THACO Thrives in Logistics

10:10:04 AM | 22/5/2020

Starting from the need to transport auto parts and finished products for THACO, Chu Lai Logistics Company, set up more than 15 years ago as a member company of THACO, has become a major logistics and transportation hub of the Central Coast and the Central Highlands, capable of meeting investors’ demands for full-package service chain consisting of road transport, sea transport, port and warehousing services.

Leading logistics services provider in Central Region

Since its investment in Chu Lai Open Economic Zone, THACO focused on solving two difficult problems: Human resources and logistics - transportation. In order to clear a major bottleneck in logistics and reduce logistics and delivery costs for THACO and other enterprises in Quang Nam province and the central region, Chu Lai Logistics established an ocean shipping company, a road transportation company and Chu Lai Port, invested in a ship fleet, and opened domestic and international shipping routes.

In addition to such advantages as lying in Chu Lai Open Economic Zone and the central key economic region and operating with favorable natural conditions, Chu Lai Port is near National Highway 1A and linked to Da Nang - Quang Ngai Expressway and gathers many good conditions for development. The port, with a 500m-long wharf and a front wharf depth of 9.5m, is capable of handling 3 million tons a year and serving three vessels of 30,000 tons at the same time.

To boost logistics service for THACO's early investment activity in Chu Lai Open Economic Zone, with the goal of developing Chu Lai Port into a first-class terminal and making logistics an important business area under THACO's multi-sector strategy, Chu Lai Logistics invested in a deep-water port with an expanded wharf length of 790m capable of receiving ships of 50,000 tons. Once completed, the upgraded project will enable it to diversify cargo sources and ship sizes, increase loading and unloading capacity, increase cargo throughput, increase sources for international and domestic maritime routes, reduce expenses for businesses, develop logistics services and attract investment flows into Chu Lai OEZ. A representative of Chu Lai Port said, “Being present in Chu Lai right from the outset, full of hardship, in addition to a lot of projects engaged in automobiles, mechanical engineering, agriculture and forestry, logistics development projects, particularly the port capable of accommodating ships of 50,000 tons, will be a new step of THACO for a new investment and development stage of great significance.”

On road transport, with more than 100 container tractors and more than 80 specialized trucks, Chu Lai Logistics provides excellent services, including vehicle transport, container shipping, freight consignment, less container load (LCL), and combined cargo. As for transportation of agricultural products and refrigerated goods, to complete agricultural production value chains, Chu Lai Logistics developed agricultural transport services, including transporting agricultural supplies for farming regions; carrying fruits and agricultural products from Laos, Cambodia and the Central Highlands to Chu Lai Port and Cat Lai Port (Ho Chi Minh City) by refrigerated truck; preserving fruits and agricultural products by a 5,000-square meter cold storage system and a 10,000-square meter cooling container yard, and providing ocean shipping services for exporters. This helps reduce transport costs, increase competitiveness for Vietnam's agricultural products, gradually establish a logistics and agricultural product export center of the central region.

To improve operational capacity and bring optimal added value to customers, realize the goal of becoming a leading logistics service provider in the central region, in the coming time, Chu Lai Logistics will develop road transport routes to concentrate goods from the Central Coast, the Central Highlands, southern Laos, and northern Cambodia to Chu Lai, gradually make Chu Lai Port a gateway for import and export goods to connect trade with East Asia and North Asia; upgrade package services to better serve customers in the key central economic region and expand business presence in Hanoi, Hai Phong and Ho Chi Minh City, and establish cooperation with experienced and capable joint ventures and partners to enhance competitiveness and develop the market.

Chu Lai Logistics is part of THACO's multi-industry ecosystem. At present, THACO Chu Lai Industrial Complex covers a total area of over 1,200 ha and costs more than VND80.5 trillion (US$3.5 billion). It comprises industrial and mechanical sections, agricultural and forestry sections, port and logistics sections, and residential areas.

THACO Chu Lai is home to seven automobile assembling and manufacturing plants, 12 supporting industrial plants, one mechanical manufacturing and processing complex (four factories), a research and development (R&D) center, vocational training school, seaport and logistics service system, housing facilities for experts and workers, trade centers, and urban areas.

THACO is currently the largest automaker, more than 660,000 vehicles sold since 2005, holding over 30% of the market. THACO Chu Lai has appeared on the map of renowned automobile manufacturers and assemblers in the world. It now has the highest localization rate in Vietnam (from 17 - 62%). In particular, in 2019, THACO completed its goal of exporting passenger cars, trucks and buses to ASEAN markets and other countries around the world. Its export value reached US$21 million. In 2020, the firm is expected to export more than 1,600 vehicles of all kinds.

Source: Vietnam Business Forum