-
THE SOCIALIST REPUBLIC OF VIETNAM MINISTRY OF TRANSPORT PROJECT
MANAGEMENT UNIT 85
The Study for
Tien Sa - Da Nang Port Improvement Project (Phase 2)
Final Report
December 2014
JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) JAPAN PORT
CONSULTANTS, LTD. THE OVERSEAS COASTAL AREA
DEVELOPMENT INSTITUTE OF JAPAN
1R
JR
14-051
-
Breakwater
Tien Sa Terminal
Access Road
Pier No.1
Pier No.2
Birth-5
0 100 200 300 m
Satellite Image in Project Site (Tien Sa Port)
Birth-1
Birth-2 Birth-3
Birth-4
Pier No.3
-
Bathymetric/Topographic Map in Project Site (Tien Sa Port)
Source: Draft Feasibility Study Report for Tien Sa Terminal - Da
Nang Port Improvement Project (Phase 2) in Da Nang, 2014, PMU85
-
Layout Plan Prepared by Study Team
-
Abbreviations ADB Asian Development Bank AIDS Acquired Immune
Deficiency Syndrome ASEAN Association of South-East Asian Nations
AH Asia Highway B Beam BA Bidding Assistance BD Basic Design CFS
Container Freight Station CKEZ The Central Vietnam Key Economic
Zone CS Construction Supervision DARD Department of Agriculture and
Rural Development DD Detailed Design DONRE Department of Natural
Recourse and Environment DPA Da Nang Port Authority DPC Da Nang
Port Holding Limited Liability Campany DWT Deadweight Ton EIA
Environment Impact Assessment EIRR Economic Internal Rate of Return
EWEC East-West Economic Corridor EZ Economic Zone FIRR Financial
Internal Rate of Return GC General Cargo GDP Gross Domestic Product
GRT Gross Ton GMS Great Mekong Sub-region HCMC Ho Chi Minh City HIV
Human Immunodeficiency Virus HWL High Water Level ICB Interlocking
Concrete Block ICD Inland Container Depot IZ Industrial Zone JICA
Japan International Cooperation Agency JPY Japanese Yen LOA Length
Over All LWL Low Water Level
-
MONRE Ministry of Natural Recourse and Environment MOT Ministry
of Transport NH National Highway ODA Official Development
Assistance OECF The Overseas Economic Cooperation Fund OEZ Open
Economic Zone O/M Operation and Maintenance PAP Project Affected
People PC People’s Committee PIANC International Navigation
Association PMU85 Project Management Unit 85 RAP Resettlement
Action Plan RS Reach Stacker RTG Rubber-Tyred Gantry RWL Residual
Water Level SAPROF Special Terms for Project Formation SEZ Special
Economic Zone SS Suspended Solid SSG Ship to Shore Gantry STEP
Special Terms for Economic Partnership TEU Twenty-foot Equivalent
Unit TOR Terms of Reference VINALINES Vietnam National Shipping
Lines VINAMARINE Vietnam Maritime Administration VND Vietnamese
Dong VMS Vietnam Maritime Safety WB World Bank
-
Satellite Image in Project Site (Tien Sa Port)
Bathymetric/Topographic Map in Project Site (Tien Sa Port) Layout
Plan Prepared by Study Team Abbreviations
CONTENTS
1. Approach of Study
................................................................................................................
1
1.1 Project Background
.................................................................................................................................
1
1.2 Flow of Study
...........................................................................................................................................
2
2. Review of DFS Report
..........................................................................................................
3
2.1 Objective of Project
.................................................................................................................................
3
2.2 Back Ground and Necessity of Project
..................................................................................................
3 Current Condition of Tien Sa Port
.....................................................................................................
3 (1) Issues of Da Nang Port and Other Ports in Vietnam
..........................................................................
9 (2) Current Trend and Policy of Industrial Developments in Da
Nang Port Hinterlands ...................... 11 (3) Activities of
Overseas Aid Organizations to Ports Projects in Vietnam
........................................... 42 (4) Current
Condition of Road and Railway Network
...........................................................................
42 (5) General Concept of Da Nang Port Development
.............................................................................
60 (6) Traffic Demand for Tien Sa Port
......................................................................................................
64 (7) Necessity of Project
.........................................................................................................................
72 (8)
2.3 Project Scope
..........................................................................................................................................
78 Terminal Layout
...............................................................................................................................
78 (1) Yard Layout
......................................................................................................................................
81 (2) Basic Design of Major Facilities
......................................................................................................
86 (3) Construction Method and Schedule
.................................................................................................
99 (4)
2.4 Procurement Method
...........................................................................................................................
102
2.5 Draft TOR for Consulting Services
....................................................................................................
103
2.6 Project Cost and Financial Plan
.........................................................................................................
103 Project Cost
....................................................................................................................................
103 (1) Financial Plan
................................................................................................................................
105 (2)
2.7 Implementation Schedule
....................................................................................................................
105
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2.8 Implementation Structure of Project
.................................................................................................
106
2.9 Management System of Port Development in Central Vietnam
...................................................... 106
2.10 Structure and Budget for Maintenance and Operation
.................................................................
107 Operation System
...........................................................................................................................
107 (1) Potential Local Operator
................................................................................................................
108 (2) Potential International Operator
.....................................................................................................
112 (3) Maintenance System
......................................................................................................................
112 (4)
2.11 Operational Efficiency and Economic and Financial Analysis
...................................................... 114
Operational Efficiency
...................................................................................................................
114 (1) Financial Analysis
..........................................................................................................................
114 (2) Economic
Analysis.........................................................................................................................
127 (3)
2.12 Natural Conditions Study
.................................................................................................................
132 Land and Seabed Elevations
..........................................................................................................
132 (1) Sub-soil Conditions
........................................................................................................................
132 (2) Wind Conditions
............................................................................................................................
133 (3) Wave
..............................................................................................................................................
133 (4) Water Level
....................................................................................................................................
133 (5) Seismic Condition
..........................................................................................................................
134 (6)
2.13 Environmental Considerations
.........................................................................................................
135 Overview of Project Components that gives Environmental and
Social Impacts .......................... 135 (1) Background of
Natural and Socioeconomic Environmental Conditions
....................................... 138 (2) Organization and
Legislation for Environmental Considerations in Vietnam
............................... 139 (3) Assessment of Alternatives
............................................................................................................
140 (4) Scoping and TOR for Environmental Surveys
...............................................................................
141 (5) Results of Environmental Surveys and Simulations presented
in the Project EIA Report ............ 142 (6) Impact Assessment
.........................................................................................................................
146 (7) Impact Mitigation Measures and Cost
...........................................................................................
148 (8) Monitoring
Program.......................................................................................................................
150 (9) Public Consultations
....................................................................................................................
155 (10) Necessity of Resettlement
............................................................................................................
157 (11) Monitoring Form (proposed)
.......................................................................................................
158 (12) Environmental Check List
...........................................................................................................
162 (13) Environmental Regulation on Industrial Zones by Da Nang
City ............................................... 163 (14)
Post-resettlement Conditions Survey
...........................................................................................
163 (15)
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3. ATTACHMENT
................................................................................................................
166
3.1 Construction Cost
................................................................................................................................
166
3.2 Draft TOR for Consulting Services
....................................................................................................
170
3.3 Financial Plan
......................................................................................................................................
182
3.4 Environmental Check List
..................................................................................................................
