Two key southern waterways logistics corridors proposed with World Bank funding

The two corridors will benefit many southern localities

The Ministry of Transport has just proposed the prime minister to give the thumbs-up to a project on developing southern waterways and logistics corridors utilising World Bank loans.

The project aims to upgrade the inland waterways transport network in the Mekong Delta region and Ho Chi Minh City and would feature two waterway corridors – the East-West corridor connecting the port complex of the Mekong Delta (and its economic hub Can Tho city), Ho Chi Minh City, Cai Mep, and Thi Vai and the North-South corridor connecting the Binh Duong-Dong Nai-Ho Chi Minh City-Cai Mep-Thi Vai port complex.

The East-West corridor was designed to cross many major local rivers and channels such as Tra On River, Hau River, or Mang Thit Channel which will be upgraded to reach Grade II inland waterways standards (55m wide for channels and 75m wide for rivers) able to receive vessels reaching 1,500 tonnes in gross tonnage and three-layer container ships.

The North-South corridor will also pass through many local rivers such as Dong Nai, Nha Be, or Thi Vai, which will also be upgraded to Grade II inland waterways standards (60m wide for channels and 90m wide for rivers), able to receive vessels of 3,000-5,000 tonnes in gross tonnage and four-layer container ships.

The project will take place across the southern region, including Ho Chi Minh City, Can Tho city, and stakeholder provinces of Vinh Long, Ben Tre, Tien Giang, Long An, Dong Nai, and Ba Ria-Vung Tau.

In addition, the project involves upgrading the two bridges of Tra On and Cho Lach 2, building 16 passenger stopovers (replacing 10 existing ones and building six new ones), installing signs and a vessel transport management system in order to mitigate traffic congestions and facilitate transport.

The total project would require VND5.786 trillion ($251.57 million) in total investment value, of which nearly $158 million would be offset by World Bank loans, $2.99 million would be granted by the Australian government, and the remainder to be provided by Vietnam in counter-funding. The project will be deployed in 2021-2025.

After completion, the project will help significantly reduce travelling distance and time for ships between the Mekong Delta and Ho Chi Minh City and key ports in the region, from there curtailing transportation costs and ensuring traffic safety.

Earlier in last July, the World Bank approved a credit plan to help four secondary cities in Vietnam build critically-needed municipal infrastructure and strengthen urban planning.

The project aims to increase access to improved urban services for Ky Anh (Ha Tinh province), Tinh Gia (Thanh Hoa province), Hai Duong (Hai Duong province), and Yen Bai (Yen Bai province).

Approximately 200,000 residents are expected to benefit directly from the project.

The project will help reduce flood risks, improve sanitation, reduce travel times on new and improved roads, and develop high-quality public spaces.

These improvements, in turn, are expected to help beneficiaries boost productivity, enable exports, create more jobs, and help generate sustained economic growth.

The total cost of the project is $276.17 million, $194.36 million of which will come from the International Development Association (IDA).