February 2012 Prepared for: The Ministry of Economy, Trade and
Transcription
February 2012 Prepared for: The Ministry of Economy, Trade and
STUDY ON ECONOMIC PARTNERSHIP PROJECTS IN DEVELOPING COUNTRIES IN FY2011 STUDY ON THE VESSEL NAVIGATION AND SECURITY MANAGEMENT NETWORK REINFORCEMENT PROJECT IN THE SOCIALIST REPUBLIC OF VIETNAM FINAL REPORT February 2012 Prepared for: The Ministry of Economy, Trade and Industry Prepared by: Japan Radio Co., Ltd. TOYOTA TSUSHO CORPORATION Preface This Report describes the results of the “Study of Forming Japanese Yen Loan Projects” that Ministry of Economy, Trade and Industry has awarded as the project for the fiscal year of 2011 to Japan Radio Co., Ltd. and Toyota Tsusho Corporation. Vietnam is facing the impending problem of maintaining the safety of vessel navigation at its main sea ports and routes in response to the increasing vessel traffic due to the port development projects in progress. To solve this problem unique to this country, the “Study on the Vessel Navigation and Security Management Network Reinforcement Project in the Socialist Republic of Vietnam” was taken up in the framework of the above Project Forming Study. This Study was intended to make the feasibility study of the Project for developing the vessel traffic surveillance network using VTS/AIS and other systems. We would sincerely appreciate it if this Report helps realize the above Project and furnish useful information to the persons or parties concerned with such problems in Vietnam. With best regards, February 2012 Japan Radio Co., Ltd. Toyota Tsusho Corporation Figure Project Location Map 200km Source : Prepared by study team based on Google map Abbreviation Table No. Abbreviation 1 ADB 2 AIS 3 ASEAN 4 B/C 5 BOT 6 BTO 7 CDM 8 CIF 9 CPI 10 DWT 11 ECDIS 12 EIA 13 EIRR 14 ETS 15 FIRR 16 GDP 17 GFS 18 GIS 19 GTW 20 GMDSS 21 IMO 22 JICA 23 MA 24 MARD 25 MOT 26 MONRE 27 MPI 28 NEDO 29 NM 30 NPV 31 ODA 32 PMU 33 PPP 34 PSSA 35 RCC 36 SAR 37 SCF 38 SEA 39 SOLAS 40 S&R 41 VINALINE 42 Vinamarine 43 VINASARCOM 44 VISHIPPEL 45 VIWA 46 VMRCC 47 VMS 48 VMSI 49 VND 50 VNPT 51 VPA 52 VPN 53 VTS 54 WTO Full Name Asian Development Bank Automatic Identification System Association of Southeast Asian Nations Benefit Cost Ratio Build-operate-transfer Build-transfer-operate Clean Development Mechanism Cost, Insurance and Freight Consumer's Price Index deadweight tons(tonnage) Electronic Chart Display and Information System Environmental Impact Assessment Economical Internal Rate of Return Emmision Trading Scheme Financial Internal rate of return Gross domestic product Government Finance Statistics Geographic Information System Gross tonnage weight Global Maritime Distress and Safety System International Maritime Organization Japan international cooperation Agency Maritime Administration Ministry of Agriculture and Rural Development Ministory of Transport Ministry of Natural Resource and Environment Ministry of Planning and Investment New Energy and Industrial Technology Development Organization Naurtical Mile Net Present Value Official development assistance Project Management Unit Public Private Partnership ParticularlySensitiveSea Area Rescue Co-ordination Center Search and Rescue Standard Conversion Factor Strategic Environmental Assessment The international Convention for the Safety of Life Searh & Rescue Vietnam National Shipping Lines Vietnam National Maritime Bureau National Committee for Search and Rescue Vietnam Ship Communication and Electronic Company Vietnam Inland Waterway Administration Vietnam Maritime Search and Rescue Co-ordination Center Vietnam Maritime Safety Agency Vietnam Maritime Safety Inspectorate Viet Nam Don Vietnam Post and Telecommunication Group Vietnam Seaports Associatio Virtual Private Network Vessel Traffic Management System World Trade Organization Table of Contents Executive Summary 1. Background and Necessity of the Project S-1 2. Basic Policy to determine the Project Scope of Work S-1 3. Outline of the Project S-3 4. Project Implementation Schedule S-8 5. Feasibility for the Implementation of Project S-9 6. Technical Predominance of Japanese Companies S-10 7. Expected Risk/Problems for Implementation of the Project S-11 8. Project Location Map S-12 Chapter 1. Overview of the Host Country and Sector 1. Economic and Financial Projects in Vietnam 1-1 2. Outline of Target Sectors for Projects 1-9 3. Conditions of Target Areas 1-12 Chapter 2. Study Methodology 1. Study Methodology 2-1 2. Study Method and Organization 2-2 3. Study Schedule 2-3 Chapter 3. Justification, Objectives and Technical Feasibility of the Project 1. Background and Necessity of the Project 3-1 2. Examinations for Determination of Items of the Project 3-20 3. Outline of the Project 3-35 Chapter 4. Evaluation of Environmental and Social Impacts 1. Analysis into Actual Conditions in Environmental Aspect 4-1 2. Expected improvement with the Project 4-2 3. Environmental and Social Concerns due to the Project 4-3 4. Outline of Vietnamese Legislation for Environmental and Social Considerations 4-10 5. Responsibilities of Vietnam (Implementing Agency and Other Related Agencies) for Implementing the Project 4-11 Chapter5. Financial and Economic Evaluation 1. Project Cost 5-1 2. Outline of Results of Preliminary Financial and Economic Analysis 5-4 Chapter 6. Planned Project Schedule 1. Project Phase 6-1 2. Considerations for Project Schedule 6-2 Chapter 7. Implementing Organization 1. Outline of Implementing Agency of Vietnam 7-1 2. Organizational System to Implement the Project in Vietnam 7-3 3. Capacity Assessment of Implementing Agency of Vietnam and Countermeasures 7-6 Chapter 8. Technical Advantages of Japanese Companies 1. International Competitiveness of Japanese Companies and Possibility of Contract Award to Japan 8-1 2. Main Equipment Items and Amounts with Possibility of Procurement from Japan 8-4 3. Necessary Measures for Promotion of Contract Award to Japanese Companies 8-6 Executive Summary 1. Background and Necessity of the Project The Socialist Republic of Vietnam installed the Global Maritime Distress and Safety System (GMDSS) at main ports and rivers under the Japanese yen loan for the period of March 2000 to January 2007 to perform the SOLAS Convention (International Convention for the Safety of Life at Sea) and the SAR Convention (International Convention for Maritime Search and Rescue) as required by International Maritime Organization (IMO). This Project was highly evaluated by the Vietnam-Japan joint evaluation of this Project made in 2008, but it was recommended to build up the Vietnamese capacity to fully comply with the provisions of the said International Conventions by introducing the Automatic Identification System (AIS) and the Vessel Traffic System (VTS). After Vietnam has recently become a member of the WTO, the economic globalization has increased the imported and exported cargo volumes. Vietnam has a long coastline of about 3,200km extending from north to south and rivers with a total length of 198,000km and many ports are distributed along the coastline and the river. In the international trade, the marine transportation accounts for over 80% and the domestic cargo transportation from south to north depends largely upon sea transportation. Therefore, it is considered that the future increase of cargo handling volumes at main ports will necessarily face the some problems, to which the Vietnamese Government should make urgent solutions; (1) Securing the safety of navigation in coastal waters and main rivers in Vietnam; (2) Building up the capacity of sea transportation by efficient operation of port facilities; (3) Reinforcing the action against ocean pollution due to sea accidents; and (4) Reducing the CO2 emissions from growing marine transportation. In this background, the Study of port development project will be conducted through collection of information and hearing with related agencies. In addition, the project for development of the system for vessel traffic surveillance and the system maintenance and operation program will be planned through the examination of them from the following viewpoints: 1) 2) 3) 4) 5) Securing the safety of vessels’ navigation; Enhancing the efficiency of port maintenance and operation; Taking the measure for protecting the ocean environment in the surrounding waters of ports; Reducing the CO2 emissions in navigation of vessels; and Establishing the concentrated port management system in Vietnam 2. Basic Policy to determine the Project Scope of Work 2.1 Basic Concept 1) According to the port development plan, the monitoring system (such as VTS) should be installed to watch the movement of vessels in port and on route. 2) For the port operation, the information of vessels should be collected by using of VTS/AIS and so on. 3) To keep the safety of vessel traffic and the high efficiency of port operation, maritime Geographical Information System (GIS) should be introduced for narrow channel and intercept of route in port. And the information should be disseminated to vessels/users. 