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VIETNAM WESTBOUND RAIL CORRIDORS Joint OSJD/FIATA Vietnam Logistics Business Association - VLA VIETNAM WESTBOUND RAIL CORRIDORS Joint OSJD/FIATA Workshop on combined transport “New possibilities of Europe – Asia – Europe multimodal transportations” Istanbul, 11-12 July’2018 AGENDA ❖ BRIEF OVERVIEW OF VIETNAM LOGISTICS ➢ About Vietnam Logistics Association ➢ Vietnam Logistics Current Status & Development ➢ Cross Border Transport Opportunities ➢ Established Cross Border Transport Network ❖ VIETNAM RAILWAYS OVERVIEW: ➢ Vietnam Rail Current Status ➢ Main rail routes ❖ VIETNAM-CHINA RAIL-LINK AND BEYOND ➢ International Routes to/via China ➢ Cross Border Networks to Central Asia and Europe ➢ Sea-Rail Link Paul Dao Trong Khoa ❖ RECOMMENDATIONS Vice President of VLA Vietnam Logistics Business Association - VLA Connecting Logistics Professionals ● Vietnam Logistics Business Association - VLA Vision: Connecting and cooperating ○ Established in 18 November 1993, formerly with local and foreign freight Vietnam Freight Forwarders Association (VIFFAS) forwarders, logistics services providers ○ Renamed Vietnam Logistics Business Association in order to create the leading industry (VLA) on 4 January 2013 to reflect new industry of Vietnam trend ○ National Association Member of FIATA: active member, participating in various working groups Mission: To enhance the ● 360+ members (80 are members of FIATA) professionalism, to promote the ○ Freight Forwarding modern logistics, to integrate the ○ Transport (sea, air, land, inland waterway) national logistics with the region and ○ Integrated Logistics (3PL) globally in order to efficiently contribute ○ Warehousing, Ports, Stevedoring, Distribution into the development of enterprises in ○ Customs Brokerage the industry as well as the country’s ○ Delivery Services economics development in Vietnam ○ Others Logistics Related Services ● Website: www.vla.com.vn Vietnam Logistics Current Status & Development Cross Border Transport Growing Opportunities ❖ Strategic location of Vietnam with ASEAN, gateways for AEC ❖ One Belt and One Road Initiative with Maritime Silk Road connect ASEAN gateways ❖ AEC establishment as of 31-Dec-2015, ASEAN-China connectivity, growing trade within the region ❖ Fast growth of land transport in Asia - Pacific region with CARG 8.3% in 2014-2019 ❖ Road transport networks connect major cities. Connectivity of industrial hub cities Singapore, Penang, Bangkok, Hanoi, Shenzhen with frequent cargo exchange ❖ Growing of Cross Border eCommerce Cross Border Transport Networks by Roads with ASEAN/GMS+ Guiyang Hongkong Haiphong 2 days 3 days Hoàng Sa Trường 2 day Sa 1 days Main Transport Mode Market Shares 2016 2020 Road 77.20% 54.4% Domestic 17.14% 32.4% Waterborne Rail 0.42% 4.3% Air 0.02% Sea 5.22% National conference on logistics improvement (hosted by Prime Minister on 16-Apr-2018) ● Promote connectivity between modes of transports ● Restructure market share of different modes of transport, with more focus on domestics waterborne and rail as measure to reduce logistics cost ● Modernize rail system, increase throughput of rail volume ● Implementation of railway project with incomplete segments within Vietnam (Singapore-Kunming via Vietnam) ● Upgrade/Newly build of Lao Cai - Hanoi - Haiphong to connect Haiphong port (Lach Huyen deep sea ports) with Kunming/China Vietnam Railways System Overview Bottom-necks: ● Low rail density (9.5km / 1000km2) ● Total cost is high due to lack of connectivity ● Old equipment (64% >20 years), low loading capacity (28-34 ton), heavy wagon (more than 40% payload, high power consumption (accounts for more than 31%) ● Low handling capacity of rail terminals ● No connection to ports (Haiphong old port with rail-link has relocated) ● Different rail gauge between Vietnam and China, especially in Haiphong - Hanoi - Lao Cai route to connect to Kunming North - South Line (1726km) Rail Monday Tuesday Wednes Thursda Friday Saturda Sunday day y y RASY 1 Hanoi – HCM x xx x xx x xx x RASY 2 HCM - Hanoi x xx x xx x xx x RA4506 Hanoi – Nam x x x x x x x Ninh RA24507 Nam Ninh - x x x x x x x Hanoi Routes Number of container Gauge Width HCM - Hanoi (Daily+) 21 1000 Hanoi –-Nanning (Daily) 25 1435 China – Kazakhstan 41-45 1435 Kazakhstan - Germany 45 – 50 1520 Bottom-necks: ● Different rail gauge between Vietnam (1000mm) and China (1435mm), especially in Haiphong - Hanoi - Lao Cai route to connect to Kunming. ● Vietnam has plan to upgrade, but on China side, there’re still 7km rail tracks to be upgrade from 1000mm to 1435mm International Railways Routes to/via China Kunming, Nanning, China Railway China Nanning/Dong Dang- Yen Vien ( Hanoi) Kunming- Hekou/ Lao cai- Yen Vien( Hanoi) Transport lead Departure Station Arrival Station time (days) Nanning 2 Hanoi Chongqing 7 Chengdu 8 Cross-border railway network Sources: RATRACO JSC Routes Number of Gauge Width container HCM - Hanoi (Daily+) 21 1000 Hanoi –-Nanning (Daily) 25 1435 China – Kazakhstan 41-45 1435 Kazakhstan - Germany 45 – 50 1520 Route: Hanoi– Central Asia/Europe (Almaty/Moscow/Duisburg) Moscow Duisburg Urumqi Almaty Transport Departure Estimated Arrival Station lead time Station Cost (days) Vietnam Sources: RATRACO JSC Documentations - SOP Sources: RATRACO JSC Sea-Rail Blocktrain Services Transit time: Vietnam to Poland: 21-23 days Vietnam to Russia: 25 days Vietnam to Mid-Asia: 20 days Vietnam to Mongolia: 20 days Sources: SER - CNTRANS Benefits of Rail Services Vietnam-Poland by Rail: 21~23Days Vietnam-Gdynia/Gdansk：36~44Days Sources: SER - CNTRANS Origin Containers Lodz Nuremburg/ Tilburg Malaszewicze Duisburg (via Chengdu) (via Chengdu) (via Chongqing) (via Chongqing) Haiphong SOC 4400 4700 5500 5800 COC - transload 4600 4900 6000 6300 COC - direct 5000 5300 6300 6600 Transit time 23 days 25-28 days 22 days 23-25 days Especially Good replacement for Sea-Air Service via Dubai Thank you Paul Dao Trong Khoa Vice President of VLA [email protected] www.vla.com.vn CONNECTING LOGISTICS PROFESSIONALS www.vla.com.vn.
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