Corporate finance information

Logistics conference on enhancing logistics services in the Mekong delta

24/12/2015

On 13th November 2015, Southwestern Steering Committee held “Logistics conference on enhancing logistics services in the Mekong Delta to survey and propose logistics development strategies for Mekong Delta in term 2015 – 2020 up to 2030..

The conference took place with the attendance of leadership of the Southwesten Steering Committee, Ministry of Industry and Commerce, Ministry of Transport, Ministry of Planning and Investmen, the representatives of People’s Committee, Department of Transport, Department of Industry and Commerce of 13 provinces in the Mekong Delta, Principles of Logistics Universities, logistics experts and enterprises of Hochiminh City, Mekong Delta who invest in logistics services in this area.

With over 700 km coastline, 28,000 km channels, the Mekong Delta has great potential of waterway transport. Estimated total demand is about 17 – 18 mil tons of rice, agricultural products, in which 70% goods must be transferred to Hochiminh City and Cai Mep area by trucks. Mekong Delta currently has over 2,000 river ports and terminals, most of which are small and poorly equipted. Since 2010, this area has 6 container terminals under SNP’s network.

Since 2010, SNP assigned Tan Cang Waterway Transport JSC to provide logistics services connecting ports in the Mekong Delta and Hochiminh City, to invest in 4 container terminals (Tan Cang – My Tho in Tien Giang province, Tan Cang – Thot Not in Can Tho city, Tan Cang – Cao Lanh in Dong Thap province, Tan Cang – Thot Not in Can Tho city) and 2 partner terminals (My Thoi in An Giang province and Tan Cang – Tra Noc in Can Tho city). Since then, container throughput transported by barges increased over 70% every year, SNP become the top port operator and logistics provider in the Mekong Delta with market share of 70%, throughput of 48,940 teus (equivalent to 685,160 tons of cargoes).