Cai Mep - Thi Vai: A sign of being an international transshipment port

The fact that liners and port operators have come to Cai Mep-Thi Vai for business and mother vessels of up to 11,000 TEU anchored at Cai Mep can be seen as persuasive premises in developing Vung Tau international gateway port into an international container transshipment terminal.

It is also a good sign of BR-VT service sector in the progress of integration and development. What should be changes to make it an international container transshipment terminal in the future?

A RECOGNIZATION

Foreign partners have considered Cai Mep-Thi Vai port group an international transshipment port. However, there was no official document from the Government to recognize Cai Mep-Thi Vai a national and international transshipment port. Until recently the issue has not been solved.

Mr. Pham Anh Tuan, Deputy General Director of Portcoast said:” On October 22^nd, the Ministry of Transport approved “Project for improving management and exploitation efficiency of Seaport Group 5 and ports in Cai Mep-Thi Vai area.” One of targets is to adjust and balance supply and demand between cargo and ports to improve exploitation efficiency of the ports that have been invested in. In addition, solutions to attract transshipment cargo to ports in Cai Mep-Thi Vai area have been developed to make good use of the capacity of receiving vessels of over 80,000 tons of the ports for transshipment services.

So, it can be said that Cai Mep-Thi Vai ports have been recognized as transshipment ports by the Ministry of Transport. And the adjustment of the Master Plan of Vietnam seaport system has been implementing by Portcoast, and has been under the Prime Minister consideration. In the adjusted plan, Van Phong port (Khanh Hoa) is suggested to be changed into a multi-functioned port and BR-VT is suggested to function as an international transshipment ports,” he affirmed: “Cai Mep-Thi Vai will surely be recognized as international transshipment ports.”

MATTERS THAT SHOULD BE CARRIED OUT

According to Mr. Pham Anh Tuan, there should be many things to be carried out to make Vung Tau international gateway port to be an international container transshipment terminal. There are some suggestions for the matter:

First, there should be research to develop infrastructure serving the sea ports as navigation way, electronic maritime activity management system (electronic nautical chart, marks, VTS or AIS…); transport system connecting ports including roads, railroads, local water ways, and airway. There should also be research to synchronously develop technical infrastructure as power supply, water supply and drainage system, communication system.

Second, there should be research on particular mechanism to attract international transshipment cargo through Vung Tau international gateway port. Incentive policies will be able to attract shippers and ship owners and makes it possible to compete with other transshipment ports in the area.

Third, there should be research on developing logistics services that supports port activities, especially on developing after-port logistics centers or even on establishing an Open Economic Zone or a Free Trade Zone by Cai Mep-Thi Vai port system.

Fourth, there should be research on training highly-qualified human resource that meet management and exploitation requirements of international transshipment and supporting logistics services.

Fifth, developing and applying e-customs. And there should be research on establishing Data Center managing maritime exploitation activities and logistics services for the whole region.

“Suggested mechanism and policies that facilitate the function of international transshipment ports of Vung Tau-Cai Mep-Thi Vai area should be as follows: the ports are eligible for taxes applying to projects belonging to sectors and fields that are encouraged to be invested in in accordance to the Investment Law and tax incentives that Vietnam has committed when joining WT); foreign vessels in/out the ports have exemption from doing entrance and exit procedures with cargo, but with vessels themselves in accordance to maritime regulations; the suitable fees should be applied for a port that has newly joined the fiercely competitive market with other regional transshipment ports as ports of Singapore, Hongkong, Tanjung Pelepas… to attract shippers and ship owners...” Mr. Tuan added.

“Increasing local cargo and transshipment local cargo will also help Cai Mep-Thi Vai deep-water container terminals carry out their function of a gateway port group. In addition, there should be policies to reduce maritime fees for more attraction to foreign large container liners as Maersk Line, CMA-CGM. This will make them choose Cai Mep-Thi Vai as the local transshipment port, not ones in Malaysia, Hong Kong or Singapores. Favorable maritime fees for feeders also help Cai Mep-Thi Vai port group attract international transshipment cargo from regional small ports (in Cambodia, Thailand, the Philippines…) and these cargo will be loaded on mother vessels en route to America, Europe in Cai Mep-Thi Vai. Besides the management boards from the provincial industrial parks should call for investments in the fields of garment, export outsourcing, electronic and automobile outsourcing… to attract investors to the province to create a large cargo resource to local and international markets,” analyzed Mr. Nguyen Xuan Ky, Deputy General Director of CMIT.

Mr. Seong Won Hong, General Director of TCIT said there should be development and increase of cargo transshipment to regional countries. To do so, the Ministry of Finance and other relevant functional authority should consider a reduction of port fees including navigation fee, capacity fee, and navigator fees specially applied on container vessels of around 50,000DWT to Cai Mep-Thi Vai area. The fee reduction will give liners great support and create competition advantages over other ports in Hong Kong and Singapore, which will surely attract transshipment cargo to Cai Mep area and increase loading/unloading capacity of the area. It is noted that Singapore is one of the leading ports in the world for its high rate of transshipment cargo, about 80%. Therefore, a high rate of transshipment cargo is also a target for the development of Cai Mep-Thi Vai portgroup.