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Technical Report No. 8 PORT and SHIPPING

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Technical Report No. 8 PORT and SHIPPING Japan International Cooperation Agency (JICA) Ministry of Transport, Socialist Republic of Vietnam (MOT) Transport Development and Strategy Institute (TDSI) THE STUDY ON THE NATIONAL TRANSPORT DEVELOPMENT STRATEGY IN THE SOCIALIST REPUBLIC OF VIETNAM (VITRANSS) Technical Report No. 8 PORT AND SHIPPING July 2000 ALMEC CORPORATION PACIFIC CONSULTANTS INTERNATIONAL PREFACE During the period of the Study on the National Transport Development Strategy in Vietnam (VITRANSS), various technical papers have been prepared by different Study Team members in various occasions to facilitate the discussions with counterpart team, concerning subsector agencies and to document major findings and outputs produced in the process of the Study. These papers have been organized into a series of technical reports (See Table A below) which intend to provide more detailed background information for descriptions and discussions made on key study components and issues. These technical reports are working documents of the Study which, however, will be useful for further reference, by the counterpart team and related subsector agencies. Table A List of Technical Reports No. 1 Transport Surveys and Database No. 2 Main Commodities Analysis and Freight Transport No. 3 Transport Cost and Pricing in Vietnam No. 4 Transport Sector Institutions No. 5 Road and Road Transport No. 6 Railway No. 7 Inland Waterway No. 8 Port and Shipping No. 9 Air Transport No. 10 Rural Transport and Cross Border Transport No. 11 Environment No. 12 Transport Sector Funding Technical Report No. 8 SHIPPING AND PORTS Table of Contents Page PART I: SHIPPING 1 INTRODUCTION ................................................................................I-1-1 2 REVIEW OF RELATED STUDIES, PLANS AND PROJECTS 2.1 Past Study and Recommendations ........................................ I-2-1 2.2 Ongoing and Committed Projects .......................................... I-2-3 2.3 Government Policies and Regulations ................................... I-2-4 3 CURRENT SITUATION 3.1 Administrative Framework ..................................................... I-3-1 3.2 Industrial Framework ............................................................. I-3-5 3.3 Operation and Management ................................................ I-3-15 3.4 Safety Enhancement and Environmental Protection..............I-3-25 4 DISCUSSIONS ON SELECTED ISSUES 4.1 Government Policies on the Shipping Industry in Asia ............I-4-1 4.2 Development of a Transshipment Port in Vietnam ............................................................................I-4-10 5 SHIPPING DEVELOPMENT STRATEGIES 5.1 Strengthening Maritime Administration ..................................I-5-1 5.2 Competitive and Liberalized Shipping Environment ................I-5-2 5.3 Fleet Expansion and Modernization ........................................I-5-5 5.4 Projects on Maritime Safety ....................................................I-5-9 PART II: PORTS 1 INTRODUCTION ...............................................................................II-1-1 2 REVIEW OF PORT STUDIES, PLANS AND PROJECTS 2.1 Past Studies and Recommendations .................................... II-2-1 2.2 Ongoing and Committed Projects ......................................... II-2-5 2.3 Government Plan and Policy ................................................ II-2-6 3 CURRENT SITUATION 3.1 Port Administration and Management ................................... II-3-1 3.2 Existing Port System .............................................................II-3-2 3.3 Infrastructure ........................................................................ II-3-6 3.4 Traffic Demand.......................................................................II-3-8 3.5 Finance and Management....................................................II-3-13 4 DISCUSSIONS ON KEY PLANNING ISSUES 4.1 Assessment of Existing Port Capacity .................................. II-4-1 4.2 Future Development Requirements ...................................... II-4-3 4.3 Port Development Strategies Toward Year 2020 ...................II-4-7 4.4 Other Key Issues .................................................................II-4-12 5 PROPOSED PORT DEVELOPMENT (2001-2010) 5.1 Port Traffic in 2010 ............................................................... II-5-1 5.2 Regional Level of Investment ............................................... II-5-6 5.3 Identified Projects for the Master Plan Period ........................II-5-9 5.4 Investment Plan....................................................................II-5-23 APPENDICES APPENDIX A Detailed Port Development Plan and Investment Plan by the Government of Vietnam ............................................ A-1 APPENDIX B Construction Cost and Productivity in Port Development .............................................................B-1 Glossary ADB Asian Development Bank APL-NOL American President Line-Neptune Orient Line APM AP Moller ATN Aids to Navigation C&F Cost & Freight CATT Corporation for Advanced Transport and Technology CFS Container Freight Station CIF Cost Insurance and Freight COVASCO Saigon Waterway Transport Corporation DAMATOCOSCO Danang Maritime Transportation and Commercial Services Co. DMSP Domestic Shipping Modernization Program DWT Dead Weight Tonnage ECL Eastern Car Liner Co., Ltd. EIA Environmental Impact Assessment ESCAP Economic and Social Commission for Asia and Pacific FALCON Falcon Shipping Company FOB Freight on Board GEMADEPT General Forwarding and Agency Co., Ltd. GEMATRANS GEMATRANS (VIETNAM) LTD. GMDSS Global Maritime Distress and Safety System HAMATCO Hanoi Maritime Transport Company HCMC Hanoi Maritime Commercial Center IADA Intra-Asian Discussion Agreement ICD Inland Container Depots IMO International Maritime Organization INLACO International Labor Cooperation Agency ISM Code International Safety Management Code JBIC Japan Bank for International Cooperation (formerly OECF) JICA Japan International Cooperation Agency LOA Length Overall MAPETRANSCO Maritime Petroleum Transport Corporation MARIMEX Marine Import/Export and Trading Company MARISERCO Maritime Supply and Service Company MARPOL International Convention for the Prevention of Pollution from ships MASERCO Marine Servicing Company MATRA Maritime Trading Center MCC Maritime Credit Corporation MITECO Maritime Informatics and Technology Company MOT Ministry of Transport MOU Memorandum of Understanding MSRCC Maritime Search and Rescue Coordination Center MTTS Maritime Technical and Training School NOWATRANCO Northern Waterway Transport Corporation ODA Overseas Development Assistance OECF Overseas Economic Cooperation Fund PJICO Petrolimix Joint Stock Insurance PSC Port State Control PVIC Petro Vietnam Insurance Company RORO Roll-on Roll-off SFICO State Financial Investment Company SOLAS Safety of Life at Sea SSF Ship Finance Facility SVF Shipping Venture Facility STCW International Convention on Standard of Training Certification and Watch-keeping for Seafarers TDSI Transport Development and Strategy Institute TRAMASCO Marine Trading and Servicing Company TRANSVINA Vietnam Hi-Tech Transportation Co., Ltd. UIC United Insurance Company VIA Vietnam International Assurance VICONSHIP HP Vietnam Container Shipping Agency-Hai Phong VICONSHIP SG Vietnam Container Shipping Agency-Saigon VICT Vietnam International Container Terminal VIJACO Vietnam Japan International Transport Co., Ltd. VIMADECO Vietnam Maritime Development Corporation VIMARU Vietnam Maritime University VINALINES Vietnam National Shipping Lines VINAMARINE Vietnam National Maritime Bureau VINASHIN Vietnam Shipbuilding Industry Corporation VINASHIP Vietnam Shipping Company VISERITRANS Vietnam Sea and River Transport Corporation VISHIPEL Vietnam Ship Electronic Communications Company VITRANCHART Vietnam Sea Transport and Chartering Transport VITRANSS Vietnam Transport Strategy Study VIWA Vietnam Inland Waterway Bureau VMRCC Vietnam Maritime Regional Coordination Center VMSA Vietnam Maritime Safety Agency VOSA Vietnam Ocean Shipping Agency VOSCO Vietnam Ocean Shipping Company VTS Vessel Traffic Service Part I SHIPPING Vietnam National Transport Strategy Study (VITRANSS) Technical Report No. 8 Shipping and Ports 1 INTRODUCTION Since the 1990s, Vietnam has successfully been integrated with the global trade market. Vietnam imports various industrial products and exports agricultural, mining and industrial goods. Such an interactive economic relation is firmly supported by overseas shipping. Although there is no comprehensive policy framework available on Vietnam’s overseas shipping, some expressions regarding shipping nationalisms are observed in government documents such as “transport right”. But the utmost importance is how to provide smooth and economical shipping services to shippers and consignees, since trade is the heart of the economy and transport influences the competitiveness in trade. Thus the policy to strengthen Vietnam’s overseas shipping industry should facilitate trade. Coastal shipping has a significant role in Vietnam. Between 1995 and 1998 the shipping volume doubled despite the Asian economic crisis, proving that the north- south economic linkage has been tightened. Many transport officers and planners believe that coastal shipping is an economical means to carry bulk cargo over long distances. However, not many understand that coastal shipping could also compete even with truckers handling small consignment, if more container and roll on-roll off (roro)
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