Vietnam aims for expansive ICD system

The construction of Tan Cang Moc Bai inland container depot (ICD) was started on November 24 by Tan Cang Tay Ninh JSC, a unit belonging to a southern port major Saigon Newport Corporation in the southern province of Tay Ninh.

The new ICD, located at Moc Bai border gate’s economic zone in Loi Thuan commune, Ben Cau district, spans a total area of 16.5ha with a total budget approximating $23.3 million.

The port is expected to go into operation next May with a full range of services, such as checking and completing customs procedures for containerised import and export goods; temporary warehousing; container repair and maintenance; as well as delivery of other goods such as bulk goods and general merchandise, among others.

Earlier on October 28, Phu My ICD at Phu My 3 specialised industrial park in the southern province of Ba Ria-Vung Tau came into operation. This is the first ICD in the province and the third in the south.

Phu My ICD- invested by Thanh Binh Phu My JSC, also the developer of Phu My 3 specialised IP- covers nearly 38ha space with a total investment value of nearly $126.5 million.

According to assessments by maritime and logistics experts, Phu My ICD is crucial for the development of Cai Mep-Thi Vai deep-water port and port logistics services of Ba Ria-Vung Tau as well as the southeast region.

The inland container depot (ICD) planning for 2021-2030 was approved in late August.

The scheme aims to gradually form and develop an ICD system nationwide to meet the burgeoning export and import transport demands, and reasonably organise container transportation, thus cutting transport costs, reducing the goods storage duration at seaports, and ensuring goods safety.

Under the plan, inland container depots will be developed into centres of goods transportation, transit and distribution along with logistics services.

Among the concrete targets for 2030, the depot system will have a total capacity of 11.9 - 17.1 million twenty-foot equivalent units (TEUs) per year and be capable of handling about 25-35 per cent of the demand for container goods export and import shipment along transport corridors.

The depots and depot clusters in the northern region will have a combined annual capacity of 4.29-6.2 million TEUs, the central and Central Highlands regions 0.9-1.4 million TEUs, and the southern region 6.8-9.5 million TEUs.

By 2050, the depots nationwide are expected to be capable of handling 30-35 per cent of the demand for container goods export and import shipments along transport corridors, and meet logistics demand in localities.

Priority will also be given to the development of some depots on the transport corridors connecting with major seaports in the north (such as Haiphong seaport) and the south (such as the seaports in Ho Chi Minh City and Ba Ria-Vung Tau).

About $1.04-$1.8 billion is needed to develop the inland container depot system by 2030, according to the plan which also outlines some solutions in terms of mechanisms, policies, capital mobilisation, international cooperation, science - technology, environment, and human resources for implementation.

As strong growth in container transport demand in Vietnam, especially sea transport, has led to robust development of seaports, multimodal transport and logistics, developing ICDs as ‘extended arms’ of seaports helps to bolster the efficiency of seaport operations.

This also makes Vietnam's seaport system more attractive in the region, thereby attracting many investors, who are professional port operators and global shipping lines, to participate in investment and development, construction and operation of port facilities, and from there accelerating Vietnam's integration process.

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