New River Transport Services Support Vietnam’s Export Manufacturing

 

The shipping industry is rushing to build new capacity in Vietnam as the country works to expand its role as a manufacturing base competing with China. Two international players, CMA CGM and DP World, are highlighting their investments to build new capacity focusing on internal logistics with new river – sea transport operations.

Vietnam has already successfully positioned itself as a cost-effective alternative to China and now looks to leverage the Trump administration's efforts to reign in China by presenting itself as a strong alternative. Reports are that Vietnam was quick to open tariff negotiations with the Trump administration. South Vietnam, home to the Mekong Delta Key Economic Region and the Southern Key Economic Region has become a driver for Vietnam’s manufacturing and export economy.

One of the challenges is internal infrastructure. The government has been calling for developing inland waterway transportation as a means of linking the manufacturing areas and ports. 

DP World currently operates the Saigon Premier Container Terminal in Ho Chi Minh City with an annual capacity of 400,000 TEU and the only RoRo port in the south. It announced a new partnership with VIMC Lines, one of the units of Vietnam National Shipping Lines. They said the program known as the Mekong Express will enhance connectivity between the key economic regions in the South.

The companies mark the launch of the new Megong Express river service at the end of ay. Hey will be operating two trips per week combining river and sea routes with the ability to move hundreds of containers per week, including reefers. 

“DP World is committed to building an integrated, seamless supply chain ecosystem in Vietnam – an increasingly important market in the Asia Pacific region as well as globally,” said Glen Hilton, General Director of Asia Pacific for DP World. “With the Mekong Express, we are meeting the demand for an efficient and reliable service. This transport route will contribute to promoting economic development not only in the Southern region but also throughout Vietnam.”

The companies highlight that the water route is significantly shorter reducing an approximately 230-mile trip to 125 miles. Travel time for containers will be reduced from 48 hours to 15 hours. The service connects to Cai Mep Port and Cai Cui Port. They are also exploring extending it to the port operations of DP World and VIMC at two locations in Saigon. 

CMA CGM announced last month its planned investment to expand port operations to the north of Vietnam. The company has also signed an agreement with Gemadept, a key logistics and port operator in Vietnam, to establish a new joint venture, Green River Transport. It will operate the previously announced electric barge that CMA CGM is building for transport in Vietnam. The new joint venture will manage transport in the Mekong Delta. 

The barge is due to enter service in 2026 and it will be powered by a charging station being built at the Cai Mep port near Ho Chi Minh City. It is the country’s main container gateway. CMA CGM highlights that it operates 29 weekly maritime services from Vietnam.

Nike has agreed to be the first customer of the new electric barge service. It will use the service for its logistics flow between its Vietnam manufacturing locations and the Gemalink container terminal.