Logistics chances get off ground in Danang

Logistics chances get off ground in Danang

As a business that provides services connected to warehousing, land, and transportation with more than 200 trucks serving the inner city network and outside major cities, MTV ITL Logistics Danang held a groundbreaking ceremony in March for the building of the ITL Logistics Danang Centre.

This project, located at Hoa Khanh Industrial Zone (IZ), is being built over 31,000 square metres with the total investment of $8.6 million. It will feature a standard factory system for lease; a warehouse system and shared infrastructure; a packing area for storing goods; and Grade-A standards for service quality with seven storeys of storage shelves.

The centre will be a green distribution hub for Vietnam that utilises solar energy for industrial manufacturing. According to Danang Hi-Tech Park and Industrial Zones Management Authority, the centre aims to establish a logistics supply chain for the central region.

Dang Nam Son, deputy director of Danang Department of Transport said, “Danang has implemented several investment initiatives to expand and improve the city’s transport infrastructure network, resulting in observable shifts. But alongside the accomplishments, logistical activities still need improvement for sustainable development,” Son added.

The ITL centre is just one of many initiatives being implemented for the central region. Danang is an important gateway to connect Southeast Asia via the East-West trade route. In recent years, it has consistently invested in extending roads, boosting the capacity of Danang International Airport and Tien Sa Seaport, thereby generating numerous prospects for logistics businesses.

In accordance with the vision towards 2030 as laid out in the master plan for the development of a national logistics system, Danang aims to have a Grade-1 logistics centre with a minimum scale of 70 hectares by the end of the decade.

The logistics system plans to create a link between inland ports and seaports of the region as well as connect the system of railway stations, bus terminals, international airports, and roads with IZs.

Son said, “Danang is among the key transportation centres in terms of highways, railways, waterways, and airways. As the core of the central main economic zone, the city converges crucial infrastructural aspects for robust growth, including logistics.”

In updated planning for the development of logistics infrastructure with a vision to 2045, approved by Danang People’s Committee, there will be five main logistics centres located at traffic hubs, IZs, and industrial clusters.

The first hub is Lien Chieu Port, which serves as a seaport logistics centre and will be 30ha in size by 2030 and nearly 70ha by 2045.

In addition to seaport logistics, the province intends to construct the Hoa Nhon logistics centre of 27ha by 2030. The hub, which will be located near the intersection of Danang-Quang Ngai Expressway, will provide technical services for road transport and logistical services for north and south as well as surrounding provinces transiting through the city.

In 2017, Danang People’s Committee also approved the planning area for the railway-focused Hoa Nhon logistics centre. It will be located in Hoa Lien, close to the intersection of the national railway, the national road, and the city’s ring road. Danang International Airport and Danang High-Tech Park make up the other two main logistics hubs.

In addition, the central coast city has local centres and other warehouses that support the major logistics centres while gathering and distributing commodities for the city and its surroundings. The size of these facilities and warehouses could reach 26ha by 2030 and 68ha by 2045, located at traffic-friendly sites to meet the city’s demand and land budget.

Currently, Danang has more than 1,000 businesses engaged in providing logistics-related activities, with nearly 20 providing dedicated and integrated logistics services.