Why was the international container shipping route through Cua Lo port stopped?

Efforts to restore the line

In May 2022, the international container shipping route through Cua Lo port was reopened after several years of interruption and after many efforts by departments and branches, Nghe Tinh Port, Vietnam National Shipping Lines, and Bien Dong Shipping Line. With this shipping route, goods in the Central region are directly connected to Port Klang (Malaysia) and Kolkata (India) in the shortest time and at the best cost. From Kolkata, goods will be transported to Indian states and to Chittagong port (Bangladesh).

Large ships entering Cua Lo port. Photo: Tran Chau

The above event is of great significance to import and export enterprises of Nghe An province, at the same time demonstrating professionalism in transportation and improving the investment and business environment.

However, from April 2023, the international container shipping route through Cua Lo port was stopped. We learned that, in addition to the high price of fuel, which has caused the cost of maritime transport to increase significantly compared to before, one of the important reasons is that there is no direct incentive policy for cargo owners and ship owners like in other provinces.

A stone exporting enterprise in Nghe An said: Business is getting more and more difficult these days, so saving every penny is good. From Quy Hop district, we follow Highway 36 to Hoang Mai town and then to Nghi Son port (Thanh Hoa) which is more convenient. For a 20-foot container passing through Nghi Son port and declaring in Thanh Hoa, we are supported with 2 million VND, for a 40-foot container we are supported with 3 million VND. Meanwhile, in Nghe An, the transportation to Cua Lo is both far and there is no support...

Learn more: Since July 2022, Thanh Hoa province has issued a policy to support international and domestic sea transport vehicles, supporting businesses transporting goods by container through Nghi Son port. Accordingly, shipping lines that open international container transport routes through Nghi Son port are licensed and must unload goods at Nghi Son port and will be supported with 500 million VND/trip. For domestic sea transport vehicles transporting containers through the port, they will be supported with 300 million VND/trip.

Thanh Hoa also issued a policy to support businesses transporting goods by container through Nghi Son port with the following support levels: 20-feed container is 2 million VND/container; 40-feed container is 3 million VND/container. For containers that do not open declarations, the support is 700,000 - 1,000,000 VND/container.

In Ha Tinh, there is also a policy to support shipping lines transporting containers internationally through Vung Ang port with a support level of 200 million VND/trip. For businesses, organizations and individuals whose goods are transported by container through Vung Ang port, a 20-foot container is supported with 700,000 VND/container; a 40-foot container is supported with 1,000,000 VND/container. In Thua Thien Hue, there is also the above policy...

Continue to improve the business investment environment

Welcoming major shipping lines to Nghe An. Photo: Tran Chau

In recent years, Nghe An has made efforts to improve the investment and business environment, innovate ways to serve businesses and investors. Expanding seaports, investing in airports, building convenient traffic routes, connecting key regions. In the past 2 years, some PCI Nghe An component indexes have changed significantly, such as: Transparency; Informal costs; Dynamism and pioneering of local authorities; Legal institutions and security and order; Equal competition. PCI Nghe An in 2022 achieved a score of 66.6 (an increase of 1.86 points compared to 2021), surpassing 7 places in the Ranking compared to 2021, which is a testament to the province's efforts. Nghe An is currently in the top 10 provinces attracting the largest number and capital of FDI projects in the country and many projects are continuing to enter. Opening up seaports and facilitating logistics chains are urgent requirements for secondary investors in industrial zones to access and use Nghe An’s seaport system. However, with difficult conditions, there are still many factors that Nghe An needs to make efforts to improve.

Discussing the above issue, Mr. Bui Kieu Hung - General Director of Nghe Tinh Port Joint Stock Company said: Nghe Tinh Port has made efforts to coordinate with Vietnam National Shipping Lines and international shipping lines to reopen the above route.

The port has also stepped up marketing and promoting routes. In fact, if there is a container route, businesses that have been doing business with the port for a long time will not have to go to other ports. Supporting international ships and domestic ship owners when transporting container goods in the area will benefit all ports of Nghe An such as Vissai, Vietsun port, Nghe Tinh port, Dong Hoi port... Therefore, Nghe Tinh Port is still making efforts to serve shipping lines and cargo owners, using its reputation and long-standing brand to compensate for the disadvantages of businesses that have goods transported at the port.

Therefore, despite the difficulties, the port is still maintaining its long-standing traditional trading partners, but in the current context, if policies in the region are different, businesses will choose places that do a better job of attracting investment.

Mr. Nguyen Quoc Khanh - Director of Cua Lo Port Company Limited (Vietsun Port) also said: As a port operator and at the same time a container shipping company, we see that the investment environment in our province still has some unfavorable points, such as the problem of fishing boats often encroaching on ports, encroaching on cargo ships, causing inconvenience to cargo ships and security and order, and the traffic, transportation, inspection and control systems are still too many...

Mr. Le Tien Tri - Director of the Southeast Economic Zone Management Board said that having policies to support import and export enterprises and container shipping lines is necessary because it promotes production, promotes import and export, promotes investment attraction, and improves the investment and business environment.

Loading and unloading containers at Cua Lo port. Photo: Tran Chau

It is known that the Southeast Economic Zone Management Board is currently seeking comments on policies to support shipping lines to open container shipping routes and support businesses with containerized goods through Cua Lo port, Nghe An province.

Nghe An invests in airport and seaport infrastructure. Photo: Nghe An Newspaper