Transportation In Mekong Delta Awaits Policy Breakthrough

70-80 percent of farm produce in Mekong Delta are carried via ports in HCMC and Vung Tau 

In late 2016, an international shipping firm studied the possibility of putting container ships at Tan Cang – Cai Cui Port to connect with international ports. 

At the time, there were many favorable conditions to implement the project. The project was applauded by goods owners as it would require less money and time to have goods go through Tan Cang – Cai Cui compared with ports in HCMC City. Meanwhile, the Quan Chanh Bo route was opened.

If the project had been realized, the local transport system would have enjoyed big benefits because the volume of goods carried by land would have decreased and waterway transport would have improved. 

More importantly, the operation of the international route in Mekong Delta would have generated a new transport corridor, helping to ease overloading in HCMC.

However, the plan was not implemented because of a series of problems. In addition to landslides at Quan Chanh Bo canal, another problem arose.

A representative of the shipping firm said at a conference in HCMC in 2017 that there are differences in terms of size, connectivity and service frequency between the ports in the Mekong Delta and those in HCMC. 

He said in order to attract goods to Mekong Delta’s ports to ease the overloading of ports in HCMC, it is necessary to encourage shipping firms to dock at ports by offering preferential fees and charges. 

Ship operation costs at Tan Cang – Cai Cui are higher than in HCMC and shipping firms do not want to use the port. 

The higher cost was created by Decision No 3863, taking effect on July 1, 2017, which required that ports No 5 (comprising ports in HCMC and Ba Ria – Vung Tau province) and No 6 (the ports in Mekong Delta) have the same floor fee.

Meanwhile, the passage to Tan Cang – Cai Cui is longer than the ports in HCMC, which means the port fee for ships to Can Tho area is higher.

Analysts say that setting the same floor price for goods handling services in two areas with different conditions was an unreasonable decision.

Newport Lines's domestic service has reduced the frequency of calls at Tan Cang-Cai Cui since the day the Decision 3863 took effect.

According to the Transport Development Strategy Institute, 70-80 percent of farm produce in the western part of the southern region are carried via ports in HCMC and Ba Ria – Vung Tau, despite the advantages in waterways in the area.

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