Proposal to free seaport infrastructure for watercraft in Hai Phong

25/07/2024 16:49

The Vietnam Inland Waterways Administration has just sent a document to the Ministry of Transport (MOT) on continuing to propose free of charge for seaport infrastructure for goods and containers transported by inland waterway to Hai Phong seaport.

Nearly 20% of goods through Hai Phong port are transported by waterway

According to the leader of the Vietnam Inland Waterways Administration, currently, goods transported by inland waterway to the Hai Phong seaport area account for 15% - 20% of the total volume of goods through the port.

The undertake rate of container transportation by inland waterway in the Hai Phong seaport area is only about 1.5% - 1.8%, while in the Ba Ria - Vung Tau seaport area (the connection between the inland waterway and the seaport is very good, goods are not charged for the use of infrastructure works,  public services and utilities in the seaport border gate area) the rate of container transport by inland waterways reaches 70% - 80%.

The People's Council of Hai Phong City has issued a Resolution on amending and supplementing the Resolution of the People's Council of Hai Phong City stipulating a 50% reduction in the toll rate for goods of toll payers when entering the port and relocating the port by inland waterway means operating on waterways.

Although waterway transport enterprises continue to recover due to many policies and solutions to remove difficulties and obstacles, the Government has also issued a Decree regulating the policy of reducing VAT by 2% from July 1 to the end of December 31, 2024 according to Resolution 142/2024/QH15 of the National Assembly.  The high price of raw materials and fuel in the country are still difficulties for businesses.

Therefore, maintaining the current seaport infrastructure toll rate of Hai Phong city with inland waterway means has significantly increased transportation costs.

This fee collection policy increases logistics costs for businesses. Vietnam's logistics costs are now higher than many countries.

The application of this fee does not encourage goods to be transported by inland waterways (to reduce pressure on the current road infrastructure) and has not promoted the development of inland waterway transportation.

It is necessary to support reducing costs and increasing the competitiveness of inland waterway transport

According to the research of Traffic Newspaper, inland waterway transport vehicles only use natural waterways connecting to seaports (mainly managed by units of the Ministry of Transport, carrying out maintenance, ensuring operating conditions) and bridge systems,  wharves in seaports (mainly invested by seaport enterprises, ensuring operating conditions), not using local infrastructure connected to seaports (such as bridge systems, road routes, overpasses at intersections managed by localities, ensuring operating conditions).

At the same time, inland waterway transport vehicles, when carrying goods at seaports, have paid maritime charges and fees to the Port Authority and wharf service prices for seaport businesses.

Inland waterway transport and coastal transport play an increasingly important role in the transport industry, annually contributing about 19% of transported goods and more than 20% of the circulation of traffic.

However, in order to maintain and promote the role of inland waterway transport in the coming time, the Inland Waterways Administration believes that it is necessary to have supporting mechanisms and policies to reduce costs and increase the competitiveness of inland waterway transport.

"Inland waterway vehicles transporting goods only use waterways, do not cause traffic congestion, do not use local infrastructure, service works and public utilities in the seaport border gate area.

The fact that goods transported by waterway have to pay this additional fee increases the burden on businesses, creates a situation of overlapping fees, and reduces the competitiveness of waterway transport enterprises," the leader of the Vietnam Waterways Administration affirmed.

According to the assessment of associations and enterprises, if the competent authority is free of charge to use infrastructure works, service works and public utilities in the seaport border gate area with goods transported by inland waterway means, the cost of transporting goods by inland waterway will be reduced.  positively impacting the goal of transforming the transport structure, goods will be transferred from roads to inland waterways, reducing traffic congestion and accidents on roads.

The Prime Minister has assigned the People's Committees of provinces and centrally-run cities: "Study and propose to the People's Council of the same level to consider and decide on the reasonable collection rate of fees for the use of works, infrastructure, service works and public utilities in the seaport border gate area for imported goods,  export goods are transported by inland waterways".

In order to promote the development of inland waterway transport in accordance with the spirit of the Prime Minister's direction and continue to promote the role and advantages of inland waterway transport in the coming time, the Vietnam Inland Waterways Administration proposes the Ministry of Transport to propose in writing to the People's Council of Hai Phong city to consider free seaport infrastructure for goods and containers transported by inland waterway to the city's seaports.

Source: logistics.gov.vn