2.2 Problems and Solutions Many ports in Vietnam are located along river basins and the vessel’s draft is shallow and largely affected by the fall and rise of the tide. Large-type vessels have to use barges for cargo loading and unloading at present. This problem resulting in very inefficient marine transportation has already been pointed out. As the ports are located along rivers, their site areas are limited and restrictive for construction of large-scale crane facilities and storehouses. Therefore, the transportation cost becomes high even though the production cost is set to a low value, and the cost competitiveness that the port areas should originally have is reduced. As the measure for buildup of the marine transportation for S-1 the time being, it is considered to develop the ports having deep waters to ensure large vessels to berth, in particular, aiming at international gateway ports. Such unique feature of the Vietnamese ports is an impediment to plan a long-term national port development project. In the Master Plan, the functions of ports including international gateway ports and local hub ports are defined clearly to set the priority order of development and to start the efforts to formulate the comprehensive policy covering all the ports of different categories. The port development project was submitted by Vinamarine through Ministry of Transport to the Prime Minister Office and approved in July 2009. It is planned that this project will be implemented to construct the necessary port infrastructure and facilities by 2020 looking to 2030. The basic systems as the solutions for the problems in port will be outlined below. a. VTS outline and functions: The Vessel Traffic System (VTS) consists of radar equipment, AIS base station, camera equipment, database, multiplex transmission equipment and VHF radio equipment. The integrated information is displayed on the radar monitor for the concentrated management of vessel traffic in providing effective information for vessel traffic safety and efficient operation of port facilities. b. AIS outline and functions: The Automatic Identification System ( AIS ) is designed to broadcast the information including navigational information such as vessel’s position, course and speed, vessel’s name and cargo information in the VHF band to receive and display the vessel information transmitted from other vessels.Under the International Convention for the Safety Of Life At Sea(SOLAS)Convention as revised in 2000, after July 1, 2002 are obligated to carry the AIS on and after that data, and the existing vessels are obligated to carry the AIS for the period from July 1, 2002 to July 1, 2008. c. Environmental GIS outline and functions The environmental GIS (Geographic Information System) collects various types of information from shore-based radar stations, shore-based AIS stations, vessels and meteorological support sites as necessary and stores such information as the database in order to display it on multiple monitors and PCs and provide it to the external. 2.3 Expected effects By the development of VTS/AIS and environmental GIS to provide various types of information in a comprehensive manner, the following effects can be expected: 1) VTS, AIS and the oceanic environmental GIS will effectively function to secure the safety of navigation and reduce the congestion in ports and narrow channels, contributing to the buildup of marine transportation capacity and the reinforcement of investment environment and export capacity. 2) Those systems integrated with the existing GMDSS will allow the safety on main routes to be secured quickly, in particular in event of vessel distress. 3) The energy efficiency control on vessels will allow CO2 emission control and reduction, bringing large economic effects in the environmental aspect. 4) The information of vessel/port in Vietnam will be provided to the vessel and port users, included the Maritime Administration as the management organization of port. The integrated management of such information will be enhance the organization of Port Authorities. 5) Vietnam is located at the gateway of the Southern Economic Corridor (Thailand, Cambodia and Vietnam) and the East-West Economic Corridor (Thailand, Laos, Myanmar and Vietnam), and it is expected to shorten the lead time of agricultural and industrial products from the surrounding countries and increase the frequency of transportation. The high spin-off effect to promote the economic growth in the ASEAN countries is also expected. 6) The Vietnamese Government plans to increase the export to 4 times or more for the future 10 years. If the export industry is revitalized in Vietnam, it is expected that the import and export in or from Japan will grow, promoting the economic growth in both countries. S-2 3. Outline of the Project 3.1 Basic Concept for the project (1) The ports to be developed in Phase 1 will be Hon Gai, Hai Phong, Da Nang, Vung Tau (Ba Rịa Vung Tau) as shown in Figure.A-1, TP.Ho Chi Minh and the management and monitoring system for vessel traffic at each port at the headquarter of Vinamarine, and it is planned to start their construction works in May 2013 and complete them in March 2016 (FY2015). (2) The Phase 2 of the Project includes 11 ports and some additional works in Vinamarine headquarter as shown in the Figure. A-1. The construction work is planned to be started in July 2017 and completed in December 2020. 3.2 Configuration of the project (1) Construction of radar sites A total of 15 radar sites will be constructed to configure the VTS and AIS at each of the main ports and a radio transmitting/receiving station will also be installed at each radar site. (2) Construction of VTS and AIS network The vessel information, channel information and port information to be transmitted from VTS and AIS will be integrated at each Maritime Administration, which will be networked with each adjacent Maritime Administration and the Vinamarine headquarters via links. (3) Installation of oceanic environment GIS at Data Center As there are the problems of narrow channels and congested waters at main ports, the oceanic environment GIS will be installed at the Data Center to support the energy saving navigation and shorter waiting time off shore from the environmental viewpoint. 3.3. Project Cost The Project will be carried out in 2 phases to be completed in 2015 and in 2020 respectively. The total project cost for Phase 1and Phase 2 is shown as bellow; Table 1 Total Costs of Project for Phase 1 and Phase 2 Japanese Yen No Item VND(,000) (1,000) Vessel Traffic monitoring and management 1 ¥11,205,900 system 2 Construction VND293,714,359 3 Installation, inspections ¥1,670,784 4 Training and O&M Support ¥154,417 Total(1-4) ¥13,031,101 VND293,714,359 5 Consulting fee ¥757,724 VND 14,685,718 Total(1-5) ¥13,788,825 VND308,400,077 6 Contingency ¥689,441 VND15,420,003 Total(1-6) ¥14,478,266 VND323,820,081 Total(Thousand Japanese Yen) ¥14,478,266 ¥1,221,963 ( Total project cost in JPY,000 ¥15,700,228 ) Total(Thousand US$) $185,619 $15,666 Source : Prepared by study team, Exchange rate: US$1=JPY 78.0; JPY1=265VND as of Nov. 2011 In estimation of the equipment investment amount, the equipment cost is estimated in the CIF price basis and the local construction work cost is estimated by using the consumer price index to correct the procurement costs in similar projects which have been implemented in Vietnam in recent years. The consulting price is estimated on the basis of per diem operation cost. S-3 3.4. Outline of Results of Preliminary Financial and Economic Analysis 3.4.1 Preliminary Financial Analysis In regard to revenues in implementing this Project, it is impossible to collect any new fees from port users. The main purpose of the VTS/AIS functionality is to realize efficient operation of ports and channels and safety of navigation in ports for port and channel controllers. Usually, port and channel users pay the port use tax or port dues for using port facilities. These typical charges are shown in Table 2 taking the example of the example of Ho Chi Minh Port (Cat Lai container terminal). Table 2 Breakdown of Port Use Charges by Example of Cat Lai Wharf of Ho Chi Minh Port1 No. Item Unit Cost Remarks 1 Dockage charge US$0.0031/hour/GT Paid to: Maritime Administration(MA) 2 Tonnage tax US$0.032/GT×2 (two-way) Paid to: MA 3 Navigation due US$0.1/GT× 2 (two-way) Paid to: MA 4 Pilotage charge US$0.0015/GT× distance× 2 (two-way) Paid to: Pilot company Standard Paid to: 5 Tag boat fee US$800/10,000GT tag boat company Source : Prepared by study team Note: No.1 through No.3 are the same across the entire country and No.4 and No.5 are a little different from port to port. : MA stands for Maritime Administration As mentioned above, the costs such as port facility charge for the port facilities to be constructed in this Project are collected as other charge items and it is considered as difficult for VINAMARINE to raise such charges by implementing this Project. As this Project will be implemented in 2 phases as described in the preceding Section, the maintenance and operation expenses for the facilities to be constructed in this Project may be different because the M&O system is different after completion of Phase 1 and after completion of the entire Project. Therefore, the maintenance operation expenses are estimated in referring to the present budget scale and number of personnel of VINAMARINE as shown in Table 3. Table 3 Maintenance and Operation Expenses per Employee (based on price as of November 2011) Unit Price Unit Price Item (dong) (USD) Remarks Wages 70,000,000 3,387 Electricity charge 30,000,000 1,451 Communications cost 1,500,000 73 Fuel cost 14,000,000 677 Other expenses 6,000,000 290 Source : Prepared by study team, Exchange rate: US$1=JPY 78.0; JPY1=265VND as of 2011 Table 4 IP network charge per point (based on November 2011) Unit Cost Unit Cost Item Remarks (dong) (USD) 581 Annual IP network charge 12,,000,000 IP network subscription fee 1,000,000 48 Only at the time of subscription Source : Wideband service triff (Vietnam Post and Telecommunication) In addition, the financial analysis of this Project was made on the following conditions: 1 a. Period for assessment: The durable service life of the equipment is 20 years. b. Currency exchange rate: 1 yen = 265VND ; US$1 = 78 yen (as of November 2011) By interview with shipping companies in Vietnam as of October 2011. S-4 c. Inflation: The inflation has an impartial influence on revenue and expenditure. The inflation rate is estimated to be 9.26% in average over the previous year based on the average of the consumer price indexes for 8 years from 2003 to 2010. d. Exchange rate between foreign currency and Vietnamese dong: According to the currency policy of the Vietnamese authority, the currency rate between the domestic currency and USD currency was depreciated yearly at 3.36% in average for 8 years from 2003 to 2010 and it is anticipated that it will decrease at the same rate in future2. The exchange rate between USD and JPY is assumed to be constant. e. Investment amount: The demand for funds during the periods of construction works are assumed to be 30% for the initial period, 40% for the medium period and 30% at the end of this Project based on the past experience in similar projects. For the foreign currency for assessment, the assessed amount in the currency depreciated to the USD currency will be used. Since the equipment and systems will be installed at coastal area, their damages by sea air will be considered and it is assumed that main equipment will be replaced every 10 years. f. Revenue: Subsidy from Ministry of Transport is assumed as the revenue from the project. Subsidy is assumed to cover the capital expenditure as well as Operation and maintenance expenses g. Discount Rate: Discount rate is 15% which is the legal interest rate for applying on deposits with commercial banks. The discount rate is used for conducting Net Present Vale (NPV) as well as Benefit-Cost ratio (B/C). Under such conditions, Financial Rate of Return (FIRR), Net Present Value (NPV) and Benefit Cost Ratio (B/C ratio) and those sensitivities are obtained: FIRR=0%, NPV=0, B/C=1 as shown in the following table. Table 5 Case Results of Preliminary Economic Analysis FIRR NPV Base Case 0% 0 1 10% increase of Investment 0% 0 1 10% decrease of minus -457 Bill. VND Revenue Source : Prepared by study team (2) B/C 0.9 Remarks Supposed as the subsidy covers increased amount by 10%. Supposed as the subsidy is cut off by 10% Preliminary Economic Analysis The benefit may be deprived by the sur-charge of the insurance on trade commodity. Nippon Kowa insurance company require the surcharge on trade commodities/goods when shippers use aged vessels. The percentage of surcharge varies depending on the age of vessels and indicates additional 0.1 % to regular insurance rate in case of vessels of 10-15 years old. Some of Vietnamese shippers may accept as same percentage as those if they use the safe navigation in ports. Therefore 0.1% on the trade value, which usually stands for insurance value, is supposed as the benefit of the project. The domestic cargo is excluded in the analysis. 