Vietnam & Cambodia achieve shortest port turnaround in ASEAN

03 May '23

3 min read

Pic: Shutterstock/MAGNIFIER

Insights

Vietnam and Cambodia have the shortest port turnaround times in the ASEAN region at 0.9 days for container shipping, the World Bank said.
Digitalisation is reducing port delays by up to 70 per cent in emerging economies.
Major shipping lines have invested in seaports in Vietnam, with direct service routes being established to important markets worldwide.

Vietnam and Cambodia had the shortest port turnaround times in the Association of South East Asian Nations (ASEAN) region in June 2022 with both countries averaging 0.9 days for container shipping. Thailand has the second-fastest turnaround time of 1.0 day in the ASEAN region, followed by Malaysia and Singapore at 1.2 days, the Philippines at 1.3 days, Indonesia at 1.8 days, and Myanmar at 2.0 days.

Singapore received the top rank in the Logistics Performance Index (LPI), with 4.3 points, followed by Malaysia at 3.6 points, Thailand at 3.5 points, the Philippines and Vietnam at 3.3 points each, and Indonesia at 3.0 points. No ranking was available for Myanmar, according to data by the World Bank.

The World Bank stated that digitalisation is enabling emerging economies to reduce port delays by up to 70 per cent compared to those in developed countries.

Despite challenges such as COVID-19, the bank said that logistics services were ‘broadly resilient’ for both the best and worst performers worldwide. The LPI comprised six indicators, which are the effectiveness of customs and border management procedures, the standard of trade and transportation infrastructure, the simplicity of arranging shipments at reasonable rates, the proficiency and quality of logistics services, the capability to track and trace consignments, and the frequency of timely deliveries.

In recent times, major shipping lines worldwide have invested in the construction and operation of seaports in Vietnam. DP World Group of the UAE has invested in and currently operates Saigon Premier Container Terminal, whereas PSA Group of Singapore has SP-PSA Terminal located in Ba Ria-Vung Tau Province, among various other locations.

Large shipping lines have been attracted to open routes from Vietnam to other countries worldwide due to improved seaport services and increasing shipping demands. The establishment of direct service routes linking important markets worldwide will generate chances for the export of Vietnamese products.

Vietnam’s ministry of transport has approved a plan to upgrade the Cai Mep-Thi Vai port cluster, and work on the project is expected to be completed in 2025. The channel for navigation, starting from buoy No.0 up to the upstream of Cai Mep International Terminal, is intended for the two-way movement of 160,000 deadweight tonnage (DWT) ships when fully loaded, and for 120,000 DWT vessels. The project has a total investment capital of VND1.4 trillion from the state budget.

“While most time is spent in shipping, the biggest delays occur at seaports, airports, and multimodal facilities. Policies targeting these facilities can help improve reliability,” Christina Wiederer, World Bank’s senior economist who co-authored the report, was quoted as saying by local media reports.

Fibre2Fashion News Desk (NB)

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