country’s economic growth.

The system of seaports is planned and distributed nationwide, in locations where conditions and needs of seaport building exist in order to make the best use of natural resource advantages and shipping capacities, catering to economic zones and industrial parks as well as curbing investment and port operation expenses.

Based on the strategy’s goal and the need for seaport building in Vietnam, its seaport development orientation is aimed to refurbish, upgrade and modernize existing seaports. Focus shall be made the construction of several general ports for large-tonnage vessels in key economic zones. Additionally, special attention shall be paid to ports or specialized terminals for containers, bulk and liquid cargo, and international transshipment ports.

In addition to the expansion of seaports, account should be taken to the synchronous development of maritime services and related infrastructures in order to improve the capacity of service and investment efficiency of ports.

By 2010 and 2020, the seaport system in Vietnam  shall be composed of 8 groups. These are:

Group 1: The group of northern seaports, including seaports from Quang Ninh to Ninh Binh

Group 2: The group of seaports in the NorthCentralCoast, including seaports from Thanh Hoa to Ha Tinh.

Group 3: The group of seaports in the Mid-CentralCoast, including seaports from Quang Binh to Quang Ngai.

Group 4: The group of seaports in the SouthCentralCoast, including seaports from Binh Dinh to Binh Thuan.

Group 5: The group of seaports in Ho Chi Minh City, Dong Nai, and Ba Ria - Vung Tau provinces.

Group 6: The group of seaports in the Mekong River Delta.

Group 7: The group of seaports in the south-western islands of Vietnam.

Group 8: The group of seaports in the ConDaoIsland.

 Strategy for development of seaports in Northern Vietnam (Group 1)

The group of northern seaports, also known as Group 1, shall comprise of Quang Ninh and Hai Phong port complexes and local ports. The strategy for development of the northern port system is aimed to fully cater to 43-53 million MT of freight moved annually through the ports by 2010 and 89-123 million MT of cargoes by 2020. The ports shall be capable of accepting the following kinds of vessel:

General cargo and grain vessels: 50,000 DWT

Container vessels: 40,000 DWT

Oil tankers: 40,000 DWT

Coal vessels: 65,000 DWT

The system of northern seaports shall be distributed in four areas: BaiChayBay area, Cam Pha area, Hai Phong area and other local ports.

In the area of BaiChayPort, focus shall be made on investment in the refurbishment and improvement of Cai Lan GeneralPort to receive 50,000-DWT vessels and seven terminals with 1,487 meters in length, 70 hectares in area and a capacity of 7-8,5 million MT. Besides, investment shall be made in development of the cement ports of Ha Long and Thanh Long, the shipbuilding industry of Cai Lan and B12 into specialist ports to seat carriers with a tonnage of 10,000 - 30,000 DWT and a capacity of 0,5 - 3,5 million MT. The access channel to the port in the area of Bai Chay is projected to be dredged to accommodate ships of Group 1 and on the principle of environmental protection.

In the area of CamPhaPort, there are four specialized ports, including Cam Pha coal port, Cam Pha cement plant port, Cau Trang coal port and Hon Net transshipment port.

The coal port of Cam Pha is intended for coal vessels of 30,000 - 50,000 DWT, encompassing three wharves with a length of 550 m and a capacity of 5-5.5 million MT. The port of Hon Net, which serves transshipment for the coal port of Cam Pha, shall be capable of berthing coal vessels of up to 65,000 DWT, with a 120m -long wharf and a total area of 20 hectares.

The port complex of Hai Phong will consist of 19 general and specialized ports in various size. Great attention shall be made to the improvement of Hai Phong general port to seat 10,000-DWT ships. The number of wharves at the port is expected to increase to 20 in 2010 from current 17, with 3,239 meters in length and total port area of 100 hectares. The general cargo port of Dinh Vu and the container port of Dinh Vu shall be capable of accepting 20,000-DWT vessels with a throughput of 3-4 million MT.

