Tan Cang Mien Trung Terminal - The critical connection point of Pacific Lines' new domestic waterway service

13/08/2024

Tan Cang Mien Trung Terminal - The critical connection point of Pacific Lines' new domestic waterway service

On August 13, 2024, Tan Cang Mien Trung Terminal (Quy Nhon City) enthusiastically welcomed the vessel named “Phu Quy 126” as part of Pacific Lines' domestic waterway service, which operates on a weekly schedule between Ho Chi Minh City, Cam Ranh City, Quy Nhon City, Chu Lai (Quang Nam Province) and vice versa.

Potential of Maritime and Inland Waterways Transportation

In recent years, the maritime and inland waterway sectors have experienced consistent and high cargo growth rates, even during the COVID-19 pandemic. Specifically, cargo transportation in 2023 reached over 2.3 billion tons, a 15.4% increase; and cargo turnover reached 490 billion tons, a 10.8% increase compared to the same period in 2022. Despite numerous advantages, the waterway system has not been fully exploited, with road transportation, particularly for goods, still accounting for a significant portion of 80%.
In a meeting with business representatives in March 2024, Minister of Transport Nguyen Van Thang emphasized the need to rapidly increase the market share of waterway cargo transportation. The goal is to have waterway cargo transportation account for at least 50% of the market share, thereby reducing logistics costs, traffic accidents, and the need for road maintenance.
 

Solutions to Develop a Port-Logistics Ecosystem to Support Inland Waterway Connectivity

As a port operations and logistics service leader, Saigon Newport Corporation (SNP) has always partnered with customers and shipping lines to develop port infrastructure ecosystems and provide optimal logistics solutions. Recognizing the potential and challenges businesses face in the Central region and the need for waterway connectivity, SNP has proposed a series of solutions to promote logistics and regional economic development.
With a vision of sustainable development of end-to-end services under the "SNP" brand for both domestic and international customers, along with a system of 28 seaports, river ports, dry ports, and warehouses in the North, Central, and South regions, SNP has also expanded its market in the Central region, including Tan Cang Mien Trung Terminal, Cam Ranh International Port, and the services of SNP Logistics.



Pacific Lines, a container shipping company operating in Vietnam since 2008, owns over 22 international and domestic branch offices, primarily located in Southeast Asia. As the exclusive representative of CAI International LLC and Beacon Intermodal Container Leasing, Mitsubishi Hitachi Capital (Japan) subsidiaries, Pacific Lines has a strong presence in the container leasing market. The company's entry into the domestic market has significantly enhanced the domestic transportation capabilities of Vietnamese shipping companies.

On August 13, 2024, Tan Cang Mien Trung Terminal officially welcomed the vessel named Phu Quy 126, part of Pacific Lines' new weekly domestic service connecting Ho Chi Minh City, Cam Ranh City, Quy Nhon City, and Chu Lai (Quang Nam Province). By launching this container service at Tan Cang Mien Trung Terminal, Pacific Lines aims to shift customer behavior from road transportation in Binh Dinh and the Central Highlands to Ho Chi Minh City for inland waterway transportation, thereby reducing pressure on road infrastructure and enhancing connectivity within the Central Highlands region.

 


Following a successful ad-hoc voyage on July 11, 2024, the shipping line has expressed confidence and committed to this service, expecting it to increase the market share of domestic port-to-port cargo transportation by sea, balance container empty returns in the Central region, and promote import-export activities by sea.



This service enables SNP Logistics to develop new transit solutions for cargo transiting between Thaco Chu Lai and Quy Nhon ports and Cambodia via the inland waterway from the Central region to Ho Chi Minh City and Cambodia, or for export cargo transiting from Cambodia to Cai Mep, Vung Tau, and Quy Nhon. This could offer more competitive rates for customers, especially shipping lines seeking transit services through Cambodia. Additionally, developing transportation solutions for agricultural products, fruits, and rubber from the Attapeu and Pakse provinces of Laos to ports in Ho Chi Minh City will help reduce transportation costs through combined sea-land services.

The arrival of the Phu Quy 126 vessel and the launch of Pacific Lines' domestic service at Tan Cang - Central Port mark a significant milestone in enhancing waterway connectivity between regions. This is not only an effort by Pacific Lines and Tan Cang Sai Gon to improve domestic waterway transportation capabilities but also a strategic solution to alleviate pressure on road infrastructure, optimize logistics costs, and stimulate economic growth in the Central Highlands region.