1) Benefit Calculation Average benefit value per ton in Vietnam are shown in Table 6. 2 Source: Calculated based on various types of data of Statistics Directorate General of Vietnam S-5 Table 6 Average benefit value per ton Average value per ton of trade US$2,527 Conducted trade value per trade Volume commodities/goods from the year 2000 to 2009 (1) Proportion of trade volume to Volume of 7% freight by transport sector Additional surcharge % to the regular 0.1% Equivalent to the surcharge of employing insurance tariff 10-15 year vessel (2) Average benefit value per ton US$ 0.18 Source : Prepared by study team based on the data from (1) Statistical Office of Vietnam and (2) Nippon Kowa Insurance Corporation The number of ship’s calls, cargo handling volumes and number of containers at the ports for which this Project will be implemented in Phase 1 and Phase 2. Table 7 Year Ports under Phase 1 Number of ship’s calls Cargo handling volume Number of containers Ports under Phase 2 Number of ship’s calls Cargo handling volume Number of containers Predicted Number of Beneficiary Vessels, Cargo Volume and Number of Containers at Ports under this Project 2015 2020 2025 (vessels) 2030 2032 46,566 117,316 317,069 900,140 1,379,753 166,771 297,759 531,970 950,950 1,199,856 14,512,943 40,574,108 113,563,698 318,210,472 480,660,010 (vessels) 21,408 33,499 54,169 66,166 (t) 46,331 76,379 126,481 154,952 1,491,340 3,857,606 10,043,775 14,753,495 (t) (TEU) (TEU) Source : Prepared by study team These predicted figures were obtained in the following procedure: a. Calculation of growth rate from 2011 to 2032 The cargoes are divided into North, Central and South Regions because it is possible to adopt alternate routes depending upon the grade of development of land and marine logistics networks. The number of ship’s calls, cargo handling volume and container handling volumes that are changing in each of such Regions for 5 years from 2005 and 20103 and the average growth rate in each year to the previous year are obtained and the growth rate is applied to each of the ports under this Project. b. Calculation of number of ship’s calls at each port and its growth rate Based on the location of each port, the growth rate in each Region obtained in item a. above is applied to the handling volumes at each port to calculate the number of ship’s calls at each port. the benefit calculations, it is necessary to convert the prices into international prices, but such prices will be not corrected based on the standard conversion factor because the source of value is supposed as an international price. 2) Cost Calculation The equipment investment amounts and maintenance and operation expenses as described in the Preliminary Financial Analysis are cost items. In this case, the differences between domestic prices and international prices will be corrected by using the standard conversion factor as described later. a. Standard Conversion Factor (SCF) SCF is a coefficient to correct a distortion of a domestic price to the corresponding international price. In this report, the SCF is calculated based on the import/export amounts and customs revenues from 2007 to 2009 as shown in Table 8. 3 Source: Statistics materials of Vietnamese Port Association. S-6 For details, refer to ANNEX-3. Table 8 Import and Export Amounts and Import Customs Revenues in Vietnam 2007 2008 2009 Import amount (million USD)* 48,561.4 62,685.1 57,096.3 Export amount (million USD)* 62,764.7 80,713.8 69,948.8 Import customs revenue (million USD)** 3,439.9 5,582.0 4,511.9 Export customs revenue (million USD)** 0.0 0.0 0.0 Source : Prepared by study team, *: Statistics Directorate General of Vietnam, **: WB Official exchange rate (LCU per US$, period average) The calculation method is as follows: SCF= 2007 – 2009 import/export total/(2007 – 2009 import/export total + Total customs revenue) = 0.966 Of the revenue, equipment investment amount, and maintenance and operation expenses, the domestic procurement amount is multiplied by this SCF to obtain the international price. b. Exchange rate As adopted in the preliminary financial analysis, the conversion rates: 1JPY = 265VND and 1USD = 78 JPY (as of November 2011) are applied. c. Inflation Usually the inflation rate is excluded to have equal influence on both benefit and costs. As the economic growth and the substantial increase in wages for employees are expected in Vietnam, the inflation is estimated to rise at an annual increase rate of 9.26% over the previous year during the period of assessment based on the average value of the consumer price indexes during 8 years from 2003 to 2010. d. Exchange rate between foreign currency and Vietnam dong According to the currency policy of Vietnam authority, the currency exchange rate of Vietnamese dong to US dollar was depreciated yearly at 3.06% in average for 8 years from 2003 to 2010. It is also anticipated to be depreciated at the same rate in future4. On the other hand, it is assumed that the exchange rate between US dollar and Japanese yen is constant. e. Investment amount The demands for funds during the periods of construction works are estimated to be 30% in the initial period, 40% in the medium period and 30% at the end of the Project. For the foreign exchange for assessment, the assessed amount in the Vietnamese dong depreciated to the US dollar will be used. 3) Sensitivity The economical internal rate of return is calculated in the basic case and in the cases that the benefit decreases 10% and that the equipment investment increases 10%. The preliminary internal rates of return calculated in the above conditions are shown in Table 9. Table 9 Case Results of Preliminary Economic Analysis Preliminary internal rate of NPV return (%) (Billion VND) 39% 138,786 37% 115,727 Basic case Benefit decrease rate of 10% Equipment investment increase rate of 10% Source : Prepared by study team 37% 129,228 B/C 6.22 5.44 5.51 In this benefit calculation, althought it is addressed to the cargo values expecting domestic cargo value, 4 Source: Calculated based on the data issued by Vietnam Statistics Directorate General S-7 the results of preliminary economic analysis show that the benefit in each of the above three cases exceed 15% (The legal interest rate of deposit with commercial banks is around 15% as November, 2011) as a target in this project to be implentated in Vietnam. Therefore, it can be conducted that this Project will be feasible from the view point of economy. 3.5 Influence on Environmental and Social Aspects by Implementing the Project 3.5.1 Influence on Environmental and Social Aspects This Project will mainly use the existing port facilities and port communications systems, but it is necessary to develop a site with the area of 200 – 300 m2 and construct a machine house (with a floor area of 100m2) and a tower (with a height of 30m) in the vicinity of each of the main ports. These construction works will have little impact on the surrounding environment of each port area and are classified as Category C. which is the “Guidelines for Environmental and Social Considerations” set by Japan International Cooperation Agency (JICA), which means they are likely to have minimal or little adverse impact on the environment and society. The countermeasures is left to Implementation agency and carried out based on the Vietnamese legistlations. The details of items to be prepared by Vinamarine are described in the “Check List” in “Appendix Screening Form to the JICA “Guidelines for Environmental and Social Considerations”. 3.5.2 Outline of Vietnamese Legislation for Environmental and Social Considerations The Vietnamese Government revised the Environmental Protection Law in full scale in 2005 and introduced the Strategic Environmental Assessment(SEA)into it. In 2006-“Decree for the detailed enforcement regulations and guidelines for the Environmental Protection Law”(Decree No. 80/2006/ND-CP)is decided as “All national projects are required to subject to the strategic environmental assessment(SEA).2” and “The environmental impact assessment report shall accompany the Feasibility Study Report” In the future, the Environmental Impact Assessment (EIA) should be made within the framework of the feasibility study of this Project and ahead of the stage of implementing this Project. The Revised Environmental Law and the related decrees provide that the EIA shall be made for the following: 1) Important national projects; 2) Partial use of nature protection districts, national parks, historical and cultural remains districts, natural heritages, registered places of scenic beauty, and projects having adverse impacts on environment; 3) Projects that may have adverse impacts on water sources, river basins, coastal areas and ecological system protection districts; 4) Infrastructure construction projects in economic districts, industrial complexes, high-tech complexes, export processing zones and household industry villages; 5) New construction projects in urban areas and concentrated housing areas; 6) Projects exploring and using large-scale groundwater and natural resources; and 7) Other projects which may have large adverse impacts on environment. 