183
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List of Figure
Figure 1-1 Da Nang Port Map
..................................................................................................................1
Figure 1-2 Flow of Study
..........................................................................................................................2
Figure 2-1 Handling Volume of Da Nang Port
.........................................................................................3
Figure 2-2 Distribution of Shippers and Consignees of Container
Cargo (Provinces) .............................7 Figure 2-3
Facilities Layout of Da Nang Port
..........................................................................................8
Figure 2-4 Container Handling Volume (TEU) of Container Ports in
CKEZ Provinces ..........................9 Figure 2-5 Industrial
Zone in CKEZ (1)
.................................................................................................17
Figure 2-6 Industrial Zone in CKEZ (2)
.................................................................................................17
Figure 2-7 Industrial Zone in CKEZ (3)
.................................................................................................18
Figure 2-8 Industrial Zone in CKEZ (4)
.................................................................................................18
Figure 2-9 Entrance of Da Nang IZ (Left) and Companies Located in
the IZ (Center, Right) ...............24 Figure 2-10 Entrance of
Hoa Cam IZ (Left), Trailers Turning Around to Enter the IZ from the
Da Nang
Port (Center), and Inland Container Depot in the IZ (Right)
..........................................................24 Figure
2-11 Entrance of Hoa Khanh IZ (Left), a Factory Complex Managed by
a Japanese Trade Firm
(Center), and Another Japanese Factory (Right)
.............................................................................25
Figure 2-12 Construction Site on the Way Connecting Hoa Khanh IZ
with Tien Sa Terminal (National
Highway No.1) (Left) and a Trailer Detouring in the City Center
(Right) .....................................25 Figure 2-13 Auto
Assembly Plant Located in Hoa Khanh Extended IZ (Left and Center),
and Road in
the IZ (Right)
..................................................................................................................................26
Figure 2-14 Factory (Left), Road (Center), and Railway Yard (Right)
in Lien Chieu IZ .......................26 Figure 2-15 Construction
Site of Da Nang Hi-tech Park (Right Picture Shows an Access Road
to
National Highway No.1)
.................................................................................................................27
Figure 2-16 Main Gate, Factory and Road of Dien Nam - Dien Ngoc IZ
..............................................28 Figure 2-17 Access
Road to Dien Nam - Dien Ngoc IZ from Da Nang Port (Left: in Da Nang
City,
Center and Right: in Quang Nam Province)
...................................................................................28
Figure 2-18 Gate (Left), Auto Assembly and Chemical Plant (Center),
and Another Auto Assembly
Plant (Right) in Chu Lai OEZ
.........................................................................................................29
Figure 2-19 Access Road (Right), Gate of Commercial Port (Center)
and a Berth of Military Port (Left)
in Ky-Ha Port
..................................................................................................................................29
Figure 2-20 Oil Storage (Left) and Road (Right) in Chan May - Lang
Co EZ and Chan May Port
(Right)
.............................................................................................................................................30
Figure 2-21 Entrance (Left), Factory (Center) and Expanded Site
(Right) of Phu Bai IZ .....................31 Figure 2-22 Current
Status of Thuan An Port
.........................................................................................31
Figure 2-23 Factory (Left), Access Road (Center), and Entrance of
Access Road from National
Highway No.1 (Right) in Tu Ha IZ
.................................................................................................31
Figure 2-24 Factory (Left), Commuter Bus (Center), and Location
Site (Right) in Phong Dien IZ ......32
-
Figure 2-25 Access Road to Phong Dien IZ from National Highway
No.1 (Left: Intersection with National Highway No.1, Center: Road
to be Improved, Right: Overpass of Railways to be Built)
........................................................................................................................................................32
Figure 2-26 Factory of Heavy Manufacturing Industry (Left) and
Wood Processing Industry (Center), and Road and Gate (Right) in
Dung Quat EZ
.................................................................................33
Figure 2-27 Private Ports in Dung Quat
EZ............................................................................................33
Figure 2-28 East-West Economic Corridor of the Greater Mekong
Subregion and Da Nang Port ........35 Figure 2-29 International
Trade Flow for Each National Border in the Northeast Thailand to
Lao PDR
........................................................................................................................................................35
Figure 2-30 Location Map of Four Sites (Site A to D) of Savan-Seno
SEZ ...........................................36 Figure 2-31
Factories Located in Site B (Left and Center) and Reserved Area
(Right) .........................37 Figure 2-32 Factory Located
(Left) and Branches of Bank Constructed (Center) in Site D and
Trailers
Stopping in the Front of Hyundai Factory (Right)
..........................................................................37
Figure 2-33 Current Status of Savan Park (Site C of Savan-Seno SEZ)
as of May 2013 ......................38 Figure 2-34 Gate (Left),
Factory (Center), and Reserved Area (Right) in Savan Park
...........................39 Figure 2-35 Improved (Left) and
Improving (Center, Right) Section of the EWEC in Lao PDR
..........39 Figure 2-36 Damaged Section of Road not Covered in the
Project (a few Similarly Damaged Sections
Remain)
...........................................................................................................................................39
Figure 2-37 National Border between Vietnam (Lao Bao, Left and
Center) and Lao PDR (Dan Savanh,
Right). Trailer Covered with a Blue Sheet in Center Picture is
Transporting Round Wood ...........39 Figure 2-38 Transshipment
Station of Containers in order to Change Chassis and Trailer
(Located near
the Checkpoint in Lao, 15 km from the National Border)
..............................................................40
Figure 2-39 Main Port Access
Roads......................................................................................................43
Figure 2-40 Major Intersections on Main Port Access Roads
................................................................45
Figure 2-41 Simple Calculation Method for Estimating Roundabout
Capacity .....................................46 Figure 2-42
Elevated Intersection at Ton Duc Thang / Truong Chinh / Dien Bien
Phu .........................50 Figure 2-43 Current Traffic
Condition at Signalized Intersection (No. 8) on Cach Mang Thang 8
Street
........................................................................................................................................................52
Figure 2-44 Traffic Diversion from Cach Mang Thang 8 Street to NH1
by New Bridges .....................53 Figure 2-45 Major Access
Road to Da Nang Port from Industrial Zone in CKEZ
.................................55 Figure 2-46 Widening from 2
Lanes to 4 Lanes and Phuoc Tuong Pass Tunnel on NH1
......................58 Figure 2-47 Site of Tho Quang Terminal
................................................................................................62
Figure 2-48 Container and General Cargo Handling Volume in Tien Sa
Port ........................................63 Figure 2-49 Current
Condition and Improvement Layout Plan
..............................................................64
Figure 2-50 Share by Each Province on Export-Container Cargo Volume
of Da Nang Port in the First
Quarter of 2014
...............................................................................................................................65
Figure 2-51 Share by Each Province on Import-Cargo Volume of Da
Nang Port in the First Quarter of
2014
................................................................................................................................................65
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Figure 2-52 Estimated Container Cargo Volume
....................................................................................69
Figure 2-53 Estimated General Cargo Volume
.......................................................................................70
Figure 2-54 Result of V/C analysis (2025)
.............................................................................................77
Figure 2-55 Recommended Terminal Layout (7A) in DFS Report
........................................................78 Figure
2-56 Distance between Face Line of Berths
................................................................................79
Figure 2-57 Comparison of Berth Layout
...............................................................................................80
Figure 2-58 Typical Cross Section of Pier and Rubble Mound
Structures .............................................80 Figure
2-59 Layout Plan prepared by Study Team
.................................................................................82
Figure 2-60 Typical Section of Apron
.....................................................................................................84
Figure 2-61 Typical Section of Container Road
.....................................................................................85
Figure 2-62 Typical Section of Truck/Passenger Road
...........................................................................85
Figure 2-63 Rate of Overtopping for Wave-Absorbing Seawall (Bottom
Slope 1/30) ...........................91 Figure 2-64 Necessary
Improvement of Breakwater as Seawall
............................................................92
Figure 2-65 Result of Stability Analysis against Circular Failure
as Seawall ........................................93 Figure 2-66
Layout of Channel and Basin
..............................................................................................95
Figure 2-67 Typical Pavement Type and Structures
...............................................................................97
Figure 2-68 Layout of Passenger-related Facilities
................................................................................98
Figure 2-69 Water- jet + Vibro-hammer for Pile Driving into Hard
Subsoil Layers ..............................99 Figure 2-70 Image
of Typical Dredgers to be used in Project
..............................................................101
Figure 2-71 Location of Dredged Material Disposal Site
.....................................................................101
Figure 2-72 Organization Structure of Da Nang Port
...........................................................................108
Figure 2-73 Organization Chart of Tien Sa Terminal & Number of
Personnel ....................................109 Figure 2-74
VINALINES and Da Nang Port Holding Limited Liability Company
............................. 110 Figure 2-75 Sub-soil Profile
along Face Line of New Container Terminal (50,000 DWT)
.................132 Figure 2-76 Seismic Intensity in
Vietnam.............................................................................................134
Figure 2-77 Project Site in Da Nang City
.............................................................................................135
Figure 2-78 Project Site in Tien Sa Terminal of Da Nang Port
............................................................136
Figure 2-79 Location of Dredged Materials Disposal Locations
..........................................................137
Figure 2-80 Aquatic and Terrestrial Sensitive Eco-system near
Project Site ........................................138 Figure
2-81 Live Corals in Mui Sung Beach on south Shore of Headland
(captured by the Study Team)
......................................................................................................................................................139
Figure 2-82 Organizational Structure of Vietnamese Environmental
Authorities ................................139 Figure 2-83 Small
Fishing Boats
..........................................................................................................142
Figure 2-84 Location of Simulation (Turbid Water Dispersion at
Dredged Material Disposal Area) ..144 Figure 2-85 Construction
Photos in Phase 1 and Location of Potential On-land Disposal Area
..........145 Figure 2-86 Image of On-land Dredged Material
Disposal Site
...........................................................146
Figure 2-87 Organization Chart for Environmental Management Program
.........................................151 Figure 2-88 Location
of Monitoring Points
..........................................................................................152
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Figure 2-89 Existing Chip Factories in Tien Sa
Terminal.....................................................................158
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List of Table
Table 2-1 Handling Volume Trend of Da Nang port
.................................................................................4
Table 2-2 Handling Record for Container, 2013
.......................................................................................4
Table 2-3 Number of Ships at Da Nang Port
............................................................................................5
Table 2-4 Expected Container Vessels Schedule at Tien Sa Port
..............................................................6
Table 2-5 Handling Equipment of Da Nang Port
......................................................................................7
Table 2-6 Scale of Main Facilities at Tien Sa Terminal
............................................................................8
Table 2-7 Industrial Output Value (at Current Prices)
............................................................................
