Home » Breaking News, Ports/Terminals » Poor infrastructure undermines Cai Mep-Thi Vai ports in Vietnam, says report

The Cai Mep-Thi Vai area in the southern province of Ba Ria-Vung Tau boasts more than 50 seaports but is having difficulty attracting container ships to dock, reported Vietnam News Brief Service.

According to the Vietnam Port Association (VPA), the total container-handling capacity of the ports in Ba Ria-Vung Tau is nearly 8 million TEUs, but actual demand is less than 5 million TEUs.

The provincial Department of Transport said the Ba Ria-Vung Tau seaport system is host to 53 ports (23 are operational and the rest are set for completion in 2012 and 2013), with a total registered investment of more than US$7 billion as of the end of 2011.

But the department said the ports in the Cai Mep-Thi Vai area suffer from underdeveloped traffic and infrastructure support that detracts from their attractiveness to customers.

National route No 51 connecting the Cai Mep-Thi Vai area to the main traffic system is dilapidated, while route No 956 connecting national route 51 to other major seaports remains unfinished. Road building plans leading to the ports are still in the blueprint stage.

Officials of the province said the poor infrastructure development was largely due to a capital shortage.

As a result of the inadequate infrastructure, carriers have had to use barges to transport their containers to the port, increasing the cost for container owners. The under-capacity has also forced the seaport operators to reduce fees to entice more vessels to come in.

 

Photo by felixtriller

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