VietNamNet Bridge – The Ministry of Transport will not grant permission for building new container ports in Ba Ria-Vung Tau, HCMC and Dong Nai until 2015 as ports in the Cai Mep-Thi Vai have been operating at far below capacity.

This is a major content of a scheme of increasing operation efficiency of the port system in the three localities including ports in Cai Mep-Thi Vai that the ministry has presented to the Government for approval.

Besides, the expansion of existing ports in HCMC is not allowed so that certain amounts of goods will be moved to Cai Mep-Thi Vai.

According to Deputy Minister of Transport Nguyen Van Cong, the temporary ban is suggested due to the massive development of seaports in Cai Mep-Thi Vai in the past time which results in an imbalance between supply and demand and small goods throughput at such ports.

Therefore, ports in Cai Mep-Thi Vai are facing overcapacity, with actual throughput accounting for around 16% of the designed figure.

Besides, due to small goods throughput, many ports compete by lowering service fees, leading to chaos over the past time.

After 2015, the ministry will consider issuing licenses for new ports based on actual demand of the market.

Meanwhile, general ports are only allowed to serve industrial parks which have not had ports.

Although no new ports will be permitted from now until 2015, provinces and cities still need to reserve land locations which will be used for port projects in the future.

Source: SGT