Socialization of investment
The 26th session of the 10th Provincial People's Council (September 26, 2024) approved the adjustment of the investment policy and the suspension of the "Dredging of the Ky Ha Port entrance channel (phase 2)" project, thus ending discussions on the limitations and shortcomings of this 199.5 billion VND investment project.
The timely decision mentioned above also helped to conclude the investment project funded by the state budget, allowing sufficient time to finalize the settlement documents and hand over control to the Maritime Department ( Ministry of Transport ) so that it can consider and promote the socialization of investment for the remaining part of the project.
On December 11, 2024, the Ministry of Transport approved the plan to dredge the Ky Ha maritime channel as proposed by Truong Hai. A document from the Ministry of Transport, signed by Deputy Minister Nguyen Xuan Sang, requested Truong Hai to carry out the dredging within the approved scope and according to the approved channel standards.
Do not exploit dredging activities for the purpose of recovering or exploiting dredged materials; ensure the work is carried out on schedule and to the required quality standards, without negatively impacting security, safety, or the environmental landscape.
Truong Hai is solely responsible for the investment efficiency and costs. It does not require reimbursement from the State. After the project is completed and accepted, Truong Hai will hand over the facility to the Vietnam Maritime Administration for management and operation according to regulations. It does not request the Ministry of Transport to allocate funds for dredging and maintenance of the shipping channel.
According to the Provincial People's Committee, the authorities have allowed Truong Hai to adjust its investment in dredging the channel into Ky Ha port, meeting the cargo transportation needs for fully loaded 15,000-ton vessels, and 20,000-ton and larger vessels with reduced load navigating to the Ky Ha and Tam Hiep berths within Ky Ha port.
Adjusting the total length of the 11km channel: Adding dredging of the channel bottom to a width of 110m, with a channel bottom elevation of -10m (nautical chart), and dredging of the channel bottom section from berth No. 3 to Tam Hiep berth, 6.2km long and 100m wide, with the channel bottom elevation adjusted from -10.7m to -10m (nautical chart).
According to Vice Chairman of the Provincial People's Committee Ho Quang Buu, he has requested the Management Board of Economic Zones and Industrial Parks (EZs & IPs) to take the lead and coordinate with the Vietnam Maritime Administration, relevant departments, localities, and units to actively support, guide, inspect, and supervise Truong Hai in implementing investment procedures.
Mr. Le Van Sinh, Chairman of the People's Committee of Nui Thanh District, said that the locality will be responsible for presiding over and coordinating with relevant agencies and units to urgently and decisively direct and implement the relocation and land clearance work for households illegally encroaching on the maritime channel to ensure maritime safety, maintain security, and provide land for Truong Hai to carry out dredging work on the channel, ensuring progress, maximizing investment efficiency, and promoting socio-economic development in Quang Nam.
Expanding trade routes
Truong Hai has been granted permission to proceed with the project. However, many are surprised to learn that if the company pays for the dredging of the port's entrance channel itself, and then hands it over to the Maritime Administration for management and operation upon completion, what does Truong Hai gain from this?
According to Vice Chairman of the Provincial People's Committee Ho Quang Buu, THILOGI ( thuộc Trường Hải) has sufficient cargo and many partners for its logistics operations. However, the current port channel is too shallow. Without a channel, large ships cannot enter, causing the company to lose orders with its partners. Public investment involves lengthy procedures. Trường Hải decided to invest in dredging to proactively sign contracts, facilitating business operations and preventing the loss of opportunities for linkage and trade connections.
According to investment data and operational progress of Quang Nam seaports, since the SITC vessel from Incheon Port ( South Korea ) docked at Tam Hiep Port No. 1 on August 5, 2016, Chu Lai - Truong Hai Port officially joined the ranks of "international ports" for direct export in Quang Nam.
Truong Hai has invested trillions of VND to build one of the most dynamic ports in Central Vietnam. At least four international shipping lines call at the port to handle cargo each week.
Besides the "backbone" of finished automobiles, components, machinery, equipment, and agricultural products of THACO itself, other items such as agricultural supplies for farms in Cambodia, Laos, and the Central Highlands... imported from Chu Lai port will be transported back to the farms, and THACO will receive fruit from the farms.
According to statistics from the Department of Finance, in 2024 alone, import and export tax revenue was approximately 4,300 billion VND (reaching 122.8% of the projected target), with Truong Hai accounting for over 80% of this revenue (3,440 billion VND).
Truong Hai has successfully built a logistics center or container port capable of handling large volumes of international import and export goods.
Chu Lai - Truong Hai Port Corporation (THILOGI) operates and transports goods for more than 50 regular customers and 40 strategic customers through major shipping lines worldwide such as CMA CGM, APL, ZIM, SICT, COSCO..., opening direct shipping routes from Chu Lai port to major ports in China, South Korea, Japan, and India. However, it still "fails" because the channel is not deep or wide enough to accommodate 50,000-ton vessels for cargo handling.
Quang Nam lost a media opportunity for its seaport during the major event of exporting semi-trailers to the US when it was forced to use Dung Quat port.
The competition for port development is fierce among the provinces and cities in the Central Vietnam Key Economic Zone. Industrial parks (IPs) typically handle shipments to Europe and America. Quang Nam's port possesses a unique advantage that few others have. Once components arrive at Chu Lai, the containers are re-exported, allowing businesses and IPs to utilize these empty containers for exporting goods, significantly reducing costs.
Truong Hai proposed to fund this dredging project, committing not to request reimbursement from the State. This is a crucial and decisive choice for proactively "saving itself" in the face of market competition, joining the trade highway, and connecting international transportation.
Deputy Minister of Transport Nguyen Xuan Sang assessed that the port investment plan and the deepening of the channel leading to Chu Lai port is a breakthrough for Quang Nam province. Opening the gateway to the East Sea will be a new lifeline for the port and for the entire local economy.
Vice Chairman of the Provincial People's Committee Ho Quang Buu said it's difficult to calculate, but many benefits will be gained from the investment. Certainly, this decision by Truong Hai will make a difference, creating favorable conditions for the business and opportunities to expand trade in the increasingly fierce competition among seaports in Central Vietnam.
Source: https://baoquangnam.vn/co-hoi-cho-cang-bien-quang-nam-3147159.html
