To develop logistics services, Quang Nam needs to be more determined in building and implementing key solutions to improve connectivity efficiency, reduce transportation and logistics costs...
Convergence of logistics potential
Developing seaports and logistics services - one of the economic pillars of the Central Key Economic Zone. Located in this key economic zone, Quang Nam province has a favorable position to become a regional logistics and freight transit center.
Quang Nam is a locality with a large area, long coastline, large population; abundant natural resources, favorable geographical location, complete transport infrastructure system to connect with provinces and cities in the country and the region...
Mr. Ho Quang Buu, Vice Chairman of the People's Committee of Quang Nam province, said that the province is located in a strategic position in the Central Key Economic Zone. To the north is Da Nang City, to the south is Dung Quat Economic Zone, and at the same time is the gateway to the sea for the Central Highlands, and a little further is Central and Southern Laos. Therefore, there are many favorable conditions to become a logistics center of the region.
In the logistics development strategy, Quang Nam identifies Chu Lai port as having a very important position. Because the port has a convenient traffic location, directly connecting to National Highway 1, the coastal road, the Da Nang - Quang Ngai expressway and large economic zones and industrial parks such as Tam Thang Industrial Park, Bac Chu Lai Industrial Park, Dung Quat Economic Zone (Quang Ngai); connecting to Southern Laos, Northeast Thailand via Nam Giang international border gate.
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| Quang Nam has many favorable conditions to become a logistics center. |
In recent years, Chu Lai port's infrastructure and equipment have been heavily invested in the direction of developing a complete service chain, while also being able to exploit a variety of goods. According to data from the Quang Nam Provincial People's Committee, Chu Lai port currently receives 30,000 DWT ships; the warehouse system at the port has also been upgraded and expanded with an area of over 154,000 m2. Up to now, the port has gradually become a large logistics center serving the needs of delivery, transportation, import and export of businesses in the Central and Central Highlands regions. In addition, Quang Nam also has Ky Ha port, which receives 15,000 DWT ships. The volume of goods passing through Ky Ha port and Chu Lai port reaches over 5 million tons/year.
In addition, the operation of Nam Giang international border gate has opened up many new opportunities for economic, trade and tourism cooperation between the Central Key Economic Zone and localities in the Central and Southern Laos regions, and also connecting to Thailand. This border gate also contributes to attracting international investors to the region, supporting the development of the East-West economic corridor.
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| In the logistics development strategy, Quang Nam identifies Chu Lai port as having a very important position. |
Along with the seaport and road, Quang Nam also has Chu Lai airport with an area of 2,300 hectares, 2 runways for landing and take-off with a total length of 4,877m. Chu Lai airport is planned to become an international airport with a scale, airport level 4E, designed capacity to serve passengers from 5 to 10 million passengers/year in the period of 2021 - 2030 and by 2050 to become an international gateway airport (replacing Da Nang airport), designed capacity to serve passengers reaching 40 million passengers/year.
At the same time, the logistics center is planned in combination with Chu Lai airport, flight training center, aircraft maintenance and repair center and other activities associated with the duty-free zone.
Addressing the challenges
In parallel, with the available advantages recently, to develop the logistics sector, Quang Nam also prioritizes investment in infrastructure development, connecting main traffic routes between the expressway with national and provincial highways, district and provincial roads, and coastal routes. Up to now, the national highways connecting Nam Giang International Border Gate such as 14D, 14B, 14E... have all been invested and upgraded by the locality to meet the demand for connecting goods in the region.
In addition, with the Chu Lai Open Economic Zone Industrial Center and the developed automobile and supporting industries, it also contributes to making Quang Nam gradually become a major maritime transport center, an important logistics hub in the Central region...
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| Nam Giang border gate connects Quang Nam with localities in the Northeast region of Thailand and Central and Southern Laos. |
According to the planning of Quang Nam province for the period 2021-2030, with a vision to 2050, industrial development will follow the direction of circular economy, specialization, and high automation; rapidly increase the contribution of processing and manufacturing industry and become the main pillar in the economy.
Promote the development of automobile manufacturing and assembly industry, mechanical, electrical and electronic products; form a national multi-purpose mechanical and automobile center, develop supporting industries associated with logistics services, seaport, airport and railway logistics. Chu Lai Open Economic Zone becomes a dynamic economic zone of the region and the country.
Despite the advantages, the development of logistics services in Quang Nam still has "bottlenecks", including the unsynchronized transport infrastructure system, lack of connectivity, and low information application. Some road traffic projects are slow to implement, and seaport infrastructure is not as expected. The number of enterprises operating in the logistics sector is still small and small in scale. Quang Nam has not yet attracted large logistics enterprises to participate in the provincial and regional markets.
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| Despite the advantages, the development of logistics services in Quang Nam still has "bottlenecks". |
In particular, although Nam Giang international border gate has been upgraded to an international border gate, its infrastructure is still not synchronous, border trade services have not developed, the power grid system at the border gate area is unstable, there is no physical inspection area for goods and no warehouse for gathering import and export goods, making it difficult for businesses as well as authorities to carry out customs procedures.
Recently, at the Conference on Announcing the Planning of Quang Nam Province for the period 2021-2030 with a vision to 2050, Mr. Tran Ba Duong, Chairman of the Board of Directors of Truong Hai Group Joint Stock Company (Thaco) said that logistics costs in Quang Nam are still 20% higher than in the other two ends of the country. To solve this key issue, we have imported components for production, assembly, and then export. However, Thaco's export goods are still lacking.
To solve the shortage of exported goods, Thaco has participated in developing large-scale cultivation models in Laos, Cambodia and the Central Highlands. With the development of agriculture, by the end of this year the company will have about 1,000 tons of fresh fruit/day for export and next year about 2,000 tons/day. Thus, on average, Thaco has from 100 to 200 export containers per day, contributing to solving the shortage of exported goods...
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| The Chu Lai Open Economic Zone industrial center and the automobile industry will contribute to making Quang Nam a major maritime transport center and logistics hub in the region. |
According to many economic experts, to develop logistics services, Quang Nam needs to be more determined in developing and implementing key solutions to improve connectivity efficiency and reduce transportation and logistics costs. It is necessary to focus on coordinating with central ministries and branches as well as promoting investment and soon putting into operation key connecting traffic infrastructure on the corridor such as the North-South Expressway, National Highway 14D, National Highway 14E connecting Nam Giang international border gate and Lien Chieu wharf area (Da Nang)...
At the same time, Quang Nam also needs to coordinate with other localities to develop breakthrough policy mechanisms to attract potential businesses and investors in the logistics sector. Form an inter-regional coordination mechanism to assign tasks and functions to each locality in the logistics service supply chain in the region. Only then will the dream of becoming a logistics center of Quang Nam soon come true.
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