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Transportation of goods in the Sai Gon River |
In its document to the Ministry of Transport, the Waterway Projects Management Board asked for the Ministry’s approval of the Project to develop waterway and logistics corridors in the Southern region to improve infrastructure, reduce congestion and accidents, and reduce freight transportation costs in the region.
According to the board, ministries and localities should take heed of the project to accelerate it because this project is significant.
Upgrade of two key corridors
With a total investment capital of VND3,900 billion (US$158,505,182), the Southern Regional Logistics and Waterway Corridors Development Project - the largest waterway infrastructure project implemented in the region - will be carried out for the upgrade of two important waterway corridors. One is the East-West corridor with a length of about 197km, running through Hau, Tra On, Mang Thit, Co Chien rivers, Cho Lach Canal, Tien River, Ky Hon Canal, Cho Gao Canal, Vam Co River, Nuoc Man Canal, Can Giuoc River, Soai Rap River and the other is the North-South corridor with a length of about 82km through Dong Nai, Nha Be, Long Tau, Dong Tranh, Tac Cua, Go Gia, Thi Vai rivers.
Deputy Director of the Ministry of Transport’s Department of Planning and Investment Nguyen Anh Dung said that the renovation of the above two corridors is especially important to meet transportation needs in the region. The volume of goods is currently being transported on the North-South corridor to the Cai Mep port in the Southern Province of Ba Ria - Vung Tau by inland waterway reaches more than 80 percent. Under the Ministry of Transport’s guideline of increasing the volume of goods by inland waterway to seaports, the project will renovate and upgrade this corridor for self-propelled seagoing vessels up to 5,000 tons, class four freighters, creating favorable conditions for Facilities for vehicles, especially SB ships to enter ports located deep inland through Dong Tranh River.
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Waterway in the Cho Gao Canal |
At the same time, the project will improve capacity and increase waterway connectivity between ports in Dong Nai, Binh Duong, Tay Ninh to ports on the Saigon River and Ho Chi Minh City for the import and export of goods at the wharf with the largest container throughput in the country, Cai Mep; therefore, it will promote the advantages of the Cai Mep - Thi Vai port cluster in the logistics chain in the southern region.
With the East-West corridor, the volume of goods from agricultural products such as rice, vegetables, fruits, and seafood needs to be transported inter-regionally to key seaports to serve domestic consumption and import and export needs.
According to the plan, the project will upgrade the channels on this corridor to ensure self-propelled seagoing vessels of up to 600 tons, class three container ships can travel around the clock while self-propelled seagoing ships of up to 1,500 tons can take advantage of the tides to travel.
When the project is completed, it will help shorten inland waterway traffic time on the East - West corridor from main ports in Ho Chi Minh City and Cai Mep - Thi Vai in Ba Ria - Vung Tau Province to ports in Can Tho in 10 hours as well as create favorable conditions for ships up to 5,000 tons and class four container ships not having to wait for rising water to travel in the East - West corridor.
Hopefully, it can reduce transportation costs and increase competitiveness compared to road transport. In particular, the project will contribute to increasing the connectivity of the regional transportation network, and socio-economic development.
According to the Waterway Project Management Board, it is necessary to arrange capital sources and site clearance for the project's progress.
According to related agencies, the project needs VND3,900 billion including a VND2,554.81 billion loan from the World Bank for construction costs, consultation of the survey, technical design and site clearance pile installation, construction supervision consulting and a VND13.89 billion non-refundable aid from the Australian Government for the cost of the feasibility study report, an environmental impact assessment report and compensation policy framework, and resettlement support.
The government will allocate VND1,331.31 billion for management, consulting, and site clearance costs. Total capital will be allocated in each phase, in accordance with the project's construction progress. The Ministry of Transport said that capital for the project in the 2021-2025 period will be balanced and fully allocated according to the capital plan assigned by the Government.
Mr. Tran Quoc Bao, Deputy Director of the Waterway Project Management Board, said that because the project will be implemented in Tra On District, Tam Binh District, Mang Thit District in Vinh Long Province, Cho Lach District in Ben Tre Province, Go Cong Tay District in Tien Giang Province, Chau Thanh District in Long An Province and Nhon Trach District in Dong Nai Province, the board will pay about VND720 billion for compensation, support, and resettlement to recover nearly 60 hectares of land in these provinces after it had carried out site clearance work.
People's committees of the provinces where the project goes through will be responsible for setting up different small projects for site clearance.
Minister of Transport Nguyen Van Thang requested the Management Board of Waterway Projects to conduct studies on the adjustment of technical solutions to avoid using forest land for the project so that the project can be approved at the earliest time.
More than 90 percent of the Cho Gao Canal upgrading project
The Waterway Projects Management Board revealed that more than 90 percent of the investment project's phase 2 to build and upgrade the Cho Gao Canal in Tien Giang Province has been completed. The project has main items including dredging and expanding the navigation channel on the south bank with a width of 55m and a length of 9.85km and a building embankment to protect the south bank.
According to the original plan, the project will be completed and put into operation in October 2023. However, the project was behind schedule because the construction of the resettlement area did not meet the proposed plan due to difficulties in site clearance work. By mid-September 2023, the locality will hand over 100 percent of the site to construction contractors. Currently, the contractor is mobilizing maximum capacity to speed up the progress of installing concrete embankment structures, and stone mats and constructing residential roads.
The Cho Gao canal project’s phase 2 with a total investment of more than VND1,335 billion was kicked off in December 2021. The Cho Gao Canal is a vital waterway as 60 percent-70 percent of goods are transported in the canal between the Mekong Delta and the Southeast regions.
