Vietnam’s waterway logistics in deep trouble

Vietnam’s maritime and inland waterway transport continue to suffer from the lack of sustainable inland ports and planning for container depots.
Vietnam’s waterway logistics in deep trouble ảnh 1Illustrative image (Source: VNA)
Hanoi (VNA) - Vietnam’s maritime and inland waterway transportcontinue to suffer from the lack of sustainable inland ports and planning forcontainer depots.

They’realso plagued by limited connecting modes of transport and high logistics coststhat reduce their potential for market expansion and customer access.

Most recently, DeputyMinister of Transport Nguyen Nhat admitted that the country’s inland waterwaytransport system still relies heavily on naturally occurring navigable bodiesof water, seeing how the State budget is not sufficient to dredge the necessarycanals and channels to accommodate heavier shipping watercrafts.

Speaking at a nationallogistics conference last week, Nhat said that the domestic maritime industryalready spends millions of dollars each year on dredging at rivers andestuaries, so they’re left without the capital needed to explore newer options.

He acknowledged that Vietnam’sinland waterway infrastructure in all 63 provinces and cities is stillundeveloped, with only 15 planned provincial inland waterway systems.

This means the rest ofthe country’s extensive river and coastal traffic routes are still a mess,marred by spontaneous or unauthorised ports. 

Another majorshortcoming experienced by multiple shipping companies is that the domesticwaterway port and wharf network is managed simultaneously by central and localauthorities, creating redundancies and regulatory confusing and costing firmsboth time and money.

Mai Le Loi, VinalinesLogistics Vietnam JSC’s General Director, mentioned inefficient, deterioratingand non-uniform seaports systems and equipment as chief concerns for thenational logistics industry.

Loi stressed thewaterway shipping sector’s inability to connect with land routes as anothermajor weakness. In addition to restricted man-made canals, many otherwaterways are limited by the bridge height clearance, especially for largetransporting barges, such as Duong Bridge or Binh Loi Bridge.

According to Ministry ofTransport’s (MoT) statistics, Vietnam has on average one wharf every 350metres, especially in the Mekong Delta, over a total inland waterway length ofabout 17,232 kilometres.

This means that canalsand rivers are mainly exploited in their natural conditions, lacking connectionwith other modes of transport, Loi added.

With so many riverwharfs in operation, loading and unloading rates are relatively cheap comparedto other countries in the region, but since all ports are small-scale, thebenefits are limited.  

Loi proposed that inorder to develop efficient maritime logistics, it is necessary to combinedifferent transport modes and prioritise the development of deep-water ports ofsufficient size in the Mekong Delta’s key economic areas, such as Lach Huyen, DaNang, Cai Mep or Hiep Phuoc Port, to name a few, as focal points connectinginternational maritime routes.

Hoang Hong Giang,Director of the MoT Inland Waterway Department, noted there are manybottlenecks in both the national maritime transport system and itsinterconnecting land routes, not to mention the lack of loading equipment andfrequent routes changes caused by floods.

Without properinvestment in these features, as well as warehouses and shipyards, the state ofthe national inland waterways and railways systems will continue to godownhill. Additionally, the inadequate signal lights system also poses threatsto ships navigating at night, thus reducing the transport capacity of thesevehicles, added Giang.

Phung Ngoc Minh, DeputyGeneral Director of Sai Gon New Port Corporation, said that some inlandwaterway wharfs in HCM City, such as Transimex, Tanamexco, Sotran andHa Tien Cement, are under the management of both the State and the city,forcing barges to pay double the assigned freight charges.

Quan Dinh Gang, Directorof Vinacam Transport JSC, said that overlapping waterway management authorityhas also undermined foreign investment in waterway infrastructure.

Tran Do Liem, Chairmanof the Vietnam Shipping Association, said that across the southern region’smain waterways, there is on average a traffic control station every 15kilometres, with a lot of unnecessary, expensive and time-consuming inspectionsfor cargo carriers upon entering or leaving the wharfs.

He suggested waterwayinspection stations be reduced to only one or two checkpoints per province,with a minimum distance of 50 kilometres between them.-VNA
VNA

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