4.Project Implementation Schedule The ports for which this Project will be implemented in Phase 1 are Hon Gai and Hai Phong in the North Region and Vung Tau and Ho Chi Minh in the South Region, which have been more congested along with the increasing cargos for logistics than ever. In addition, Da Nang Port in the Central Region which is expected to function as the logistics base for the East of Thailand and the South of Laos as a result of ASEAN Integration in 2015 will be covered by Phase1 . These 5 ports are defined as “International Gateway Ports” or “Hub Port for the surrounding ports in Each Area” in the Master Plan. The Phase 2 will cover a total of 11 ports: Nghi Son, Nghe An, Vung Ang, Dung Quat, Quy Nhon, Van Phong, Nha Trang, Vinh Tan, Ke Ga, Dong Nai and Can Tho, which are functioning as the logistics base S-8 for individual areas and in the hinterland of which large-scale industrial complexes and huge power generation plants are constructed. After completion of Phase 1, it will be necessary to develop a system to maintain the safety of vessels using the ports and build up the port maintenance and operation. In consideration of this, it is anticipated that a period of about one year will be taken to develop this system and that, after the one-year period, the developed system will be deployed in the ports covered by Phase 2. The standard schedule to implement this Project based on the above plans is shown in Table A-1. 5.Feasibility for the Implementation of Project 5.1 Prospect of Financing for the Proposed Project The Vietnamese economy has shown the growth rate of over 7% since 2000 except a period of world economic crisis in 2008. The Five-Year Economic and Social Development Plan (2011 – 2015) of Vietnam is intended to continue to reform the economic structure, build up the competitiveness of the national economy and accelerate its integration with the world economy, aiming at sustaining the annual economic growth of 7 to 8% in average stably up to 2020. On the contrary of its positive policy of revitalizing its economy, however, Vietnam has brought its national financial condition into a revenue shortfall continuously since 2005. The investments in its economic infrastructure which will be required to be developed in the future rely on the loans within the country and from foreign countries. This situation will probably continue to the future. Vietnam Ministry of Transport has concentrated its efforts on development of the network of land and marine transportation which has been the bottleneck of economic development in Vietnam so far. It has estimated that the investment for port development up to 2020 will be 360 to 440 trillion VND and that approximately 8.6 billion VND (=32 billion Japanese Yen) will be required for development of VTS/AIS etc to ensure the safety at main ports. Vinamarine, MOT and MPI expect these fund sources from overseas funds and ODA funds. 5.2 Capacity Assessment of Implementing Agency of Vietnam and Countermeasures Vinamarine implemented the “Radio Coast Station Development Project (1997 – 2007)” to maintain safety of vessel traffic and to take quick action in event of sea accident under the Japanese yen loan and introduced the Global Maritime Distress and Safety System. In addition, in the background of the increasing cargo handling volume at main ports in Vietnam along with the drastic increase of marine transportation volume, it was the urgent necessity to operate the port facilities in an efficient and safe manner. In March 2005, Vinamarine made the field surveys aiming at introducing the Vessel Traffic System in Vietnam and made the feasibility study in the technical and cost aspects on this Project independently. The “Radio Coast Station Development Project” as mentioned above received very high evaluation in the assessment made by the Vietnam – Japan joint assessment team after completion of the Japanese yen loan project, saying “this Project has no problem in terms of the capacity of the implementing agency and the maintenance and operation system and is expected for high sustainability.” As a result, the project implementing capacity of Vinamarine was proved. As it was experienced in the Radio Coast Station Project Phase I and Phase II and familiarized with the Japanese yen loan scheme, Vinamarine is expected to able to implement the new Project in a seamless manner. In September 2011, one JICA expert was dispatched to Vinamarine to give professional advice on the technical cooperation in port operation and maintenance and the development of the Vessel Traffic System and the Distress and Safety System. Based on the expert’s advice, therefore, Vinamarine has established a support system to implement this Project. The operation and maintenance of the Vessel Traffic System to be introduced in this Project will be undertaken by each Maritime Administration under the control of Vinamarine. Cat Hai Branch of Hai Phong Maritime Administration has already enforced the 24-hour system for watching Ha Nam channel by the means of VHF and other communications and will have no problem with its maintenance and operation capacity if the VTS is introduced. 5.3 Plan of Supporting the Implementing Agency of Vietnam S-9 The actual operator of the Vessel traffic System which is expected to be introduced in this Project will be each of the Maritime Administration under the control of Vinamarine. However, it is necessary to organize the Project Management Unit (PMU) in Vinamarine in order to make centralized management of the entire Project because this Project is aiming at introducing the integrated system for the purpose of strengthening the linkage between Maritime Administrations, but each Maritime Administration will not launch an organization to implement a project individually. To implement this Project by making the use of ODA fund, the PMU should be established under the decision of Prime Minister Office 131/2006/ND-CP “Decree on Issuance of Regulation on Management and Utilization of Official Development Assistance” and in accordance with the following procedure: 1) 2) 3) Ministry of Planning and Investment will issue the Notification on the organization chart, functions and roles of the PMU; Ministry of Planning and Investment and Ministry of Transportation will approve the documents on this Project before the implementing agency will issue the decision on establishment of the PMU; The implementing agency will employ a Consultant in charge of management of the Project in accordance with the related law or regulation of Vietnam. 6. Technical Predominance of Japanese Companies One of the objectives of this Project is to introduce an integrated Vessel Traffic System in Vietnam. It is important to develop a VTS in each port individually for “activating the port” and “maintaining safety and security”, but the information gathered by means of the VTS can be used effectively for “joint use of information by adjacent ports”, “use for vessel navigation services”, “supervision of channel equipment”, “countermeasure for congested water areas”, “channel traffic analysis for improvement”, “sea accident analysis”, “ocean pollution analysis” and “CO2 emission regulation”. This Project is intended to network individual VTS systems as an integrated system to allow the joint use of information by and dissemination of information to related agencies. The dissemination of information to related agencies is made in the form of access to Web which requires no dedicated terminal or software. As the information to be handled and required by information users is diverse, it is necessary to establish the forms of display which are different depending upon types of information. For this purpose, the integrated VTS will adopt the Geographic Information System (GIS) for joint use of information by different users and be configured with multi-layer architecture to register each type of information per layer and with system expandability allowing the information users to select necessary information easily. The GIS-based information technology is absolutely required for the integrated VTS, in addition to the conventional VTS technology. At present, the researches on “Oceanic GIS” in which the GIS multi-layer architecture is used in the maritime and oceanic systems are made by universities and institutes in Japan. In 2010, Tokyo University of Marine Science and Technology developed the “Advanced Navigation System” ahead of the world, which is used for ship operation management, vessel movement analysis and optimum routing researches. For the regulation of CO2 emissions from vessels by IMO (International Maritime Organization), the Maritime Bureau, Ministry of Land, Infrastructure, Transport and Tourism, Japan advocates the environmental contents strongly to the world and Japan is recognized as a “Country propelling ocean environment forward.” In July 2011, the IMO regulation of CO2 emission from vessels was approved and the shipping operators will be called for the control of CO2 emissions under this IMO regulation. For the ship operation management taking account of the CO2 emission regulation, the systems adopting the Marine GIS are deemed to be effective for handling diverse types of information and the Marine GIS will be spread not only among universities and institutes, but also to the oceanic and maritime centers and ship operation management centers. For ship operation management, the GIS is surely used to display ship’s positions as used in Europe, but there are only a few examples of full-scale “Marine GIS” with multi-layer architecture. In Japan, some S-10 private shipping companies have introduced the “Marine GIS” in their systems aiming at advanced ship operation management. In addition, independent administrative institution, New Energy and Industrial Technology Development Organization(NEDO) announced to make the study of actual conditions of ship operations in the framework of the “Project Finding Study for the Project for Support of Efficient Operation of Cement Transport Vessels In this project, the survey of energy saving volume that can be improved in the system to support the vessel operation plan is made by using the Japanese technology “Marine GIS”. As mentioned above, the Marine GIS technology in multi-layer architecture has been attracting keen attention overseas as well as in Japan. In taking into consideration the details as described above and the development of contents in the cooperative projects by academic, industrial and public sectors in Japan, the possibility of the