Why have the numerous wharves in Ho Chi Minh City ceased operations?

The simultaneous closure of dozens of inland waterway terminals during the final months of the year has had a significant impact on the supply of materials for transportation infrastructure projects in the area.

There are many reasons, but the closure of these wharves is mainly due to complications in the renewal and licensing procedures.

Contractors face difficulties as waterway terminals shut down simultaneously.

In early November, many contractors working on transportation infrastructure projects reported to the Transport Newspaper that a number of inland waterway terminals in Ho Chi Minh City had ceased operations, causing material prices to rise sharply.

The construction materials market in Ho Chi Minh City is being affected by the expiration of operating licenses for many inland waterway terminals.

This situation is not limited to just a few districts but has spread to eight localities in Ho Chi Minh City, including Thu Duc City, District 1, District 3, District 7, Binh Thanh, Go Vap, Hoc Mon District, and Binh Chanh District.

Of the 42 inland waterway terminals that ceased operations by mid-October 2024, the majority were construction material terminals.

This directly impacts the supply chain for contractors in the context of the transportation infrastructure construction race.

Mr. D, the deputy general director of a company constructing a key transportation project in Ho Chi Minh City, said that in just the last two weeks of October, three suppliers of leveling sand in Thu Duc City have announced they will stop supplying the construction site.

"They said the waterway terminal's operating license wasn't renewed, so they couldn't bring sand there for storage," Mr. D shared.

Observations at the Xáng - An Hạ canal area (Bình Chánh district), about 3km downstream from Xáng bridge, show that two barges carrying sand for leveling had to anchor for 20 hours.

The dock owner announced that he had just been fined 35 million VND for operating the dock after its operating license had expired, and therefore did not dare to allow barges to enter.

"If we turn back to the Mekong Delta, the cargo owner will suffer heavy losses. Anchoring the ship to find another port to buy from carries a high risk of being forced to accept low prices and having debts withheld," the captain shared.

Why did it cease operations?

According to information from the Department of Transport and Public Works of Thu Duc City and the urban management departments of the districts, there are three main reasons for the widespread closure of waterway terminals.

Firstly, from late 2023 to early 2024, a series of large sand mines in the Mekong Delta ceased operations, cutting off the supply of construction materials to waterways in Ho Chi Minh City.

Due to the lack of mooring and cargo handling activities, even though their operating licenses are about to expire, the owners of the wharves are not applying for renewal. In fact, some wharves have ceased operations completely due to difficulties and bankruptcy.

The second reason emerged during the period from January to March 2024. At this time, Decree 06, amending and supplementing several articles of Government Decree 08 on the management of inland waterway activities, came into effect.

Accordingly, the authority to agree on the technical specifications for the construction of inland waterway terminals in the area has been assigned to the People's Committee at the district level, instead of the Department of Transport as before.

The lack of updated information on Decree 06 by inland waterway terminal owners has led to delays in renewing operating licenses.

The third and most important reason for the delay in renewing the licenses of many wharves is that their land ownership documents do not meet the requirements.

Urgent action is needed to resolve this issue.

Mr. Tran Thanh Phong, Head of the Port and Wharf Management Department of the Inland Waterway Port Authority, shared that after reviewing and compiling a list of inland waterway wharves that have ceased operation in Ho Chi Minh City, a significant increase in the number of inactive wharves has been observed.

The Inland Waterway Port Authority, along with the Traffic Police Department, the Waterway Management Department (Department of Transport), and the Inspectorate of the Department of Transport, are also reviewing the obstacles leading to the delay in renewing operating licenses for inland waterway terminals, in order to advise the Department of Transport on coordination and feedback with localities in the future.

A representative from the Ho Chi Minh City Department of Transport's Inspectorate stated that the process for renewing inland waterway terminal licenses has been decentralized to local authorities.

During the initial months of implementation, although some issues arose, it will essentially help localities become more proactive in infrastructure management.

Currently, construction material wharves are also linked to specific operational purposes, serving particular construction projects in each area. This helps to leverage the strengths of local management in each area.

"When construction projects are completed but the construction material depot still exists without a clearly defined purpose, the legal basis regarding land use risks being violated, especially environmental violations," this person said.

Unauthorized docks increased by 31%.

According to the latest list from the Ho Chi Minh City Department of Transport, the number of inland waterway terminals that have not yet been officially announced as operational but are currently operating in the city has reached 71.

Previously, in July 2024, the number of unlicensed wharves was only 54. Thus, the number of unlicensed wharves, upon review, has increased by 31% in just 3 months.

A representative of a construction materials business in District 8 stated that the current situation, where many inland waterway terminals are slow to announce the renewal of their operating licenses while the number of unlicensed terminals is skyrocketing, will put the construction materials market at risk of a "grey area." Terminals whose licenses expire will have no goods to sell, while unlicensed terminals will drive up prices.

Source: https://www.baogiaothong.vn/vi-dau-loat-ben-thuy-o-tphcm-ngung-hoat-dong-192241107231016756.htm