Investors likely required to complete 4 wharves of HCMC’s $5.5 bln Can Gio port in 5 years

Investors should complete four out of seven main wharves of the $5.5 billion Can Gio "super" port in Ho Chi Minh City within five years, said Deputy Prime Minister Tran Hong Ha.

This is likely one of the criteria for selecting investors for the Can Gio international transshipment port project, as outlined in a dispatch issued by the Government Office on Friday, summarizing Ha’s conclusions on the project.

The first four wharves are expected to cost $1.5 billion, says the dispatch.

The deputy prime minister suggested HCMC authorities seek investment from major global shipping firms. Additionally, investors should collaborate with local businesses in constructing and operating the port, as well as ensuring the volume of goods transiting through the Can Gio port as pledged, he noted.

The Can Gio port is set to be built at the mouth of the Cai Mep-Thi Vai river in Thanh An commune of Can Gio district, home to Vietnam’s first UNESCO-recognized world biosphere reserve - the Can Gio Mangrove Forest. Can Gio is the only coastal district in HCMC.

In this regard, the municipal government and relevant ministries are tasked with conducting a comprehensive environmental impact assessment for the project. Ha emphasized that the environment must not be sacrificed, nor should other nearby projects be negatively impacted by Can Gio port construction.

He stressed that it must be a “green” port with the adoption of environmentally friendly technology. He recommended consulting foreign advisory firms, if necessary, to ensure the project’s planning aligns with national defense and security.

The construction of the Can Gio international transshipment port will only proceed if it serves national interests, he noted.

The Ministry of Planning and Investment and the HCMC People’s Committee must submit investment plans for the project to the prime minister for consideration in September.

In March, Switzerland-headquartered Mediterranean Shipping Company (MSC), the world’s largest shipping line, proposed investing in the project.

Under the HCMC government’s initial plan submitted to the prime minister in March, the construction of transport and technical infrastructure will be funded by state budget capital, public-private partnership (PPP) investment capital, and other sources.

The total length of the main pier will be about seven kilometers and that for barges is about two kilometers. The super port is estimated to span 571 hectares, including 469.5 ha for piers, warehouses, internal roads, offices, housing for management staff, and technical infrastructure, and 101.5 ha of water serving the port’s operations.

It is estimated that the first year's cargo output through Can Gio port will reach about 2.1 million TEUs (1 TEU = 1 20-foot container). After seven phases, the volume of goods passing through the port will reach 4.8 million TEU by 2030 and 16.9 million TEUs by 2047, half of Singapore’s current throughput.

The port is expected to contribute VND34-40 trillion ($1.34-1.58 billion) to the state budget each year when operating at full capacity.

Regarding opinions on the impact of Can Gio port on international goods transshipment of seaport group No. 4 (including HCMC, Dong Nai, Ba Ria-Vung Tau, Binh Duong, and Long An provinces), the plan states that room for developing new international transshipment ports in Southeast Asia is about 12.8 million TEUs in 2030, about 32.6 million TEUs in 2040, and about 52.3 million TEUs in 2050.

When Can Gio port attracts 3.6 million TEUs, accounting for about 28% of the increased demand of Southeast Asia, the remaining volume of 9.2 million TEUs will be an opportunity for Cai Mep port (in Ba Ria-Vung Tau province) and other ports in the region.