Danangport: Aerial view of Lien Chieu Port Project
The Ministry of Transport has issued a document to the People’s Committee of Da Nang regarding the investment project for Lien Chieu Port, Da Nang – the shared infrastructure and investment in wharves in the Lien Chieu area.
According to the Ministry of Transport, the Lien Chieu Wharf construction project – the shared infrastructure is being implemented by the Project Management Board for Priority Infrastructure Investment in Da Nang City (investor) for construction (including wave-breaking dams, ship channels, and port access roads) and is expected to be completed by November 2025.
The Prime Minister has assigned the People’s Committee of Da Nang City to urgently carry out procedures to select capable investors to implement the investment in building and operating the wharves, ensuring publicity, transparency, and compliance with the Law on Bidding, Land Law, and related regulations. At the same time, they are responsible for ensuring the progress of putting the wharves into efficient operation in synchronization with the shared infrastructure.
In addition, the city needs to urgently invest in and soon complete the project. Along with that, attract economic components to invest in the functional subdivisions of the wharf area to synchronously and effectively exploit Lien Chieu Port.
So far, the People’s Committee of Da Nang City has submitted to the Ministry of Planning and Investment for appraisal of the investment policy of the Lien Chieu Wharf construction project – the investment attraction part.
According to the Ministry of Transport, the construction time and putting into operation of 2 starting wharves in the Lien Chieu area for container ships with a capacity of 100,000 tons (8,000 Teu) with a scale of 750m will take about 2-3 years. However, up to now, there has been no selection of investors for the wharf area, so by 2025, it will not be possible to operate the 2 starting wharves simultaneously with the exploitation of the shared infrastructure.
Da Nang needs to urgently coordinate
From here, the Ministry of Transport proposed that the People’s Committee of Da Nang City continue to coordinate with competent agencies to finalize and submit to the National Assembly for the issuance of a Resolution amending and supplementing Resolution No. 119/2020 of the National Assembly on a pilot project on the model of urban administration and some special mechanisms and policies for the development of Da Nang City on the content of investment, construction, and exploitation of the overall Lien Chieu wharf area.
The agency also proposed that Da Nang coordinate to speed up the progress of approving the investment policy of the Lien Chieu wharf area.
Along with that, research to adjust the progress of investing in some items of the Lien Chieu Port construction project, Da Nang City – the shared infrastructure suitable to the progress of investing in wharves in the Lien Chieu area.
The Vietnam Maritime Administration is assigned to continue to coordinate closely and support in a timely manner in the process of the People’s Committee of Da Nang City directing the implementation of the investment project for Lien Chieu Port – the shared infrastructure and the investment attraction part.
These proposals aim to effectively implement the master plan for the system of Vietnam’s seaports, soon put the starting wharves of the Lien Chieu area into operation synchronously with the shared infrastructure; attract and meet the cargo volume through the seaport in the area in the coming time, contributing to the socio-economic development of the locality and the region.
The project attracts foreign investors
It is known that the Lien Chieu Port construction investment project includes 2 component projects. Accordingly, the Lien Chieu Port construction investment project (shared infrastructure) has a total investment of VND 3,462 billion from the central budget and Da Nang City, which was approved by the Prime Minister in 2021. The People’s Committee of Da Nang City organized the groundbreaking ceremony in September 2023 and is expected to be completed in 2025.
Meanwhile, the Lien Chieu Port construction investment project (investment attraction) includes 8 container wharves (with a total mooring length of 2,750 m for ships from 50,000 – 200,000 DWT), 6 general cargo wharves (with a total mooring length of 1,550 m for ships from 50,000 – 100,000 DWT), wharves for river-sea ships, and port hinterland. According to preliminary calculations of the People’s Committee of Da Nang City, the investment cost is about VND 48,304 billion.
Previously, the People’s Committee of Da Nang City proposed two investment plans for the Lien Chieu Port construction investment project (investment attraction). Specifically, Plan 1 carries out procedures for calling for investment in 2 starting wharves in Phase I with a total wharf length of 750m; the next wharves will be implemented later. Plan 2 calls for investment at once for the entire Lien Chieu wharf area, including 8 container wharves; 6 general cargo wharves for the period up to 2050 (in which the investment is divided into phases until 2030 with 2 container wharves) with a total area of 450 ha; cargo volume through reaches about 50 million tons.