11 Table 2-8 Total Retail Sales of Goods and Services of CKEZ
Provinces ...............................................12 Table
2-9 Import-Export Turnover of Goods of CKEZ Provinces
.........................................................13 Table
2-10 GDP of CKEZ
.......................................................................................................................14
Table 2-11 Socio Economic Index of CKEZ in 2012
.............................................................................14
Table 2-12 Industrial Zones in CKEZ
.....................................................................................................16
Table 2-13 Owners and Operators of Neighboring Ports
........................................................................21
Table 2-14 Locator’s Operation in Industrial Zones in CKEZ (1)
..........................................................22 Table
2-15 Locator’s Operation in Industrial Zones in CKEZ (2)
..........................................................23 Table
2-16 Summary of Each Site of the Savan-Seno SEZ
....................................................................37
Table 2-17 Tourism Activity of Da Nang city
.........................................................................................42
Table 2-18 Outline of Main Port Access Roads
......................................................................................44
Table 2-19 Capacity of General Sections on Main Port Access
Roads...................................................44 Table
2-20 Outline and Capacity of Major Intersections on the Major Port
Access Roads ....................46 Table 2-21 Description of
Traffic Condition by Classification of V/C at General Section
....................50 Table 2-22 V/C Analysis Result at General
Section (2012)
....................................................................51
Table 2-23 VIS/CIS Analysis Result at Intersection (2012)
......................................................................51
Table 2-24 Outline of Major Access Roads from Industrial Zone in
CKEZ ..........................................56 Table 2-25 Number
of Container Ships Under Service in East and South East Asia and
Ratio of
Receivable Container Ships at (-12m) and (-14m)
Terminals.........................................................61
Table 2-26 Shift of Medium Size Ship to Intra Region (Cascading)
(2012-2013) .................................61 Table 2-27 Da Nang
Port Handling Cargo Volume in the Past Decade
..................................................64 Table 2-28
Cargo Volume Through Via Tien Sa Terminal and Han River Terminal
..............................68 Table 2-29 Estimated Cargo Volume
......................................................................................................69
Table 2-30 Cruise Ship Regularly Called at Da Nang Port
(2013.12~2014.2) .......................................71 Table
2-31 Passenger Ships at Tien Sa Port
............................................................................................71
Table 2-32 Forecast of Passengers at Tien Sa Port
.................................................................................71
Table 2-33 Calculation of Present Berth Capacity
..................................................................................72
Table 2-34 Traffic Demand of Tien Sa Port based on Cargo Demand
....................................................73 Table 2-35
Comparison of Forecasted Traffic Demand in 2025
.............................................................74
-
Table 2-36 V/C Analysis at General Section (2025)
...............................................................................75
Table 2-37 VIS/CIS Analysis at Intersection (2025)
.................................................................................76
Table 2-38 Area of Container Stacking Yard
..........................................................................................81
Table 2-39 Operational Conditions for Calculation of Container
Handling Capacity ............................83 Table 2-40
Calculation of Container Handling Capacity in Existing Terminal
(Phase 1) ......................83 Table 2-41 Calculation of
Container Handling Capacity in New Terminal (Phase 2)
............................83 Table 2-42 Alternatives for
Comparison of Berth Structure
...................................................................86
Table 2-43 Comparison of New Container Berth (50,000 DWT) Structure
...........................................87 Table 2-44 Comparison
of New Container Berth (50,000 DWT) Structure
...........................................88 Table 2-45 Comparison
of New Container Berth (50,000 DWT) Structure
...........................................89 Table 2-46 Summary of
Comparison of New Container Berth (50,000 DWT) Structure
......................89 Table 2-47 Construction Cost of
recommended Structural Alternatives reviewed by PMU85
..............90 Table 2-48 Damage Limit Rate of Overtopping Wave
...........................................................................91
Table 2-49 Estimation of required Maintenance Dredging Volume
.......................................................96 Table
2-50 Typical Pavement Type and Structures
.................................................................................97
Table 2-51 Calculation of Buckling during Pile Driving Works
...........................................................100
Table 2-52 Construction Schedule
........................................................................................................102
Table 2-53 Summary of Estimated Project Cost
...................................................................................104
Table 2-54 Possible Implementation Schedule
.....................................................................................105
Table 2-55 Owners and Operators of Neighboring Ports
......................................................................107
Table 2-56 Financial Situation of Da Nang Port
...................................................................................109
Table 2-57 Companies Operating Container Terminals in Vietnam
(2013) .......................................... 112 Table 2-58
Record of Dredging Volume in Da Nang Port
....................................................................
113 Table 2-59 Operation Indicator and Efficient Indicator
........................................................................
114 Table 2-60 Key Characteristics of the New Terminal
...........................................................................
115 Table 2-61 Volume of TEU and Number of Container Ship via the
Terminal ...................................... 115 Table 2-62
Investment Cost and ODA Loan
.........................................................................................
116 Table 2-63 Unit Revenues of Port Operation
........................................................................................
116 Table 2-64 Cost of Equipment
..............................................................................................................
117 Table 2-65 Unit Costs for Terminal Operation
.....................................................................................
118 Table 2-66 Result of Financial Analysis
...............................................................................................
119 Table 2-67 Result of Sensitivity Analysis
.............................................................................................
119 Table 2-68 Financial Analysis (Base Case) [Steel Pipe Pile
Structure] ................................................120
Table 2-69 Sensitivity Analysis (10% Cost Increase Case) [Steel
Pipe Pile Structure] ........................121 Table 2-70
Sensitivity Analysis (10% Container Volume Growth Rate Decrease
Case) [Steel Pipe Pile
Structure]
......................................................................................................................................122
Table 2-71 Result of Financial Analysis
...............................................................................................123
Table 2-72 Result of Sensitivity Analysis
.............................................................................................123
-
Table 2-73 Financial Analysis (Base Case) [Concrete Bored Pipe
Pile Structure] ...............................124 Table 2-74
Sensitivity Analysis (10% Cost Increase Case) [Concrete Bored Pipe
Pile Structure].......125 Table 2-75 Sensitivity Analysis (10%
Container Volume Growth Rate Decrease Case) [Concrete Bored
Pipe Pile Structure]
.......................................................................................................................126
Table 2-76 Items Included in the Benefit Calculation
..........................................................................127
Table 2-77 Result of Economic Analysis
..............................................................................................128
Table 2-78 Result of Sensitivity Analysis
.............................................................................................128
Table 2-79 Economic Analysis (Base Case)
.........................................................................................129
Table 2-80 Sensitivity Analysis (10% Cost Increase Case)
..................................................................130
Table 2-81 Sensitivity Analysis (10% Container Volume Growth Rate
Decrease Case) ......................131 Table 2-82 Sub-soil
Characteristics along New Container Berth
.........................................................133 Table
2-83 Comparison of Project Site
.................................................................................................141
Table 2-84 Results of Natural Environmental Conditions Survey
........................................................142 Table
2-85 Impact Assessment
..............................................................................................................146
Table 2-86 Environamtal Management Plan: EMP
..............................................................................148
Table 2-87 Air Quality Monitoring
.......................................................................................................152
Table 2-88 Coastal Water Quality Monitoring
......................................................................................153
Table 2-89 Waste Monitoring
...............................................................................................................153
Table 2-90 Noise Monitoring
................................................................................................................153
Table 2-91 Vibration Monitoring
..........................................................................................................154
Table 2-92 Sediment Quality Monitoring
.............................................................................................154
Table 2-93 Areal Impacts Monitoring
...................................................................................................154
Table 2-94 Traffic Safety Monitoring
...................................................................................................155
Table 2-95 Infectious Disease Monitoring
............................................................................................155
Table 2-96 Cost for Environmental Management and Monitoring by ES
and IEMC...........................155 Table 2-97 Proposed
Monitoring Forms
...............................................................................................159
-
1
Lien Chieu port Tien Sa port
Song Han port
Da Nang Bay
1. Approach of Study
This Study has been carried out for Tien Sa - Da Nang Port
Improvement Project (Phase 2) (the Project), in a such approach
that Draft Feasibility Study Report for Tien Sa Terminal - Da Nang
Port Improvement Project (Phase 2) in Da Nang prepared by Project
Management Unit 85 (PMU85) of Ministry of Transport (MOT) in 2014
(the DFS Report), will be reviewed and supplemented with necessary
data and information by the JICA Study Team, and results of the
Study has been discussed with MOT for implementation of the Project
under agreement between JICA and MOT. The following understandings
and viewpoints on the Project are basis of this Study.
1.1 Project Background
Da Nang port, consisting of Tien Sa port, Song Han port, Lien
Chieu port and some specialized ports as shown in Figure 1-1, is
the 3rd largest national port following Saigon port in south and
Hai Phong port in north in terms of cargo handling volume in the
ports. It is said that Da Nang port is a potential gate port on the
eastern end of the East-West Economic Corridor, which runs through
Indochina countries, i.e. Vietnam, Laos, Thailand and Myanmar.
Therefore, The Overseas Economic Cooperation Fund (OECF) conducted
Special Assistance for Project Formation (SAPROF) Study for Da Nang
Port Expansion Project in 1998, which has recommended improvement
of Tien Sa port as Phase 1, expansion of Tien Sa port as Phase 2
and new port construction in Lien Chieu port as Phase 3 in the
project.
In the agreement on the above development scenario between OECF
and MOT, Da Nang Port Improvement Project (Phase 1) was implemented
from 1999 to 2004 under Japanese ODA loan. After completion of
Phase 1 of the project, cargo handling volume in Tien Sa port has
been steadily increased by 4.4 million tons per year in 2012
exceeding its planned capacity.
Additionally, recent increase in port calls of international
passenger ships and solid economic growth of the countries along
the East-west Transport Corridor are definite reasons for urgent
necessity of the Project. In these circumstances, the DFS Report
has been prepared in 2014 by PMU85.
Aiming at realization of the Project, the DFS Report is
supplemented in this Study, in aspects of competitive port
operation and management, consistency with hinterland development,
etc.
Figure 1-1 Da Nang Port Map
Source: Da Nang Peoples Committee” Da Nang City Development
Master Plan, 2002”
Tho Quang
-
2
1.2 Flow of Study
This Study has been proceed as shown in Figure 1-2, following
the primary steps below.
