Logistics in the South East Asian country are an ongoing concern. But while the emphasis had been on poor landside connections, in the past few years concerns and criticisms have been raised on the cost and low use rate at CaI Mep in Vung Tau province. Not only do a number of ports compete for similar business but charges are also considered too high.
These problems are being exacerbated by poor channel dredging, meaning that bigger ships, which could help drive down costs, cannot access the river ports.
“It is important for the country not to build more ports but to focus on 1) improving the utilisation of already invested ports in Cai Mep areas and 2) maintaining sufficient channel draft level at other river ports by regular dredging activities,” Bich Nguyen, Maersk’s general director in Vietnam told Port Strategy.
“One of the biggest challenges for shipping liners to operate in Vietnam river ports is insufficient channel draft and the rivers are narrowing up quickly,” Ms Nguyen said.
Many carriers are withdrawing direct calls due to insufficient loading cargo and high barge costs, she added.
