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C.Steinweg builds bonded logistic hub in Hai Phong city

2014-06-18 17:30:55

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The ground-breaking ceremony for the "C.Steinweg Bonded Logistics Hub" at Dinh Vu Industrial Zone, in Hai An District of northern Hai Phong City, was held on June 17.

The ceremony was attended by the Prime Minister of the Kingdom of The Netherlands H.E. Mr Mark Rutte, a Dutch business delegation, local authorities of Hai Phong City as well as CEOs from various foreign companies in the port city.

"I'm confident that the Steinweg warehouse that will be built here will boost Hai Phong's position as a logistics hub of northern Viet Nam, and provide jobs and income for many people," said the Prime Minister of the Kingdom of the Netherland.

"This investment shows how confident the Dutch business sector is in the future of Viet Nam. Your country is developing fast, and we want to work with you. We believe our partnership will benefit us both," he added.

According to the plan endorsed by Hai Phong Economic Zone Authority (HEZA), construction is set to start in July and the first phase of operations is expected to begin in August 2015.

Once fully developed, the project will comprise of three warehouses, with covered storage area of about 30,000 square metres. The project will create total capacity of about 3,500TEU and the total estimated handling volume could amount up to 70,000mt per year.

Since Viet Nam opened its door to the logistics sector after joining WTO, Viet Nam Maritime Administration (VMA) has estimated that cargo volumes transported through the country's seaport systems will reach 400-410 million tonnes by 2015, and increase to 640-60 million tonnes by 2020.

As one of the most important transport infrastructure projects till 2020, the development of Hai Phong International Gateway Port necessitates the creation of supporting logistics distribution centres which help to ensure optimal utilisation of the port.

As the biggest commodity logistics player in terms of global coverage, C.Steinweg Group is always looking to increase its footprint in the Asia Pacific region. Steinweg sees a good fit between the groups expansion plans and Hai Phong's ambitions to grow the citys economy especially in the logistics and maritime clusters.

Therefore, C.Steinweg Group determined that it would be the right time to develop a full-fledged logistics hub in Dinh Vu Industrial Zone (DVIZ) to serve increasing market demands.

"In the past year, C.Steinweg Group has consulted with existing local and international customers on this potential development and the feedback was overwhelmingly supportive. Customers believed that such a development by Steinweg would provide a welcome boost to trading activities in Hai Phong Port and further deepen its appeal as an international trading and logistics hub," said Ulf Boll, global CEO of C.Steinweg Group, at the ceremony.

The CEO said that after a thorough feasibility study, the company decided to acquire 150,000sqm of land in the DVIZ for the construction of a bonded logistics hub.

He added that the main economic activities in this project are third-party logistics services, including warehousing and storage as well as other supporting services related to transport.

"As Hai Phong becomes the most important transport node in the region, the decision to invest here is timely because there are many opportunities available for Steinweg to serve growing demands for logistics services. Our strategy is in line with Hai Phong Citys development blueprint, and has a high chance of success," said Ulf.

By the first year of operation, C.Steinweg estimates that its annual import/export volume via Hai Phong may amount up to 20,000 metric tonnes, with projected cargo value exceeding US$40 million. By the end of five years, C.Steinweg Hai Phong will play an instrumental role in the Groups Far East regional development, and its contributions to the Port city will also increase.

Established in 1847, C.Steinweg is one of the worlds leading warehousing and logistics service providers, with a long history in the commodity trade and extensive network spanning more than 100 locations around the world.

Source: VNS