ESCAP Project

NATIONAL STRATEGIES FOR SMART PORT DEVELOPMENT POLICIES IN ASIA AND THE PACIFIC

VIETNAM MARITIME ADMINISTRATIONDr. Trinh The Cuong

Overview of logistics and ports performance trigger the NEED for change

Issues and challenges

Conclusion

I. OVERVIEW OF VIET NAM

NATIONAL FLEET

• 1507 vessels (4.65 million GT, 7.55 DWT)• Average age: 16.3 ( world 20.8)• Ranked 4th in Asean and 29th globally• Able to handled domestic transport and around 10% trade

volume due to restriction in size and technical requirements

LOGISTICS SECTOR

• 1300 domestic logistics company involve in maritime sector (mostly 1PM ,2PM some 3PM)

• 08 logistics center and 21 ICD nationally• Logistic cost account for approximately 20

% of GDPLogistic market share

domestic

foreigncompany

DHL, Nippon Express…

PORT PERFORMANCE• 286 ports with total 8.22 km in length 550 million tons in capacity• Constantly growth in port sector

Container: 19.5 m. TEU ( increased 6% compared to 2018) Passenger: 7.5 millions ( incr. 22% compared 2018)

• Average time in port for cont ship: 1.03 days (global average 0.69 UNCTAD)

• Over-capacity of port system 18% and congestion in ports

• 286 ports with total 8.22 km in length 550 million tons in capacity• Constantly growth in port sector

Container: 19.5 m. TEU ( increased 6% compared to 2018) Passenger: 7.5 millions ( incr. 22% compared 2018)

• Average time in port for cont ship: 1.03 days (global average 0.69 UNCTAD)

• Over-capacity of port system 18% and congestion in ports

0

200

400

600

800

2012 2013 2014 2015 2016 2017 2018 2019

295 328 373 427 459 519 530654

Cargo throuthput 2012- 2019

550

654

450500550600650700

Over-capacity in portsystem

Port capacity

throughput2019

An overview of Vietnam maritime industry and… the NEED for improving

and COVID

II. OVERVIEW OF VIET NAM SEAPORT SYSTEM

CURRENT STAGE OF SEA PORT SYSTEM

NORTHERN SEA PORT GROUP (Group 1)

4 Ports; 65 Berths; 15Km; 145 Mil. Tons

MID - CENTRAL SEA PORT GROUP (Group 3)

SOUTHERN CENTRAL SEA PORT GROUP (Group 4)

SOUTH EASTERN SEA PORT GROUP (Group 5)

MEKONG DELTA SEA PORT GROUP (Group 6)

3 Ports; 19 Berths; 70.8Mil.Tons

6 Ports; 28 Berths; 33 Mil.Tons

5 Port; 25 Berths; 35 Mil.Tons

4 Ports; 99 Berths; 230 Mil.Tons

10 Ports; 36 Berths; 20.7 Mil.Tons

Quang Ninh PortHai Phong Port

Nghi Son Port

Nghe An PortHa Tinh Port

Thua Thien Hue Port

Da Nang Port

Quy Nhon Port

Khanh Hoa Port

Vung Tau PortDong Nai Port

Ho Chi Minh Port

Can Tho Port

Quang Ngai Port

THE NORTHERN CENTRAL SEA PORT GROUP (Group 2)

TOTAL: 32 PORTS, 272 BERTHS, 550 MIL.TONS (CAPACITY)

11,8% 16,4%

CARGO VOLUME VIA SEA PORT SYSTEM

73.3

126.6

229.7 241.2 253.5287.3

326.3

371.5

416.3441.5

524.7

1.1

2.9

6.5

7.2

8.0

8.6

10.4

11.5

13.0

14.4

17.8

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

0.0

100.0

200.0

300.0

400.0

500.0

600.0

2000 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total (Mil.Ton) Container (Mil.Teu) Tot.Change (%) Cont.Change (%)

SHARE OF GOODS IN 2018-2019

141.1 , 27%

171.2 , 33%

211.6 , 40%

0.8 , 0%

EXPORT IMPORT DOMESTIC TRANSIT

164.2 , 31%

60.0 , 11%41.9 , 8%29.2 , 6%

210.9 , 40%

18.5 , 4%

Group 1

Group 2

Group 3

Group 4

Group 5

Group 6

5.03 , 28%

0.09 , 0%0.49 , 3%

0.13 , 1%

11.97 , 67%

0.13 , 1%

Group 1

Group 2

Group 3

Group 4

Group 5

Group 6

Total 524.7 Mil. Tons

6.0, 34%

6.1, 34%

5.7, 32%

EXPORT IMPORT DOMESTIC

Total 17.8 Mil. TEUs

STASTUS OF OWNERSHIP IN VIETNAM

VietNamseaport Sys.