Flow of Study
Jun
Jul -
Aug
Sep
Oct Nov
Figure 1-2 Flow of Study
2. Review of DFS Report
2.2 Background and Necessity of Project
(3) Current trend and policy of industrial developments in Da
Nang port hinterlands
(5) Current condition of road and railway network and industrial
zones in Central Vietnam hinterlands
(8) Necessity of project
(6) General concept of Da Nang port development
2.7 Implementation Schedule
2.4 Procurement Method
2.13 Environmental Considerations
2.5 Draft TOR for Consulting Services
(4) Activities of overseas aid organizations to ports projects
in Vietnam
2.9 Management System of Port Development in Central Vietnam
2.10 Structure and Budget for Maintenance and Operation
2.11 Operational Efficiency and Economic and Financial
Analysis
Preparation and Presentation of Inception Report (ICR)
Preparation and Presentation of Interim Report (ITR)
Preparation and Presentation of Draft Final Report (DFR)
Preparation and Presentation of Final Report (FR)
2.1 Objective of Project
(1) Current condition of Tien Sa port
2.8 Implementation Structure of Project
2.12 Natural Conditions Study
2.3 Project Scope
(7) Traffic demand for Tien Sa port
(2) Issues of Da Nang port and other ports in Vietnam
2.6 Project Cost and Financial Plan
-
3
2. Review of DFS Report
2.1 Objective of Project
The Project aims to improve Tien Sa port, which is a main
terminal of Da Nang port. Hinterlands of Da Nang port are Da Nang
city, which is the 3rd largest city in Vietnam and Central Vietnam
region. Also Da Nang port is expected to play an important role for
the economic development of East-West Economic Corridor countries
as its gateway to East Sea. The improvement of the Tien Sa port
shall meet the sea traffic demand derived from social and economic
development of hinterland regions.
Da Nang port consists of Tien Sa port, Han River port, some
specialized ports and Lien Chieu port as the space for future
expansion. The improvement of Tien Sa port shall take a functional
division among such ports into consideration.
2.2 Back Ground and Necessity of Project
Current Condition of Tien Sa Port (1)
1)Handling Volume Trend for Container, General Goods and
Passengers
Tien Sa Terminal is under control of The Da Nang Port. The total
cargo volume in the Tien Sa Terminal and the Han River Terminal in
2013 was 5.01 million tons with average growth ratio of 12.8% for
the period of 2008 - 2013. Container volume in the Tien Sa Terminal
in 2013 was 167 thousand TEU
Figure 2-1 Handling Volume of Da Nang Port
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
2008 2009 2010 2011 2012 2013
Throughput (Da Nang port)
Total General Cargo Container
(t)
-
4
Table 2-1 Handling Volume Trend of Da Nang port
No. Criteria Unit 2008 2009 2010 2011 2012
2013 Average
growth (%)
I
Total Ton 2,742,257 3,132,343 3,303,036 3,868,545 4,423,388
5,010,238 12.8%
Import Ton 525,906 603,365 645,617 784,891 907,818 1,345,060
Export Ton 1,230,793 1,352,212 1,388,924 1,598,134 1,988,074
2,361,018
Domestic Ton 985,558 1,176,766 1,268,495 1,485,520 1,527,496
1,304,160
II
General Cargo Ton 2,113,242 2,399,659 2,365,880 2,577,800
2,856,054 3,168,321 8.4%
Import Ton 166,001 196,594 160,145 195,594 297,874 594,508
Export Ton 969,257 1,049,545 979,566 934,672 1,121,141
1,592,646
Domestic Ton 977,984 1,153,520 1,226,169 1,447,531 1,437,039
981,167
III
Container TEU 61,881 69,720 89,199 114,373 144,555 167,447
22.0%
Ton 629,015 732,684 937,156 1,290,745 1,567,334 1,841,917
Import TEU 26,616 30,304 34,977 46,888 54,423 68,232
Ton 359,905 406,771 485,472 589,297 609,944 750,552
Export TEU 29,770 31,428 41,312 51,997 61,347 69,852
Ton 261,536 302,667 409,358 663,462 866,933 768,372
Domestic TEU 5,495 7,988 12,910 15,488 28,785 29,363
Ton 7,574 23,246 42,326 37,986 90,457 322,993
Ⅳ Passenger person 29,642 30,129 32,047 38,190 40,888 115,912
31.4%
Source: DPC
with average growth ratio of 22.0% for the period of 2008 -
2013. General cargo volume in 2013 was 3.168 million in 2013 with
average growth ratio of 8.4% for the period of 2008 - 2013.
Passenger via the port was about 40 thousand persons in 2013 with
average growth ratio of 31.4%for the period of 2008 - 2013.
Regarding container cargo in particular, Da Nang port handled
container cargo of 167,447TEU, and their profiles detailed by size,
laden or empty and reefer is as shown in Table 2-2.
Table 2-2 Handling Record for Container, 2013
IMPORT EXPORT TOTAL
20’ 40’ 45’ TEUs 20’ 40’ 45’ TEUs 20’ 40’ 45’ TEUs
2013 29,246 27,444 209 84,552 28,373 27,035 226 82,895 57,619
54,479 435 167,447
LADEN 23,402 23,097 10 69,616 24,280 18,120 224 60,968 47,682
41,217 134 130,584
EMPTY 5,844 4,347 199 14,936 4,093 8,915 2 21,927 9,937 13,262
201 36,863
REEFER
(Boxes)
223 1,646 0 3,515
(1,869)
756 2,652 0 6,060
(3,408)
979 4,298 0 9,575
(5,277)
Source: DPC
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5
2)Vessels
Tien Sa Terminal is a multipurpose terminal used for container
vessels, general cargo vessels, bulk (wood chips) carriers and
domestic cargo vessels. The number of ships arriving at Da Nang
port has been increasing gradually reflecting current traffic
growth.
Table 2-3 Number of Ships at Da Nang Port
2008 2009 2010 2011 2012 2013
General cargo ship 663 661 672 785 868 865
Container ship 303 363 383 465 551 577
Passenger ship 50 51 52 53 57 93
Source: DPC
Seven international and three domestic container shipping lines
are providing weekly services via Tien Sa for Intra-Asian countries
as shown in Table 2-4. Most of them are feeder services to trunk
ports such as Hong Kong, Singapore or Kaoshun where container are
transshipped for last destination, not only for Asian countries but
for American or European countries. Wanhai line is the only line
which provides a direct service via HCM and Taiwan ports to Japan
with round schedule of 10 days. Medium size container vessels with
around 10,000~20,000DWT are arranged.
According to a shipping line, they are probable to increase
their calls potentially able to provide a direct service at Da Nang
Port depending on the market by their own arrange or by Space
Charter system.
-
6
Table 2-4 Expected Container Vessels Schedule at Tien Sa
Port
As of June, 2014
SHIPPING LINE NAME OF VESSEL GRT DWT LOA PORT OF CALL
FOR
EIG
N
ACL JOST 16,137 17,157 161 DAD-UIH-SIN-HPG-DAD 1,200-1,400TEU
weekly(1) HS PUCCINI 16,162 17,350 162
GEMADEPT PACIFIC EXPRESS 8,333 11,117 129 DAD-HPG-HKG-DAD-SGN
700TEU weekly(1) PACIFIC PEARL 8,957 11,064 133
MMC Transpor WARNOW MASTER 17,068 21,146 180 DAD-HKG
1,800-2,200TEU Feeder line of Maersk Line MEDPERL 17,068 21,281
180 DAD-KLG-HKG
weekly(2) WARNOW BOATSWAIN 17,069 21,281 180 DAD-SIN-TPP(Tanjung
Pelepas) LEOPARD 16,801 22,985 184
SAMUDERA SHIPPING LINE LTD
SINAR BINTAN 13,576 17,815 148
DAD-UIH-SIN-HPG-DAD 1,100-1,200TEU
Feeder line of NYK Line SINAR BUTON 12,545 15,210 147
weekly(1) SINAR BANDUNG 12584 14984 147 SINAR BRANI 12,559
15,204 147 SITC Container Lines
ICE STAR 7,545 8,143 130 DAD-HKG 1,100TEU
weekly(1) CONTSHIP ACE 7,170 8,279 133 WAN HAI LINES WANHAI 232
17,751 21,008 191
TYO-YOK-HKG-SGN-DAD-HKG-SKU-XIA-TYO
1,800-2,200TEU weekly(2) WANHAI 263 18,872 23,635 198 WANHAI 271
15,334 18,471 172 DAD-SGN-TCG-TPE-
HKA-MIZ-UKB-OSA-PUS-KLG-TCG-KHH-DAD
WANHAI 261 18,872 23,672 198
Yang Ming YM HAWK 15,167 19,104 168 DAD-HKG 1,500TEU
weekly(1) YM HARMONY 15,167 19,104 168
DO
MES
TIC
BIENDONG BIEN DONG FREIGHTER 5,725 7,082 125 HPH-DAD-HPH
700TEU
monthly(4) VAN LY 4,879 6,832 113 VINAFCO
VINAFCO 25 4,159 5,778 98 HCM-DAD 700TEU monthly(2) VIETNAM
NATIONAL SHIPPING LINES
VINALINES DIAMOND 9,957 13,719 148 DAD-VTU-DAD-SGN-DAD
1,100TEU
weekly(1) VINALINES DIAMOND 9,957 13,719 148
Port's Code Index HKG Hong Kong SIN Singapore
VIETNUM DAD Da Nang UIH Qui Nong HPH Haiphong: SGN Hochimin VTU
Vongtau
CHINA SKU Shekou XIA Xiamen
KOREA PUS Busan
TAIWAN TCG Taichung KHH Kaoshung KLG Keelumg
JAPAN TYO Tokyo YOK Yokohama HKA Hakata OSA Osaka MIZ
Mizushima
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7
3)Regional Distribution of Shippers and Consignee
Container cargo from/to Da Nang city occupies Da Nang port and
most of other provinces. However those from/to other provinces in
total are over Da Nang’s cargo.
