No more delays to HCMC 'super' port construction: experts

The construction of the $5.5 billion Can Gio “super” port in Ho Chi Minh City should not be delayed now that MSC, the world's leading shipping company, has proposed to invest in the mega project, said experts.

The latest scheme on developing the Can Gio international transshipment port submitted by the HCMC People's Committee to the Prime Minister shows that the "super" port will be located on Con Cho island, Thanh An commune, Can Gio district.

According to the scheme, the port, auxiliary works, a logistics service center, and a non-tariff area will be invested by MSC.

Meanwhile, 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 7 kilometers and that for barges is about 2 kilometers long. 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.

The HCMC People's Committee said that with its expected location, Can Gio port will have many competitive advantages to attract international goods from countries in the region such as Cambodia, Thailand, Brunei, the Philippines, and southern China. Currently, goods in the above areas are mainly transshipped via Singapore and Malaysia. If they are transshipped via Can Gio, the shipping distance will be shortened by about 30-70% compared to Singapore.

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 investment phases, the volume of goods passing through the port will reach 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.

HCMC said it will strive to complete in the first phase of the project, featuring the construction of two out of seven main wharves, before 2030.

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), the scheme 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 and other ports in the region.

Therefore, the estimate of international goods transshipped through Can Gio port is consistent with the forecast demand for international transshipment goods in Southeast Asia, and will not negatively affect the development planning of other ports in the region.

At the same time, the formation of Can Gio port to attract transshipment activities to the Cai Mep-Can Gio area will have a positive impact, luring shipping lines to establish transshipment activities in Cai Mep.

For Vietnam's imports and exports, the projected volume of Vietnam's import and export container goods through Can Gio port is about 1.2 million TEUs, making up 4-6% of the total forecast volume of goods through seaport group No. 4; 10.4-11.1% of the estimated volume of goods through HCMC's seaports; 7.7-9.6% of the forecast volume of container imports and exports via seaport group No. 4.

Therefore, Can Gio port will not greatly affect the current status of seaport exploitation and development planning in the region, noted the scheme.

Seizing the "golden" opportunity

Dr. Tran Du Lich, member of the National Monetary Policy Advisory Council, said that Can Gio port will not affect or compete with Thi Vai-Cai Mep port in Ba Ria-Vung Tau province, and both will form one seaport system for the entire southeastern region, upgrading the entire seaport group No. 4 into a seaport of national and international stature that can compete with others in the world.

However, it is necessary to study more carefully the connection from the port to the mainland, including both road and waterway transportation, and the building of social and urban infrastructure systems for the port.

"The world's leading shipping line has committed to investing in the project for 20 years, so this is a historic opportunity that should not be missed. We need to have a vision toward 20-30 years, when maritime routes and geopolitics change. Therefore, the Can Gio port development is a strategic step to make us well-prepared for the shift," Lich said.

Echoing Lich, Assoc. Prof. Dr. Tran Dinh Thien, former director of the Vietnam Institute of Economics, held that construction of Can Gio port at this time is a "golden" opportunity and should not be delayed.

"Nine of the 10 largest seaports in the world are located in the Western Pacific region. Of these, China has seven, and South Korea and Singapore one each. If Vietnam has one more transshipment port, opportunities for us are huge," Thien said.

According to this expert, to develop an international transshipment port, Vietnam must take into account the potential of domestic and regional goods, but also look at the direction and movement of international goods. In particular, the engagement of an international shipping company is needed. Can Gio and Cai Mep-Thi Vai ports, which are led by one or two of the world's largest shipping lines, will bring countless benefits to Vietnam.

"In the early stages, there will be competition for goods sources, but the shifting trend is creating many opportunities for us in this realm. It is a golden chance for us when an international business like MSC commits to investing in Can Gio port. Therefore, if we hesitate, we will lose the opportunity," Thien noted.

Meanwhile, Bui Van Trung, general secretary of the Vietnam Shipowners’ Association, said that geopolitical changes have created a trend for investors to build extremely large, groundbreaking projects, especially in the fields of transport infrastructure and seaports. Among them, China, Singapore and other countries have made strong investments, giving a facelift to their countries and localities.

In Vietnam, international cargo transportation is one of the dreams of the maritime industry, but it has not come true for several decades. Therefore, the key to building a transshipment port is the source of goods, which depends mainly on shipping companies.

"Gaining the MSC commitment is very fortunate for the Can Gio port project. MSC is not only the world's leader in container shipping and freight transport, but also boasts a cruise ship brand famous throughout Europe," Trung said.