Currently, Plan 1 has 2 investors, namely Da Nang Port Joint Stock Company and the Consortium of Anh Phat Investment Construction and Trading Joint Stock Company – Adani Group (India), submitting valid dossiers proposing approval of the investment policy of the Lien Chieu Port construction project. 2 starting wharves. In which, the Ministry of Planning and Investment is presiding over the appraisal of the investment policy on the basis of the dossier of Da Nang Port Joint Stock Company.
Notably, in the past time, the People’s Committee of Da Nang City has always inclined to Plan 2 and proposed that the Prime Minister assign the Ministry of Planning and Investment, the Ministry of Transport to guide the People’s Committee of Da Nang City to implement investment procedures and select investors in accordance with regulations.
Recently, in March 2024, in Document No. sent to the Ministry of Planning and Investment to submit to the Prime Minister for consideration and decision to approve the investment attraction plan for the wharves in the Lien Chieu Port planning, the People’s Committee of Da Nang City proposed to invest at once for the whole port (with phased investment according to the planning). This proposal is explained to be able to select a strong investor to invest, manage and operate the Lien Chieu Port synchronously.
Previously, at Document No. 8131/BKHDT-PTHTDT, the Ministry of Planning and Investment thought that Plan 2 (investing at once for the whole port) is comprehensive, taking advantage of and optimizing the efficiency of exploiting the shore length of the wharf area, having the opportunity to attract large investors, with strong financial potential, investing synchronously in the wharf area and the port logistics area, thereby improving the efficiency of land and water surface exploitation. area, possibly selecting investors with financial capacity and port operation experience.
However, in the event that there is one investor who encounters financial risks during the implementation process, it will affect the investment, business, and operation of the entire project, missing the opportunity to invest in the construction of wharves in the Lien Chieu wharf area according to the planning. Along with that, the Ministry of Planning and Investment is also concerned that calling for investment at once for the whole Lien Chieu wharf area may lead to Da Nang Port Joint Stock Company not being able to participate in investment, management, operation, and exploitation in the starting phase.
At the same time, with the planning after 2030, gradually converting the function into a tourist port in accordance with the progress of investment and exploitation of the Lien Chieu wharf area will affect the existence and development of Da Nang Port Joint Stock Company, possibly causing the loss of state capital and generating social issues for workers.
Currently, large-scale wharf areas such as Can Gio (Ho Chi Minh City), Cai Mep Ha and Cai Mep Ha lower (Ba Ria – Vung Tau), Tran De (Soc Trang) are in the process of calling for investment. In case the competent authority decides to invest in the Lien Chieu wharf area according to Plan 2, it will be a premise for calling for investment at once for the whole of the above-mentioned wharf areas, in line with the development trend of Vietnam and the world today, and can leave room for further development in the future (after 2050).
Regarding this issue, the People’s Committee of Da Nang City said that Vietnam Maritime Corporation (holding 75% of the charter capital of Da Nang Port Joint Stock Company) has signed a cooperation agreement with Adani to be able to form a joint venture to invest in Lien Chieu Port when the competent authority agrees on the policy of calling for investment. In this case, the Ministry of Planning and Investment’s suspension of the appraisal process will not be a problem.
The total planned area of the wharves in Lien Chieu Port is 288.33 ha, including the construction area and the water area in front of the ship anchorage to ensure a capacity of about 17-19 million tons/year for general cargo and bulk cargo, and about 5.2-5.8 million tons/year for containers.
According to the People’s Committee of Da Nang City, the quantifiable benefits (estimated revenue) when Lien Chieu Port comes into operation include: tax revenue, import and export tax of about VND 4,800 billion/year in 2030; VND 17,100 billion/year in 2040; VND 25,800 billion/year in 2050. Revenue from maritime fees, port fees, and other fees is about VND 230 billion/year.
When completed, Lien Chieu Port will become an international transshipment port, soon turning the Lien Chieu area into an international transshipment gateway, participating in the global transport supply chain. Along with that, it creates a competitive advantage in attracting shipping lines, carriers, cargo owners, and logistics enterprises with brands to Lien Chieu Port to form a maritime service and logistics center of the country, serving import and export and transshipment; realizing the goal of developing logistics into a spearhead industry and building Da Nang city into a logistics center of the Central region and the whole country