contract for this Project being awarded to Japan is deemed to be considerably high. 7. Expected Risk/Problems for Implementation of the Project To achieve this project, Vietnamese Government will make the Feasibility Study and that the study report will be submitted to Ministry of Planning and Investment and finally that this Project will be listed up in the long list. Vinamarine will make mutual discussions with Planning and Investment Department of Ministry of Transport and Ministry of Planning and Investment to take the official procedure to make the request for yen loan from Japan. In the stage of next Feasibility Study, the implementation agency must acquire the approval by submitting EIA report complied with "Revised Environmental Law and related ordinance. Preparation of EIA report is stipulated to carried out at the time of preparing Feasibility Study report, and must be submitted the report to Ministry of Transport with feasibility study report. The implementation agency is required to submit EIA report to Ministry of Transport with the feasibility study report, and then Ministry of Transport immediately forwards EIA report to MONRE. MONRE takes at least 3 months for the evaluation, and it approves the project implementation. It is necessary to organize the Project Management Unit (PMU) in Vinamarine in order to make centralized management of the entire Project because this Project is aiming at introducing the integrated system for the purpose of strengthening the linkage between Maritime Administrations, but each Maritime Administration will not launch an organization to implement a project individually. To implement this Project by making the use of ODA fund, the PMU should be established. S-11 8. Project Location Map The location of Project site is shown in Figure.A-1 Figure.A-1 Project Location Map 200km Source : Prepared by study team S-12 S-13 Table A-1 Project Implementation Schedule Chapter 1. Overview of the Host Country and Sector 1. Economic and Financial Projects in Vietnam 1.1 Economic and Financial Situations in Vietnam The Social Republic of Viet Nam (hereinafter referred to as “Vietnam”) has the national land area of 331,689m2 (0.88 times the area of Japan) which is located in the eastern part of the Indochinese Peninsula in Southeast Asia. The country borders China in the east and Laos and Cambodia in the east and its long coastline of 2,260km faces the South China Sea. The national land extends long, with a length of 1,650km from south to north and a width of 600km from east to west (abut 50km at the narrowest part). Its capital city of Hanoi is located in the north and the largest commercial city of Ho chi Minh in the south. The total population of Viet Nam is 86.93 million according to the census in 2009 and the annual growth rate of population for the past 10 years shows 1.2% in average. The ethnic group of Kinh accounts for 86% of the total population and the other part is divided into 53 ethnic minority groups1. The official language is Vietnamese, but English is also used partly. The climate is largely different from region to region because the national land extends long from south to north. The highest temperature is about 30°C and the lowest temperature is about 23°C. Hanoi belongs to the Temperate Zone and has the highest temperature of about 24°C, but the average temperature is largely different from season to season. 2000 Table 1-1 Trend of real GDP growth rates 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Agroforestry and 4.6 3 4.2 3.6 4.4 4 3.7 3.8 4.7 1.8 2.8 Fisheries Industry and 10.1 10.4 9.5 10.5 10.2 10.7 10.4 10.2 6 5.5 7.7 Construction Service Industry 5.3 6.1 6.5 6.5 7.3 8.5 8.3 8.9 7.4 6.6 7.5 GDP growth rate 6.8 6.9 7.1 7.3 7.8 8.4 8.2 8.5 6.3 5.3 6.8 Note: Agroforestry and fisheries include agriculture, forestry and fisheries; Industry and Construction include mining, manufacturing, electricity, water and construction industries; and Service Industry includes marketing and sales, hotels and restaurants, tourism, transportation and postal service. Source : “General Vietnam Economics” (Embassy of Japan in Vietnam: Data from Statistics General of Vietnam) The Vietnamese economy showed a high growth at an average rate of 7.3% from 2000 to 2020 and did not shown a substantial down in the period of world economic crisis, but kept 6.3% in 2008 and 5.3% in 2009. In 2010, the growth rate of 6.8% was achieved, recovering the level before 2008. The nominal GDP per capita exceeded 1,000 dollars in 2008 and increased to1,064 dollars in 2009 and 1,168 dollars (tentative) in 2010. The consumer price index showed an increase of 3 to 8% until 2007, but boosted to 23.2% in 2008. In 2009, it remained 6.7% due to the fall of international price index, but showed an increase of 9.2% in 2010. The Vietnamese Government took up the inflation control, stabilization of macro economy and reinforcement of social security as the most important issues, aiming at controlling the CPI growth rate to less than 7%. However, it seems that achieving such aim will be very severe due to the low Vietnamese dong and increase in the international prices of foods and resources. 2000 Table 1-2 Changes of consumer price indexes 2001 2002 2003 2004 2005 2006 2007 Year-over-year 100 -0.3 4.1 3.3 7.8 8.5 7.5 rate (%.) Reference value 100 99.7 103.8 207.2 115.6 125.4 134.8 in 2000 Note: The price index in 2000 is set to 100. Source: JETRO Website “Information by Country and Region” (J-FILE). 1 2008 2009 2010 8.3 23.2 6.7 9.2 146.0 179.8 191.8 209.5 Refer to the statistic data issued by Statistics Directorate General of Vietnam. 1-1 Vietnam has a high rate of international trade compared with its economic size and its total amount of international trade in 2008 after it became an official WTO member showed 171% over the GDP. The trade amount dropped temporarily, but as the world economy was recovered, the total amount of trade in 2010 was 71.6 billion dollars for export (increase of 25.5% over the previous year) and 84 billion dollars (increase of 20.1% over the previous year). The main export items from Vietnam are primary products including labor-intensive light industry products such as sewn fabric products and shoes, and crude oil and marine products. The main import items are capital goods including machinery and equipment, parts thereof and raw materials, which account for 90% of the total import amount. The trade deficit structure in which the import amount exceeds the export amount has continued for many years so far. The investment aspect has shown a sign of activation gradually since 2000. In particular, the investment in the private sector and the foreign capital sector has shown an increasing trend. It is said that the foreign capital industry in Vietnam accounts for 60% of the total export2, and the direct investment from the foreign capital industry tends to show a stable growth even if the investments in large-scale projects in 2008 are excluded. Table 1-3 Trend of direct investment from overseas (New/additional: on approval basis) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Additional 0.6 1.1 1.1 2.1 2.1 2.9 2.6 3.7 5.1 1.4 New 2.6 1.8 2 2.5 4.7 9.1 18.7 60.3 16.3 17.2 Execution 2.5 2.6 2.7 2.9 3.3 4.1 8 11.5 10 11 amount (Unit: billion dollars) Source : “General Vietnam Economics” (Embassy of Japan in Vietnam: Data from Statistics General of Vietnam) Most of the annual revenue in the national budget of Vietnam relies on tax revenues, of which the corporate tax and value-added tax revenue has a high percentage. In the annual expenditure, the highest budget is appropriated to social development investment. In 2009, the expenditure-to-GDP rate grew worse from 4.6% to 6.9% temporarily, but it decreased to 5.8% owing to increase of tax revenue in 2010. 2 Economy Study Report on Vietnam after participation in WTO 07/71: Mitsubishi UFJ Research and Consulting 1-2 Table 1-4 National Financial Situations of Vietnam (Unit: billion dong) 2009 2010 2006 2007 2008 2nd Estimate 1st Estimate 973,791 1,143,715 1,477,717 1,679,200 1,951,174 289,170 336,273 434,761 442,340 528,110 263,864 299,096 392,463 398,177 486,736 17,409 31,165 32,885 37,643 35,864 7,897 6,012 9,413 6,520 5,500 2011 Budget 2,275,000 595,000 559,402 30,598 5000 GDP Annual Revenue Taxes, etc. Investment return Grant Amount carried forward 61,673 94,784 113,768 26,455 1,000 10,000 from previous year Total annual expenditure 346,017 425,133 549,784 544,575 588,210 676,360 Investment development 88,341 104,302 119,462 179,961 150,000 152,000 Current expenditure 180,069 232,010 292,374 347,381 428,210 505,960 Reserve 18,400 Expenditure carried 77,608 88,821 137,948 17,233 10,000 forward to next term Redemption of principal 39,649 44,473 40,930 40,120 53,990 49,240 Budget balance (GFS -8,964 -20,094 -26,746 -75,780 -59,110 -71,360 standard) Ratio to GDP -0.92% -1.76% -1.81% -4.51% -3.03% -3.14% Budget balance (Viet-48,613 -64,567 -67,676 -115,900 -113,100 -120,600 namese standard) Ratio to GDP -4.99% -5.65% -4.58% -6.90% -5.80% -5.30% Fund raising 8,964 20,094 26,746 75,780 59,110 71,360 Domestic (net) 3160 13,315 11,710 58,518 39,060 55,050 Foreign (net) 5804 6,779 15,037 17,262 20,050 16,310 Source : “General Vietnam Economics” (Embassy of Japan in Vietnam: Data from Statistics General of Vietnam) In the international balance of accounts, the foreign trade deficit is balanced with the direct foreign investment, ODA and the remittances from Vietnamese citizens in foreign countries. The public debt balance of Vietnam as of June 2010 was 29 billion dollars (of which the governmental debt was 25.1 billion dollars and the government-guaranteed debt was 3.9 billion dollars) and the ratio of the foreign debt to GDP accounted for 29.3% as of the end of 2009. Table 1-5 International balance of accounts of Vietnam (Unit: million dollars)* Predicted Value Year 2006 2007 2008 2009 2010* 2011* Current account balance -164 -6,953 -10,787 -6,274 -9,405 -9,470 Trade balance -2,776 -10,438 -12,782 -8,306 -10,596 -10,422 Service balance -8 -755 -915 -1,388 -1,649 -1,633 Investment balance -1,429 -2,190 -4,401 -3,028 -3,859 -4,755 Current transfers 4,049 6,430 7,311 6,448 6,698 7,340 Capital account balance 3,088 17,730 12,341 11,869 12,113 13,312 Foreign direct investment (net) 2,315 6,516 9,279 6,900 7,565 7,928 Medium/long-term debt 1,025 2,348 992 5,146 2,541 3,176 Short-term investment 1,313 6,243 -578 128 1,568 1,627 Cash and deposits -1,565 2,623 2,648 -305 439 581 Errors or omissions 