Though the port complex of Hai Phong is currently a major facility in Northern Vietnam, it seems difficult to expand and develop these ports into large-scale ones for receiving large vessels. Hence, the port development strategy by 2010 with a vision for 2020 envisages that the Quang Ninh Port Complex will become a major cluster in the north, handling 50-60% of the total volume of seaborne cargo traffic in the region. The port complex of Quang Ninh, which comprise of general ports, specialized ports and container ports, shall be capable of accommodating large-tonnage vessels, ensuring the movement of import and export cargoes of provinces in Northern Vietnam and of the northern key economic zone, including Ha Noi, Hai Phong, Quang Ninh and southwestern provinces of China, and becoming a hub port cluster in the north for exchange with regional and global large seaport complexes.

 Strategy for development of seaports in the NorthCentralCoast (Group 2)

Seaports in the North Central Coast of Vietnam, also known as Group 2, shall mainly serve economic development in the provinces of Thanh Hoa, Nghe An, and Ha Tinh as well as a northern part of Quang Binh Province. Also, major seaports in the region are engaged in the transshipment of cargo for the neighboring country of Laos and part of the northeastern Thailand. The volume of cargo moved annually through the seaports by 2010 and 2020 is projected to amount to 23 million MT and 45 million MT, respectively. By 2010, the ports are expected to receive general cargo and bulk carriers with a maximum size of 30,000 DWT and specialized cargo vessels with a maximum capacity of 45,000 DWT, catering to freight transportation to provinces in the NorthCentralCoast. In particular, Cua Lo and Vung Ang are the main general ports. In 2010, the port of Cua Lo shall be able to accept 10,000- DWT vessels, encompassing six wharfs with 1,000 m in length, 40 hectares in area, and a capacity of 2,97 - 5,5 million MT. Meanwhile, the port of Vung Ang shall be capable of  receiving  vessels of up to 45,000 DWT, with three to four wharfs of 797 m in length and 25 hectares in size. Additionally, the specialized ports, such as NghiSonCementPort, shall be well placed to accommodate 30,000-DWT vessels, with one wharf of 1,700 meters in length. Moreover, the port of Hon La shall be capable of seating 10,000-DWT vessels, with two wharfs stretching for 340 meters. The above-mentioned ports are mostly small in scale. As well as several specialized ports, the remaining ports shall be mainly responsible for transshipment of cargoes to large ports in the region.

 Strategy for development of seaports in the Mid-CentralCoast (Group 3)

 Group No. 3 encompasses seaports in provinces and cities in the Mid-Central Coast, namely Quang Binh, Quang Tri, Thua Thien Hue, Da Nang, Quang Nam and Quang Ngai. These ports shall serve the above-mentioned provinces as well as meet the transportation demand of North-eastern Thailand and southern Laos. This port complex will have links to economic hubs, industrial parks, large and major tourist centers in Central Vietnam. The seaports of Group 3 shall be developed to annually handle 22-39 million MT of freight, including specialized cargo and roughly 13-25 million MT of crude oil and oil products by 2010 and around 46 million MT by 2020 as feedstock for Dung Quat Oil Refinery No. 1. They shall be capable of accepting general cargo vessels and bulk carriers of 50,000 DWT, container vessels of the same tonnage to 35,000 DWT, oil product tankers of up to 30,000 DWT, and crude oil tankers of up to 110,000 DWT.

The group of seaports in the Mid-CentralCoast shall be composed of the following seaport complexes by 2010 with orientation towards 2020:

- Chan May Port is a general harbor, with a projected annual cargo throughput of 1-2.3 million MT by 2010 and 6-7 million MT by 2020. The port shall be well placed to berth vessels in the range of 30,000 DWT to 50,000 DWT and large-scale tourist vessels. To receive international vessels carrying passengers to tourist sites in Central Vietnam, the port shall have 1 to 3 quays, with a 300-700 meters in total length, 6-18 hectares in size and 1.0-2.3 million in annual capacity by 2010 and 6 quays with 1,350 m in total length, 48 hectares in size and 6 million MT in annual capacity by 2020.