Figure 2-2 Distribution of Shippers and Consignees of Container
Cargo (Provinces)
4)Handling Operation
Equipment being used for cargo handling is shown in Table 2-5.
There is no heavy traffic in the terminal, however container boxes
are fully stacked in many places of the container yards.
Table 2-5 Handling Equipment of Da Nang Port
Equipment Quantity(unit) Capacity Quayside container crane 2
36MT/50MT
Rubber tired gantry crane(RTG) 3 36MT Shore crane 2 40MT
Reach stacker 4 42MT Clamp loader 2 5MT Mobile crane 25
10-80MT
Forklift 32 1.5-22MT Tractors, Dump trucks 35 20-40MT
Tugboat 7 500-1,700HP CFS 1 2,160m2
Electric weight bridge 4 80MT Reefer plug 75 points
Source: DPC
Thua Thien Hue13%
Da Nang44%
Quang Nam33%
Quang Ngai8%
Binh Dinh1% Others
1%
Da Nang port container (export + import) hinterlands
(provinces)
-
8
5)Facilities
Existing facilities (layout and scales) of Tien Sa port are as
follows. General cargo are handled at Pier 1~2 (Berth 1~4) and
container cargo is handled at Berth5. Passenger ships arrive mainly
at Berth 1.
Figure 2-3 Facilities Layout of Da Nang Port
Table 2-6 Scale of Main Facilities at Tien Sa Terminal
No. Items Unit Scale Remark I Berths m 965 1 Berth1(General
cargo, Passenger ship) m 185 Depth-11m(CD)
2 Berth2(General cargo) m 185 Depth-10m(CD) 3 Berth3(General
cargo) m 185 Depth-10m(CD) 4 Berth4(General cargo) m 185
Depth-11m(CD) 5 Berth5(Container cargo) m 225 Depth-12m(CD)
I Warehouses ha 1.4 II Container Freight Station(CFS) m2 1,590
III Yard ha 10.68
1 General yard ha 4.4 2 Container yard ha 6.28
Ⅳ Office & Workshop 1 Office building m2 769.5 2 Customs,
agency offices m2 286.7 3 Amenity building m2 450 4 Guard house m2
40 5 Mechanical workshop m2 800 6 Fuel supply station 1 7 Power
supply station 4 8 Main gate gate 1 4in/out lanes 9 Container gate
gate 1 4in/out lanes
Source: DPC, JICA Study Team (General cargo yard)
Berth1
Berth2 Berth3
Berth4
Berth5
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9
Issues of Da Nang Port and Other Ports in Vietnam (2)
-Importance of Tien Sa Port in Container Handling
These days increase of container cargo at Tien Sa port has
steadily increased with 22.0% growth rate and the throughput (TEU)
reached to 167,000TEU in 2013 which is about 2.4 times of 2008
throughput. As shown in Fig 2-2, handling volume at neighboring
provinces are not yet enough due to lack of facilities such as no
breakwater, poor container equipment, Tien Sa’s container handling
is inevitable for the industries of hinterland regions. Only Qui
Nhon port has comparable facility for container handling, however
these ports do not compete in container handling market since the
distance between Tien Sa and Qui Nhon is about 300 km. Until the
improvement of these port facilities in accordance with the port
master plan of MOT, Da Nang will continue to attract cargoes from
outside provinces.
-Centralization of Tien Sa Port in Container Handling
Tien Sa port has been closer to neighboring province by the
improvement of trunk roads (AH1). Also the enforcement of
regulation on overloading truck makes truck operators decrease the
long whole transportation to HCM or Hi Phong from Da Nang
hinterlands. So Tien Sa has become more important than other
ports.
Figure 2-4 Container Handling Volume (TEU) of Container Ports in
CKEZ Provinces
-Congestion of Container Yard
Container handling volume mostly reaches the capacity of the
port from viewpoint of container yard space. Container boxes are
sometimes laid outside the yard. In such a congested situation,
handling efficiency has been decreased due to lack of enough space
for handling.
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2008 2009 2010 2011 2012
TEU
Container throughput
Tien Sa
Ky Ha-Quang Nam
Gemadept-Quan Ngai
Qui Nhon-BinhDinh
-
10
-Operation Management
According to a certain locator, cranes sometimes got out of
order and had to wait for receiving the imported container and this
happens few times a year. Enforcement of daily maintenance is
necessary and alternative equipment for such accident time should
be prepared. Even if such an accident is rare case, the issue is
critically serious for companies who ship cargo often via the
port.
-High Shipping Cost
According to JETRO and locator’s interviews, transportation cost
to export or import container by sea route from Da Nang port is
much higher than from HCM port. This is because vessels’ tariff are
set to cover the cost for additional call to Da Nang port to
shippers. Even so, locators in Da Nang city and neighboring
provinces use Da Nang port since that full container trucking cost
to HCM is higher than the cost difference between Da Nang port and
HCM port. Locators find more merits in low wage cost in operating
in Da Nang city and neighboring provinces than the high shipping
cost compared with HCM shipping.
-Small Number of Direct Call
The number of container vessels which called at Tien Sa in 2013
was 577, while 303 ships in 2008. Currently about 10 container
lines , which ever direct or feeder (to be reloaded), regularly
arrive at Tien Sa container terminal. Generally locators in Da Nang
have no critical inconvenience to the frequency of calls since they
can adjust their shipping in accordance with ship’s call schedule.
However some heavy users who ship many TEUs hope that more direct
will be scheduled for the reason that direct lines provide schedule
with less lead time and safer shipment. According to a certain
vessel line, whether direct call is arranged or not depends the
volume loaded/unloaded at the port and destinations of those
containers. The number of TEU load/unload increased from 204 in
2008 up to 290 in2013. As long as economic activities in hinterland
will be grown, more direct calls may be possible.
-Small Number of Vessel Line Schedules via Tien Sa
There are some locaters who are designated by their customers to
ship at HCM for the total shipping cost and lead time to the
destination. These locators suffer from the cost for trucking
from/to HCM. These cases reflect the small number of vessel lines
schedules via Tien Sa which satisfy their customers with the
shipping schedule and cost.
-Limited Number of Users
General cargo handled at Tien Sa was 2,075 (000ton) in 2013. It
is estimated by interview to locators that 70% of the volume is
occupied by only 3 exporting locators (wooden chips and sand
products). For the vessel line, WANHAI is the only container liner
to going to Japan ports. Users of this port should be more
diversified for a sustainable management of the port, which also
depends on how much handled volume
-
11
will be increased.
Current Trend and Policy of Industrial Developments in Da Nang
Port Hinterlands (3)
Da Nang port hinterland is divided into 2 categories, CKEZ area
which is composed of five (5) provinces (Da Nang City, Thua Thien -
Hue, Quang Nam, Quang Ngai, Binh Dinh) and East-West Economic
Corridor areas. East-West Economic Corridor areas are defined as
those along the projected road through Myanmar, Thailand, Laos and
Vietnam, which was proposed by ADB.
1)Current Situation of CKEZ
The population of CKEZ in the year is 6.7 million people which
is about 7% of the whole country.
The industrial value of CKEZ has been increasing at average
growth rate of 51.5% as shown in Table 2-7, much greater than that
of the whole country (24.8%). As a result, its occupancy to the
whole nation has increased up to 6.1% in 2012 from 2.82% in
2008.
Table 2-7 Industrial Output Value (at Current Prices)
(Unit: billion VNDs)
No. Region Industrial output value at current prices Average
growth (%)
2008 2009 2010 2011 2012
I Whole country 1,903,128 2,298,087 2,963,500 3,695,092
4,627,733 24.87
II CKEZ 53,761 82,133 173,214 223,953 283,049 51.5 1 Hue 7,232
8,854 13,524 17,570 22,715 33.13 2 Da Nang 16,350 18,914 23,943
30,308 36,341 22.10
3 Quang Nam 12,491 15,816 20,640 33,440 46,343 38.79 4 Quang
Ngai 6,042 25,505 98,468 122,974 153,894 124.65 5 Binh Dinh 11,646
13,044 16,640 19,660 23,756 19.51
III % Region / Whole country
2.82 3.57 5.84 6.06 6.12
Source: Statistical Yearbook
As shown in Table 2-8, total retail sales of goods and services
of CKEZ has been increasing at average growth rate of 27.6%, just
greater than that of the whole country (23.2%). All provinces
except for Binh Dinh had average growth rates fairly exceeding that
of the whole country.
