Major Port Construction Projects In Vietnam - A series of updates on Vietnam's seaport development for archival purpose - Part 5
16/10/2024
1. LIEN CHIEU PORT CONSTRUCTION PROJECT
a. Investor Delays and Project Stalling
The construction project of Lien Chieu Port in Da Nang city, a crucial transport infrastructure development for Vietnam's central coast, is facing significant delays. Initially, being slated for completion by November 2025, however this seaport construction project has been stalled due to the absence of an investor for the essential wharf component. The Prime Minister has tasked Da Nang City People's Committee with expediting the port investor selection process, ensuring transparency and strictly adhering to port investment policies and legal regulations about port construction in Vietnam.
Lien Chieu Port Construction Project - Da Nang - Vietnam
b. Coordination Issues with Shared Infrastructure
The expectation was for port operations to seamlessly integrate with the shared infrastructure, currently under construction and managed by the Da Nang City Priority Infrastructure Investment Project Management Board. However, this synchronization is now at risk. The Ministry of Transport has determined that the construction of the two initial container berths at Lien Chieu port will likely take two to three years. Da Nang City's plan to seek a single large investment for the entire port area could potentially attract more significant investors but also poses financial risks and may exclude smaller companies, such as Da Nang Port Joint Stock Company.
Lien Chieu Port Construction Project - Da Nang - Vietnam
Lien Chieu Port Construction Project - Da Nang - Vietnam
d. Revising Regulations and Procedures
This would help ensure that the construction of these components aligns with the overall progress of the port's development and avoid unnecessary delays. Furthermore, the Ministry highlights the importance of maintaining close communication with the Vietnam Maritime Administration to receive ongoing support throughout the project's implementation. This collaborative effort would combine the expertise and resources of both organizations, leading to a more efficient and effective project execution. The Lien Chieu Port project consists of two primary components. The shared infrastructure component, funded by both the central and city budgets with a significant investment of VND 3,462 billion (USD 136.8 million), includes breakwaters, shipping channels, and access roads.
Lien Chieu Port Construction Project - Da Nang - Vietnam
e. Economic Benefits and Potential
The second component, the wharf area that requires investment, includes a comprehensive infrastructure network consisting of eight container berths, six general cargo berths, and other supporting facilities. The estimated cost of this component is VND 48,304 billion (USD 1.9 billion). The importance of this project extends beyond infrastructure development. Once completed, Lien Chieu port is expected to become a significant international transshipment hub, transforming the Lien Chieu area into a global trade gateway. This, in turn, would attract major shipping lines, transport companies, and logistics providers, leading to the establishment of a national seaport and logistics center. Additionally, the port is anticipated to generate substantial tax revenue, with projections reaching a remarkable VND 25.8 trillion (USD 1.02 billion) annually by 2050.
Lien Chieu Port Construction Project - Da Nang - Vietnam
f. Investor Interest and Future Outlook
This increase in revenue would significantly contribute to the socio-economic development of both the local community and the broader region. Despite the current challenges, the Lien Chieu Port project continues to attract interest from foreign investors. Da Nang Port Joint Stock Company and the joint venture Anh Phat Construction Investment and Trading Corporation - Adani Group (India) have both expressed a strong desire to invest in the initial two berths. Additionally, Vietnam Maritime Corporation, the majority shareholder of Da Nang Port Joint Stock Company, has formed a partnership with Adani to explore a joint venture for broader port investment. The Ministry of Transport's involvement emphasizes the need to urgently address the project's obstacles. The successful completion and operation of Lien Chieu port have the potential to significantly transform Vietnam's maritime trade landscape and drive economic growth in the region.
2. CUA LO DEEP WATER PORT CONSTRUCTION PROJECT
a. Revised Construction Plan and Berth Expansion
The Nghe An Provincial Party Committee recently approved a revised construction and business plan for the Cua Lo Deep-Water Port. During their July meeting, led by Secretary Thai Thanh Quy, the committee authorized the International Transport Development Investment Joint Stock Company (ITID) to construct three berths. Two of these berths will accommodate ships up to 50,000 deadweight tons, while the third can handle vessels up to 100,000 DWT. The total berth length will be 800 meters, supported by a 1,550-meter breakwater, a connecting bridge, a ship channel, a turning basin, and docking areas.
