The Ministry of Industry and Trade proposes a number of solutions to remove difficulties and overcome the congestion of goods at Cat Lai port

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Risk of negative impact on the import and export activities of goods in the South

As of April 2021, the whole country has 286 harbors/about 96 km of wharves (more than 4.5 times in 2000), with a total cargo throughput of 692.2 million tons (about 8 times more than in 2000). 4 times in 2000), established gateway ports combining international transshipment in the northern and southern regions. Regarding transport routes, 32 sea transport routes have been established, of which 25 international transport routes and 7 domestic transport routes.

According to the report of Saigon Newport Corporation, after 3 weeks of implementing the distance according to Directive 16 (weeks 27, 28, 29), the volume of containers entering and leaving ships, the volume of containers delivered to yards, the number of vehicles leaving , shipments to the port of delivery continuously decreased compared to the same period last year (compared to week 24), leading to an increase in the inventory capacity of Cat Lai port, specifically as follows:

– The volume of import and export containers through the port decreased by 0.2%, respectively, by week; 18.03% and 5.4%.

– The volume of delivery of imported containers and receipt of export containers decreased by 4.78%, respectively; 10.48% and 18.13%.

– The number of vehicles entering / exiting the port decreased by 3.14%, respectively; 10.05% and 15.59%.

– The inventory volume is close to the maximum allowed level, especially the volume of imported goods is always above 100% capacity.Source: Saigon Newport Corporation

Many freight companies reflect that traffic jams outside Cat Lai port make businesses always fall into the situation of delivery and receipt of goods not on time specified in the contract. Cargo capacity also decreased, instead of 13-14 containers in one day, but because of congestion, it reduced to only 5-7 containers. In addition to the constant traffic jams on Inter-provincial road 25B, Hanoi highway, etc., vehicles of enterprises transporting goods to the port can only run at night, so the cost of one time transportation of goods also increases. .

Currently, the amount of goods and containers in stock at Cat Lai port is always near full capacity, especially the capacity for imported goods reaches 100% of capacity. With the operation characteristics of Cat Lai port (which has always been in a state of almost full capacity), if the goods continue to be slow in circulation, it will cause the port to run out of capacity and temporarily stop receiving ships. , waiting for the release of less goods on the yard leads to the risk of interruption of operations as happened at the ports of the US, Europe, and China in the past epidemics. This will have a negative impact on the import and export activities of the Southern Key Economic Zone.

Accordingly, the cargo congestion at Cat Lai port mentioned above arises due to two main reasons:

Firstly, many factories and import-export enterprises have to stop operating at the request of local governments that are implementing social distancing. A few businesses are eligible to implement “3 places”, “2 locations, 1 road” but all have to cut output. This situation leads to businesses stopping operations unable to receive containers of imported materials, containers are kept at the port a lot, causing congestion at the port.

Second, the shortage of manpower for the production line at the port. According to the report of Saigon Newport Corporation, in order to maintain the continuous operation of Cat Lai port, the number of personnel required to be at the scene during the day (03 production shifts) is about 500 people. However, the impact of the Covid-19 epidemic (cases of F0, F1, isolation, blockade in areas; travel restrictions …) has reduced the workforce of the current Cat Lai port down about 50% (only 250 people/day). The port has flexibly cut down the maximum number of staff for each line, changed to a centralized operating model, but the shortage of personnel, especially workers for loading and unloading ships, is increasingly serious. In addition, Cat Lai port has arranged a “3 on-site” model, but because the port’s production characteristics are different from factories, industrial parks, and export processing zones, the operation is not concentrated in closed houses, but instead dispersed at many locations in the open air (on piers, cargo yards, on motor vehicles, etc.), so this model is less effective; on the other hand, when gathering a large number of workers, workers eating, staying and living in the same place increases the risk of disease spread. Therefore, the productivity of loading and unloading and releasing ships is also affected.

