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Developing Chu Lai logistics center: Promoting trade in the central

(VLR) Developing seaports and logistics services is one of the five economic pillars of the Key Economic Zone of the Central. In Vietnam Logistics Business Association’s (VLA) viewpoints, Chu Lai Industrial Zone has enough features to be a regional logistics center. In other words, it is the most important gateway to the sea for provinces in Tay Nguyen and the EastWest Economic Corridor in the progress of integration and development.

It is the most important gateway to the sea for provinces in Tay Nguyen and the EastWest Economic Corridor in the progress of integration and development.

It is the most important gateway to the sea for provinces in Tay Nguyen and the EastWest Economic Corridor in the progress of integration and development.

Potentials of the central’s key economic zone

The coastal Central of Vietnam has advantages of deep-water seaports, a network of new airports and railroad system. Therefore, it has potentials to be a logistics center of national and regional level, connecting the North- South Economic Corridor, the East- West Economic Corridor of Vietnam and the Greater Mekong Sub-region.

The Ministry of Transport, together with other ministries and sectors have deployed synchronously important tasks to develop transport and logistics services. Particularly, on December 9th, 2020, the Ministry of Transport and the Asia Development Bank (ADB) held a conference “Research on Transport and Logistics Development Frame for The Coastal Central”.

The representative of the research organization, Pham Thanh Tung - Senior Consultant of ADB said research on development frame to develop logistics and transport in the coastal Central was carried out to evaluate the transport infrastructure structure and logistics, development plan and activities to be deployed in the Central. At the same time, further research was carried out on cross-border transport improvement and multi-modal transport, which helped identified transport development and logistics projects to be supported by ADB.

The scope of the study is to prepare the logistics development framework and initial portfolio of potential projects for logistics development, with a focus on upgrading infrastructure, areas in need of improved logistics services, and measures to develop an integrated logistics network serving provinces as well as for the entire region together with measures to enhance energy-saving transportation and logistics services and measures to improve trade facilitation, regulations and institutions and financial initiative models.

According to research result, main solutions to develop regional transport and logistics were suggested: the logistics network can be improved by developed a large-sized deep water port, with a multi-port system and many entrance; the North- South railroad should be improved as well, together with the development of ICDs, logistics centers, truck station and logistics facilities, shifting modal from road transport to sea and railroad transport and improving regulations and mechanisms in the fields.

At the same time, highways connecting seaports serving effectively transport on the EastWest Corridor and supporting transporters/ shippers’ choices of convenient seaports for their cargo import- export should be built, together with ICDs and logistics centers connecting closely with seaports, airports and systems of expressways and railroad. It is necessary to build an airport cargo terminal to serve increasing needs. In the conference, on behalf of the leaders of the Ministry of Transport, Director Nguyen Xuan Sang said it was urgent to develop and improve transport infrastructure as road, railroad, seaport, airport, ICDs, truck stations and logistics center to ensure efficiency of logistics activities in the coastal Central.

In 2017, the VLA’s Transport Department in the conference “Developing trade by cross-border transport in the East- West Corridor” had suggestions on developing the logistics system in the coastal of the Central, particularly making Chu Lai a regional logistics center. It is vital to establish Chu Lai Logistics Center, which will help promote trade in the coastal Central and neighbor regions.

VLA’s viewpoints on Chu Lai’s logistics infrastructure developments

Located right in the key economic zone of the Central, Chu Lai - Quang Nam enjoys a favorable location to be a cargo transshipment center. Activities of the logistics system will help smooth flows of cargo and regional goods delivery in term of saving transport costs.

Chu Lai Port has a capacity of 3m tons pa, with berth of 500m, depth of -9.5m. It is able to receive 3 vessels of up to 30,000 tons at the same tiem

Chu Lai Port has a capacity of 3m tons pa, with berth of 500m, depth of -9.5m. It is able to receive 3 vessels of up to 30,000 tons at the same tiem

According to suggestions from the VLA’s Transport Department, Chu Lai has enough favorable condition to be a logistics center. Besides its geographical conditions, Chu Lai also has a number of existing shippers as Nghe An VSIP Industrial Zone, North Chu Lai Industrial Zone, and Chu Lai Open Economic Zone. Chu Lai Port is located near the National Road 1A, connecting with Danang- Quang Ngai Expressway, nearby is Chu Lai Air Port and Dung Quat Port. Chu Lai Port has a capacity of 3m tons pa, with berth of 500m, depth of -9.5m. It is able to receive 3 vessels of up to 30,000 tons at the same tiem.

Chu Lai logistics Center is a transshipment location of local cargo flows, import-export flows and transit cargo flows in the direction of North- South and the East-West Economic Corridor, serving provinces in the Central and Tay Nguyen and of cargo flows from ports of Danang and Lien Chieu to provinces inside and outside the key economic zone of the Central and transit cargo flows from Laos, Cambodia, China and Thailand.

At the same time, Chu Lai will take a role as a transport hub and a transshipment point among various models of transport- from road transport to forms of rail.

Nhat Quang

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