Cua Lo Deep Water Port Construction Project - Nghe An - Vietnam
Cua Lo Deep Water Port Construction Project - Nghe An - Vietnam
c. Increased Investment and Project Phases
The Cua Lo Deep-Water Port expansion project, strategically located in the North Cua Lo berth area within Nghe An seaport, is divided into two phases. Phase 1 (2024-2028), with an investment of nearly 5.251 billion VND, will focus on constructing berth numbers 6 and 7, each capable of handling 50,000 DWT vessels, along with a 1,200-meter breakwater, connecting bridge number 1, the ship channel, maritime aids, roads, and associated infrastructure. In phase 2 (2029-2030), with an investment of over 2.074 billion VND, the project will expand to include berth number 5, designed to accommodate 100,000 DWT vessels, and construct an additional 350-meter breakwater, connecting bridge number 2, roads, and necessary architectural and technical infrastructure. Once operational, the port is expected to handle approximately 9.5 million tons of cargo annually, contributing an average of 100 billion VND per year to the State budget. This expansion will significantly enhance the port's capacity to meet the growing import-export demands of the region.
3. VUNG TAU INTERNATIONAL PASSENGER PORT CONSTRUCTION PROJECT
a. Project Overview, Investment and Purpose
The southern province of Ba Ria-Vung Tau has ambitious plans to develop a new international passenger port, with an estimated investment of VND7 trillion (USD287.47 million). To ensure the project's success, the province has convened a meeting to gather input from consulting units and relevant agencies on the proposed investment plan. This strategic initiative aims to enhance Ba Ria-Vung Tau's maritime infrastructure and position the province as a major hub for international passenger traffic, thereby boosting tourism, trade, and economic growth in the region.
Vung Tau International Passenger Port Construction Project - VietnamVung Tau International Passenger Port Construction Project - Vietnam
c. Economic and Social Impact
The Ba Ria-Vung Tau international passenger port is poised to become the largest of its kind in the southern region, significantly enhancing the province's maritime infrastructure and economic potential. Once operational, this state-of-the-art facility will not only serve as a crucial hub for passenger transportation but will also play a pivotal role in fostering community engagement and hosting major events of regional and national significance. The port's development is expected to contribute to the growth of tourism, trade, and overall prosperity in Ba Ria-Vung Tau and surrounding areas.
4. PHUOC AN PORT CONSTRUCTION PROJECT
a. Port Location and Economic Significance
Phuoc An Port, a well-built port, is situated near the Thi Vai River in Dong Nai province. It's a key part of the Southern Key Economic Region. The port has modern facilities and good transportation connections, which have helped the area's economy grow. Because it's close to big cities like Ho Chi Minh City and Binh Duong, Phuoc An Port is an important center for buying and selling goods in southern Vietnam.
Phuoc An Port Construction Project - Dong Nai - Vietnam
b. Recent Construction Achievements and Port Capacity
Phuoc An Port's recent port construction achievements include the successful completion of berths 5 and 6, totaling 670 meters in length with a dredging depth of 14.7 meters. This significant milestone was achieved ahead of schedule. The first berth is anticipated to commence operations in the third quarter of 2024. Phuoc An Port, designed to handle both container and general cargo, will have an annual capacity of approximately 4 million tons of general cargo. The port can accommodate vessels weighing up to 60,000 DWT. The Department of Construction Investment Management under the Ministry of Transport has officially approved the project for trial operation following a successful inspection.
Phuoc An Port Construction Project - Dong Nai - Vietnam
c. Equipment Installation and Operational Readiness
Phuoc An Port has successfully imported essential machinery and equipment, including advanced STS and RTG smart crane systems. The tractor-trailer lifting system has undergone rigorous testing and is ready for operational deployment in September. The project investor is currently installing and testing the container management system, finalizing port announcement procedures, and obtaining port codes to commence operations and welcome the first container vessel in September.