1,398 -565 -1,081 -13,351 -1,500 0 Foreign exchange reserves 4,322 10,199 473 -7,756 1,208 3,842 Foreign exchange reserves (excl. 13,384 23,479 23,890 16,447 15,356 19,197 gold) Source : “General Vietnam Economics” (Embassy of Japan in Vietnam: Data Statistics General of Vietnam) 1-3 Table 1-6 Ratio of foreign debt to GDP (%) 2005 2006 2007 32.2 31.4 32.5 2008 2009 Foreign debt balance 29.8 39 Foreign public debt 27.8 26.7 28.2 25.1 29.3 balance Source : “General Vietnam Economics” (Embassy of Japan in Vietnam: Data from Statistics General of Vietnam) Table 1-7 Foreign debt balance and government-guaranteed foreign debt balance (Unit: million dollars) 2006 2007 2008 2009 End June, 2010 Government’s foreign 14,610 17,271 18,916 23,943 25,097 deb Government-guaranteed 1,031 1,982 2,900 3,986 3,905 foreign debt Foreign public debt 15,641 19,253 21,817 27,929 29,002 Source : “General Vietnam Economics” (Embassy of Japan in Vietnam: Data from Statistics General of Vietnam) 1-4 1.2 Economic and Industrial Characteristics of Regions in Vietnam The national land of Vietnam extends 1,650km long from south to north as described above and has climate conditions and terrains rich in variety, and its industrial conditions are different from region to region. The primary industrial production and industrial shipment amounts and the foreign capital investment ratio by region are shown in Table 1-8. Table 1-8 Economic characteristics by Region in Vietnam Basic Index Unit Total Primary Industry Area (km2) Population Rice Production Timber Production Fish Catch Quantity km2 1,000 persons kt km3 t 33,105.1 86,927.7 39,988.9 4,042.6 5,127,576 2005 – 10 2010 Cumulative Industrial Foreign Shipment Capital Amount/ Investment Rate (%) Amount/ Ratio (%) Billion (Million dong USD) 808,745* 147,196 Ratio by Region Red River Delta Region Northern Mountain Region 6.4% 22.7% 17.0% 4.6% 11.8% 27.6% 15.7% 28.8% 12.8% 7.7% 32.9% 1.5% 3.4% 1.2% Central Region 29.0% 21.8% 15.4% 30.6% 21.7% 10.7% 35.9% Central Highland Region 16.5% 6.0% 2.6% 10.3% 0.5% 0.9% 0.4% Southeast Region 7.1% 16.8% 3.3% 6.5% 7.3% 43.2% 40.9% Mekong River 12.2% 19.9% 53.9% 15.1% 57.2% 9.9% Delta Region Note *: Shipment amount based on the 1994 VND standard value. The Provinces constituting each Region of Vietnam are show below. Source: Prepared by study team based on data from Statistics General of Vietnam 5.5% The Southeast Region where Ho Chi Minh City is located indicates the highest industrial shipment amount and is most vigorous in direct investment from overseas. The Red River Delta Region where Hanoi and Haiphong are located indicates the second highest industrial shipment amount and is also vigorous in direct investment. The Central Region covers Provinces from Thanh Hoa to Binh Thuan Province facing the long eastern coastline, and Da Nang is the central city of this Region. The industrial shipment amounts and the direct investments from overseas are distributed in these Provinces. The Mekong River Delta is a rice production district and also a center of fishery including aquaculture. The Central Highland Region and Northern Mountain Region are vigorously engaged in the primary industry including mainly forestry. The Provinces constituting each Region are shown in Figure. 1-1 below. 1-5 Figure. 1-1 Configuration of Provinces in Regions according to classification by Statistics Directorate General of Vietnam 5 6 9 7 Northern midlands and areas 11 mountain 8 10 13 18 No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Province No Ha Noi City 33 H.C. M.C. 34 Hai Phong 35 Da Nang 36 Ha Giang 37 Cao Bang 38 Lao Cai 39 Bac Kan 40 Lai Chau 41 Dien Bien 42 Tuyen Quang43 Lang Son 44 Yen Bai 45 Thai Nguyen 46 Vinh Phuc 47 Bac Giang 48 Phu Tho 49 Son La 50 Bac Ninh 51 Ha Tay 52 Quang Ninh 53 Hai Duong 54 Hung Yen 55 Hoa Binh 56 Ha Nam 57 Thai Binh 58 Ninh Binh 59 Nam Dinh 60 Thanh Hoa 61 Nghe An 62 Ha Tinh 63 Quang Binh 64 12 14 Hanoi 16 21 17 15 19 Cam Pha 20 2322 3 Red River 24 25 26 Hai Phong 27 28 29 Delta Northern Central area 30 Province And Quang Tri Thua Thien - Hue Central coastal area Quang Nam 31 Quang Ngai Binh Dinh 32 Phu Yen Khanh Hoa Ninh Thuan Binh Thuan 33 Kon Tum 34 Gia Lai Da Nang 4 Dak Lac 35 Dak Nong Lam Dong Binh Phuoc 36 Binh Duong 42 Dong Nai Tay Ninh 37 Ba Ria-Vung Tau 43 Long An Central Highlands Tien Giang Dong Thap 38 An Giang Ben Tre 44 Vinh Long 39 45 Tra Vinh Can Tho South East 46 40 47 Soc Trang 50 Kien Giang 48 49 41 Hua Giang TP Ho Chi Minh Bac Lieu Ca Mau 55 54 52 51 53 56 Vung Tau 57 Can Tho 59 61 62 58 60 63 Mekong River Delta 64 1-6 1.3 Five-Year Program for Vietnamese Social and Economic Development 2011 - 20153 The Vietnamese Government has set the goal of economic growth rate for 2011 to 7 – 7.5% and its social and economic strategy (2011 – 2020) plans to keep the economic growth of 7 – 8%for the future 10 years, aiming at the GDP per capita of 3,000 dollars in 20204. On the other hand, the infrastructure development including electricity, traffic road network and logistics network to support the foundations for economic growth has delayed and the bottleneck is becoming conspicuous. The Ministry of Planning and Investment (MPI) of Vietnamese Government announced the draft of the Five-Year Program for Vietnamese Social and Economic Development 2011 – 2015 at the Consultative Group Meeting for Supporting Vietnam held on 9 and 10 September, 2010. According to the draft program, the highest goal for the social and economic development for 5 years is to continue a high economic growth rate stably by reforming the economic structure, enhancing the competitiveness of the national economy and sustaining the accelerated integration with the world economy. The themes for this 5-Year Program are formulated as follows: • To development fair competitive environment, reinforce the administrative system reform and establish the socialism-oriented market economy system. • To foster high-quality labor force and improve the national education system. • To construct a modern infrastructure system mainly in large cities. Concretely, the annual average growth rate of GDP for the 5 years of 2011 to 2015 is planned to be 7.8% to 8% to achieve the goal that the GDP per capital in 2015 will be about 2,000 to 2,100 US dollars, aiming at the increase to 1.7 times in 2010. For this purpose, it is planned to promote the industrial development and construction industry, enhance the labor productivity, reduce the energy consumption per GDP, reinforce export and slash import excess, suppress the annual expenditure excess of the national budget for 2015 to 4.5% of the GDP and decrease the population growth rate to around 1% aiming at the population of 92 million in 2015. The average span of life is set to about 74 years and for the labor force, the rate of trained labor force is aimed at increasing to 55%. And the poor household rate is planned to decrease from about 10% at present by 2%per year. In looking to the development policy in each business segment, the annual growth rate for 5 years in the industrial and construction segment is planned to be 7.5 to 8.5% in average (the production growth rate is planned to be 12.5 to 13.5% in average only in the industrial segment) and the rate of the industrial and construction segment to GDP until 2015 is aimed at 40 to 41% and the following development items will be promoted: • Development of energy industry to meet the demand for energy for socioeconomic development; • Production of high-content and high value-added products including computers, electric parts and machinery, and software processing-based products; • Policy to promote the supporting industries; and • Technology transfer to promote the international economic partnerships. In the agricultural segment, the production in the agriculture, forestry and fisheries is planned to increase by 2.7 to 3.7% per year in average for the same 5 years, aiming at increasing the income of farms to 1.8 to 2 times the level in 2010. In the service industry segment, the priority is given to the fields: (a) telecommunications and information technology; (b) education and training service; (c) commercial service; (d) banking service; (e) 3 4 Five-Year Program for Vietnamese Social and Economic Development 2011 – 2015, edited by Vietnamese Ministry of Planning and Investment; Japan-Vietnam Friendship Association Source: Vietnam Economy and Economic Cooperation _Vietnamese Economy Outlook; Refer to Homepage of Japanese Embassy in Vietnam. 1-7 transportation service and (f) tourist service. The annual growth rate in the service industry for the 5 years from 2011 to 2015 is planned to be 8 to 9% in average, aiming at increasing the rate of the service industry to GDP to 40 to 41% by 2015. In the foreign trade, it is planned to expand export by promoting the export of high value-added products and processed products and to suppress the import excess by decreasing the rate of export of raw materials such as crude oil and coal, aiming at increasing the annual growth rate of export amount to about 12 to 12.5% and that of import amount to 10.5% in average to balance the foreign trade in 2020. In the corporate management field, the state enterprise sector will keep the initiative role, but stress is placed on diversifying the form of ownership to promote the developing process of joint stock companies and support the development of medium/small-scale private companies. In the human resource development and technological research and development field, it is planned to operate the facilities such as Hoa Lac high-tech industrial complex and Ho Chi Minh high-Tech Park and reinforce the technological research and development for promoting the technological innovation and enhancing the economic competitiveness, and at the same time, the technological transfer to each industry will be promoted. So, the rate of vocational trainees is aimed at 55% of the total labor force to decrease the unemployment rate in urban areas to 4% or less. The investment policy plans to estimate the investment scale for 5 years from 2011 to 2015 as 500 billion dollars, of which 350 billion dollars will be covered by the domestic fund of the Government. In the investment field, it is planned to invest 20% of the total fund in traffic and transportation, 10% in industries, 4% in agriculture, forestry and fisheries, 5% in urban development, 2% in water supply and sewage, 1% in education and training and 58% in other segments. The total amount of consumption for 5 years will account for 68 to 69% of GDP and the total deposit amount for about 40 to 41% of GDP. The domestic deposit to average GDP will be 31 to 32%. It can be predicted that the current account balance will be a deficit of 30.7 billion dollars. On the contrary, the capital balance will be a surplus of 69.0 billion dollars and the total amount of international balance accounts for 5 years will be a surplus of 25.6 billion dollars. The total amount of investment for social development for 5 years will reach 6500 trillion dong, of which 70% is counted on financing in Vietnam and 30% from overseas. However, the ODA by foreign countries including yen loan from Japan and the financial assistance by international organizations have played the important roles as the means of raising the funds for development of the infrastructure including airports, ports, electricity and roads that the Vietnamese Government has adopted so far. In the future, it will surely become impossible for the Vietnamese Government to cover the investment funds only with the ODA and the governmental budget. In 2007, the Vietnamese Government issued the Decree 78/2007/ND-CP5 which provides the investment activities in the Build, Operate and Transfer (BOT) system, the Build, Transfer and Operate (BTO) system and the Build and Transfer (BT) system, and prepared the legal framework for investing private funds raised in Vietnam and from overseas in infrastructure development. The trend of these private companies will be an important factor to keep a high growth rate in Vietnam in the future. 