-
12
Table 2-8 Total Retail Sales of Goods and Services of CKEZ
Provinces
(Unit: billion VNDs)
No. Region 2008 2009 2010 2011 2012 Average growth
(%)
I Whole country 1,007,214 1,238,145 1,614,078 2,004,361
2,324,400 23.25
II CKEZ 63,215 81,180 102,621 128,719 167,809 27.64 1 Hue 9,275
10,961 14,584 17,584 33,259 37.61 2 Da Nang 18,435 26,867 34,103
43,976 51,873 29.52
3 Quang Nam 8,956 11,155 14,179 17,490 23,937 27.86 4 Quang Ngai
10,713 13,400 17,230 21,539 25,482 24.19 5 Binh Dinh 15,836 18,797
22,525 28,130 33,259 20.38
III % Region / Whole country
6.28 6.56 6.36 6.42 7.22
Source: Statistical Yearbook, current price
The export turnover of CKEZ has been increasing at average
growth rate of 18.8%, greater than that of the whole country (16.3
%) as shown in Table 2-9. As a result, its occupancy to the whole
nation has a little bit increased up to 2.38 % in 2012 from 2.19 in
2008. Hue and Quang Ngai had much greater average growth rates than
that of the whole country, while Da Nang and Binh Dinh had the less
rates. The import turnover of CKEZ has been increasing at average
growth rate of 15.3%, much greater than that of the whole country
(9.0 %) as shown in Table 2-9. As a result, its occupancy to the
whole nation has increased up to 2.53 % in 2012 from 2.02% in 2008.
Hue and Quang Ngai had much greater average growth rates than that
of the whole country, while other provinces had the less rates.
-
13
Table 2-9 Import-Export Turnover of Goods of CKEZ Provinces
(Unit: million USD)
No. Region 2008 2009 2010 2011 2012 Average growth
(%)
Export turnover of goods
I Whole country 62,690 57,100 72,190 96,910 114,570 16.3
II CKEZ 62,690 57,100 72,190 96,910 114,570 18.8
1 Hue 1,371.653 1,393.85 1,838.337 2,127.287 2,727.886 44.5
2 Da Nang 107.682 145.399 259.514 380.432 469.022 11.9
3 Quang Nam 575.287 509.000 633.685 778.824 903.011 19.5
4 Quang Ngai 238.684 235.561 256.607 421.380 486.410 63.4
5 Binh Dinh 60.000 182.224 270.045 252.361 428.200 7.9
III % Region / Whole country
2.19 2.44 2.55 2.20 2.38
Import turnover of goods
I Whole country 80,710 69,950 84,800 106,750 113,790 9.0
II CKEZ 1,632.503 2,782.985 4,766.550 5,970.970 2,881.951
15.3
1 Thua Thien Hue 81.730 113.365 208.259 255.594 336.005 42.4
2 Da Nang 638.253 651.758 704.778 828.823 880.722 8.4
3 Quang Nam 391.340 413.010 521.632 665.780 475.020 5.0
4 Quang Ngai 375.180 1,472.097 3,349.602 4,473.116 1,040.358
29.0
5 Binh Dinh 146.000 155.800 161.700 154.500 175.000 4.6
III % Region / Whole country
2.02 3.98 5.62 5.59 2.53
Source: Statistical Yearbook (Provincial)
GDP of CKEZ has been increasing at average growth rate of 11.7%,
much greater than that of the whole country (5.8 %) as shown in
Table 2-10. As a result, its occupancy to the whole nation has
increased up to 8.85 % in 2012 from 7.08 in 2008. All provinces had
2~3 times (Binh Dinh 1.6 times, Quang Ngai 2.9 times) greater
average growth rates than that of the whole country.
-
14
Table 2-10 GDP of CKEZ
(2010 constant price)
Item Year Average
growth (%)
2008 2009 2010 2011 2012
Nation 1,923,749 2,027,590 2,157,828 2,292,483 2,412,778
5.8%
CKEZ 100,602 112,726 130,228 143,552 156,400 11.7% Thua Thien -
Hue 15,352 17,030 19,157 21,212 23,239 10.9%
Da Nang 24,809 27,469 30,788 34,513 37,413 10.8%
Quang Nam 19,613 21,779 24,611 27,708 30,903 12.0%
Quang Ngai 17,764 21,495 29,276 31,131 33,422 17.1%
Binh Dinh 23,064 24,953 26,396 28,988 31,423 8.0%
% Region / nation 5.23% 5.56% 6.04% 6.26% 6.48% Source:
Statistical yearbook(provincial), IMF World Economic Outlook
Database
As shown in Table 2-11, GDP per capita of Da Nang city is about
two times of those of other provinces.
Table 2-11 Socio Economic Index of CKEZ in 2012
Hue Da Nang Quag Nam Quang Ngai
Binh Dinh CKEZ
Population(000 person) 1,114 973 1,450 1,227 1,501 6,268
17.6% 15.5% 23.1% 19.6% 23.9%
Industrial Output Value(B.VND) 23 36 46 154 24 283
8.1% 12.7% 16.2% 54.4% 8.4%
Retail sales and service(Tr.VND) 33 52 24 25 33 169
19.5% 30.7% 14.2% 14.8% 19.5%
Export turnover(M.USD) 469 903 486 428 528 2,728
17.1% 32.8% 18.1% 12.7% 19.0%
Import turnover(M.USD) 336 880 475 1,040 175 2,881
11.7% 30.5% 16.4% 35.0% 6.3%
GDP(B.VND,2010 constant) 23,239 37,413 30,903 33,422 31,423
54,327
14.9% 23.9% 19.8% 21.4% 20.1%
Per capita GDP (Th. VND,2010 constant) 20,861 38,451 21,312
27,239 20,935 -
(Deviation) 0.46 1 0.47 0.60 0.46
Source: Statistical year book (provincial), IMF World Economic
Outlook Database Note: Lower column presents shares between
CKEZ
-
15
2)Development Policies
CKEZ (a)
According to 「Socio-economic development of the Central Vietnam
key economic region till 2010, with a vision to 2020] aims
following major development objectives」(Decision no.
148/2004/QD-TT), social and economic policy of CKEZ has been
oriented as follows:
- To attain an annual GDP growth rate of 1.2 times and 1.25
times the national average GDP growth rate in the 2006-2010 and
2011-2020 periods respectively.
- To increase the average per-capita annual export value from
USD 149 in 2005 to USD 375 by 2010 and USD 2,530 by 2020.
So far this goal has been attained since GDP in CKEZ increased
with average growth rate of about 2 times of nation’s, as shown in
the Table 2-11. And the plan has listed major solutions to promote
the development of following key branches and fields.
- To speed up investment in the construction of Chu Lai open
economic zone (Quang Nam province), Dung Quat economic zone (Quang
Ngai province) and Chan May economic-commercial development
promotion zone (Thua Thien Hue province), and to plan the
construction of Nhon Hoi economic zone (Binh Dinh province), so
that these economic zones can gradually become the region's
development nucleus and centers after 2010.
- To promote the role of Da Nang, Hue and Quy Nhon cities as
commercial, service and international transaction centers to assume
the commercial, service and transaction functions as well as the
role of a tourist center of the whole Central Vietnam and the
Central Highlands.
These planned solutions have been promoted to the effect.
Industrial output value of CKEZ has grown with more rate than that
of the nation. And the role of Hue and Da Nang as commercial center
has been strengthened since that growth rates of retail sales and
services in Hue and Da Nang are more than those in other provinces
of CKEZ.
Da Nang City (b)
According to the socio-economic development master plan of Da
Nang city 「Da Nang city’s socio –economic development through
2020」(Decision no. 1866/QD-TTg of the Prime Minister on
08/10/2010), development policy has been oriented as follows:
- To make economic restructuring towards service-industry and
raising growth quality towards industrialization and modernization,
turning the city into an economic, cultural, scientific and
technological center of the region, which joins its neighbor cities
to form a North-South economic corridor.
-
16
- To build and develop Da Nang city into a large urban center of
the country, a socio-economic center of the Central region, serving
as an important service and seaport center and a hub for
international and domestic goods transportation and transshipment;
a postal and telecommunications as well as financial and banking
center: one of the health, cultural, sports, educational and
training, scientific and hi-tech centers of the Central region.
- To restructure the economy towards service- industry,
construction-agriculture, which by 2020 will be proportionately as
follows: service - 55.6%, industry and construction 42.8%;
agriculture -1.6%;
- To maintain an annual economic growth rate of 12-13%, turning
Da Nang into a city capable of motivating economic development of
surrounding localities;
The direction for service industry has been promoted strongly in
Da Nang city, which is confirmed by interviews to locators at Da
Nang IZ. This target has been attained so far since that output
value of agriculture, forestry and aquaculture decreased only in Da
Nang city among other CKEZ provinces, while average growth rate of
retail sales of goods and services of Da Nang city is highest of
all CKEZ provinces. As for GDP growth, average growth rate was
11.2% for 2008~2012, a little bit lower than the goal targeted in
the master plan.
3)Current Situation of Industrial Zones
General Review (a)
Industrial Zones have been driving force of industrial
development. IZ located in CKEZ is shown in Table 2-12. Information
has been obtained from these IZs.
Table 2-12 Industrial Zones in CKEZ
CKEZ Provinces Industrial Zones(IZ)
Da Nang City Da Nang Aquatic Product Service, Da Nang, Hoa
Khanh, Expanded Hoa Khanh, Lien Chieu, Hoa Cam
Thua Thien - Hue Phu Bai, Tu Ha, Phong Dien, Phu Da, La Son,
Quan Vinh, Chan May - Lang Co
Quang Nam Dien Nam - Dien Ngoc, Trang Nhat, Dai Hiep, An Hoa -
Nong Son, Dong Que Son, Dong Thang Binh, Thuan Yen, Phu Xuan, Chu
Lai
Quang Ngai Tinh Phong, Quang Phu, Pho Phong, Industrial
Clusters, Dung Quat
Binh Dinh Hoa Hoi, Long My, Nhon Hoa,Nhon Hoi A, Phu Tai
-
17
Figure 2-5 Industrial Zone in CKEZ (1)
Figure 2-6 Industrial Zone in CKEZ (2)
Lien Chieu IZ
Tien Sa Terminal
Min. wage: Group 2Close to Access road to NH1 and the port is
developed.Rail freight yard is located.Heavy industry firms are
moved here by the local government policy.
