10:15 (GMT +7) - Monday 17/06/2019

BUSINESS SPOTLIGHT

Barge transport cuts costs

Released at: 15:23, 13/05/2019 BUSINESS SPOTLIGHT

Barge transport cuts costs

Photo: Bac Ky Logistics

Bac Ky Logistics helping enterprises in north reduce transportation costs through scheduled barge services.

by Thanh Thanh

How to reduce transportation costs is always the top concern of logistics companies or enterprises with demand for goods transportation. Twenty-five per cent of logistics costs can now be cut by using a completely new mode of transport in Vietnam’s north - container transport by barge.

In April, Bac Ky Logistics became a pioneer in developing container transport services in the north of the country. With total investment of more than VND200 billion ($8.6 million) in Tri Phuong Container Port, on 2.5 ha in Bac Ninh province, along with available infrastructure, Tien Son ICD, the most modern ICD in the north, to form a closed system, Bac Ky is ready to serve importers and exporters at industrial zones in Bac Ninh, Bac Giang, and Hanoi.

Logistics cost in Vietnam is up to 20 per cent; while that’s  in developing countries and regional countries are 10 to 12 percent. Continuous increases in the petrol price and tolls fee also put enormous pressure on businesses. A comparison to illustrate Vietnamese businesses’ burden from domestic transportation costs is that the average ocean freight rate from Busan to Hai Phong is $90 per 40-foot container for a distance of more than 3,000 km while road transportation from Hai Phong to Bac Ninh and Bac Giang costs between VND3.8 million and VND4.2 million ($160 and 180) for a distance of 120 km.

Twenty-five per cent of transportation price will be reduced, in particular, the transportation cost of import, export goods from Hai Phong port to clients’ factory or vice versa from 3,200,000 VND per container 40ft (pick up/drop emty at Haiphong) or from 2,900,000 VND per container 40ft (pick up/drop empty at Tri Phuong port). The above costs include two-way transportation from the factory to Tri Phuong port or ports in Hai Phong area.

With a transport time of ten to eleven hours and operating four 120-TEU barges, Bac Ky ensures a fixed barge schedule leaving Tri Phuong Port/Hai Phong port at 9pm every day, with delivery guaranteed the next day.

Bac Ky is also available to provide added services such as customs declarations and warehousing. In addition to the above benefits for enterprises, the development of river transport contributes to reducing road congestion and traffic accidents on key national highways such as 5 and 18.

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