5 Report on the Project to Support the Study of Finding and Formation of Public-Private Partnership Project (Socialist Republic of Viet Nam), March 2008; Engineering and Consulting Firms Association, Pacific Consultants International. 1-8 2. Outline of Target Sectors6 for Projects 2.1 Maritime Administrations The Vietnamese Ministry of Transport (MOT) is an administration to control all means of transportation including land transports (roads and railways), inland waterway transports and marine transports. Its main functions include formulation and recommendation of the national master plans for development of transportation and traffic systems, formulation, enactment and supervision of the laws and regulation and policies for guidance of local governments and related ministries and agencies and for transport management, formulation of various national standards and technical standards for transportation and issue of licenses, and approval of development and construction projects, and others. The external agencies in charge of maritime administration are Vietnam National Maritime Bureau (VINMARNE) and Vietnam Inland Waterway Administration (VIWA). VINAMARINE is responsible for controlling the services such as ship management, port management, maritime transportation services and crew training and a number of external special corporations and state-owned companies under its control. 2.2 Outline of Maritime Transportation At present, there are over 100 maritime transportation companies in Vietnam. Most of ships organizing fleets are small superannuated vessels. Maritime transportation companies are concentrated on the coastal shipping market and it is informed that the loading share of import/export freights by vessels of Vietnam flag is only about 15% on the value base7. According to Lloyd’s Register, the number of Vietnamese merchant fleets is 1312 vessels (the gross tonnage of approx. 3 million DWT) as of 2008 and the number of oil tankers and freight vessels including ore carriers are recorded to be 1124 vessels (the gross tonnage of approx. 2.80 million DWT) and the average age of vessels is 14 years. However, there are 7 large ships of 2000 DWT or more (the gross tonnage of 670,000 DWT) that Vietnam possesses, most of which are small boats in use for river and coastal transportation. 2.3 Importance and Strategy of Maritime Transportation The maritime transportation in Vietnam is divided into inland waterway transportation using rivers such as the Mekong, Red River and Saigon River and canals and marine transports using coastal water and ocean lines. The inland waterways are developed well in the Mekong Delta region and the Red River Delta region and 6231km of the total river length of 41,900km is used for water transportation. However, only vessels of 100GTW are navigable in the Mekong Delta and the vessels of approximately 100 to 400GTW in the Red River Delta. Therefore, it is informed that there are some problems for operation and maintenance for safety of navigation including equipment installations and dredging at river ports. On the other hand, the freight transport traffic is increasing along with the development of the Vietnam economy as shown in Figure. 1-3 and the marine traffic is increasing at the annual rate of 28% in average and it is expected that it will account for about 67% of the total transportation traffic. 6 7 VIETNAM: TRANSPORT SECTOR BRIEF, Alberto Nogales -*East Asia and Pacific Region Transport Sector Unit, Version: June 1, 2004 Interview with Vinaline 1-9 Figure. 1-2 Passenger traffic by means of transportation (Unit: million persons/km) 120000 Mill. persons.km 100000 80000 Aviation transport Inland w aterw ays 60000 Road Railw ays 40000 20000 20 09 Pr el .2 01 0 20 08 20 07 20 06 20 05 20 04 20 03 20 02 20 01 20 00 0 Source: Prepared by the Study Team based on Vietnam Statistics Directorate General Figure. 1-3 Freight traffic by means of transportation (Unit: million tons/km) 250000 200000 Mill. tons.km Aviation transport 150000 Maritime transport Inland w aterw ays Road 100000 Rail 50000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Prel. 2010 Source: Prepared by the Study Team based on Vietnam Statistics Directorate General According to Vietnam Port Association (VPA), the growth rate of freight traffic, in particular of container traffic increased by 20% or more over the previous year for the period of 2001 to 2008, but the freights are concentrated on the city areas Hai Phong, Quang Ninh and Ho Chi Min. The ports in those city areas are located at river waters, where the draft of water is light and there is a large impact of tidal flux and reflux. Large vessels have to use barges for loading and unloading of freights. On the other hand, the port premises are limited and restricted for storehouse groups and crane facilities. As a result, it is informed that 20% of the transportation cost is spared for each of export goods for the West European and North American markets. 1-10 According to the “Marine Transportation Strategy 2020” issued by Ministry of Transportation, the ocean cargo volume handled by Vietnam can be expected to be approximately 100 million tons in 2015, 210 to 260 million tons in 2020 and increase to 1.5 to 2 times the 2020 volume in 2030. The passenger transportation can be expected to be 5 million persons in 2015, 9 to 10 million persons and increase to 1.5 times the 2020 level. The gross tonnage of vessels is 6.0 to 6.5 million DWT at present, but it is predicted that it will increase to 8.5 to 9.5 million DWT in 2015 and 11.5 to 13.5 million DWT in 2020. In the shipbuilding field, Vietnam is required to have the capacity of building freight vessels, passenger ships, tankers and sea rescue vessels of 300,000 DWT or more prior to 2020. Therefore, the development of international gateway ports and ports with a deep water depth at which container vessels can berth are focused as the maritime transportation capacity buildup measures. 1-11 3. Conditions of Target Areas 3.1 Freight Transportation Volume by Area As shown in Figure. 1-3, the road traffic is increasing as the Vietnamese economy is developing, and foods, agricultural products and daily necessaries are transported between north and south. In addition, volumes of freights imported from the south of China are also transported to the south of Vietnam. The cargo volumes generated in the Provinces having coastlines are shown in Figure. 1-4. Figure. 1-4 Cargo volumes generated in Provinces and Areas 2009 Land freight volume (1000 tons) LandTransportation in 2009(Thousand of tons) 0 The Red River Delta 10,000 20,000 30,00 40,000 50,00 60,000 70,000 Ha Noi Vinh Phuc Bac Ninh *Quang Ninh Hai Duong *Hai Phong Hung Yen *Thai Binh Ha Nam *Nam Dinh *Ninh Binh North *Thanh Hoa *Nghe An *Ha Tinh *Quang Binh *Quang Tri *Thua Thien-Hue Middle Coast *Da Nang *Quang *Quang *Binh Dinh *Phu Yen *Khanh *Ninh *Binh Thuan MiddlePlatea 14.1% on average Binh Phuoc Tay Ninh Binh Southeast *Dong Nai *Ba Ria - Vung Tau *TP. Ho Chi Minh Mekong Delta *Ministry holding Ports * Provinces with ports 0.0 5.0% 10.0% 15.0 20.0 25.0% 30.0 35.0% 2004 – 09 Annual average increase rate Source: Vietnam Statistics Directorate General The cargo volume in 2009 was the highest in Hanoi and Ho Chi Minh, followed by Nge An and Dong Nai Provinces and Hai Phone. The annual average increase rate of cargo volumes in the entire country for the years from 2004 to 2009 was 14.1%, showing an active indusrial development. In the Red River Delta region, the full-scale industrial complexes are operated in Hai Duong Province located between Hanoi and Hai Phone, in Qang Nam and Quang Ngai Provinces designated as the important economic area in the Central Region and in Binh Duong Province in the Southeast Region, and a large electricity project is implemented in Ninh Thuan Province. These Provinces showed the highest freight shipment volume for the past 5 years. The cargo volumes were surely increasing in other areas and Provinces, but it is obvious 1-12 that a remarkable increase in the freight shipment volume was shown in the areas where the transportation network had been relatively developed. Figure. 1-5 Main road networks and main port facilities Northern midlands and mountain areas Hanoi Red River Delta Cai Lau Hai Phong Ninh Binh Cua Lo Northern Central area And Central coastal area Hue Da Nang Primary road Primary port Secondary Port Major Airport Facility Qui Nhon Central Highlands Nha Trang South East HCMC Long Xuyen Vung Tau Can Tho My Tho Mekong River Delta Source: Prepared by the Study Team based on the materials issued by Vietnam Ministry of Transportation Figure. 1-5 shows the land transportation networks to temporarily handle these freights. As seen from the cargo volumes locally generated and the increase rates as shown above, the high increase rates tend to be shown in the areas where the means of transportation have been relatively developed. The unloaded cargo volumes in main ports are shown in Figure. 