The Da Nang People's Committee recently issued a decision to establish the Steering Committee for Logistics Industry Development in Da Nang. Accordingly, the board is responsible for advising and helping the municipal administration take activities related to logistics development, map out plans and implement logistics projects according to instructions adopted by the Vietnamese Prime Minister, as well as advise on the effective implementation of Da Nang logistics services development project to effectively connect with the Central Key Economic Region and the East-West Economic Corridor for the 2021-2030 period, with a vision to 2050.

A corner of a container warehouse on the way to the Tien Sa Port. Photo: THANH LAN

Promoting the development of logistics services

The establishment of the Steering Committee for Logistics Industry Development in Da Nang will be a favourable condition for Da Nang to develop into a marine economic centre and the major logistics hub of the Central and regional key economic regions. Resolution No. 43-NQ/TW dated January 24, 2019 adopted by the Politburo sets the goal of turning Da Nang into one of the major socio-economic centres of Viet Nam and Southeast Asia as a a whole, an economic centre maritime economy, forming a logistics service supply chain in the Central region with the central role of Da Nang.

In the coming period, logistics services will continue to be identified by Da Nang as an important industry, having a great impact on the city's growth. Therefore, the city is drastically implementing the work of building the Da Nang Master Plan for the 2021 - 2030 period, with a vision towards 2050, with major orientations on infrastructure development, logistics services as well as accelerating the investment process. Investment is being poured into key projects in the coming period such as Lien Chieu Port, the construction of logistics centre at the Da Nang International Airport and inland container depots/dry ports.

According to the plan, the Da Nang People's Committee is calling for investment for the development of 10 logistics centres, including one regional centre, eight provincial centres and one specialised aviation centre. Specifically, the Lien Chieu Port logistics centre is planned to be a regional, class I logistics centre, with a scale of 30-35ha by 2030 and it will be increased to 65-70ha by 2050. This will be a seaport logistics centre with seaport services, container yards and CFS warehouse.

Next is the Da Nang International Airport logistics centre, which is planned to be a specialised aviation logistics centre with a scale of 4-5ha by 2030 and expanded and upgraded to 8-10ha by 2050. This will be a dedicated logistics centre serving aviation logistics services. The remaining 8 provincial logistics centres include the Kim Lien cargo station, the Nang Hi-tech Park, other logistics centres and warehouses on highway bypasses, in industrial parks and clusters and five logistics centres in Hoa Nhon, Hoa Phuoc, Hoa Phu, Hoa Ninh, Hoa Hiep Bac respectively.

In the planning, the city sets a goal that by 2020, logistics centres in the city will meet about 25% of the amount of logistics handling for the flow of goods through the seaport, 30% by 2025, 35% by 2030 and 55% by 2045.

It is expected that the total investment capital need to develop logistics services in Da Nang is VND13,695 billion, with the total need for land fund to implement facility development planning. The logistics industry infrastructure by 2045 is estimated at about 312ha.

Deploying logistics centres

According to the Da Nang Department of Transport (DOT), the total logistics warehouse area in the city is currently about 30ha. The enterprise with the largest warehouse infrastructure system in the area is the Da Nang Port Company Limited covering more than 240,000 m², the remaining majority of warehouse systems of joint stock, private and joint venture enterprises providing logistics services are small-scale with a total warehouse area of about 5.1ha.

According to Director of the Da Nang Department of Transport Bui Hong Trung, the city is continuing to coordinate with Vietnam Airlines Corporation to implement the investment project to upgrade and expand the cargo terminal at the Da Nang International Airport to reach a capacity of 100,000 tonnes/year and the T1 passenger terminal expansion project.

At the same time, the city urgently deploys the construction of the Lien Chieu Port project to become an international gateway port in the central region (type IA) to meet future transportation needs and reduce traffic congestion in the inner city.

Once completed, the Lien Chieu Port will be the largest maritime traffic hub in the South Central Coast, playing an important role in infrastructure development, economy - society, defence - security and connectivity and socio-economic development in the central region.

The city has issued investment registration certificates for logistics centres in Hoa Nhon and Hoa Son communes, Hoa Vang District, along with the Cargo Terminal Construction project at the Da Nang International Airport.

Work is expected to start on the project to upgrade National Highway 14B in 2024.

Along with that, focus will be on speeding up the implementation of logistics service infrastructure investment projects such as the Hoa Lien - Tuy Loan expressway section of the North - South expressway east of the city; Phase 1 of the Lien Chieu Port, the early promotion of the construction of a cargo terminal at the Da Nang International Airport, building a new road connecting the Lien Chieu Port with National Highway 1A south of the Hai Van Tunnel, East - West Economic Corridor 2 Project, National Highway 14G and the relocation of the Da Nang Railway Station.

Also, construction is due to commence on the logistics centre project in Hoa Nhon and Hoa Son communes, Hoa Vang District at the end of the first quarter of 2024.

Reporting by THANH LAN - Translating by A.THU