The $7.3 Billion Mega Ports: A Visionary Project Unveiled by the Prime Minister in Collaboration with a Global Leader

Welcoming a Leading Global Group Developing Vietnam’s Port System

On September 23, Prime Minister Pham Minh Chinh received Mr. Robert Maersk Uggla, Chairman of A.P. Moller Holding (APM Holding) and Maersk, a member of APM Holding.

APM Holding is a global business and investment group from Denmark, operating in various industries including logistics, renewable energy, finance, banking, and consumer goods. With a 120-year history, the group is present in over 130 countries with more than 100,000 employees.

Among its members, APM Holding has APM Terminals, a unit specialized in operating port terminals, managing one of the most comprehensive port networks in the world with 62 container terminals.

At the meeting, the Prime Minister highly appreciated the strength of A.P. Moller and Maersk in terms of capital, technology, and advanced management, as well as their investment activities in Vietnam (since the 1990s), contributing to the development of the maritime industry and the Vietnamese economy. He also affirmed that Vietnam is ready to create favorable conditions for foreign investors to promote logistics projects.

The head of the government shared that Vietnam has over 3,200 km of coastline and is among the top 20 economies in terms of international trade volume. Vietnam is promoting the development of transport infrastructure, including maritime transport infrastructure and the fleet to reduce logistics costs, increase the competitiveness of goods and the economy.

Based on harmonious interests and shared risks, the Prime Minister proposed that the group study and participate in specific projects that Vietnam is calling for investment, such as Lien Chieu Port (with an investment capital of about VND 55,685 billion), Can Gio International Port (with an investment capital of about VND 113,531.7 billion), and some ports in the North, Central, and Southwest regions.

For his part, Mr. Robert Maersk Uggla said that the group sees great potential and opportunities in Vietnam and wishes to contribute more to the country’s development. He also expressed his desire to explore investment opportunities to build large, modern deep-sea container ports and strategic logistics projects in Vietnam.

What is the Lien Chieu Port Project about?

The People’s Committee of Da Nang City submitted two investment proposals for Lien Chieu Port to the ministries, sectors, and the Government earlier this year. The first option is to carry out the necessary procedures to attract investment in the first two container berths, with a total length of 750 meters, and the subsequent berths will be built in the later stages. The second option is to simultaneously invest in the entire berth area.

According to estimates by the Da Nang City People’s Committee, Lien Chieu Port, when put into operation, will bring huge economic benefits from VAT and import-export taxes, such as collecting VND 4,800 billion by 2030, VND 17,100 billion by 2040, and VND 25,800 billion by 2050.

The master plan of Lien Chieu Port covers an area of 288.33 hectares, including the area for constructing logistic works and the area outside the port for anchoring ships. When completed, the project ensures a capacity of about 17 to 19 million tons/year for general cargo and 5.2 to 5.8 million tons/year for containers.

The investment will be divided into two parts. Part A includes the construction of a 920-meter wave-proof dike connecting to a 1,070-meter wave-proof dike under construction; construction of ship channels, turning basins, and connecting waters for ships with a capacity of up to 200,000 tons; investment in connecting traffic to the berths and a liquid cargo berth that can be berthed on both sides to serve the relocation of oil and gas berths in Lien Chieu Bay.

Part B includes the construction of port berths and infrastructure, with 8 container berths with a total length of 2,750 meters for ships with a capacity of 50,000 to 200,000 tons; 6 general berths for bulk cargo with a length of 1,550 meters for ships with a capacity of 50,000 to 100,000 tons; and berths for inland waterway vessels with a length of 1,230 meters receiving ships up to 5,000 tons.

The port logistics area will be synchronously invested with warehouses, yards, and other auxiliary works such as operation offices, service houses, repair workshops, and necessary technical infrastructure and equipment for port operation.

The total investment capital for Lien Chieu Port is expected to be about VND 55,685 billion, in which part A uses state capital of about VND 6,955 billion, and part B uses capital from investors of about VND 48,729 billion.

In terms of investment roadmap, Da Nang proposes three phases: phase 1 from 2023 to 2030 with the operation of 4 container berths; phase 2 from 2030 to 2040 with the construction of 3 more general berths and 4 container berths, along with 5 berths for SB ships; and phase 3 by 2045 with the completion according to the planning.

In addition, the port also benefits from maritime fees and port charges, amounting to about VND 230 billion per year.

What is the Can Gio International Port Project about?

In terms of location, Can Gio International Port is expected to be located on Con Cho Islet, Thanh An Commune, Can Gio District, in the buffer zone of the Can Gio Mangrove Biosphere Reserve, without affecting the core area of the reserve. This area is isolated from neighboring areas and currently has convenient connections to maritime and inland waterways.

In the dossier proposing the approval of the investment policy for the project, the Saigon Port – TIL joint venture proposed to implement the project with a total investment capital (excluding loan interest during the construction period) of VND 113,531.7 billion, equivalent to US$4.8 billion.

However, the Ministry of Planning and Investment proposed to the Prime Minister to approve the capital content of at least VND 50,000 billion; the owner’s equity of the investor must ensure that it is not lower than 15% of the total investment capital of the project.

The total length of the main port is expected to be about 7 km and the barge berth is about 2 km. The total area is estimated at about 571 ha, including wharves, warehouses, internal traffic, office buildings, houses for operation and management staff, port operation workshops, and technical infrastructure and equipment necessary for port operation.

Can Gio International Transit Port can receive the world’s largest container ship of 250,000 DWT, equivalent to 24,000 TEU (one TEU equals a 20-foot container), transit ships with a capacity of 10,000 – 65,000 tons, and barges with a capacity of 8,000 tons.

It is estimated that in the first year of operation, the cargo volume through the port will reach about 2.1 million TEU (1 TEU equals a 20-foot container). After 7 investment phases, the cargo volume through Can Gio International Transit Port can reach 16.9 million TEU by 2047 – half of Singapore’s current volume.

The port area is expected to contribute VND 34,000 – 40,000 billion to the state budget each year when fully operational. For Can Gio International Transit Port, experts hope that this “gold mine”, which is expected to bring in VND 40,000 billion each year, will help the Saigon Port system reach the high seas, contributing to Ho Chi Minh City – one of the richest cities in Vietnam, to continue to maintain its position as a logistics center of the region and Asia like Hong Kong (China), Singapore.

Previously, at two meetings in June and August 2024 organized by the Ministry of Transport, all members of the appraisal council agreed on the necessity of establishing the project and voted to approve it. At the end of August, the Ministry of Transport submitted the appraisal results of the study on the construction of Can Gio Port to the Prime Minister. This is an important step for the competent authority to consider and approve the construction of the largest transit port project in Vietnam in Ho Chi Minh City.