Ports, logistics firms in Hai Phong call for help as power cuts hit

Port and logistics companies in northern Vietnam's Hai Phong city are crying out for help as the frequency of power blackouts continues to rise amid electricity shortages.

In a joint letter sent to state utility Vietnam Electricity (EVN), Northern Electricity Corp., and Hai Phong Power Company; the Vietnam Logistics Business Association (VLA), the Vietnam Ship Agents, the Brokers and Maritime Services Providers Association (Visaba), and the Vietnam Shipowners' Association (VSA) said their corporate members have been hit hard by the power cuts.

Firms in the sector must ensure round-the-clock services for domestic and foreign customers, shipping lines, importers, and exporters, and maintain smooth operations across the entire supply chain, the letter said. Therefore, the associations expect 24/7 power supplies from the national grid, Hai Phong's network, and backup sources.

In force majeure cases, they want to know about planned power cuts 24 hours in advance under Vietnamese laws, and when supply will resume. They said power suppliers should send explanations to ports within eight hours after supply is resumed so that the ports can explain to their clients and shipping lines.

In cases that are not urgent, ports should receive notice of any blackouts at least five days in advance under Vietnamese law.

The letter argued the electricity industry should find solutions to support and compensate the ports, such as assisting with maintenance, operation and investment costs related to power substations and generators, and reducing electricity prices to offset their losses due to power cuts.

In the long term, the electricity industry should work on policies to encourage ports and logistics companies to use renewable and clean energy, the associations added.

According to Tran Viet Hoa, director of the Electricity Regulatory Authority of Vietnam under the Ministry of Industry and Trade, the available capacity of all power sources in the northern region, including imported electricity, is 17,500-17,900 megawatts, or about 59.2% of the installed capacity. Meanwhile, the demand is about 20,000 MW and can reach 23,500-24,000 MW in hot weather.

It is estimated that each day Vietnam is short of 30.9 million kWh, and even 50.8 million kWh at peak times. "The risk of power shortages throughout the day is looming," said Hoa.

Facing power shortages, EVN has had to cut off electricity in the north. For example, at 4:30 p.m. on Monday, the power consumption capacity was cut by 3,609 MW, including about 1,423 MW at major industrial parks and 1,264 MW in residential areas.