Overloaded ports weigh down Vietnam

Vietnam shipping infrastructure is taking a big toll on freight operations, with estimated loss of US$2.4 billion a year because it can’t reach Cai Mep International Terminal (CMIT) because there is no effective road or rail infrastructure linking to HCM City.

Shippers prefer to use the far smaller Cat Lai Port, which is closer to the manufacturing districts of Binh Duong, Ba Ria-Vung Tau, Dong Nai and Ho Chi Minh City.
But congestion steadily builds at Cat Lai, containers must be offloaded onto more compact vessels at sea or transshipped through SIN and HKG, which can add 30% to the cost of a container.

Vietnam’s freight handling is among the slowest in SE Asia. On average it takes 21 days to import freight, compared with just 4 days for SIN. The cost of importing a container to Vietnam is about US$600, against US$440 at SIN. Yet Singapore handled 31.6 million TEUs in 2016 and Vietnam 8.4 million.

(Hellenic Shpping News)