Ho Chi Minh City Proposing to build a super port creating a breakthrough in marine economic development

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Ho Chi Minh City: Proposing to build a super port, creating a breakthrough in marine economic development
Loading and unloading activities of import and export goods at Tan Cang Cat Lai.

Seaport overload

In a report sent to the Prime Minister, the leader of Ho Chi Minh City said that the average volume of goods through Ho Chi Minh City’s seaports in the 2015 – 2020 period was 7.34%; in the 2021 – 2025 period it is expected to be 5%.

According to the master plan on the development of Vietnam’s seaport system in the period of 2021 to 2030, with a vision to 2050, the wharf areas on the Saigon River of Ho Chi Minh City seaport will be relocated and converted.

Therefore, the early implementation of the construction of container ports of the seaport in the period of 2021 – 2030 is necessary to meet the current and future import and export needs of Ho Chi Minh City from now to 2030 in particular as well as in provinces in the Southern Key Economic Area in general.

The report of the People’s Committee of Ho Chi Minh City said that Can Gio wharf at the mouth of the Cai Mep river with deep water, located on international maritime routes, can accommodate large ships such as routes in Europe, Africa and America. This is a favorable condition for the establishment of an international container port, creating a competitive advantage with other countries in the region as well as a breakthrough in the development of the marine economy of Ho Chi Minh City and the whole country.

According to the People’s Committee of Ho Chi Minh City, Cat Lai port of Ho Chi Minh City is the largest port in the country with a capacity of 6.4 million TEUs/year. The volume of goods passing through this port accounts for about 85% compared to the southern ports and 50% of the whole country. In 2021, goods through the port in Ho Chi Minh City will reach more than 160 million tons, exceeding 2.6% of the plan by 2030.

In 2022, Cat Lai port alone continues to record growth with throughput reaching more than 5.5 million TEUs of containers (equivalent to 78.5 million tons of goods). Therefore, the construction of container ports is necessary to meet the import and export demand in Ho Chi Minh City and the southern key economic region.

Super port for transshipment of import and export goods

Can Gio superport project has a scale of nearly 7 km of wharf that can receive the world’s largest container ship today (about 24,000 TEUs), throughput capacity of about 10-15 million TEUs, seven stages of deployment; phase 1 will be deployed in early 2024, exploited in 2027; the final phase will be completed in 2040.

According to Mr. Huynh Van Cuong, Chairman of the Board of Directors of Saigon Port Joint Stock Company, this unit is currently collaborating with MSC/TIL Shipping Group, Vietnam National Shipping Lines, to research and propose construction projects of Saigon international transshipment port at Can Gio wharf area.

The units try to submit the project’s pre-feasibility study to the Ministry of Planning and Investment and the People’s Committee of Ho Chi Minh City in the first quarter of 2023. At the same time, they want to start construction of the first phase of this transshipment port in 2024 and put it into operation earlier than expected, in 2027. Total investment is expected to be about US $6 billion.

Mr. Pham Anh Tuan, General Director of Marine Engineering Port Design Joint Stock Company, member of the Executive Committee of the Ho Chi Minh City Logistics Association, said that Ho Chi Minh City is proposing to build Can Gio superport not only to help the development of the countries and regions, but this is also a place to gather and distribute goods to other countries in the world, leading to financial companies, capital activities for ship owners and shippers to develop together.

The Can Gio seaport system has many advantages, with a special transport route located on the Asia-Europe international transport route. The strength of seaports has existed, however, for many years, Vietnam’s seaport operations have not been effective, stopping at transshipment and loading and unloading of goods at the gateway area via inland waterways.

According to Vietnam National Shipping Lines, international container transshipment service has long become an international competitive strategy in maritime countries. In Vietnam, the proportion of international transshipment goods is quite low.

Therefore, the Can Gio port project is an important space to research and develop international container transshipment services. The formation of a large-scale logistics service center is expected to bring positive effects, facilitating the development of commercial, service, production, financial, and other types of services.

This is an effective solution to successfully realize the goal of developing logistics into a spearhead field of Ho Chi Minh City, continuing to maintain its role as the logistics center of the region and Asia, and opening a new direction to contribute to the improvement of logistics, high rate contribution of the service sector in the economic structure of Ho Chi Minh City in particular and Vietnam in general.

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