High-Tech Park
Min. wage: Group 2The park construction is still on going.A few
Japanese firms are ready for mobilization.
Min. wage: Group 3Located in Quan Nam Province. However, only
17km away from Da Nang port.Access road from Da Nang port is
improved to four lanes except one section stretching a few hundred
meters has not been improved.
Dien Nam-Dien Ngoc IZ
Min. wage: Group 2Located near the intersection of the port
access and NH1.ICDs and logistic companies exist thanks to the
advantage.Expansion project is on going.
Hoa Cam IZ
Da Nang Aquatic Product Service IZ
Da Nang IZ Min. wage: Group 2The oldest IZ in Da Nang
city.Located near the city centre and 7km away from Da Nang
port.Area is smaller than other IZ comparatively.
Hoa Khanh IZ Min. wage: Group 2The largest IZ of the existing in
the city.There are some vacant lot despite Jetro says its occupancy
rate is 100%.
Hoa Khanh IZ
Min. wage: Group 2Next to the Hoa Khanh IZ.Electronic
processing, precise mechanics products and car assembling firms are
dominant.
Min. wage: Group 22.5km away from Da Nang port.Specialized in
aquatic products.Two depots for empty container cargo are
located.
Road closeddue to over pass
construction.
Chan May-Lang Co EZ Min. wage: Group 3Close to Chan May port and
NH1.Access road to NH1 and the port is developed.No firm was found
in the EZ.
Tu Ha IZ Phu Bai IZ
Phong Dien IZ
Min. wage: Group 3Located near the south intersection of NH1 and
Hue bypass.The most active IZ in the Province.
Min. wage: Group 3Northernmost IZ of the province.Quite large
spaces remain without any buildings.Access road to NH1 is under
construction.
Min. wage: Group 3Located near the north intersection of NH1 and
Hue bypass.
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18
Figure 2-7 Industrial Zone in CKEZ (3)
Figure 2-8 Industrial Zone in CKEZ (4)
an Yen IZ
u Lai Open Economic Zone
Dung Quat EZ
Dong Que Son IZ
To Quy Nhon Port
To Da Nang Port
Min. wage: Group 4Bulk cargo: Woodchips are exported from Dung
Quat port.Container cargo: Exported/ imported via Da Nang port.
Min. wage: Group 370km away from Da Nang port.Incentive
investment: Automobile assembly, new material, bio-technology.
wage: Group 3 away from Da Nang port.tive investment: Garment,
en products, consumer
s.
Long My IZMin. wage: Group 414km away from Quy Nhon
port.Incentive investment: Agro-forestry products, cloths
processing, mechanical processing
Min. wage: Group 425km away from Quy Nhon port.Incentive
investment: Agro-forestry products, electrical equipment,
mechanical processing
Nhon Hoa IZNhon Hoi IZ
Min. wage: Group 410km away from Quy Nhon port.Incentive
investment: High-technology, clean engineering
Phu Tai IZ
Min. wage: Group 410km away from Quy Nhon port.Incentive
investment: Agro-forestry products, cloths processing, stone
processing
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19
Main trends and opinions related Da Nang port obtained through
interviews with locators in CKEZ IZ are summarized as follow. Table
2-14 also shows the detailed result of the interviews. - The
occupancy rate of most of the established IZs in Da gang city (i.e.
Da Nang, Da Nang Aquatic Product Service, Hoa Cam, and Hoa Khanh)
is reportedly almost 100%, although there remains space to extend
or newly build factories in the site. Each IZ seems busy and
lively. In addition, new IZs such as Hoa Khanh Extended, Lien
Chieu, and Da Nang Hi-Tech Park have been developed. Therefore,
production in the IZs of the Da Nang city is expected to increase
for at least the next few years.
-Locators utilize Da Nang port more or less for their exporting
or importing. Most of interviewee use Da Nang port for 100% of
their shipment. Therefore Da Nang port is inevitable for their
activities. Existence of the port is one of important elements in
their establishment at current site.
-As shown in Table 2-14, destinations of Locator’s trade
shipping are globally distributed up to USA or Europe. Locator B in
the table who is main user of Da Nang port in container shipping
has shown the intension for a increase of EU bound cargo. Japanese
locators generally export and import to/from Japan. Foreign
locators have come to CKEZ area for the reduction of cost with
their market unchanged. So efficient global logistics will become
more important key factor as more foreign locators investment will
develop.
-Locators at 5 IZ’s in Da Nang city these days have been
diversified from light manufacturing to software, designing or
logistics support. Nissan automobile factory have opened production
at Hoa Cum IZ, and 6 Japanese logistics companies are now in
operation.
- The most important reason why the factory is located in Da
Nang city rather than Ho Chi Minh City (HCMC) nor Ha Noi City is
that the labor cost is cheaper. The minimum wage in Da Nang city is
lower since the wage group that the Da Nang city belongs to is
different (Da Nang: Group 2, HCMC and Ha Noi: Group 1). Therefore,
the largest risk for the industrial development of Da Nang city is
that the wage group could be changed to group 1 (i.e. same wage
level as the leading cities in Vietnam). During interviews, several
people mentioned that they had heard such a rumor. Almost all IZs
in Thua Thien - Hue, Quang Nam, and Quang Ngai Province are located
in the area of the wage group 3 (Only Hue city belongs to group 2
in these provinces, while some rural area in these provinces belong
to group 4). Therefore, in terms of the minimum wage, the firms
located in the IZs of these provinces have a large advantage.
-The wage merit covers the relatively high transportation cost
of trucking to Hanoi or HCMC , higher ocean freight charge of Da
Nang port shipping reflecting the additional call or longer
shipping time due mainly due to transshipment at other trunk
port.
- As shown in Table 2-14, whenever importing the materials from
as well as exporting the outputs to foreign countries, the Da Nang
Port is basically utilized, neither HCMC Port nor Hai Phong Port by
drayage, especially for foreign investors including Japanese firms,
since they decide are located on the
-
20
premises of the existing of Da Nang Port. There are two
exceptions are; i) one company utilizes land shipping when
exporting the products to China, and ii) some company utilize land
shipping until HCMC when they do not have enough cargo to fill a
container. By all means, the amount of exceptional transport which
do not use the Da Nang port is very few.
- However, local (i.e. Vietnamese) firms, especially for light
industry such as garment industry, accept their customers’ request
to utilize HCMC Ports, in order to lower the shipping cost
(especially for import cargo) and shorten the shipping time
(especially for export cargo). One reason that foreign customers
insist on using HCMC Ports may be due to the fact that their
contracts are generally FOB (free on board) for export and CIF
(cost, insurance and freight) for import; i.e. goods are handed
over at the Vietnamese ports for both export and import cases.
Therefore, Vietnamese firms have to bear the domestic land shipping
cost in Vietnam. Some Vietnamese firms made an effort to shift for
their export and import ports to Da Nang Port from HCMC Ports, by
sharing the benefit with their customers to reduce the price to
sell (or increase the price to purchase), reflecting the saved
amount by the reduced land shipping cost. If the level of service
of Da Nang Port will be improved in terms of both ocean freight and
shipping time, more cargo than currently transported to HCMC Ports
by land shipping are expected to shift to Da Nang Port.
-The IZs in Quang Nam become more attractive. Minimum wages is
less than that of Da Nang, where development policy has been
shifting to tourism and soft industry. Now Da Nang city promotes
Japanese companies to locate at Dien Nam - Dien Ngoc IZ in
cooperation with Quang Nam province. Establishment sites will be
expanded toward neighbor provinces. As shown in Figure 2-2 regional
distribution of shippers or consignees of container cargo at the
port does necessarily centered at Da Nang city.
- There are several seaports other than Da Nang Port for
neighboring provinces, future development plan of which are listed
as central region seaport group (group3) in the Vietnam Seaports
Development Plan up to 2020 with the vision to 2030 (MOT Master
plan:Decision No.2190/QD-TTg). They include Thuan An Port and Chan
May Port in Thua Thien - Hue Province, Ky-Ha Port in Quang Nam
Province, and Dung Quat Port in Quang Ngai Province. Out of them,
Thuan An Port and Ky-Ha Port are local ports which are not usually
utilized for the firms located in the IZs in each province. Also,
Chan May Port and Dung Quat Port are utilized for bulky cargo (Chan
May Port is also utilized for cruise ship), but not for container
cargo. In other words, Da Nang Port covers four provinces (Da Nang,
Thua Thien - Hue, Quang Nam, and Quang Ngai) in terms of container
cargo, while it mainly covers two provinces (Da Nang and Quang Nam)
in terms of bulky cargo as its hinterland. Although those
neighboring ports have development plan, they will not affect the
above coverage of Da Nang port since the plans are formulated in
long time span and so far there are no movement for realization of
those plans.
-
21
Table 2-13 Owners and Operators of Neighboring Ports
Port Owner Operator
Tuan An Thua Thien Hue province Thuan Port Joint Stock
Company
Chan May Vinashin Chan May Port Co. Ltd
Ky-Ha Ministry of Defence Ky-Ha Port Thuong Thanh Steel Co.
