Mediterranean Shipping, Vietnam Maritime Corp eye port megaproject in HCMC

Swizerland’s Mediterranean Shipping Company and Vietnam Maritime Corporation are jointly making research on a $870 million international container transshipment port project in Can Gio coastal district, Ho Chi Minh City.

Vietnam Maritime Corporation (VIMC), a state-run entity turning into a joint stock firm in 2020, has proposed the Prime Minister and concerned agencies allow Saigon Port, its subsidiary, to partner with the Swiss giant (MSC) to invest in the gigantic project.

It also asked for adding the project to the country’s port system development plan in the period 2021-2030, with a vision to 2050.

The proposed port, located on an area of 570 ha in Can Gio, is set to be capable of receiving ships of up to 250,000 DWT, with the main wharf being about 6.8 km in length.

The project will have a design capacity of 15 million TEUs. TEU (twenty-foot equivalent unit) is a shipping container with internal dimensions measuring about 20 feet long, 8 feet wide, and 8 feet tall.

In its proposal, VIMC said international container transshipment port exploitation activities and services have become a national strategy to compete globally for many countries which have sea territories. Such ports are also critical parts of the global supply chain.

According to the Vietnam Maritime Administration, the volume of container goods transshipped via the country’s port system in 2021 was 23.9 million TEUs, mainly via ports in Ho Chi Minh City, Vung Tau and Haiphong. However, the ratio of international transshipments was low, which means the development potential is significant.

VIMC said the Can Gio area is located at the beginning of the Cai Mep-Thi Vai navigational route, with a great depth. It is less affected by bad conditions when it comes to waves and winds. Moreover, Can Gio belongs a region with busy maritime activities, near international maritime routes. “These are important conditions for the formation of an international container transshipment port system and services.”

VIMC has been cooperating with MSC in exploiting and developing seaport infrastructure in Vietnam. MSC is the world’s leading container shipping company, with a fleet of more than 625 ships, including many super-large container ships.

MSC has offices in 155 countries, with fleets connecting to 500 global seaports. The giant’s annual transport output is about 23 million TEUs, and it owns about 60 seaports globally, with an annual exploitation capacity of over 30 million TEUs through its subsidiary Terminal Investment Limited.

The Swiss heavyweight is currently a customer and a strategic partner of VIMC. “The participation of MSC would be an important factor to ensure the success of the project,” the Vietnamese group added in its proposal.

Can Gio is the only coastal district in Ho Chi Minh City, Vietnam’s business hub.