Over 2.3 million tons of goods passed through Nghe Tinh Port.

Supply chain issues

In July, the weather at Nghe Tinh Port was gloomy, with storms and low-pressure systems approaching from the open sea, creating a hectic atmosphere for cargo handling. A large ship, over 10,000 tons, from China docked and was waiting to load potassium, while other ships were loading white stone. At this time, three ports were operating simultaneously in the Cua Lo and Nghi Thiet (Nghi Loc) port area: Berth No. 6 of Cua Lo Port (owned by Viet Nhat Company), Vissai Port, and Nghe Tinh Port. This meant ships were entering different berths, dispersing the cargo previously concentrated at Nghe Tinh Port. Consequently, less cargo was handled, and new problems arose, requiring port leaders to focus on resolving them to ensure mutual survival.

Mr. Yen Van Phuc, Deputy Director of Cua Lo Port Loading and Unloading Enterprise, stated: Because Cua Lo Port currently only receives vessels under 13,000 tons, larger vessels have been diverted to Vissai Port, resulting in a diversion of cargo. In the first six months of 2024, barite ore cargo through Cua Lo Port only reached 100,474 tons, a decrease of 43.08% compared to the same period in 2023. The reason is that this commodity requires large vessels ranging from 40,000 DWT to 60,000 DWT, and these vessel sizes cannot dock at Cua Lo Port due to shallow berths. Furthermore, docking requires transferring cargo to larger vessels via barges, incurring higher costs. Therefore, to save costs, customers have shifted their barite ore cargo to Vissai Port.

Iron ore shipments in the first six months of 2024 reached 385,049 tons, a decrease of 2.93% compared to the same period in 2023. This decrease in production is due to customers using larger vessels and shifting to mining at Vissai Port...

Faced with fierce competition for output, businesses in the association have exchanged views and unanimously agreed to avoid unfair competition. In addition, Nghe Tinh Port focuses on providing excellent customer service with a professional spirit and the advantages of machinery, equipment, and cranes of a leading port in the region.

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Mr. Bui Kieu Hung, General Director of Nghe Tinh Port, said: "Despite these difficulties, some goods passing through the port have also seen growth, such as fertilizers, various types of stone, and animal feed."

Specifically, the production of various types of fertilizers in the first six months of 2024 reached 659,555 tons, an increase of 75.42% compared to the same period in 2023. This was due to several customers focusing on importing this item for the Vietnamese domestic market; the potassium plant in Laos increased its production line capacity and concentrated on transiting goods through Vietnam for export to China. The production of various types of stone reached 171,088 tons, an increase of 5.44% compared to the same period in 2023. This was because customers in Taiwan and South Korea increased their orders during the period, contributing to the increase in the volume of this item passing through the port.

Animal feed production in the first six months of the year reached 91,839 tons, a 50.19% increase compared to the same period in 2023. This increase is due to the positive recovery of Vietnam's livestock industry after the difficulties of the past few years. The increasing proportion of livestock in agricultural production and the rising disposable income of consumers are important factors driving the domestic animal feed market.

However, thanks to concerted efforts, Cua Lo Port's total revenue in the first six months of 2024 reached VND 119.6 billion, an increase of 10.39% compared to the same period last year and achieving 59.81% of the 2024 plan. Taxes paid to the State were completed, and pre-tax profit reached approximately VND 13 billion.

Efforts to overcome difficulties

As mentioned, in addition to competition for cargo, Nghe Tinh Port also faces difficulties due to its proximity to residential areas, which affects port operations for certain goods due to dust and noise pollution. For example, with iron ore, from April 2024, the company focused on exporting iron ore cargo that was already stockpiled at the yard and reduced the volume of goods imported to the yard.

Another unresolved issue is the overcrowding of fishing boats, especially during rainy, stormy, or tropical depression days. This is also the time when many goods need to be quickly delivered to customers, but the docks are often occupied by anchored fishing boats. A planned area for a temporary shelter for fishing boats has been identified, but funding is lacking. Furthermore, the public access road outside the port, intended to serve local residents and avoid the production area, has yet to be constructed.

In addition, the production of many other commodities also decreased, such as: round timber, with a production of 8,999 tons in the first six months of 2024, a decrease of 56.31% compared to the same period in 2023; and coal, with a production of 53,524 tons in the first six months of 2024, a decrease of 37.11% compared to the same period in 2023. This is due to the scarcity of coal at the source, prioritizing thermal power plants, and the reduced demand for coal in Nghe An and Ha Tinh provinces. The decrease in these commodities is also due to the silting of the port's access channel, which is now only -0.5 meters deep. Furthermore, it is also due to the relocation and replanning of the cargo storage system and the need to ensure environmental sanitation.

Mr. Bui Kieu Hung, General Director of Nghe Tinh Port Joint Stock Company, added: The current solution the port is implementing to survive and create jobs for more than 300 workers is to seek more jobs outside the port, such as cargo transportation, utilizing machinery and equipment for nearby services. In addition, the focus is on improving productivity and product and service quality for customers, strengthening investment and improving facilities, infrastructure, equipment, and production tools. The company is putting customers at the center, seeking new customers in industrial zones and factories, while simultaneously strengthening management, reducing costs, and increasing business efficiency...

Regarding environmental pollution, Cua Lo Port has made efforts to minimize it through various measures such as investing in and upgrading internal road infrastructure, wharves, warehouses, anti-dust netting systems, vacuum cleaners, water trucks, etc., and continues to pay utmost attention to this issue. In addition, the port ensures the health of its workers through regular check-ups, health insurance, vacation allowances, and incentives for innovative ideas and technical improvements. Other issues are being addressed through coordinated efforts with the town, port authority, and border guard station at Cua Lo Port to implement solutions as soon as possible.