World-class container terminal in Can Gio envisioned

Hiep Phuoc Port was built by Saigon Port JSC – a subsidiary of VIMC

At a meeting in November, VIMC asked Prime Minister Pham Minh Chinh and relevant management bodies to back its plan to build an international container port in the Can Gio area on the outskirts of Ho Chi Minh City. The project would be implemented in cooperation with Saigon Port and MSC.

Located in the Thi Vai maritime channel, Can Gio enjoys deep water and is not seriously affected by wave and wind conditions. The location is ideal for the formation of a port system and the development of international container transhipment services.

Along with natural and economic factors, the cooperation of large shipping lines with global transportation networks is also essential to success.

VIMC has been working with MSC to develop the seaport infrastructure in Vietnam. As the world's second-largest container shipping company, MSC operates a fleet of more than 625 ships.

It has offices in 155 countries, and fleets connecting to 500 seaports. The company reports an annual output of around 23 million TEU. Through its subsidiary Terminal Investment Limited (TIL), it also owns about 60 seaports globally with an annual capacity surpassing 30 million TEU.

As a customer and strategic partner of VIMC, MSC’s participation is an important factor to ensure the success of the world-class container terminal plan.

Both companies have conducted initial studies laying out the foundations for a deal.

At the meeting with the prime minister and several leading French and European corporations, VIMC and its subsidiary Saigon Port outlined a framework agreement for cooperation with MSC and TIL for infrastructure development and logistics services.

Saigon Port and MSC have sped up research on the development of the port in the Can Gio area which would be capable of receiving ships with a capacity of up to 250,000 tonnes. The proposed site covers about 570 hectares and the length of the main wharf is around 6.8km.

The project has a designed capacity of 15 million TEU and a total investment value exceeding $850 million. The two sides are working hard with foreign partners to finalise plans for investment and operations.

Other countries and coastal territories in Asia have been successfully developing international transhipment services.

In 2020, Singapore’s seaports reached about 36.9 million TEU in container throughput, of which 85 per cent was through transhipment. At Tanjung Pelepas – a joint venture between Malaysia's MMC Group and Maersk's APMT – the volume was about 9.8 million TEU, with 91 per cent via transhipment. In Hong Kong, output reached almost 18 million TEU, with 50.18 per cent transhipped.

According to statistics from Vietnam Maritime Administration in 2021, the volume of container goods through the country's seaport system reached 23.9 million TEU. It was mainly concentrated at seaports in Ho Chi Minh City, Vung Tau and Haiphong, however, the proportion of international transhipment goods was relatively low.

VIMC now considers this to be the right time to expand this service in the country.