The Ministry of Industry and Trade (MOIT) proposed the Government allow Saigon Newport Corporation to move imported goods containers, including containers stuck for more than 90 days from Cat Lai Port to Saigon Newport’s facilities to store, clear and deliver customers, ministry sources say.

Goods imported and exported at Cat Lai Port are increasing. Photo: Thu Hoa

Two causes for backlog

Many shipping companies said they have faced congestion at Cat Lai Port, and longer goods receipt and delivery times stated in the contract, the ministry reported.

The volume of goods and containers stuck at the port is nearly at full capacity.

"This will have a negative impact on the imports and exports of the southern key economic region," the ministry said.

The backlog of container ships carrying goods is for two main reasons.

Firstly, many factories and import-export enterprises have to stop operating due to social distancing orders. Some firms are eligible for operation but they have to reduce the output.

Companies have to stop their operation and cannot receive containers of imported materials, causing the backlog at the port.

Secondly, the serious shortage of labour for the production lines at the port. According to the Saigon Newport Corporation, to maintain routine operation at the port, there needs to be 500 workers per day.

However, due to Covid-19, the number of workers has reduced to 50%.

Six solutions to remove obstacles

On August 4, Minister of Industry and Trade Nguyen Hong Dien signed Official Letter 4699 sent to the Prime Minister with six solutions to improve the situation.

The first, the ministry suggested the Government assign the Ministry of Industry and Trade to work with Cat Lai and other major seaports across the country to provide solutions such as improving the goods release capacity at seaports, working with goods owners to remove obstacles and receive goods.

Improving operational capacity of the yards and seaports; arranging containers in each area to increase receipt of imported goods; enhancing the ability to load and unload containers on the yards; removing empty containers outside the ports; adjusting time for receiving containers of exported goods in an appropriate manner.

Working with parties to regulate the volume of goods imported to Cat Lai Port; suspending the removal of containers of imported goods from ports of Cai Mep and Hiep Phuoc to Cat Lai Port.

Good owners and shipping lines should limit the volume of ships or delay entry of imported goods containers of firms and factories that are reducing their production scale and output.

Secondly, the ministry also proposes the Government to allow the removal of containers of imported goods, including containers stuck for more than 90 days, from Cat Lai Port to Saigon Newport’s ports to store, clear and deliver to customers.

These ports include Tan Cang Hiep Phuoc port (HCMC), ICD Tan Cang Long Binh, ICD Nhon Trach Tan Cang (Dong Nai), and ICD Tan Cang Song Than (Binh Duong).

Thirdly, it proposes the Government request local governments to give priority to vaccinating all officers at ports, including drivers and shippers.

Fourthly, the ministry asks the Ministry of Heath to work with local governments to offer solutions to quarantine Covid-19 patients while allowing seaports to operate normally to achieve the Government’s dual goals.

Fifthly, it suggests the Government assign ministries, branches and localities to handle the recommendations of Saigon Newport Corporation.

Sixthly, Saigon Newport Corporation should reduce costs for the container storage of enterprises affected by the pandemic at Cat Lai Port.