Ltd
Dung Quat Gemadept Corporation Gemadept Corporation
Quy Nhon Vietnam National Shipping Line (Vinalines) Quy Nhon
Port Limited Company
-Currently only Da Nang port company is only port operator of
the port and WANHAI is only container vessel operator for going to
Japan without transshipment at other trunk port. Some locators are
requesting more marketing promotion to collect cargo for cargo for
the company or requesting more punctual shipment even in tough
weather ,which would be more realized in the competitive
situation.
-Locators generally intend to increase their production,
prospecting a shift of production center from China or Indonesia to
Vietnam.
-
22
Table 2-14 Locator’s Operation in Industrial Zones in CKEZ
(1)
Source: Jica study team
Quang Nagai IZ
Lien Chieu Da NangAquaticServiceProducts
Dien Nam - Dien Ngoc
A B C D E F G H I
Industry/ ProductsTextile,
Metalwork MotorPurification
tankAutomotive
WiringsElectric
Components Steel IndustryAutomotive
PowerSupplies
ProcessedSeafood Sanitary Ware
Number of Employee 1,000 3,900 10,000 4,000 300
Import
4TEU/ MChina
TaiwanJapan
50TEU/ MChina
2TEU/ MJapan
50TEU/ MJapan
8TEU/ MChina
Hong Kong
4-8TEU/ MHong Kong
7TEU/ MJapan 50%
EU 25%Taiwan 25%
5TEU/ MChina
Export 6TEU/ MJapan
100TEU/ MSEA 30%EU 27%China 22%
6TEU/ MJapan
60TEU/ MJapan 50%China 50%
40TEU/ MChinaUSA
1-6TEU/ MChina
20TEU/ MJapan 80%USA 10%HK 10%
2.2TEU/ MJapan
Import 9Trucks/ MAsia
Few(urgent)
40Truck/ MChinaUSA
10,000ton/ MSouth Africa
Japan
Export18Trucks/ M
Japan
110Truck/ MChinaUSA
10,000ton/ MPhilippine
Use of Da Nang Port 100%Almost100% 100% 100% 50% 100% 0% 100%
100%
2 times ofcurrent
productionnext year
50%increase in
3yearswill increase
20~30%increase in
future
50% increasein future
>anxiety forshortage ofshippingschedule infuture. EU
boundwill beincreased
Japaneseclients
expandsexport
2500 workersplant in Quang
NagaiDirect call
necessary forDa Nang's
choiceHCM Port >Da
Nang Port
Truck Cargo Domestic Sale (65%)
Hoa Cam
Intention ofproduction increase
Bulk Cargo
Container
Da Nang IZ
Hoa Khanh
Company
Remarks
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23
Table 2-15 Locator’s Operation in Industrial Zones in CKEZ
(2)
(b)Situations of IZs
Current situations of IZ in CKEZ is as follows. Some basic
information are excerpted from JETRO data.
IZs in Da Nang City a)
- Da Nang IZ
Da Nang IZ has the planned area about 58ha, of which 44ha is now
for lease. Current occupation ratio is 75%. Some fields for
incentive investment are industry of textile, apparel shoes,
electronic processing, food processing. The IZ is located 5km from
Da Nang port (Tien Sa port).
Dung QuatEZ
Dung QuatIZ
Thua TienIZ
J K L M N O P Q
Industry/ ProductsBoiler, HeavyEquiopment,
etc.
WoodProcessing
Textile Textile Sports Glove SandProcessing
Wood chip RubberProduct
Number of Employee 2,500 400 4,000
Import
14 TEU/ MChinaKoreaJapan
4TEU/ MChinaAsia
5TEU/ MHong Kong
ChinaTaiwan
2TEU/ MJapan 50%Korea 50%
150TEU/ MChina,
Japan,KoreaEU,SEA
Export
6TEU/ MChina 60%Korea 20%Japan 20%
62TEU/ MUSA 9TEU/ M
USA2TEU/ M
Japan
40TEU/ MAsiaEU
South America
Import
Export 17000t/MJapan 30%
50000t/MJapan
Use of Da Nang Port 100% ofContainer
95% ofContainer
85%(Ex.),30%(Im.)
40% 100% 100% 100% 95-100%
10%/yearincrease will
bemaintained
10%~20%increase in
future
50% increasein future will increase
50% increasein 2 years
Use of ownport
Chip isexported
fromGema Dept
Saigon Portis
designatedby clientsMore callrequested
Lesscompetetivethan HCMC
for USboundcargo
Japnesepulp maker
will shiftinboundingcountries to
Viet Nam
Chemicals viaHCM
Container
Bulk Cargo
Intention ofproduction increase
Da Nang city
Company
Remarks
-
24
Da Nang IZ is the oldest industrial zone in Da Nang city.
Although the area is smaller than other new IZs in Da Nang city, it
is located near the city center as well as the Tien Sa Terminal.
Several Japanese companies, manufacturers and a logistics company,
are located in this IZ.
Figure 2-9 Entrance of Da Nang IZ (Left) and Companies Located
in the IZ (Center, Right)
- Hoa Cam IZ
Hoa Cam IZ has the planned area about 221ha, of which 137ha is
now for lease. 47 firms are now in operation. Current occupation
ratio is 80%. Some fields for incentive investment are industry of
electronic processing, food processing, agro-products. The IZ is
located 10km from Da Nang port (Tien Sa port).
Hoa Cam IZ is located near the intersection of the port access
road and National Highway No.1. Accordingly, many ICDs (Inland
Container Depots) and logistics companies are located in the IZ to
take advantage of the ideal location. However, vehicles from Tien
Sa terminal cannot directly enter the gate of the IZ because there
is no left turn lane at the intersection (see left picture of
Figure 2-10). Therefore, trucks and trailers to enter the Hoa Cam
IZ from Tien Sa terminal have to turn around the access road at the
point one kilometer away from the entrance (see center picture of
Figure 2-10).
The second phase of the IZ is still expanding and the cargo
volume originated from/destined to the IZ is expected to increase
in the near future.
Figure 2-10 Entrance of Hoa Cam IZ (Left), Trailers Turning
Around to Enter the IZ from the Da Nang Port (Center), and Inland
Container Depot in the IZ (Right)
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25
- Hoa Khanh IZ
Hoa Khanh IZ has the planned area about 396 ha, of which 298 ha
is now for lease. 120 firms are now in operation. Some fields for
incentive investment are industry of electronic processing,
apparel, mechanical processing, petrochemical products. The IZ is
located 20km from Da Nang port (Tien Sa port). Hoa Khanh IZ is the
largest IZ of the existing IZs in the Da Nang city.
According to JETRO, the occupancy rate of the IZ is 100%;
however, there are several vacant spaces. In addition, the JICA
team learned that several companies still have available space
within their own property. Two Japanese companies which are located
in the IZ have a plan to increase their production levels within a
few years. Therefore, the cargo volumes originated from/destined to
the IZ are also expected to steadily increase over the next few
years at least.
Currently, the ongoing construction of an overpass over the
railway on the shortest access route connecting Hoa Khanh IZ with
Tien Sa terminal means that trailers and trucks have to detour
through the coastal road and narrower road in the city center (see
Figure 2-12).
Figure 2-11 Entrance of Hoa Khanh IZ (Left), a Factory Complex
Managed by a Japanese Trade Firm (Center), and Another Japanese
Factory (Right)
Figure 2-12 Construction Site on the Way Connecting Hoa Khanh IZ
with Tien Sa Terminal (National Highway No.1) (Left) and a Trailer
Detouring in the City Center (Right)
- Expanded Hoa Khanh IZ
Expanded Hoa Khanh IZ has the planned area about 130ha, of which
97ha is now for lease. 9 firms are
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26
now in operation. Current occupation ratio is 53%. Some fields
for incentive investment are industry of electronic processing,
precise mechanics products, car assembling. The IZ is located 20km
from Da Nang port (Tien Sa port). The IZ has been in operation
since 2004. Several manufacturers including an auto assembly plant
and an auto parts factory are located in the IZ. The auto assembly
plant (TCIE Vietnam) is operated by Tan Chong Corporation
(Malaysia) in collaboration with Nissan Motor, where the Nissan
Sunny is assembled. It opened in June 2013 and produces about 100
cars per month.
Figure 2-13 Auto Assembly Plant Located in Hoa Khanh Extended IZ
(Left and Center), and Road in the IZ (Right)
- Lien Chieu IZ
Lien Chieu IZ has the planned area about 198ha, of which 142ha
is now for lease. 22 firms are now in operation. Current occupation
ratio is 69%. Some fields for incentive investment are industry of
precise mechanical processing products, building materials with new
technology. In particular, some local factories of heavy industry
such as steel and chemical plant have shifted (or will shift) to
Lien Chieu IZ from other IZs and the sites near the city center, in
line with the local government’s policy of improving the
environment for citizens.
The IZ is located 25km from Da Nang port (Tien Sa port) around
the intersection of Da Nang Bypass (National Highway No.1) and the
old national highway, also near the Hai Van tunnel. The IZ has a
railway yard (see right picture of Figure 2-14) branched from the
national railway connecting Ha Noi with HCMC. It is also near the
planned site of Lien Chieu Port.
Figure 2-14 Factory (Left), Road (Center), and Railway Yard
(Right) in Lien Chieu IZ
-
27
- Da Nang Aquatic Product Service IZ
Da Nang Aquatic Product Service IZ (Da Nang Seafood Service
Zone) has the planned area about 50ha, of which 42ha is now for
lease. 23 firms are now in operation.