SSA Marine and Gemadept to Lead $6.7 Billion Cai Mep Ha Logistics Center
Vietnam’s expanding port infrastructure has gained international attention with the upcoming partnership between Seattle-based SSA Marine and Vietnam’s Gemadept, according to local media reports on September 12. The collaboration focuses on the development of the Cai Mep Ha logistics centre in southern Vietnam, which is poised to become a significant logistics hub. Spanning over 2,200 hectares in Phuoc Hoa ward, Phu My town, the ambitious project includes a state-of-the-art logistics centre and the strategically positioned Cai Mep Ha downstream port. The initiative received endorsement from local authorities in September 2020, with updates made as recently as April 2022.
SSA Marine, the largest US-owned container terminal operator and cargo handling company globally, is involved in various sectors, including cruise, auto- and Ro/Ro logistics, and IT solutions. With over 73 years of history, the company operates in more than 250 locations worldwide. In October 2022, during a seminar, Portcoast, an advising firm, proposed two potential investment avenues for the project: an auction for selecting investors or staggered port investment strategies. Portcoast recommended a two-phase approach, with the first phase until 2030 focusing on developing the Cai Mep Ha logistics centre covering 891 hectares, followed by the development of the Cai Mep Ha downstream port over an area of 594 hectares post-2025.
Recent updates in June 2023 revealed a revised construction plan for the Cai Mep Ha logistics centre. The modified plan increases the total area to nearly 2,204 hectares, with the core project space encompassing approximately 1,687 hectares for the logistics centre and downstream port. The planning adjustment aims to accommodate the world’s largest ships, weighing up to 250,000 tonnes, by elongating the port. Additionally, previously reserved land for clean energy storage will now be repurposed for logistics and port functions. Alongside Gemadept and SSA Marine, seven other investors, including Geleximco, ITC, and a consortium involving Besix, Boskalis, and Hateco, have expressed interest in the project.
Once completed, the Cai Mep Ha logistics centre promises to optimize transportation costs for imports and exports through various transit nodes, including road, sea, rail, and air. It aims to serve as a hub for receiving, storing, processing, packaging, labeling, and distributing goods for surrounding industrial zones, particularly the CM-TV port cluster, Vung Tau Port, and the broader southeast coastal port region.