- Da Nang Port shall comprise of three wharfs, including Tien Sa, Han River and Lien Chieu. Its yearly cargo throughput is expected at a maximum of 5.2 million MT, and the largest vessel docking at the port is seen to have a size of 35,000 DWT.

Tien Sa Port is a large general cargo harbor in the Da Nang Port Complex. The port is projected to have four wharfs with a combined length of 880 meters, an area of 25 hectares and a yearly capacity of 3.3-5.2 million MT to accommodate 35,000-DWT vessels.

Lien Chieu wharf area is a general port. It is expected to accept 30,000 DWT vessels in 2010 and 50,000 DWT vessels in 2020. The port will have three wharfs with 570 meters in length, 24 hectares in area, 1.9 million MT in annual capacity in 2010 and ten wharfs with 1.830 meters in length, 60 hectares in area, 6.3-6.7 million MT in annual capacity, making it the largest port in Da Nang.

- Ky Ha - DungQuatPort: The port of Dung shall be developed into a large-scale harbor. Its oil terminal will include a quay for exports of oil products and a quay for imports of crude oil. The export quay for 30,000 -DWT vessels is projected to have six wharfs to handle an annual cargo throughput of 6.1 million MT in 2010 and ten wharfs to handle an annual cargo throughput of 6.1 - 12.2 million MT in 2020, while the import quay shall be capable of accommodating 110,000-DWT ships and handling an yearly freight throughput of 6.5 million MT in 2010 and 6.5 - 13 million MT in 2020.

- Ky Ha Port is a general harbor that shall be capable of receiving vessels of 10,000 - 20,000 MT and handling an annual cargo throughput of 1.18 - 1.9 million MT in 2010 and 3.1 million MT in 2020.

Thus, Ky Ha – Dung Quat is expected to become the largest port hub in Central Vietnam. It will encompass specialized ports, general ports, and container ports, which can seat domestic and international tourist ships and large-tonnage vessels. Also, this is a gateway of Central Vietnam to large ports in the region and the world.

 Strategy for development of seaports in the SouthCentralCoast of Vietnam (Group 4)

 Seaports of Group 4 shall serve socio-economic development of the SouthCentralCoast region in Vietnam, including the provinces of Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan, Binh Thuan, Gia Lai, Kon Tum, Dak Lak, and of the country as a whole. This is an entrep«t for the transshipment of import and export cargoes from Vietnam to countries in the region as well as a focal point connecting with large tourist areas in the country, such as Nha Trang and Da Lat. It is projected that around 11 million MT of freight and nearly 1 million international passengers will be annually moved through these ports by 2010 and the figures will double by 2020. The strategy for seaport development by 2010 with a vision for 2020 shall ensure ships’ entry to and exit from the ports as for general cargo ships and bulk carriers of 30,000 DWT, 10,000 DWT- oil tankers, tourist ships of 30,000 - 75,000 GRT, oil vessels of 400,000 DWT, and international container carriers in the range of 4,000 TEUs to 6,000 TEUs. Given such a strategic orientation, the port of Nha Trang is projected to maintain its annual handling capacity at 0.85 million MT and to undertake only clean cargo before converting into a place for receiving international passenger vessels of 30,000 GRT to welcome tourists.

 Study will be conducted to build an international container transshipment port at the Gulf of Van Phong, KhanhHoaProvince for Panamax and Post Panamax ships with a capacity of 4,000 - 6,000 TEUs, and international tourist port for 70,000-GRT passenger ships. The aim is to provide a basis for establishment of multisectoral, key economic zones, where international transshipment ports play the lead and are tied with seaport and commercial services.

 QuyNhonPort and Vung Ro Port shall be expanded towards Nhon Hoi and the main beach respectively to accept ships of up to 30,000 DWT. New ports and general oil and petrol depots will be built at My Giang, the Gulf of Van Phong as well as Ba Ngoi Port in response to local oil and petrol demand.

 Strategy for development of seaports in Southern Vietnam (Group 5)

 This is the most important port complex in Southern Vietnam as it directly serves the southern key economic zone. The SKEZ, which brings together Ho Chi Minh City, Ba Ria - VungTauProvince and BinhDuongProvince, has enjoyed largest import and export earnings in Vietnam.

