Quang Tri is carrying out My Thuy port construction project. Will the construction of a deepwater port in Quang Tri province beget economic efficiency as expected by provincial leaders and people? To learn more about this issue, Vietnam Business Forum interviewed Mr Hoang Quang Vinh, Director of the Quang Tri Department of Transport. Bich Huong reports.
Mr Hoang Quang Vinh said that the People’s Committee of Quang Tri province advocates building Dong Nam Economic Zone where My Thuy Port is the nucleus to form an international trade hub, to boost import and export activities, and develop leading industries for the construction of economic zone in particular and the economic development of Quang Tri province as a whole. Thus, promoting investment into My Thuy Port is necessary to construct the Dong Nam Economic Zone. This is the expectation of the government and people of Quang Tri province.
The port construction is feasible as it has favourable natural conditions, terrain and surface and it is sparsely populated. At present, two foreign consultants are advising on the pros and cons of the port. The province has also hosted many conferences on port construction and scientists have conducted research on this project. Previously, the province planned to build Cua Viet Port (2006 - 2008) but it then shifted to My Thuy Port with an edge-to-shore length of 4 km, a depth of 15 metres, and a passageway of 700 metres. Once completed, it can receive ships of 50,000 tonnes. So far, we have carried out five testing drills and asserted that the construction is probable. The two sides have sand-blocking dikes. Other ports in Vietnam take advantage of natural conditions and depth, but while My Thuy Port has good natural depth, it has to be dug by foreign modern technologies, becoming the first port in Vietnam to be built this way.
My Thuy Port will be built in two phases. The first phase, to be completed by the end of 2012, consists of infrastructural and traffic construction at a cost of VND600 billion funded by the State. Two wharves and a thermal power plant will be will be built. The port will be powered by modern technologies and operated by highly professional staff.
Could you please talk about the economic efficiency of My Thuy Port?
How My Thuy Port will benefit the provincial economy is a common concern. As Quang Tri remains a poor province, its trading is not very hefty. So, who will it serve and who will come to it? This requires a very careful calculation and study before the project is launched. Comparatively, Thanh Hoa and Quang Nam provinces were rather poor, but they thrived after they had ports. This will also be the case for Quang Tri. Once there is a port, commodities will arrive.
My Thuy Port is the heart of Dong Nam Economic Zone; thus, it must exist before the presence of the economic zone. Port-related projects will serve the development of the economic zone. Currently, the electricity system is being powered by two 1,200-MW coal-fired turbines which consume 3 million tonnes of coal a year. This will be a good feed for My Thuy Port, let alone goods transported to and from Thailand and Laos.
What are competitive advantages of My Thuy Port?
My Thuy Port has a lot of competitive advantages in relation to other regional ports. Quang Tri province links to important land traffic, railway and waterway routes: National Road 1A, National Road 9, Ho Chi Minh Trail, and Trans-Vietnam railway. Notably, My Thuy lies at the gateway of East West Economic Corridor (EWEC) of the Greater Mekong Subregion (GMS). The East - West Economic Corridor connects the East Sea (South China Sea) with Southwest Asia. Goods from Southeast Asia can go worldwide from the My Thuy Port and commodities all over the world can reach this region via the port. Shipping companies will have to spend less on shipping costs because of shorter distance.
The coastal sandy region extends 4 - 5 km and has a height of 1 - 8.3 m. This area is sparsely populated. Coastal roads are relatively straight. These are favourable conditions for the construction of a port capable of accommodating ships of 50,000 tonnes.
Where are capital sources for the project?
Quang Tri province will have to mobilise from different sources to fund the construction of My Thuy Port, including State budget, ODA capital and private investment.
State budget and ODA loans will go to site clearance; land compensation; water, electricity and traffic systems; and water-break systems. Currently, the province has invested VND600 billion sourced from the government bonds to carry out flood-shelter, rescue and economic development project in the southern region of the province. So far, the work is up to 70 percent completed. This is an important traffic project and a stepping stone for the construction of My Thuy Port and Dong Nam Economic Zone.
The province will call domestic and foreign investors to form BOT (build - operate - transfer), BT (build - transfer) or PPP (public private partnership) projects to build port items like logistics centre, oil depot, thermal power plant, etc. At present, many investors are studying investment opportunities here.
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