168 Join Stock

Company

27 Join venture

company

11

Private company

4 State ownership

(ODA loan)

41 State capital

PORT CONGESTION

25 Biggest container port in the world

Total length of 1.500m

FACTS

Container throughput at Cat Lai port causes congestion and traffic jam. Heavy traffic on Ha Noi High Way, Long Thanh – Dau Giay High Way towa

rd Mai Chi Tho road.

Cat Lai traffic jam

Road Dong Van Cong toward Cat Lai port, Ho Chi Minh City

Eastern belt from District 9 to Cat Lai Port

WHY SMARTPORT SYSTEM?

1. DEMANDS:- SHIPS IS BIGER AND BIGER

- VOLUME OF CARGO – INCRESING 10%-15%/YEAR- PORT IS BIGER- CONNECTED PORT NETWORK - LOGISTICS 2. INVESTMENT:- PRIVATE INVESTMENT IS PARTICIPATED - POWER OF IT TO REDUCE THE COST3. PORT CONGESTION4. SMART – MEANS MORE TECHNOLOGY COMMING

III. SMART PORT DEVELOPMENT PLAN

MINISTRY OF TRANSPORT

VIETNAM MARITIME ADMINISTRATION

NOVEMBER 2020

MASTER PLAN OF VIETNAM SEAPORT SYSTEM TO 2020, ORIENTAION TO 2030

Legal Basic

Decision 1037/QĐ-TTg dated 24th June 2014 approval of Vietnam Port system planning to 2020, a vision to 2030

Decision 2027/QĐ-BGTVT Ministry of Transport dated 29th Oct 2020 Approval of Project on Green port development

Detailed plans for Seaport development plan in different areas in 2016 (6 areas)

Shortages

Prime Minister

Ministry of Transport

Latest

• Lack of detailed circulars for smart port development plan• Lack of awareness and experienced personnel•Lack of management and monitoring activities

Challenges

Challenges in Vietnam’s Smart port developmentChallenges in Vietnam’s Smart port development

HOW WE MAY DEVELOP SMARTPORT

1 Operation 2 Sustainability 3 Safety and Security

- E-port- E-clearance formallity- Automation

- Renewable energy- Air quality (less

emission)- Noise pollution- Improve Port

Reception Facility

- Higher technical standard for ship

- Proper enforcement

• Build national detail legal basis and an action plan

• More budget on Smart port development

• More attention from stakeholders for the role of smart port

But we do need support

International guidelines or instructions for smart port

development plan

Support in training personnel (conference, seminar..)

WHAT TO DO NEXT?WHAT TO DO NEXT?

IV. CONCLUSION

IV. CONCLUSION

1. REVISED LAWS OF ROAD, RAIL, INLAND-WATERWAY AND MARITIME

2. REVISING MASTER PLAN OF TRANSPORT INCLUDED ROAD, RAIL, INLAND-WATERWAY AND MARITIME TO PORT SYSTEM

3. PROJECTS ON: ROAD, RAIL, INLAND-WATERWAY AND MARITIME TO PORTS, SUCH AS: CONNECTIVITY TO CATLAI BERTHS IN HOCHIMINH;

4. ADMINITRATIVE PROCEDURE IN PORT: E-PORT (ASIAN SINGLE WINDOW) MAINLY IN CUSTOM AND IMMIGRATION

Conclusion

Ⅳ. Conclusion

Expected ESCAP’s:

• MAKING SMARTPORT MODEL PROJECT TO ASEAN COUNTRIES

• PROVIDE EXPERTS AND DOCUMENT AS GUIDELINES