VIETNAM WESTBOUND RAIL CORRIDORS Joint OSJD/FIATA Workshop on combined transport New possibilities of Europe Asia Europe multimodal transportations
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1 Vietnam Logistics Business Association - VLA VIETNAM WESTBOUND RAIL CORRIDORS Joint OSJD/FIATA Workshop on combined transport New possibilities of Europe Asia Europe multimodal transportations Istanbul, July 2018
2 AGENDA BRIEF OVERVIEW OF VIETNAM LOGISTICS About Vietnam Logistics Association Vietnam Logistics Current Status & Development Cross Border Transport Opportunities Established Cross Border Transport Network VIETNAM RAILWAYS OVERVIEW: Vietnam Rail Current Status Main rail routes VIETNAM-CHINA RAIL-LINK AND BEYOND International Routes to/via China Cross Border Networks to Central Asia and Europe Sea-Rail Link Paul Dao Trong Khoa Vice President of VLA RECOMMENDATIONS
3 Vietnam Logistics Business Association - VLA Connecting Logistics Professionals Vision: Connecting and cooperating with local and foreign freight forwarders, logistics services providers in order to create the leading industry of Vietnam Vietnam Logistics Business Association - VLA Mission: To enhance the professionalism, to promote the modern logistics, to integrate the national logistics with the region and globally in order to efficiently contribute into the development of enterprises in the industry as well as the country s economics development in Vietnam 360+ members (80 are members of FIATA) Established in 18 November 1993, formerly Vietnam Freight Forwarders Association (VIFFAS) Renamed Vietnam Logistics Business Association (VLA) on 4 January 2013 to reflect new industry trend National Association Member of FIATA: active member, participating in various working groups Freight Forwarding Transport (sea, air, land, inland waterway) Integrated Logistics (3PL) Warehousing, Ports, Stevedoring, Distribution Customs Brokerage Delivery Services Others Logistics Related Services Website:
4 Vietnam Logistics Current Status & Development
5 Cross Border Transport Growing Opportunities Strategic location of Vietnam with ASEAN, gateways for AEC One Belt and One Road Initiative with Maritime Silk Road connect ASEAN gateways AEC establishment as of 31-Dec-2015, ASEAN-China connectivity, growing trade within the region Fast growth of land transport in Asia - Pacific region with CARG 8.3% in Road transport networks connect major cities. Connectivity of industrial hub cities Singapore, Penang, Bangkok, Hanoi, Shenzhen with frequent cargo echange Growing of Cross Border ecommerce
6 Cross Border Transport Networks by Roads with ASEAN/GMS+ Guiyang Hongkong Haiphong 2 days 3 days Hoàng Sa 2 day Trường Sa 1 days
7 Main Transport Mode Market Shares Road 77.20% 54.4% Domestic Waterborne 17.14% 32.4% Rail 0.42% 4.3% Air 0.02% Sea 5.22% National conference on logistics improvement (hosted by Prime Minister on 16-Apr-2018) Promote connectivity between modes of transports Restructure market share of different modes of transport, with more focus on domestics waterborne and rail as measure to reduce logistics cost Modernize rail system, increase throughput of rail volume Implementation of railway project with incomplete segments within Vietnam (Singapore-Kunming via Vietnam) Upgrade/Newly build of Lao Cai - Hanoi - Haiphong to connect Haiphong port (Lach Huyen deep sea ports) with Kunming/China
8 Vietnam Railways System Overview Bottom-necks: Low rail density (9.5km / 1000km2) Total cost is high due to lack of connectivity Old equipment (64% >20 years), low loading capacity (28-34 ton), heavy wagon (more than 40% payload, high power consumption (accounts for more than 31%) Low handling capacity of rail terminals No connection to ports (Haiphong old port with rail-link has relocated) Different rail gauge between Vietnam and China, especially in Haiphong Hanoi - Lao Cai route to connect to Kunming
9 North - South Line (1726km) Rail Monday Tuesday Wednes day Thursda y Friday Saturda y Sunday RASY 1 Hanoi HCM RASY 2 HCM - Hanoi RA4506 Hanoi Nam Ninh RA24507 Nam Ninh Hanoi Routes Number of container Gauge Width HCM - Hanoi (Daily+) Hanoi -Nanning (Daily) China Kazakhstan Kazakhstan - Germany
10 Bottom-necks: Different rail gauge between Vietnam (1000mm) and China (1435mm), especially in Haiphong - Hanoi Lao Cai route to connect to Kunming. Vietnam has plan to upgrade, but on China side, there re still 7km rail tracks to be upgrade from 1000mm to 1435mm
11 International Railways Routes to/via China Railway Nanning/Dong Dang- Yen Vien ( Hanoi) Kunming- Hekou/ Lao cai- Yen Vien( Hanoi) Departure Station Hanoi Arrival Station Nanning Chongqing Chengdu Transport lead time (days) Kunming, China Nanning, China
12 Cross-border railway network Routes Number of container Gauge Width HCM - Hanoi (Daily+) Hanoi -Nanning (Daily) China Kazakhstan Kazakhstan - Germany Sources: RATRACO JSC
13 Route: Hanoi Central Asia/Europe (Almaty/Moscow/Duisburg) Moscow Duisburg Departure Station Almaty Arrival Station Transport lead time (days) Urumqi Estimated Cost Vietnam Sources: RATRACO JSC
14 Documentations - SOP Sources: RATRACO JSC
15 Sea-Rail Blocktrain Services Transit time: Vietnam to Poland: days Vietnam to Russia: 25 days Vietnam to Mid-Asia: 20 days Vietnam to Mongolia: 20 days Sources: SER - CNTRANS
16 Benefits of Rail Services Vietnam-Poland by Rail: 21~23Days Vietnam-Gdynia/Gdansk 36~44Days Sources: SER - CNTRANS Origin Containers Lodz Nuremburg/ Tilburg (via Chengdu) Haiphong Transit time (via Chengdu) Malaszewicze (via Chongqing) Duisburg (via Chongqing) SOC COC - transload COC - direct days days 22 days Especially Good replacement for Sea-Air Service via Dubai days
17 Thank you Paul Dao Trong Khoa Vice President of VLA
18 CONNECTING LOGISTICS PROFESSIONALS
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