Ba Ria - Vung Tau set targets logistics growth from 2020 to 2030

(VLR) (Vietnam Logistics Review) On October 7th, 2016, the people’s committee of Ba Ria- Vung Tau (BR-VT) approve the project of “Research on abilities to adapt seaport system and logistics services in BR-VT to abilities of production, import- export of the region and economic zones and consuming ability of imported goods at consuming destinations”. This is another determination of the local authorities showing awareness of the importance and the role of logistics service activities to the port system not only in BR-VT but also in the whole region through import-export supply chain from production to consuming.

(Vietnam Logistics Review) On October 7th, 2016, the people’s committee of Ba Ria- Vung Tau (BR-VT) approve the project of “Research on abilities to adapt seaport system and logistics services in BR-VT to abilities of production, import- export of the region and economic zones and consuming ability of imported goods at consuming destinations”. This is another determination of the local authorities showing awareness of the importance and the role of logistics service activities to the port system not only in BR-VT but also in the whole region through import-export supply chain from production to consuming.

Cai Mep - Thi Vai port system is an important port in the Seaport Group 5. With advantages of a long coast, many gulfs, deep river-bed and good investments from the province…, BR-VT seaport system has been a national gateway in the Southeastern, maintaining 50% of the country’s total imported goods. Thus, this is an extremely important transport route to the development of BR-VT’s, the Southern area’s and the country’s as well.

The number of total cargo through port is 427 tons, an increase of 11.50% pa. Seaport group 5, including BRVT, accounted for 62.09% (especially direct cargo had an increase of 19.89% year over year). The Government and the local authority of BR-VT, have paid much attention and had many orientation strategies for seaport and logistics service developments by issuing a number of decisions and considering the sectors a driving force for changes and economic developments.

Together developing cargo resources

CM-TV port group of BR-VT has strategic position, located in the maritime route, in the international cargo flows and in industrial parks in the Southern Key Economic Zone. This is one of advantages that make the port group an international transshipment center, a national gateway and in the world.

BR-VT port system accounts for 30% of capacity of the Seaport Group 5; in 2008-2014 the average growth of cargo through port was 10.71% and 9.48% for container cargo. With the designed capacity of 74.281m tons pa and capacity of cargo through port of 79%, in 2015 the capacity of container terminals was only 18-20%. And the logistics, post-port services of BR-VT are relatively weak. Although there have been some ICDs, it has not been able to play the role of a reception and delivery container cargo center. Besides, the lack of synchronicity between the seaport system and connecting infrastructures cannot form a proper logistics service chains: having no railroad connecting the ports, having improper forwarding, and having no proper development between local waterway hub ports and logistics service chains in the Southern Key Economic Zone.

BR-VT logistics center network development should meet the needs for local production, cargo flow and import-export. As planned, logistics service growth will reach 24-25% pa in 2020, contributing 10% to GDP, logistics outsource rate will be 40%, logistics cost of the economy compared to GDP will decrease to 20%. In 2030, the mentioned targets in succession will be 34-35%pa, 15%, 65% and 15-17%pa.

The figures and reality showed the BR-VT local authorities need more determination and effort to build connection among economic zones, to travel to balance cargo flows among regions, and to invest in infrastructures to make the port groupa transshipment center and an international cargo transport gateway.

Solutions

BR-VT seaport logistics system should be developed to a hub center for long-term requirements by constructing proper warehouse systems for strategic cargo, investing and developing IT infrastructures- a core factor for efficient developments of port services, information network serving production and e-data exchange, customs brokerage and administration. Cai Mep Ha Logistics Service Center behind Cai Mep port area and Sao Mai- Ben Dinh reserve area should be developed by all resources, delivery centers serving retail markets and logistics centers near industrial parks should also be developed as well.



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