Super container ship M/V OOCL SPAIN docks at Gemalink port, Cai Mep - Thi Vai port cluster, Ba Ria-Vung Tau province). (Photo: VNA)

The Ministry of Transport has freshly approved a project for developing waterway corridors and logistics in the southern region, which is worth nearly 3.9 trillion VND (163.34 million USD) funded by the World Bank (WB).

Duong Thanh Hung, head of the Waterway Project Management Board, said that it is an important and urgent project, aiming to improve the infrastructure system and reduce congestion, accidents, and the cost of transporting goods by waterway through renovating and upgrading the East-West transport corridor connecting the Mekong Delta region, and improving the North-South transport corridor connecting the southeast region with the Cai Mep Thi Vai port cluster.

The project will dredge and improve waterways to remove blockages on the East-West corridor through various rivers including Hau, Tra On, and Mang Thit and many canals Can Tho city and Ho Chi Minh City. In addition, it will tackle congestion on the North-South corridor through the rivers of Dong Nai, Nha Be, Long Tau, and others.

Once the project is completed, the East-West and North-South transport corridors in the southern region will ensure traffic capacity for large ships and container ships for transporting goods. It will contribute to increasing water transport capacity and connecting with deep-water ports inland.

Of its total investment, the WB loan capital is 106.96 million USD and non-refundable aid capital from the Australian Government, 0.58 million USD.

The implementation period is five years after the Funding Agreement takes effect, which is expected from 2023 to 2027.

Hung said the ministry has required the board - also the project investor - to receive appraisal opinions and comments from relevant agencies and units to complete project documents according to regulations.

The board is also asked to urgently coordinate with donors and relevant agencies to prepare and implement negotiation procedures and sign loan agreements for the project as a basis for investment implementation, as well as to closely cooperate with localities in compensation, resettlement, and financial support ensuring project progress.