Chu Lai Port bringing Vietnamese agricultural products to the international market

With the aim of positioning Chu Lai port as a logistics hub, boosting domestic consumption and export of agricultural products, Truong Hai International Logistics Company (THILOGI) has implemented multiple solutions to connect road, port, and sea transportation routes, thereby optimizing the agricultural export value chain.

Potential for agricultural export and logistics capacity

In 2023, China imported approximately 24.4 billion USD worth of agricultural products from various countries around the world. Notably, Vietnam was China's second-largest exporter after Thailand. This achievement came as a result of the signing of Protocols between Vietnam and China for the official export of various agricultural products, including jackfruit, bananas, dragon fruit, mangoes, watermelons, lychees, rambutans, among others. This collaborative effort has created numerous opportunities for Vietnamese products to enter the Chinese market. Consequently, China will remain as an attractive market for Vietnamese agricultural products to grow their market share and export value.

However, Vietnamese agricultural products are primarily transported and exported by road via the northern border gates of Tan Thanh, Huu Nghi, Chi Ma in Lang Son province, and Mong Cai in Quang Ninh province. Notably, the consolidation yards for agricultural products at these border gates are limited in terms of cold storage and coordination activities. As a result, traffic congestion is a common occurence during peak seasons, which leads to damaged fruits, increased logistics costs, and reduced competitiveness in the international market. These challenges have a significant impact on agricultural export businesses from the South Central region, the Middle Central Region and the Central Highlands due to their long transportation distances.

To capitalize on opportunities and address challenges encountered by agricultural export businesses, THILOGI invested extensively in vehicles, equipment, and infrastructure improvements. The company also developed a comprehensive logistics service model which covers export protocols, transportation, inspection, customs declaration, warehousing, and preservation. These initiatives aim to support the transportation of refrigerated agricultural products, namely fruits and frozen goods, via Chu Lai Port, thereby facilitating official agricultural export to various major markets including China, the US, and the EU.

Logistics development enhances the value of Vietnamese agricultural products

Developing logistics services in a comprehensive and integrated manner is necessary to enhance the agricultural product value chain. Namely, businesses must expand beyond the traditional road-based export routes, and promote multimodal transportation to optimize costs, time and improve product quality. As a company specializing in connecting agricultural exports between the Central Region, Central Highlands, Laos and Cambodia, THILOGI prioritizes the development of comprehensive logistics service solutions. Notably, the company focuses on bridging road and sea transportation activities, and providing port services such as towing, loading and unloading, inventorying, warehousing, shipping agency services, customs declaration, so on.

THILOGI is currently managing a fleet of specialized transportation vehicles and refrigerated containers with over 200 tractor units. In addition, the company preserves agricultural products at a suitable temperature as specified by the regulations for each product. Notably, the Chu Lai Port cold storage system was developed in accordance with international standards. It covers more than 12,500 square meters and can accommodate 1,000 refrigerated containers to meet customer storage and export demands.

Chu Lai Port is planning to employ a 50,000-ton capacity dock equipped with a modern loading and unloading system in the near future. Additionally, the port will utilize an e-Port software to grant customers real-time access to vessel and cargo data. On the other hand, Chu Lai Port will focus on establishing a market database to assess customer needs. Subsequently, the port will collaborate with various international shipping lines to stabilize freight rates and develop additional direct shipping routes from Chu Lai Port to major ports worldwide by increasing the shipment frequency to four times per week. Service fees at Chu Lai Port are currently 10 to 30 percent lower than those of other local ports, which are optimal cost levels to support agricultural export businesses.

THILOGI is currently enhancing its logistics network for road transportation by constructing transshipment stations and depots; and sea transportation by developing Chu Lai Port as a logistic hub. The company aims to reduce transportation costs, shorten delivery times, maintain product safety and minimize damage for agricultural export businesses. With an integrated road and sea transportation network, THILOGI possesses the potential to attract domestic and international cargo sources (Laos, Cambodia) to Chu Lai Port.

With its innovative solutions to enhance logistics capacity for agricultural export, Chu Lai Port is gradually affirming its role as a specialized cold storage port for agricultural export activities. Additionally, the Port aims to address the logistics cost challenge for businesses, and increase the competitiveness of Vietnamese agricultural products in the international market.