Current status of logistics in Da Nang: Full range of types but still many limitations
International transportation in Da Nang has all 3 types including sea, air and road. However, each type has limitations that prevent the exploitation of its full potential.
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| Mr. Duong Tien Lam, Head of the Representative Office of Vietnam Logistics Business Association in Da Nang informed at the Conference. |
At the recent Conference on Connecting Trade and Promoting Exports - Da Nang 2024, according to the analysis of Mr. Duong Tien Lam, Head of the Representative Office of the Vietnam Logistics Business Association in Da Nang (General Director of AsiaTrans Vietnam Company), the current status of international transportation in Da Nang has all 3 types but each type has certain limitations.
Regarding sea routes, according to Mr. Lam, Da Nang only has one international seaport that can receive container ships; there are many other ports for bulk cargo ships and some other types of liquid cargo. However, the only port that can receive container ships is Tien Sa Port.
Currently, some of the world's leading shipping lines have services connecting Da Nang with major seaports in the world, but Da Nang Port has limited capacity.
Along with that, according to statistics from the Vietnam Logistics Business Association, in Da Nang, in 2024, starting from April, freight rates will start to increase again like the time of the COVID-19 epidemic, so importers and exporters need to calculate inventory levels and the amount of orders for raw materials to ensure no losses.
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| In June, Danang Port Joint Stock Company put into operation the yard behind wharfs 4 and 5 of Tien Sa port. Photo: Danang port. |
Regarding air transport, the Chief Representative of the Vietnam Logistics Business Association in Da Nang assessed that although Da Nang International Airport has seen quite good growth in international passengers and tourists, the amount of cargo handled through the airport is very limited.
Although there is no data from the Da Nang Customs Department on the volume of import and export goods in the first 6 months of 2024, in recent years the volume of goods passing through the airport has grown very slowly and is very small compared to the two ends of the country, Noi Bai and Tan Son Nhat International Airports.
“One of the current limitations in cargo handling at Da Nang airport is that the warehouse area of the cargo terminal is still very small, and there is no cold storage. That is one of the current limitations,” said Mr. Lam.
However, Mr. Lam hopes that in the near future, Da Nang City is developing a project that includes expanding the international cargo terminal of Da Nang airport, thereby meeting the needs of logistics development in the city.
By road, a type of international road transport is often mentioned with Da Nang as the destination and the end point is the East-West economic corridor from Da Nang to Myanmar.
Mr. Lam mentioned that although the route to Myanmar is being interrupted, other connecting routes passing through Da Nang such as to China, to Savannakhet in Laos, and provinces in the Northeast region of Thailand are being deployed normally.
The General Director of AsiaTrans Vietnam Company believes that the road route is a promising solution for import-export enterprises to consider when transporting goods to countries sharing borders, or having urgent orders, when the advantage of the "cross-border road route" is that it is faster than the sea route but cheaper than the air route.
However, regarding roads, Mr. Lam mentioned the context of connecting Da Nang with neighboring countries, especially Laos, which has many border gates. The main and closest border gates to Da Nang are Lao Bao and La Hay (Quang Tri), but they are rarely exploited.
Among them, the border gate very close to Da Nang but currently “not well exploited” is the border gate through Nam Giang to Dak Ta Ook of Laos. A small number of container goods through this border gate to Da Nang port are mainly cassava starch, agricultural products, other frozen goods while the amount of goods through the border gate is mainly bulk cargo.
In addition, the road connecting to Nam Giang border gate in Quang Nam, in terms of traffic conditions, Mr. Lam assessed as "very bad" and has not been upgraded, leading to limited attraction for the connection between Da Nang port and the Southern Laos region.
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