HCM City to reinvest collected port infrastructure fees in connectivity projects

Thursday, Nov 03, 2022 09:12

A container terminal at Tan Cang - Cat Lai Port in HCM City's Thu Duc City. — VNA/VNS Photo Hong Dat

Nearly VND1.5 trillion (US$60.3 million) has been collected via the automatic fee collecting system for the use of infrastructure and public services at ports in HCM City since April, according to the city’s Port Authority of Inland Waterway.

The authority said the system has collected an average of VND250 billion ($10 million) per month since it was officially launched in April.

The rates are from VND15,000 ($0.6) per tonne for liquid and bulk cargo to VND4.4 million ($177) for a 40-foot container.

The fees for international goods transported by inland waterways in and out of HCM City were cut by half from August 1.

The move aims to help businesses dealing with challenges, such as rising fuel prices, and promote the city’s economic recovery programme after the COVID-19 pandemic.

The reduction in fees also seeks to encourage businesses to increase use of waterways and reduce pressure on road transport.

About VND16 trillion ($643.2 million) is expected to be collected by 2025 for reinvesting in port infrastructure and improving connectivity, including new roads and upgrades to existing ones near ports, as well as improving waterways and inland ports.

Bui Hoa An, deputy director of the city’s Department of Transport, said the collected money will be put into the State budget to raise revenue for the city's transport infrastructure development around ports in the 2021-25 period.

Eleven transport infrastructure projects will be carried out in the near future, such as the upgrade and expansion of Nguyen Duy Trinh Street leading to Phu Huu Industrial Park in Thu Duc City, and dredging Soai Rap Channel.

There are six projects being prepared for investment, including building three road sections of three sub-projects of the Ring Road No. 2 project, a section from Phu My Bridge to My Thuy intersection, an inter-port road connecting the Cat Lai and Phu Huu ports, and Thu Thiem Bridge No. 4.

These projects need total public investment capital of about VND30 trillion ($1.2 billion). — VNS

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