Vietnam opens container route to mainland, Hong Kong

CAI LAN Port launched its inaugural route from Vietnam's Quang Ninh province to mainland China and Hong Kong this month following successful test runs by Geneva-based Mediterranean Shipping Company.

The 1,090-TEU MSC Wellington was the first to arrive at the North Vietnamese port. A new 130 metre wide waterway with a 10-metre draft takes ships into Cai Lan Port.

The Vietnam Maritime Administration, the Quang Ninh Port Company and the Waterway Project Construction began dredging the channel in 2007 to widen the mouth to the port and to allow for 50,000-ton ships.

The previous capacity inbound was 25,000 deadweight tons, allowing only 60 per cent of shipping to enter. But with upgraded approach, the port will now berth vessels of 40,000-50,000 tons.

The Japanese official development assistance (ODA) loans financed the construction project for the Cai Lon Port after approval by the prime minister in 1996 at a cost of VND300 billion (US$17 million). Phase 1 began in 2004 and finished in 2007 creating a 13-metre draft at the port, three docks and a cargo and handling system.

Phase 2 is financed by Vietnam National Shipping Lines Corp and a joint venture between the Quang Ninh Port Company and the US-based SSA Group. The project is scheduled to start in early 2009 and expected be completed in 2011.