 The objective of the strategy is to rationally locate seaports under the group in a bid to bring into full play general efficiency, creating balance and uniformity in growth between seaports and infrastructures related to attractive regions of the port. That will provide a driving force for economic development in the SKEZ and in a number of western provinces in Southern Vietnam, the SouthCentralHighlands and the Mekong River Delta.

 The SaiGonPort is no longer suitable for development into a large hub port complex in the south. Therefore, it is required to remove the port system on the Sai Gon River and Ba Son shipbuilding plant, facilitating construction and development of the seaport system in Ho Chi Minh City in line with the overall development of the city, lessening traffic jams and erecting large seaports, modern gateways in response to the development trend of maritime transportation in the country and the world, and gradually improving the competitive capacity of Vietnam’s seaport system over regional and global seaports.

It is anticipated that 53 million MT of freight and 163,000 visitor arrivals will be moved via the ports in Southern Vietnam in 2010 before increasing to 100 million MT (including 35 million MT through the ports in Ho Chi Minh City) and 326,000 visitor arrivals in 2020.

 The port shall be capable of accepting a wide range of carriers: general cargo and bulk carriers of 30,000 to 70,000 DWT, container vessels of 50,000 to 80,000 DWT, oil vessels of 25,000 to 70,000 DWT, and passenger ships in the range of 65,000 to 100,000 GRT.

 -   Ho Chi Minh CityPort Complex

The port complex of Ho Chi Minh City shall comprise of four ports, namely Sai Gon, Nha Be, Cat Lai, and Hiep Phuoc. These ports are designed for general cargo and bulk carriers of 10,000 to 30,000 DWT, liquid carriers of 15,000 to 30,000 DWT, and passenger vessels of up to 50,000 GRT. They are projected to handle 26 million MT of cargoes and 163,000 visitor arrivals in 2010 and 35 million MT of freight and 326,000 visitor arrivals in 2020.

 -    Ba Ria -VungTauPort Complex

The Ba Ria-Vung Tau Port Complex shall be made up of five ports: Go Dau C, Phu My, Cai Mep (ThiVaiRiver), Vung Tau (Ben Dinh - Sao Mai), and Song Dinh (SongDinhRiver). The port of Cai Mep shall be capable of receiving vessels: general cargo and bulk carriers of 30,000 to 70,000 DWT, container carriers of 50,000 to 80,000 DWT, oil tankers of 25,000 to 70,000 DWT, and passenger vessels of up to 100,000 GRT. The port area of Vung Tau - Song Dinh is designed for general ships of 10,000 to 30,000 DWT, while the port area of Ben Dinh -Sao Mai is intended for container vessels of 50,000 - 80,000 DWT. The volume of freight moved through these ports annually is projected at 14.5 million MT in 2010 and 41 million MT in 2020.

    - DongNaiPort Complex

The port complex of DongNaiProvince shall encompass mostly specialized ports in service of industrial parks and factories in the province. The ports will be built to accommodate general cargo and bulk carriers of 15,000 to 30,000 DWT as well as liquid vessels of the equivalent deadweight.

Hence, the port complex of Group 5 shall be developed into the country’s largest cluster, meeting the requirements of economic development in a large and the most dynamic economic zone in Vietnam at the time being. Especially, the port complex in Ba Ria - VungTauProvince is expected to become a gateway to the SKEZ. It is designed to cater to the trend in seaport and maritime development in the region and in the world.

Group No. 6 shall consist of seaports in 12 provinces and cities in the Mekong River Delta. This is an entrepot for the shipment of Vietnam’s fisheries, rice and other agricultural products, therefore there will great demand for the handling of seaborne cargo.

