Congestion, cargo delays immobilize Vietnam ports

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Cat Lai Port
Cat Lai Port
Cat Lai Port

Cat Lai Port in Ho Chi Minh (HCM) City is currently facing heavy congestion issues after an increase in throughput and the implementation of a new policy to modernize the customs system.

Port operator Saigon Newport said export and import turnover at the port in southern Vietnam has spiked 12 percent in the first six months of 2014, one of the reasons for cargo overloading at the port.

Moreover, authorities have intensified control over overloaded trucks, leading to the deployment of new vehicles by transport companies to deliver the same volume of goods, lengthening demurrage and detention time at the port, according to a report carried on the website of the Vietnam Seaports Association.

The action is part of the implementation from April to June of the Vietnam Automated Cargo and Port Consolidated System and the Vietnam Customs Information System (VNACCS/VCIS) to overhaul customs procedures.

Reports said that the system also necessitates the scanning of more containers that has resulted in delays in the release of goods, adding to the severe congestion.

Saigon Newport is proposing to local authorities to divert container traffic to alternative destinations such as the two new ports of Ben Nghe and Phu Huu, as well as to upgrade the facilities at Cat Lai.

Similarly, the Hai Phong port complex, the biggest port in northern Vietnam, has been experiencing serious congestion problems as well, following the application of the VNACCS/VCIS.

According to a report by VietnamNet Bridge, citing data from the Hai Phong port’s customs agency, about 8,000 containers of goods had been sitting at the ports in Hai Phong, along with numerous bulk cargo items that could not be carried to their destinations because they were oversized or overloaded.

Port users said cargo traffic had slowed down after the new regulation took effect at the port in May. The new policy stipulates that all vehicles must have goods weighed right at the port, and goods could be cleared only if certified to be within the allowed capacity indicated on the driving license.

Hai Phong City’s authorities have decided to set up a task force to supervise the clearance of cargo stuck at the ports, added the report.

Photo: Ares Nguyen