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| Chan May Port is open to welcoming large ships. Photo: Nguyen Phong |
What makes a shipping company that owns and operates 36 cargo ships to 170 destinations in 28 countries like RCL choose Chan May port of Thua Thien Hue for a new sea route in its plan to deploy ships to Central Vietnam instead of Tien Sa port or Danang port?
Potentialities, advantages and incentives
After nearly 1 year of implementing container cargo services, Chan May port has received and handled 65 container ships arriving at the port (21 foreign ships, 44 domestic ships) with a throughput of 7,370 TEU, equivalent to 110,640 tons of goods. By the end of 2023, 12 more domestic ships and 4 international ships are expected to dock at the port, with output reaching 1,716 TEU, equivalent to about 28,350 tons of goods.
“In the period 2019 - 2022, goods transported domestically and abroad by Phenikaa Hue Mineral Processing & Investment Company Limited (Phenikaa Group) by road and via Danang port were at quite high costs. By 2023, we transferred part of the goods through Chan May port via the domestic container route. Thanks to reducing transportation costs and creating competitive products, the company still operates and produces stably in the difficult situation caused by the economic crisis,” shared a representative of this company.
According to Mr. Huynh Van Toan – CEO of Chan May Port JSC., besides the company’s container handling capacity, infrastructure, vehicles, and equipment..., the important factors are the companionship of local leadership, departments, branches, and government with the company and the others, as well as the support policy of the Provincial People's Council, that brings great efficiency in promoting and developing Chan May port, thereby creating an attractive environment for favorable investment, export and import.
In addition to general preferential mechanisms and policies, Thua Thien Hue has issued a specific resolution to encourage and attract container shipping lines and businesses with import and export activities at Chan May port. After more than a year of implementation, up to now, there have been a number of shipping lines and businesses that have enjoyed support policies, such as Hai An Container Transport Company Limited (Hai An shipping line), A&B Vietnam Investment JSC, Baosteel Can Making Company Limited (Hue), Frit Phu Xuan JSC... with a total support amount of nearly 8 billion VND. The budget spent to support shipping lines and businesses with goods transported by container through the port until the end of 2023 is estimated at about 18 billion VND.
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| Chan May Port is increasingly attracting more container shipping lines |
For a worthy national general port
Reality shows that logistics services directly affect operational efficiency as well as create competitiveness of businesses in the market. Businesses involved in exporting and importing goods by sea hope to have a seaport that meets the main criteria: shipping time, shipping costs, and service quality.
As for Chan May port, in addition to the advantage of a deep-water port, there is also the province’s maximum attention and policy support to attract shipping lines to the port. However, international shipping lines still have a limited presence at the port. Eventually, the container export and import service for businesses in the area and neighboring provinces is not commensurate with its potential.
According to Mr. Nguyen Xuan Linh - Managing Director of Scavi Group in the Central region, at a time when the amount of goods is not large and international shipping lines are in the stage of approaching operations, Chan May port and Thua Thien Hue province need to have more additional policies to attract domestic shipping lines. These businesses thereby become a direct bridge with international shipping lines and conduct transshipment of export containers in the province and neighboring provinces from Chan May port to international ships at several other domestic ports, such as Cai Mep and Hai Phong... before exporting to foreign countries.
“Chan May Port should compile statistics and select an international shipping route that businesses in the area and neighboring provinces have the most demand for, to work with a number of potential international shipping lines, and put it into operation without a spread. And at the same time, the port launches an international ship test to evaluate the pros and cons, and eventually have short-term and long-term plans for the next lines,” proposed Mr. Linh.
In addition, Thua Thien Hue should form a logistics center to provide logistics services for businesses, such as container rental and warehouse rental with optimal service quality and cost, connect with the Customs authority and relevant agencies to provide the fastest and most convenient customs clearance services, and produce competitive solutions for transit time compared to ports in the region, specifically Tien Sa port, Da Nang port...
Returning to the RCL shipping line opening an international container shipping route through Chan May port, this shows not only the potential and advantages of the port but also a driving force and catalyst to attract more domestic and international businesses, and major shipping lines to come to Chan May port, thereby contributing to promoting the development of Chan May - Lang Co Economic Zone in particular and Thua Thien province in general.
In order to exploit more and more effectively its potential and advantages, gradually building Chan May port to be worthy of being a national general port, Vice Chairman of the Provincial People's Committee Hoang Hai Minh said that he had requested departments, agencies, relevant sectors, and localities to continue to strengthen their promotion and mobilization of businesses inside and outside the province to circulate container goods through Chan May port, to reduce related costs, and to research to open more domestic/international container routes. He also asked them to review and advise the Provincial People's Committee to submit to the Provincial People's Council to consider extending the time to apply support policies for shipping lines and businesses importing and exporting container goods through Chan May port and to complete logistics infrastructure...
“Thua Thien Hue commits to always be consistent in the policy of “an accompanying, engaging and sharing Government” with the business community, via the motto of “always aiming for and taking businesses as the center, a driving force for the province’s economic development sustainability and autonomy,” affirmed Vice Chairman of the Provincial People's Committee Hoang Hai Minh.