The Ministry of Industry and Trade proposes to the Government 6 solutions to solve the problem

Seaports are key infrastructure to ensure smooth transportation of import and export goods. Facing the situation of cargo congestion at Cat Lai port, which may prolong and spread to other ports such as Cai Mep and Hai Phong, negatively affecting import and export activities, the Ministry of Industry and Trade proposed to the Prime Minister 6. solution is as follows:

One is, The Ministry of Industry and Trade proposed the Government assign the Ministry of Transport to assume the prime responsibility and work with Cat Lai port in particular and other major seaports across the country in general to urgently come up with specific solutions:

– Improve the capacity to release goods from the port, review and work specifically with each shipper whose goods are in existence at the port to come up with a unified plan to remove problems in early receipt of goods;

– Improve the exploitation capacity of the port yard, proactively adjust the container loading in each area to increase the ability to receive imported goods, and at the same time maximize the capacity of loading and unloading containers on the yard, moving empty containers out. outside the port, adjust the time of receiving export containers accordingly;

– Coordinate with the parties to regulate the amount of goods imported to Cat Lai port, temporarily stop transferring imported goods from ports in Cai Mep, Hiep Phuoc to Cat Lai that shippers need to receive directly in Cai Mep area or Hiep Phuoc, the ports of the Mekong Delta region where their factories and businesses are located. Shippers and shipping lines need to limit the number of trains or delay the import of containers with imported goods from businesses and factories that are reducing their production scale and output.

Two is, the Ministry of Industry and Trade proposed the Government assign the Ministry of Finance to direct the General Department of Customs to study a mechanism to allow Cat Lai port to transport imported containers in general, including containers that have been backlogged for more than 90 days from Cat Lai port. Drive to store, clear customs, deliver to customers at the facilities of Saigon Newport Corporation, which are Hiep Phuoc Tan Cang Port (Ho Chi Minh City), Long Binh Newport ICDs, Nhon Trach Newport ICDs (Dong Nai), ICD Tan Cang Song Than (Binh Duong). Thereby reducing the load and increasing the storage capacity at Cat Lai port, reducing the current congestion.

On the side of Saigon Newport Corporation, it is also committed to be responsible for ensuring the original condition of goods and containers when transporting and storing.

Three is, The Ministry of Industry and Trade proposed that the Government assign the People’s Committee of Ho Chi Minh City and the People’s Committees of the provinces and centrally-run cities that have seaports to prioritize vaccination against Covid-19 for those working at the port, including delivery staff and drivers.

Four is, Due to the specific nature of operations at seaports in general, the Ministry of Industry and Trade proposes to the Prime Minister to assign the Ministry of Health to assume the prime responsibility for, and coordinate with localities with seaports in, considering plans when there are cases of Covid-19 infection. on the one hand, isolating the relevant subjects, on the other hand, still allowing the port to operate to ensure the dual goals of the Government that have set out “both fighting the epidemic and developing the economy”.

Year is, The Ministry of Industry and Trade proposed the Government assign relevant ministries, branches and localities to consider and handle the recommendations of Saigon Newport Corporation.

Six is, proposed assigning Saigon Newport Corporation to consider reducing the price of storing containers and storing yards for goods at Cat Lai port of enterprises that are having to stop production due to the impact of the Covid-19 epidemic.

The Ministry of Industry and Trade hopes that with the above 6 solutions, the congestion of goods at Cat Lai port as well as some other seaports will be improved, avoiding negative impacts on import and export activities, creating a smooth flow of goods. open to import-export businesses in the difficult context of the current epidemic.

According to data from the Vietnam Seaport Association (VPA), the container throughput of Tan Cang Cat Lai port in 2020 (referred to as Cat Lai port for short) will reach 5,585,086 TEUs, accounting for over 71% of the region’s container volume. Ho Chi Minh City port. In the first 6 months of 2021, the container volume of Cat Lai port reached 2,891,339 TEUs, accounting for over 66.7% of the container volume of the whole port area of ​​Ho Chi Minh City, in which if only the import and export container volume in June is counted alone. By 2021, Cat Lai port will reach 486,213 TEUs, accounting for about 86% of the import and export container volume of the whole port area of ​​Ho Chi Minh City.

Thus, Cat Lai port plays a very important role in the import and export of goods through seaports in Ho Chi Minh City in particular and the whole country in general.

For details of Official Letter 4699 of the Ministry of Industry and Trade, see here

According to the Ministry of Industry and Trade

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