To Develop Cai Mep-Thi Vai: The Need For Connection

(VLR) Cai Mep-Thi Vai sea port system plays a role of the gate way container terminals Vietnam and the only container transshipment terminal for Vietnam. However, at the present, this modern port system has not been able to perform its role at its best. According to Mr. Ho Van Nien, Vice Chairman of the People’s Committee of BR-VT, there should be strong connections not only among businesses, but also from the Government and from other local authorities to develop sea port services, upgrading the country’s competitive abilities.

Cai Mep-Thi Vai sea port system plays a role of the gate way container terminals Vietnam and the only container transshipment terminal for Vietnam. However, at the present, this modern port system has not been able to perform its role at its best. According to Mr. Ho Van Nien, Vice Chairman of the People’s Committee of BR-VT, there should be strong connections not only among businesses, but also from the Government and from other local authorities to develop sea port services, upgrading the country’s competitive abilities.

Mr. Tran Huy Hien – General Secretary of Vietnam Logistics Associations (VLA) (former VIFFAS) said the seaport system with its advantages of deep water enables to shorten transport time among Vietnam and other countries, which possibly upgrades competition abilities of Vietnam goods. Large vessels passing the port can go directly to Europe or America without transit enables to have better services and lower cost. However, the amount of transported cargo so far has not reached the amount as forecasted.

Cai Mep-Thi Vai sea port system – a key national project – was designed to meet international standards. For example, CMIT has the highest working capacity in the area of Cai Mep-Thi Vai with a gross productivity of over 37 container moves/ hour/ crane, which enables to cut fuel cost for customers. Besides, CMIT is the only port approved permanently to receive vessels of up to 132,000DWT, not need

case-by-case application as others (according to document 581/QĐ-CHHVN). In December 19th 2011, CC Laperous, 157.092 DWT with the capacity of nearly 14,000 TEUs – one of the world biggest container vessels – safely anchored at CMIT. The port also has a goof connection to ICDs and good barging network, building high customer satisfaction.

Mr. Peter Smidt-Nielsen – General Director of Maersk Line Vietnam, a customer of CMIT said: “CMIT has rather competitive performance in the South East Asia region. With the access channel of -14m, modern STS cranes, convenient and large turn-around basin nearby the port, it enables to receive vessels of large capacity as those in our direct Trans Pacific TP6 or those in any new routes. CMIT also has its favorable geographical location with shorter distance to America. And with the geographical advantage of South Vietnam ports, we have opened direct service routes to the US West coast, TP6. It directly connects BR-VT and Los Angeles with the transport duration of 19 days only.”

To Exporters, they will enjoy 16 more hours of cut off time when bringing their cargo directly to CMIT, instead of gathering at ICDs, which helps them to avoid ship missing or late cargo sending. CMIT always guarantees customers’ containers will be put on anchored ships, which is unsure in ICDs. Besides, customers from nearby area will save transport cost when avoiding transporting their cargo to ICDs in HCMC and then back to CMIT on barges.

The provincial transport system has nearly completed: National Highway 51 has nearly finished its expansion with 6 lanes, Road 965 connecting National Highway 51 and CM-TV port area is being expanded with 4 lanes to ensure congestion reduction. Besides roads in surrounding area of CMIT are not blocked like those in gateway areas of HCMC, which badly affects businesses’ logistics plans.

Although the modern container terminal system of international and regional stature has been under construction, the role of it as an international Southern gateway of the country seems to be being rejected. “The construction, investment and development of BR-VT port system are aimed to replace HCMC port system. However, while the port system in BR-VT has not been finished, the Government has also upgraded and developed HCMC seaport system. For cargo sources are limited, this has slowed down the development of BR-VT seaport,” said Mr. Ho Van Nien.

Mr. Nguyen Duy Minh – Executive member of VLA – noted that the “quiet” activities in CM-TV are due to various reasons. But if the terminals offer some incentives like free THC or extra cost reduction, it will surely attract more customers. This needs supports from the Government like reducing taxes to port businesses for more favorable fee reductions for their customers. Mr. Peter Smidt-Nielsen said CM-TV port area is applying 40% discount on fees as maritime guarantee fee, tonnage fee and pilot fee. However those are not as competitive as those from other international ports in the region.

Mr. Nguyen Xuan Ky, Deputy General Director of CMIT, said: “It needs the great efforts and coordination from: port businesses, liners, exporters-importers and the Government to build CM-TV as the successful Vietnam gate way and international transshipment port. We have had a great deal of investment in equipments, facility, modern IT systems application, warehousing and made good use of geographically advantages of CM-TV to ensure competitive advantages of Vietnam import-export. And we have been trying our best to fulfill our responsibilities and role of our port. We hope to have re-

evaluations and re-adjustments from import-exporters to take all advantages of cost effectiveness brought by the gateway port for the Southern Vietnam focal economic region.

CM-TV port area is trying to attract export goods from Hai Phong, Qui Nhon, and Da Nang, which are being transshipped in international transshipment ports in the region, to make them local transshipment cargo source in CM-TV, and increase the competitiveness to compete with other ports in the region for the international transshipment cargo. But besides better moderation and management of supply and demand, period, quantity and capacity of ports in CM-TV, there should be supports from the Government with supporting policies and management port authority model, fee reduction for vessels of over 100,000 DWT, applying current maritime fee for feeder calling CM-TV, facilitating domestic transport right to allow liners to transport domestic transshipment cargo from Hai Phong, Quy Nhon and Da Nang to their own mother vessels in CM-TV until local liners are capable dealing with these work.

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