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Waterway upgrade pending
The waterway transport sector is likely to see its first Build-Operate-Transfer (BOT) project, if the Prime Minister approves the Quang Vinh Construction and Trade Co Ltd to dredge the Dinh An estuary.
The project, when completed, is expected to help 10,000 dead weight tonnage (DWT) vessels access the Can Tho port and spark a new trend of invesment in waterway improvement.
The Ministry of Transport recently asked the Prime Minister to allow the Quang Vinh company to carry out the project. Can Tho City’s People’s Committee has affirmed the feasibility of dredging the estuary under the BOT model, as suggested by the company.
If permitted, the Can Tho-based Quang Vinh company will raise VND246 billion (US$14.9 million) to implement the project within three months. After completion, the estuary will have a depth of 5.5m and a width of 200m to facilitate 10,000DWT ships to travel on the Hau River.
In turn, the investor can charge ships a toll for 25-30 years, according to current regulations. The company was also given the dredged silt and sand which is estimated to reach from 2 million cu.m to 3 million cu.m.
Amid the severe shortage of building materials, especially construction sand in the Cuu Long (Cuu Long (Mekong) Delta) provinces, capital recovery is believed to be feasible.
Harbour Master of the Can Tho Port Department, Le Minh Khang, said accumulation of silt from Hau River had for a long time hampered the passage of vessels of more than 5,000 deadweight tonnes (DWT).
This forced 70 per cent of goods to and from the Cuu Long (Mekong) Delta region (estimated 12.5 million tonnes per year) through ports in HCM City, adding to a backlog of freight and pushing up transport costs.
Vo Hung Dung, director of the Viet Nam Chamber of Commerce and Industry’s Can Tho branch, said if ships could access ports along the Hau River instead of in HCM City, companies would save $7 to $10 a tonne in freight.
According to experts, upgrading and widening the Dinh An estuary will help ease traffic jams and reduce accidents on overloaded roads linking HCM City and Can Tho.
Under the adjusted plan for waterway transportation development to 2020, approved by the Ministry of Transport on August 6, 2008, the sector needs an investment of VND73.35 trillion ($4.4 billion) to meet its target of transporting 210 million tonnes of commodities and 540 million travellers.
The ministry has a list of waterway transportation projects which require investment under the BOT model such as the Cho Gao Channel, Ham Luong Waterway and Dong Nai Waterway.
The head of the Inland Waterway Department Tran Dac Suu said that the cost for dredging was large, but capital recovery was difficult, demanding more State support to attract investment into such waterway improvement projects.
VNN
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