Ba Ria-Vung Tau to become a global logistics hub

August 16, 2024 | 17:31
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The southern province of Ba Ria-Vung Tau has implemented solutions to modernise its seaports and logistics infrastructure, as well as improve its investment climate by streamlining its administrative procedures in the hope of attracting further investment.

Vietnam's master plan for development emphasises the importance of Ba Ria-Vung Tau's seaports as a gateway to the world's waterways.

Ba Ria-Vung Tau to become a global logistics hub

The Cai Mep - Thi Vai port complex in Ba Ria-Vung Tau

According to the World Bank and S&P Global Market Intelligence's CPPI ranking of 348 global container ports last June, the Cai Mep area container terminals in Ba Ria-Vung Tau ranked 32nd globally in capacity and 12th in the best performance index.

To date, Cai Mep - Thi Vai, the key port area of Ba Ria-Vung Tau, has about 35 port berths, with 22 in operation, handling almost 118 million tonnes annually, including seven container ports with a capacity of 6.8 million TEU per year. The Gemalink international port in this region can accommodate the world’s largest container ships, with capacities up to 232,000DWT and over 24,000TEU.

Additionally, this port area now has mother ship service routes directly to the US and Europe, providing more options for businesses and reducing logistics costs by eliminating transshipment. Data from the Maritime Administration of Vung Tau showed that as of the beginning of this year, 23 out of about 30 mother ships to the United States and Europe called at the Cai Mep seaport area.

Speaking at a seminar organised by Ba Ria-Vung Tau Department of Transport and Ba Ria-Vung Tau Customs Department on July 31, Dao Duy Tam, deputy director of the Customs Control and Supervision Department, said, "To promote cargo flow through the Cai Mep - Thi Vai port complex, it is necessary to implement synchronous reforms, including seaport development planning, transport, modernisation, digitalisation, automation in port management and operation, and development of maritime logistics services, customs procedures, tax and fee policies."

The seaport system in the Vung Tau - Cai Mep - Thi Vai area is currently connected via three main modes, including sea, road, and inland waterway. However, with the Long Thanh airport megaproject under construction and the future Bien Hoa - Vung Tau railway line, it will soon be connected to all five transport modes.

The port system connects with the Southeast region via intra-regional rivers such as Cai Mep, Gio Gia, Dong Tranh, Long Tau, Nha Be, Saigon, and Dong Nai rivers. These routes share the maritime channel, allowing inland waterway vessels of up to 10,000 tonnes with a capacity of 300-400TEU.

Ba Ria-Vung Tau to become a global logistics hub

Once the Long Thanh airport and nearby railway are complete, Ba Ria-Vung Tau will be linked by five transport routes

The 991B road project, extending almost 10km from Bien Hoa - Vung Tau Expressway to the Cai Mep - Thi Vai inter-port road, is set to open in September. According to the Transportation Project Management Board of Cai Mep - Thi Vai Port Area, this project will enhance intra-regional transport connections and link with Bien Hoa - Vung Tau Expressway, the Ben Luc - Long Thanh route, and Coastal Road 994 to Vung Tau - Binh Thuan.

This road is also planned to connect with Long Thanh International Airport, expected to be completed in 2026, creating a logistics supply chain combining air-sea with Ba Ria-Vung Tau seaports, reducing cargo transportation time between the port and airport, minimising warehouse storage time, and cutting logistics costs for businesses.

The Bien Hoa - Vung Tau railway line is in the pre-feasibility study phase and is expected to be built in two stages, with phase one from Bien Hoa to the Cai Mep - Thi Vai port complex, and phase two from the Cai Mep - Thi Vai port complex to Vung Tau. According to the Ministry of Transport, by 2050, the Bien Hoa - Thi Vai section will handle about 22.6 million tonnes of goods per year, while the Thi Vai - Vung Tau section will manage around 680,000 tonnes annually.

In terms of logistics services, the province is promoting the construction of a free trade zone connected to the seaport in the Cai Mep Ha area and Cai Mep Ha Logistics Centre in Phu My. Additionally, the Ministry of Finance and the General Department of Customs are developing a circular for piloting open ports, aiming to optimise operational capacity, maximise berth usage, and reduce logistics costs for import and export goods.

Ba Ria-Vung Tau to become a global logistics hub

Ba Ria-Vung Tau will offer incentives to boost operational capacity, maximise berth use, and cut logistics costs

Regarding direct management procedures, Nguyen Thanh Sang, deputy director of Ba Ria-Vung Tau Customs Department, said that a circular regulating customs supervision for goods transported between berths in the Cai Mep - Thi Vai container port complex is being developed.

Accordingly, the circular will help businesses reduce time and costs while ensuring the supervision of goods, promoting goods circulation, and increasing revenue for the state budget. "Ba Ria-Vung Tau Customs Department is focussed on avoiding time losses for businesses," Sang said.

Furthermore, the Maritime Administration of Vung Tau has worked with Portcoast Consultant Corporation to develop digital solutions for Vung Tau seaport data. This ongoing project is expected to enhance transportation activities and infrastructure management by optimising ship berthing processes, reducing ship waiting times, ensuring safety in port operations, and forecasting equipment maintenance schedules.

Ba Ria-Vung Tau is also planning to form four functional zones, including industry and seaports; tourism and coastal urban areas; agriculture and ecological balance; and marine and island areas.

Among these, the industry and seaports zone is planned to be associated with the Cai Mep - Thi Vai industrial - seaport economic dynamic axis, thereby orienting the development of seaport industry and comprehensive service urban development.

This zone will integrate economically with the industrial, urban, service, and logistics areas along the Southeast region's Ring Road 3, Ring Road 4, and expressways. At the same time, the seaport planning will connect with industrial parks in Phu My, Chau Duc, Dat Do, Long Dien, and Ba Ria, enhancing transport advantages to welcome investors.

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By Mai Anh

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