The aim of the strategy for development of the seaport system in the Mekong River Delta is to make it capable of handling 14.7 to 15.7 million MT of freight by 2010 and 28-32 million MT of cargoes by 2020. Additionally, the ports on the Tien River are expected to seat general cargo and bulk carriers of 5,000 DWT, the ports on the Western Coast is designed for general cargo and bulk carriers of 3,000 - 5,000 DWT, the ports on the Hau River are earmarked for the similar carriers of 10,000 - 20,000 DWT, and the ports in the Ca Mau area are intended for the carriers of 3,000 - 5,000 DWT. A lead port complex will be built in Can Tho, the largest city in the Mekong River Delta, to accept vessels in the range of 10,000 - 20,000 DWT and to have an annual freight throughput of 7-8 million MT in 2020. It is expected to become the largest hub port in the twenty provinces in the Mekong River Delta, handling part of import and export cargoes of the region. Overall, the ports of Group 6 are designed for domestic freight traffic, primarily for transshipment of import and export commodities to large hub ports in the country and the region, and partly for direct delivery of import and export cargo of this region

 Seaports of Group No. 7 are destined to meet the requirements of socio-economic development in the south-western islands of Vietnam, for the main purpose of handling cargo traded with the mainland, islands and vice versa and building Phu Quoc Island into a large tourist hub of the country and the world. Ports shall be built to receive vessels of up to 3,000 DWT and life buoys for 2,000 international tourists.

 Strategy for development of seaports in the ConDaoIsland  (Group 8)

 Seaports of Group No. 8 are designed for meeting the demand for carriage of cargo and passengers between Con Dao Island and the mainland, as well as for accepting international tourist vessels, in service of the fishing fleet, domestic carriers of 2,000 DWT, domestic passenger ships of 2,000 GRT, general cargo and oil service vessels of 10,000 - 30,000 DWT, and international tourist vessels of 50,000 GRT.

 Above is an overview of the strategy for development of eight groups of seaports in Vietnam.

Under the scheme, the Government of Vietnam is committed to building  a number of commercial harbors of regional scale by 2010 and setting up some efficient economic groups specialized in the exploitation and provision of seaport services.

 Especially, there will be four sea economic hubs in the four regions. Of these, Quang Ninh - Hai Phong shall be the center of the northern territorial waters and coastal region. Also, Da Nang shall be the hub of the NorthCentralCoast and SouthCentralCoast.  In addtion, Ba Ria – Vung Tau will become Vietnam’s most modern port at the heart of the southern port complex,  and is expected to become a large hub port in the region and the world by 2020. Moreover, Phu Quoc will be an economic, tourism and commercial center of international scale in the South-West of Vietnam.

  4.2. Strategy for development of Vietnam’s seaport services and facilities

 To improve their operating efficiency, the ports should be equipped with modern facilities and offer high-quality, integrated services.

 The port facilities shall include equipment for handling, towage, carriage, warehousing and yard. These equipments must be used for specific purposes by group of freight: bulk, packed, containerized, and liquid cargoes. Also, they are supposed to have a capacity appropriate to scope and capacity of each type of port. Large hub ports, such as Quang Ninh Port Complex (Group 1), ChanMayPort (Group 3), Ba Ria – Vung Tau Port Complex (Group 5), should be furnished with advanced equipment on par with large ports in the region, so as to make them hub ports in the region.

 Based on average calculations, a specialized container wharf with an yearly throughput of 100,000 TEUs is required to have infrastructure and handling equipment as shown in table below.

(Capacity : 100,000 TEUs a year)

 

On services, focus shall be made on the development of services, including ocean shipping, marine brokerage, vessel provision, tallying, cargo handling, ship towage, ship repair, vessel cleansing, warehouse and yard, and some public services.

As well as the implementation of WTO commitments to market access, it is needed to diversify various types of services, sectors and sizes of service providers, promoting investment, joint venture and association with foreign countries with the aim of developing seaport services. Several services will be completely open to foreign investors with no  limit on the amount of capital and operating scope.

Services shall be extended to foreign markets, including the opening of representative offices and branches as well as the expansion of agent system or  overseas investment by port service providers in Vietnam.

  Collaboration with seaports in the region and the world shall be stepped up to  provide high-quality and lower-lost service packages, helping improve capacity and competitiveness of the ports  as well as add to regional and Asian values.

L.Giang
Source: www.mpi.gov.vn