First stage of Lien Chieu Port upgrade to cost $247m

A cargo ship docks at the Tien Sa Port in Da Nang city. Da Nang will develop the Lieu Chieu Port as its major cargo port, and Tien Sa will receive cruise ships. — VNS Photo Cong Thanh

Japanese consultants have recommended that Da Nang deploys the Public-Private-Partnership (PPP) model for the first stage of expanding the Lien Chieu Port, expected to cost VND5.58 trillion (US$247 million).

The pre-feasibility report for the expansion was prepared by the Japan Port Consultants (JPC) company and the Overseas Coastal Area Development Institute of Japan (OCDI).

Under the Japanese experts’ proposal, VND2.792 trillion ($123.4 million) will be raised from the State Budget and VND2.788 (123.3) trillion from the private sector.

The development of Lien Chieu port is one of two key projects that aim to boost the central city as a main logistics centre in ASEAN and the East-West Economic Corridor (EWEC) that links Laos, Myanmar, Thailand and Viet Nam.

It is expected that the Lien Chieu Port will begin operations in 2022. The port project is linked with other projects including the Da Nang-Quang Ngai Expressway, expansion of the Hai Van Tunnel and a new railway station.

It is expected to ease the burden on the overloaded Tien Sa Port and gradually develop as a major cargo port in Da Nang. Later, only cruise ships will dock at the Tien Sa Port.

The Lien Chieu Port will become a logistics centre for the country’s north-south road, sea ports and railway systems.

The city will consider the use of funds from the State Budget and Official Development Assistance (ODA) from Japan for a dredging project and for building a sea dyke as part of building the Lien Chieu Port.

The port, which currently handles 50,000 DWT (deadweight tonnage) container ships, will be able to handle 100,000 DWT ships with a loading capacity of 8,000 twenty-foot equivalent unit (TEUs) from 2025.

According to Transport Ministry, Da Nang will handle 29 million tonnes of cargo by 2030.

Last year, the city’s Port company commenced the second stage of upgrading the Tien Sa Port.

The central city’s port system including Tien Sa, Lien Chieu and Son Tra is slated to become the biggest of its kind in the country.

The national seaport system development plan envisages Da Nang as one of key gateways to the East Sea from the sub-Mekong region. — VNS