Tan Cang-Hiep Phuoc Seaport Set to Grow Trade in Southern Vietnam
HCMC – The Tan Cang-Hiep Phuoc seaport, located alongside the Saigon Premier Container Terminal, commenced operations in December with the arrival of its first container ship, Saigon Bridge. Among its many benefits, the Tan Cang-Hiep Phuoc shipping lanes have shortened the waterway by nearly 30 km, saving two hours in transportation time and halving fuel costs.
Tan Cang-Hiep Phuoc has been strategically located in order to facilitate the connection of the entire southern area of Vietnam. The port will speed up the circulation of goods, saving time and reducing the transportation costs of enterprises located in the area, particularly for those in nearby industrial parks, such as Long Hau Industrial Park.
The new seaport is located in the heart of the Hiep Phuoc Port Urban Area in Ho Chi Minh City (HCMC). The Hiep Phuoc seaport system is made up of a cluster of seaports which serve the Southern Key Economic Region of Vietnam, comprising the Saigon Premier Container Terminal, Tan Cang-Hiep Phuoc, and Saigon-Hiep Phuoc. Additionally, Tan Cang-Hiep Phuoc takes advantage of the Soai Rap Estuary, which serves as a key shipping hub for Asian goods being transported to, and from, Vietnam.
The port will supplement the existing Cat Lai port (located in District 2 of HCMC), which only has a capacity of 30,000 DWT and has been overloaded in the past. Tan Cang-Hiep Phuoc has the capacity to receive ships of 50,000 DWT.
Construction of Tan Cang-Hiep Phuoc has been divided into two phases. The first phase of the project has been completed and port operations have begun, the second phase of the project is expected to be completed by next June. The first phase included the construction of:
- A 12-hectare yard to hold shipping containers
- A 300-meter-long pier to handle 50,000-DWT vessels
- A 253-meter-long dock for barges
- Other specialized equipment
Vietnam’s Port Infrastructure Capacity
While the new seaport will be welcomed by exporters, Vietnam’s port infrastructure faces a problem of oversupply. This has been exacerbated by the country’s goal of increasing shipping by over 130 percent from 2012 levels by 2020. In aid of this goal, the Transport Ministry is currently seeking over US$30 billion in private funding for transportation infrastructure projects through 2020.
The heightened competition between the country’s ports to attract investment has caused the Transport Ministry to set a two-year minimum handling fee of US$46 per 20-foot container to prevent a further fall in shipping costs.
Although exporters benefit from the increasing choice of ports, choosing the right area to invest in throughout such a saturated market has its challenges. Choosing the right location, with access to the necessary infrastructure, is vital for any business seeking to operate in Vietnam.
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