Thursday,  Nov 15, 2018,02:24 (GMT+7) 0 0
Danang seeks early construction of US$1.4b Lien Chieu Port
The Saigon Times Daily
Tuesday,  Sep 25, 2018,13:15 (GMT+7)

Danang seeks early construction of US$1.4b Lien Chieu Port

The Saigon Times Daily

An artist’s impression of Lien Chieu Port – PHOTO: TL

HCMC – The central coastal city of Danang has asked the Ministry of Planning and Investment to ensure the early construction of Lien Chieu Port, which requires over VND32 trillion (US$1.4 billion) in funding. The city expects the project to help reduce traffic problems in the area and to fuel local growth, reported the Vietnam News Agency.

At the Government office in the capital city of Hanoi on Monday, Prime Minister Nguyen Xuan Phuc met with leaders of Danang to discuss the port project.

City Chairman Huynh Duc Tho said Danang has become the shipping hub of the central provinces, with most shipping containers of imported and exported goods traveling through Danang port facilities, which comprises two major wharfs, Tien Sa and Son Tra.

He noted that, with the annual growth of cargo throughput at 16.2%, Danang ports are expected to handle some 10 million tons of cargo by 2020 and 30 million tons by 2030.

As such, the cargo throughput is likely to surpass the capacity of Tien Sa Port after 2020 and overwhelm the transport infrastructure in the area, causing traffic jams and accidents as well as environmental pollution, thus affecting the city’s tourism development.

Recently, truck traffic from Tien Sa Port passing through the Yet Kieu-Ngo Quyen-Ngu Hanh Son route has surged.

As many as 24 serious accidents have occurred there between early 2016 and September 2018, killing 17 people and injuring 12 others. The situation has caused grave public concern.

Given the dangerous situation, the early construction of Lien Chieu Port is urgently needed, said the city’s leader.

He added that the city administration had already proposed the Ministry of Planning and Investment use the reserve funding for the mid-term public investment plan during the 2016-2020 period for the project.

Addressing the meeting, the prime minister said that the volume of cargo going through Tien Sa Port has increased recently, causing traffic congestion and hindering its socioeconomic development. Many large vessels have been unable to enter the port, due to its shallow water.

The Government leader praised the municipal authorities and the Ministry of Transport for their plan to call on the private sector to get involved in the construction of the Lien Chieu Seaport project, including the building of wharves, providing loading and unloading services and arranging logistics. As a result, many investors have shown interest in the project.

The PM demanded the city work directly with the Ministries of Transport and Planning and Investment to make a proposal on initial support to accelerate the project’s progress.

As the Lien Chieu seaport lies in an important location, the project plan should be drawn up carefully to build a modern and world-class seaport, the PM noted.

He suggested the city establish a steering committee or a special working group to launch the project.

Covering some 220 hectares, the three-phase Lien Chieu Port project requires a total investment of VND32,860 billion, or more than US$1.4 billion, including some VND3 trillion (US$128 million) from the State budget. Work on its first phase, lasting until 2022, costs an estimated VND7,370 billion (US$316 million).

The project is of great significance for Danang in terms of infrastructure, socioeconomic development and security and defense, based on the Politburo’s Resolution 33, dated October 16, 2003, and the Politburo’s Conclusion 75, dated November 12, 2003.

In November 2016, the prime minister agreed in principle to the project in the Government Office’s Notice 363, following a working session with Danang authorities.

Following the approval, the city conducted a prefeasibility study for the project and submitted it to the Ministry of Transport, which later sent its assessment of the study to the prime minister in May this year.

In late May, Deputy Prime Minister Trinh Dinh Dung instructed the Ministry of Planning and Investment to evaluate the possible sources of investment capital for Lien Chieu Port, while Danang was told to file the paperwork for the port project based on the evaluation of the concerned ministries and sectors.

Local authorities have completed paperwork for the project’s prefeasibility study.

Under Danang’s project to develop a sea-based economy by 2025 with a vision toward 2030, aiming to build the central city into a maritime economic hub with explosive growth while maintaining environmental protection and sustainable development, the city will focus its resources on developing maritime transportation.

Accordingly, Tien Sa Port will be reserved to serve cruise ships, and Lien Chieu is envisaged becoming the main cargo port of the city. More inland container ports will be built to facilitate import-export activities as well as commodity transportation through the East-West Economic Corridor that links Laos, Myanmar, Thailand and Vietnam.

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