New Cai Mep terminal adds to excess capacity woes

The Cai Mep-Thi Vai International Container Terminal (CTICT) was inaugurated at the end of January but will officially only start commercial operations in six months after contractors complete the final installation of equipment. The terminal was built at a cost of VND 12.9 trillion (US$620m) and was jointly financed by the Vietnamese government with Japanese Official Development Assistance (ODA) funds. Although the Vietnamese Ministry of Transport has suggested that the terminal would ease congestion in southern Vietnam, the reality is that terminal capacity is severely under-utilised.

Unlike the situation in 2004-6 when all the major terminal operators flocked to secure a foothold in Vietnam, the newly inaugurated terminal has not been able to secure an operator. Although NYK was initially chosen to operate the port, it has declined to participate in the project due to concerns over the over-supply at the terminal complex located some 90 km from Ho Chi Minh City.

Two of the existing terminals in Cai Mep-Thi Vai, the PSA operated SP-PSA terminal and the Hutchison operated SITV terminal, are no longer receiving regular containership calls, while the Saigon New Port operated TCCT receives only one regular container vessel call every 10 weeks.