Cai Mep - Thi Vai has a chance to rise from 2020

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(Saigon Times) - Cai Mep - Thi Vai container port complex (CM-TV) ended 2019 with a throughput of nearly 3.75 million TEUs (1), an increase of 27% compared to 2018, continuing to maintain momentum. Impressive growth in recent years. However, high output growth also means the fact that some ports in the region have operated beyond planned capacity, affecting the port's operation capacity.

Contrary to some information that CM-TV is having an excess of operating capacity, the specific feature of this port group is that over 80% of the import and export goods are delivered by barges (an additional container charge is required). delivered via the wharf), the actual cargo handling volume of this entire port cluster is at nearly 7 million TEU. The two terminals of TCIT and CMIT have operated beyond their designed capacity, and the utilization ratio of this whole port cluster is over 90%. Experts from IHS Maritime & Trade have warned of a shortage of port capacity since 2016 and recommended Vietnam to invest more in ports to meet export demand, a Bloomberg article in September- 2019 about Vietnam's ability to benefit from the US-China trade war has a similar proposal.

Although no new ports have been built yet in the period of 2016-2018, CM-TV still meets the strict requirements from shipping lines during the period of 2016-2018. 2020 will be the year that shipping alliances continue to operate larger vessels than in previous years, and forecasts the volume of cargo through CM-TV will continue to increase at double digits, and this port cluster Must have necessary preparations to meet the needs of shipping lines.

Positive preparations

One of the problems with the mother ships operating at CM-TV over the years is that the Thi Vai channel is sedimented, does not ensure the standard -14 meters and makes some large vessels have to wait for the water. to ensure safe navigation. Talking to VietnamFinance, Mr. Bui The Hung, General Director of the Southern Maritime Safety Assurance Corporation, said that the channel dredging project had been arranged capital and completed by the end of 2019. Thus is that after many delays for reasons such as no location of dredging mud or capital difficulties, the CM-TV channel has been in better condition to receive large ships since the beginning of 2020, causing carriers to the ship are more assured and the ports can be more proactive in arranging wharves.

In addition, in October 2019, Tan Cang - Cai Mep International Terminal (TCIT) also received three additional means of handling cargo, including a shore crane with the world's best capacity for exploitation. Currently, this helps the port increase its handling capacity by 10%. TCIT has been the highest port throughput in CM-TV in recent years and this port has received the most mother ships in the entire port cluster, so at some times the situation of the wharf is quite tense, affecting service quality, and the investment to increase port capacity is thought to be timely.

The business of strengthening direct delivery at CM-TV is also expected by many parties. Previously, the production activities in the industrial zones around this deep-water port cluster have not created a large enough container cargo, this is one of the reasons why the carrier does not bring short-haul vessels to CM-TV. With production projects going into operation in 2020 such as plastic resins, solar batteries, construction materials, consumer goods ... the amount of on-site container cargo is expected to grow large enough for the shipping lines gradually bring short-distance trains to CM-TV. Such development will also depend in part on the progress of establishing a specialized testing center concentrated at CM-TV, a content that many associations, businesses have proposed many times and functional agencies. There have also been preparatory moves. Once shippers ship more directly at CM-TV, the ports will increase useful capacity by reducing their dependence on barging operations at wharves.

Gemalink expectations

But the movements mentioned above, though positive, have not yet solved the story of lack of exploitation capacity at CM-TV. In the long term, CM-TV needs more ports that are large enough to accommodate large mother ships, receiving cargo volume will continue to increase due to trade between Vietnam and major economies. development. Talking to the writer, representatives of some shipping lines that are docking at CM-TV port cluster, they are expecting to enter Gemalink port which is expected to go into operation in the port cluster in the fourth quarter of this year. such port.

Restarted in February 2019, after seven years of postponement and expected to go into operation in phase 1 by the end of 2020, Gemalink port is a very convenient port with good operating capacity along with other ideal investments. Contributing capital to Gemalink from the beginning is Gemadept and CMA-CGM - the fourth largest shipping line in the world and also a key member of the Ocean Alliance, which has the largest market share on the Asia-North America maritime route. As such, Gemalink will avoid the situation of starvation like some other ports because investors will actively take ships to the port of operation.

Also related to Gemalink, another noteworthy incident is that at the end of December 1919, CMA-CGM announced that it had sold its stake in Gemalink to Terminal Link - a port operator with its own capital contribution. CMA-CGM and China Merchants Port (CMP), another leading Chinese port operator. Despite reducing the ownership in Gemalink port from 25% to 12.75%, but representative of CMA-CGM affirmed that the shipping line will still prioritize bringing goods to exploit at Gemalink, contrary to some concerns that CMA-CGM can reduce the level of commitment with the port.

The appearance of CMP will be a remarkable highlight. With its core business of port operation, CMP also diversifies its investment and business activities, including owning shipping lines, directly or through the businesses that CMP has. share. CMP is expected to take over the Antong shipping company (QASC), a fairly strong shipping line in the Chinese market with the third-largest fleet in the country and 16th in the world, but QASC is facing difficulties. financial difficulties and CMP is the name most mentioned in the rescue of QASC. CMP is also the second-largest shareholder in Shanghai International Port Group (SIPG) with a 26.45% stake, which in turn SIPG is controlling two other Chinese shipping lines, Shanghai Jin Jiang (SJJ) and Shanghai Hai Hua ( Hasco). Both QASC, SJJ, and Hasco are operating in Vietnam, and in the southern key economic region, these firms currently only operate at ports in Ho Chi Minh City.

Thus, in addition to the number of goods that Gemalink can receive from Gemadept and CMA-CGM, the new CMP investor can also influence other Chinese shipping lines to bring more goods to this port. Although the output may not be too large, with the positive changes of CM-TV port cluster as mentioned above, contributing to the wind into storms, we can expect a change in quality in the process. moving goods from ports in Ho Chi Minh City to ports in CM-TV in the coming years. And 2020 should be considered a pivotal year for CM-TV port stakeholders such as regulators in the field of transport, shipping, port operators, shipping lines, etc. The necessary preparation for this port group to seize the opportunity, attract more goods and go further on the goal of becoming a hub of the regional port.

(1) TEU: the equivalent of a 20 feet container.

(2) Assume that barges are equal to 85% of the throughput.

Original link of the article: thesaigontimes.vn/300336/cai-mep--thi-vai-co-co-hoi-vuon-len-tu-2020-.html

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