1. Introduction
2. Overview of Container Port Industry in Northern Vietnam
Table 1
3. Comparative Analysis of Container Terminals in Northern Vietnam
Table 2
3.1 Analysis from 2005 to 2014
3.2 Data Envelopment Analysis
a. Methodology
- Cross-efficiency approach
- Multi-criteria DEA approach
- Global efficiency approach
- Assurance Region Method (AR)
- Multicriteria Benefit/Cost analysis
b. DEA result
- The 2 container terminals in Quang Ninh province have very low efficiency, due to mostly the bad competition with others in Hai Phong city. The throughput of these terminals are far from equal to their capacity. For example, CICT, the maximum capacity is 1,200,000 TEUs/year but in 2014, the container throughput reached only 102,000 TEUs.
- There are only 2 out of 5 terminals under the control of Vinalines are relatively efficient, named Doan Xa and Dinh Vu. The other Vinalines’ terminal, HPC, although recorded high volume of container throughput at gradual growing rate but the efficient point decreased from 2012 to 2014. It can be explained by the high number of old handling equipment.
- The most efficient container terminals in the area are small ones with one or two berths and the annual throughput less than 400,000 TEUs.
- All terminals in Haiphong city are in the Cam River which connects to the Gulf of Tonkin and terminals which locate more closely to the river mouth are more likely to be efficient ones. This fact states the importance of channel depth as well as convenient path to access in competition in the area.
4. Concluding Remarks and Suggestions
- Almost Vinalines’ terminals, HPC for instance, have a long history of operation and their infrastructure are, therefore, old. This condition, on the one hand, brings the advantage of handling charge but on the other hand, the high number of old equipment decrease the port’s efficiency. Purchasing and installing new facilities require great amount of investment. Vinalines is a national corporation and recent years, privatization has been chosen to improve the company’s performance. Some subsidiaries of Vinalines has begun offering IPO. The result up to now is still not very successful but it is a right way to follow.
- One of very critical factors for terminals' success is the connection to hinterland. In order to survive against competition among terminals in Haiphong city, ones in Quang Ning province should pay more attention to their transport connectivity to domestic market. Currently rail way connection to Vietnam seaports is very limited, so improving rail way system and earning successful lesson of industrial zone locating beside terminals in Haiphong city is truly important.
- HPC is operating two container terminals named Chua Ve and Tan Vu. The former locates deep inside the Cam river with limited depth channel and old infrastructure. The latter locates closely to river mouth and some berth has just begun operation from 2009. Tan Vu terminal, therefore, should be focused and invested rather than Chua Ve terminal