Lach Huyen port infrastructure construction project inaugurated

By chinhphu.vn - 14/04/2013

The ground breaking ceremony for Lach Huyen Port Infrastructure Construction Project was held on April 14 in Cat Hai district, Hai Phong city with the attendance participation of Prime Minister Nguyen Tan Dung.

Lach Huyen port is the first piloting PPP project between the Governments of Vietnam and Japan where public portion financed by ODA fund and private portion invested by the Joint Venture of Japanese and Vietnamese partners.

It aims to respond to the growth of demand in cargo volume as well as the increase of larger vessels in the maritime transportation market by building a new international deep-sea port and related basic infrastructure in Lach Huyen area, thereby contributing to economic development and greater competitiveness in the international market.

Speaking at the ceremony, Prime Minister Nguyen Tan Dung highlighted the importance of the port to the long – term socio – economic development of Hai Phong and the region, particularly when the existing Hai Phong port is overloaded and fails to meet the growing demand of marine transportation.

He urged relevant agencies to exert efforts to complete the work as scheduled. He also thanked the Japanese Government for its financial and technical support, expressing his belief that the strategic partnership between the two countries will reap further positive results for the common goal of peace and prosperity in the Asia-Pacific region.

Lach Huyen port’s construction is divided into two parts. Part one is managed by the Vietnam Marine Administration with investment of over VND18.6 trillion sourced from Official Development Assistance and the State budget, covering the building of port infrastructure.

The second part, a joint venture of Vietnamese and Japanese enterprises with more than VND6.57 trillion in investment, will build two wharves with a total length of 750 meters, capable of handling 100,000-tonne container ships.

Package 6 (the first one kicked off among total 4 civil work packages under JICA financing) comprises of land reclamation, soft soil improvement, port protection facilities and public related facilities. Following Package 6, the other 3 civil works packages are planned to start soon. The project is scheduled to be completed by 2016.

Under the Vietnam 2020 seaport development plan, Lach Huyen port is defined as one of the country’s key infrastructure projects that upon completion in 2016 will play a part in transforming Vietnam into a strong sea nation. It will have modern cargo-handling equipment, and be capable of receiving container ships of up to 8,000 TEUs.

The 1st loan agreement for the project was signed on November 2, 2011 between the Government of Vietnam and JICA with the total amount of around USD120 million. Next loan agreement(s) shall be provided in accordance with the progress of the project.

According to Mr. Motonori Tsuno, Chief Representative of JICA Vietnam Office, this project is one of the most important Japanese ODA projects in Vietnam. JICA has been assisting this project from the planning stage, detailed design stage to construction stage, through both technical and financial cooperation.

“Lach Huyen port is very important for Vietnam, not only as the new international gateway of Northern Vietnam, but also as the new international hub port of the regional countries. It is also a new symbol marking the 40 years anniversary of Vietnam-Japan friendship”, said Mr Motonori Tsuno.

Once completed, Lach Huyen port will direct exports from Vietnam to US and European markets and vice versa without having to go through ports in Singapore or Hong Kong.