Why is Nghe An logistics service not developed?
(Baonghean.vn) - Logistics services (including service supply chains, logistics, warehousing...) are considered the backbone of the economy, but in Nghe An, this industry has not really been effective...
Port restrictions, freight charges
Nghe An is located in the center of the North Central region, in the East-West economic corridor; has Vinh International Airport, has an 82 km long coastline with a seaport system including: Cua Lo Port, Cua Lo deep-water port, The Vissai specialized seaport, DKC petroleum port, Dong Hoi port,... main border gates, secondary border gates, 15 border crossings along with the road, railway and inland waterway systems have created favorable conditions for domestic and international trade and service activities.
However, in the province there are still many difficulties in developing logistics services, in connecting between types of transportation services...
The main reason is still due to limited capital allocated for investment in transport infrastructure, small scale, and lack of timely investment and upgrade. In addition, the enterprises providinglogistics servicesNot many, the connection between import-export enterprises and logistics service enterprises is not tight, mainly small and medium enterprises, lack of capital, limited management capacity, not properly trained to meet the requirements of increasingly deep international integration.
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| Container loading and unloading at Cua Lo port. Photo: Quang An |
Recently, at the conference summarizing import and export activities organized by the Department of Industry and Trade, Mr. Mai Dinh Quy - Head of Import and Export Department, BSE Vietnam Electronics Co., Ltd. said that the company has difficulties in transportation activities and finding logistics services. In Nghe An, there are currently a number of transportation and logistics enterprises, but the costs are often higher than those of international transportation and logistics units. The company often has to rent trucks to transport goods from Nghe An to Hanoi. If hiring a transportation unit in Hanoi, the cost is about 3 million VND including all taxes and fees, but when asking in Nghe An, the cost is from 4-5 million VND for 1 trip. With the same means and method of transportation, the cost in Nghe An is 50-70% higher than the rental cost in Hanoi.
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| Containers are loaded and unloaded at Cua Lo port. Photo: Thu Huyen |
LeaderNghe Tinh portalso said that recently, fishing boats of fishermen often occupy Cua Lo wharf as a place to anchor, hindering the exploitation of the wharf, maritime safety and security and order at the port. The water area in front of the wharf is often silted, causing costly annual maintenance costs. The channel in and out of Cua Lo port after the upgrading period has been reduced to (- 7.2m) but now has been silted to only - 5.7m, restricting ships with a tonnage of 10,000 DWT to 25,000 DWT from entering and exiting.
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| Inadequate transportation causes transportation costs to increase, causing many difficulties for mineral production enterprises. Photo: Thu Huyen |
Need a synchronized solution
To facilitate the circulation of goods between Nghe An and provinces and cities in the North Central region, and import and export activities with countries in the region and the world, strong and synchronous solutions are needed.
Remember, at the scientific conference on developing trade and services in Nghe An, Mr. Tran Thanh Hai - Deputy Director of the Import-Export Department (Ministry of Industry and Trade) proposed a solution to strengthen coordination to attract investment in construction to complete the transport infrastructure,seaport, logistics centers and information technology infrastructure in the province towards synchronous and sustainable development. Focus on building, expanding and upgrading Cua Lo seaport to a scale large enough for the region to receive large ships, and be able to exploit long-distance routes to meet the needs of developing logistics services of the locality and the region in the coming time.
Nghe An needs to coordinate with Thanh Hoa, Ha Tinh, and Quang Binh provinces to study and establish a Grade II Logistics Center according to the Planning for the development of the logistics center system nationwide by 2020, with a vision to 2030, approved in Decision No. 1012/QD-TTg dated July 3, 2015 of the Prime Minister to connect dry ports, seaports (Nghi Son, Cua Lo, Hon La, Vung Ang), airports, railway stations, bus stations, industrial parks, and border gates to serve import and export activities of goods between provinces in the North Central region.
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| Cua Lo Port needs to be expanded and upgraded to meet the needs of developing local and regional logistics services in the coming time. Photo: Thu Huyen |
Currently, central ministries and branches as well as Nghe An province are focusing on speeding up construction progress.North-South Expresswaythrough Nghe An, the Nghi Son - Cua Lo coastal road, routes connecting economic zones and within the North Central region to increase the speed and volume of freight transport between Nghe An in particular and the North Central region in general with other regions of the country. In addition, the Ministry of Transport and the province also have plans to upgrade and expand Vinh International Airport to increase the volume of freight transport, expand air logistics services to develop diverse logistics services, in line with the current general development trend.
“The main market of Nghe Tinh Port is currently concentrated in the North Central region, mainly Nghe An, Ha Tinh, South Thanh Hoa and Laos with main items: containers, white stone of all kinds, coal, fertilizer, wood chips, equipment... We are working with customers to attract goods from Nghe An, Ha Tinh; coordinating with sea and road transport enterprises to attract goods from the Lao market and Northeast Thailand to export via Cua Lo port ore, gypsum, fertilizer and some other items.
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| Fishing boats anchored at Cua Lo port violate maritime safety. Photo: Thu Huyen |
In order to develop logistics services, solve the problem of optimizing resources, connecting supply and demand, the province also needs to strengthen the connection between associations, cargo owners in Nghe An with logistics service enterprises as well as develop logistics trading floors to optimize two-way transportation of goods and maximize the exploitation of existing infrastructure.
In addition, there are training solutions to develop high-quality human resources with a professional working style in logistics activities to be ready to adapt to the international economic integration process.