1-6. The unloaded cargo volume is the highest in Hai Phone Port, followed by Ho Chi Minh, Quang Ninh, Qui Nhon and Da Nang Ports. What is noteworthy is that the unloaded cargo volume in Ho Chi Minh Port has been stagnant since 2003 no matter how high the generated cargo volume at Ho Chi Minh has been in the national level. It is considered that the routing cargo volume and the handling volume of the port facilities are limited in this Port. 1-13 Figure. 1-6 Unloaded cargo volumes in main ports (Unit: 1,000 tons) 70,000 Legend Quang Ninh Hai Phong Nghe An Da Nang Quy Nhon Nha Trang Ho Chi Ming Can Tho 60,000 Thousand Tone 50,000 (Group-1) (Group-1) (Group-2) (Group-3) (Group-4) (Group-4) (Group-5) (Group-6) 60,310 52,063 46,247 40,000 38,328 39,045 34,019 33,861 30,568 30,000 28,714 21,903 20,000 14,488 15,435 17,141 15,032 17,425 10,000 0 1995 Source: 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Prepared by study team based on Vietnam Statistics Directorate General In these situations, Vinamarine has been implementing the projects for building up the port capacity as shown in Table 1-9. Table 1-9 No. 1 2 3 Name of Port Cai Lan Port: Quang Ninh Province Hai Phong Port Phase 2 (Dinh Vu Port 2nd Work) Port development projects in various areas and Provinces Details of Development Development of existing Cai Lan Port and increase of wharfs Total area: 47.5ha; Vessels allowed to enter port: 20,000DWT (at all wharfs) Cargo handling volume: 4 million t/y Total wharf length:785m New construction of the 3rd, 4th, 5th and 6th wharf. * Planned to construct the 7th wharf (total length195m) in Phase 3. * The current cargo handling volume: 1 million t/year Hai Phone Water depth: 14m; Vessels allowed to enter port: 50,000DWT International (full loaded); 100,000DWT (non-loaded); Cargo handling Gateway Port: volume: 35 – 50 mil. t/y; Construction of 11 wharfs (for 4 Lach Huyen containers, 2 bulk and 5 general cargoes) Port 【Phase A】 Basic port infrastructure development (Construction of breakwaters and groynes, channels, roads and container yard foundation, etc.) 【Phase B Stage 1】Port site development west of the current channel; Construction of wharf (750m long, capable of simultaneous berthing of 2 vessels of 100K DWT), logistics system and quay walls and terminals of No. 1 and No. 2 wharfs 【Phase B Stage 2】Extension of the channel to its east side (Cat 1-14 Years of Development 2010 - 2012 2011 - 2013 2012 - 2020 (The 1st wharf planned to be completed in 2014) 4 Nghi Son Port (Thanh Hoa Province) 5 Dung Quat Port (Quang Ngai Province) 6 7 SP-PSA International Port (Ba Ria-Vung Tau Province) Cai Mep-Thi Vai Internation- al Port (Ba Ria-Vung Tau Province) Ba Island) 【Phase B Stage 3】Channel extension Total area: 922ha (Shore: 438ha Sea: 484ha); Wharfs: 30 units; Cargo handling volume: 10 million t/y 【Port Complex】Total area: 12ha; Wharfs: 3 units; Wharf length: 555m; Water depth: 8.5m; Vessels allowed to berth: 30,000DWT; Storehouse: 2,880m2; Container terminal: 2 10,000m 【Petrochemical Products Exporting Port】Total area: 33ha; Wharfs:6units; Vessels allowed to berth: 30,000DWT 【Dedicated Port and Port Complex】Total area: 71ha; Wharfs: 8 units; Wharf length: 2,000m; Vessels allowed to berth: 30,000DWT 【Port dedicated to Thermal Power Plant】Total area: 16ha; Wharfs: 5 units; Wharf length: 560m; Vessels allowed to berth: 30,000DWT 【Port Complex and Container Terminal】Total area: 93ha; Wharfs:6units; Wharf length: 1,500m; Vessels allowed to berth: 50,000DWT 【Gasoline, Oil and LPG Importing Port】Total area: 48ha; Wharfs: 2 units; Vessels allowed to berth: 50,000DWT 【Stage 1】Wharf length: 145m; Water depth: 9.5m; Channel width: 85m; Cargo handling capacity: 1.5 – 2.0 million t/y (in operation); Vessels allowed to enter: 30,000DWT; Constructor: Gemadept Corp. 【Stage 1】Invested amount: 171 bil. VND; Total area: 11.6ha; Vessels allowed to enter: 30,000 – 50,000DWT Total area: 54ha; Wharfs: 4 units; Wharf length: 1,200m 【Stage 1】Operation start in June 2009; Total area: 27ha; Vessels allowed to enter: 80,000DWT; Container storage capacity: 1.1 million TEU/y; Water depth: 14.5m; Container wharfs: 2 units (600m) * The largest ship (109,000DWT; 8,272TEU; 352m long) in the past entered the port in February 2010. 【Stage 2】Toral area: 27ha; Wharfs: 2 units (600m); Container-berthing capacity: 2.0 million TEU/y 【Container Terminal】Water depth: 14m; Vessels allowed to enter: 80,000DWT; Cargo handling volume: 700K TEU/y (24 hours) 【Complex Terminal】Water depth: 12m; Vessels allowed to enter: 50,000DWT; Cargo handling volume: 1.6 – 2.0 million t/y 【Container Terminal】Water depth: 14m; Vessels allowed to enter: 80,000DWT; Cargo handling volume: 700K TEU/y (24 hours) 【Complex Terminal】Water depth: 12m; Vessels allowed to enter: 50,000DWT; Cargo handling volume: 1.6 – 2.0 million t/y 【Package 1】Construction of Cai Mep International Container Terminal; Wharfs: 2 units; Wharf length: 300m; Dredging: 90,000m3; Reclamation: 3.2 millionm2; Yard pavement: 340,000m2; Access road: 8km 【Package 2】Construction of Thi Vai Complex Terminal Wharfs: 2 units; Wharf length: 330m; Dredging: 90,000m3; Reclamation: 2.1 million m2; Yard pavement: 250,000m2; Access road: 200m 【Package 3】Channel dredging and buoy installation Dredging: 9.0 million m3; Channel buoys: 43 units (Channel length: 37.2km) 1-15 Partial operation started in 2009 2006 – 2008 (Stage 1) Stage 2: undecided Stage 1: 2008 - 2009 Stage 2: 2009 – 2012 (planned) October 2008 - 2012 8 Cat Lai Port New Port (Ho Chi Minh City) 9 Ben Nghe Port (Ho Chi Minh City) 10 11 12 13 Van Phong International Transit Port (Khanh Hoa Province) Quy Nhon Port (Binh Dinh Province) Da Nang Port Vung Ang Port (Ha Tinh Province) 【Package 4】Procurement of Cargo handling machines Container terminal: Container cranes: 4 units; RTGs: 15 units; Complex terminal: Quay cranes: 2 units; Jib cranes: 2 units 【Package 5】Construction of access road and bridge (Total length: 8.3km) 【Package 6】Technical consulting service 【Associated Work】Connection road: Length 21.3km; Width: 50m; Design speed: 70km/h 【 7th Wharf 】 Total area: 800,000m2 (incl. Container yard: 568,500m2 and storehouse 17,400m2); Cat Lai Port wharf length: 216m; 7th wharf length: 36m; Water depth: 12m; Vessels allowed to enter: 30,000DWT; Cargo handling volume: 350,000 TEU/y Stage 3 Expansion Project Total area: 320,000m2 (of which the planned area in Stage 3 is 90,000m2.); Wharfs: 4 units; Vessels allowed to berth: 36,000DWT 【Stage 1】50% construction of wharfs 【 Stage 2 】 50% construction of wharfs; Construction of storehouse area 【1st Wharf】Total length: 88m; Water depth: 7.5m; Vessels allowed to enter: 5,000DWT 【2nd Wharf】Total length: 265m; Water depth: 9.5m; Vessels allowed to enter: 20,000DWT 【3rd Warf】Total length: 175m; Water depth: 11.5m; Vessels allowed to enter: 36,000DWT 【4th Wharf】Total length: 288m; Water depth: 13m; Vessels allowed to enter: 36,000DWT Total area: 7.56 million m2; Large wharfs: 36 units; Small wharfs: 6units; Total wharf length: 11,880 – 12,590m; 2009 – 2020 in 4 Stages 【Stage 1】Total area: 520,000m2; Wharfs: 2 units; Wharf length: 600 – 800m; Vessels allowed to enter: 6,000 – 9,000 TEU; Construction of access road, storehouse and plant; Infrastructure development 【Stage 2】Total area: 1.18 – 1.25 million m2; Wharfs: 4 units; Wharfs for reshipment vessels: 5 units; Wharf length: 1,680 – 2,260m; Vessels allowed to enter: 9,000 TEU; Cargo handling volume: 1.05 – 2.10 million TEU 【Stage 3】Total area: 4.05 million m2; Wharfs: 8 units; Wharfs for reshipment vessels: 8 units; Wharf length: 4,450 – 5,710m; Vessels allowed to enter: 12,000 TEU; Cargo handling volume: 4.0 – 4.5 million TEU/y Total: Total area: 4.05 million m2; Wharfs: 25 units; Wharfs for reshipment vessels: 12 units; Total wharf length: 4,450 – 5,710m; Vessels allowed to enter: 15,000 TEU; Cargo handling volume: 14.50 – 17.00 million TEU/y Total area: 45,000 m2 (expansion); Channel length: 6.3km; Channel width: 110m; Container yard: 80,000 m2; Dredging work (water depth 11 m) 【Stage 1】Freight storage capacity: 5.0 million t/y 【Stage 2】Vessels allowed to enter: 50,000DWT Upgrading New construction of Son Tra Port (Stage 1) Expansion Work of Tien Sa Port (Stage 2) 2nd Wharf (completed): Water depth: 13m; Wharf length: 260m; Freight yard: 17,800 m2; Storehouse: 10,000 m2 3rd Wharf Project: Vessels allowed to berth: 45,000DWT; 1-16 Work period: 2009 – 2015 2007 – 2009 Stage 1: 2006 – 2010 Stage 2: 2011 – 2012 Stage 1: 2009 – 2010 Stage 2: 2010 – 2015 Stage 3: 2015 – 2020 Stage 4: 2020 – Stage 1: 2008 – 2010 Stage 2: 2010 – 2020 2009 – 2013 2012 – 2015 Operation start: 2010 3rd wharf: Undecided 14 15 16 17 Cargo handling volume: 860,000 t/y Son Duong Total area: 1,800ha; Wharfs: 35 units (Stage 3); Vessels allowed Formosa Port to enter: 30,000~300,000DWT; Cargo handling volume: 30 (Ha Tinh million t/y Province) * Included in the Formosa Steel Development Project My Thuy Port Total area: 9.13 million m2; Water depth: 13m; Vessels allowed (Quang Tri to enter: 40,000DWT Province) 【Stage 1】Developed area: 2.38 million m2; Groyne length: 1,626 m; Dredging: 1.10 million m2; Total wharf length: 650m; Logistics Center: 530,000 m2; Commercial service area: 750,000 m2; A part of Thermal power plant 【Stage 2】Complex port, Logistics Center, oil port, Thermal Power Plant Center Nhon Hoi Total area: 1.2 million m2 Complex Port 【Stage 1】Developed area: 200,000 m2; Wharf: 1 unit; Vessels allowed to enter: 30,000DWT; Cargo handling volume: 1.5 (Binh Dinh million t/y (for the case of container cargoes 60%; Others: Province) 40%); 900,000 /y (for the case of general cargoes 100%) 【Stage 2】Wharfs: 3 units 【Stage 3】Wharfs: 6 units Vung Ro Port 【Stage 1】Wharf length: 160m; (Phu Yen Vessels allowed to enter: 1,500DWT (simultaneously 3 vessels); Province) Cargo handling volume: 250,000 t/y 【Stage 2】Wharf extension to 50m; Vessles allowed to enter: 5,000DWT; Cargo handling volume: 1 million t/y Source: Infrastructure Map JETRO_Hanoi 2011.03 3.2 2011 – 2014 (Partial operation started)) Stage 1:2011 – 2015 (planned) Stage 1: 2010 – 2012 Stage 2: 2013 – 2020 Stage 3: 2021 - 2025 Stage 1: 2010 - 2012 Stage 2: 2012 – 2015 (planned) Five-Year Program for Vietnam Port Development 2011 – 2015 In the Five-Year Program for Social and Economic Development 2011 – 2015 which was resolved in the 11th National People’s Congress for Vietnam to outgrow the conventional status to join the industrialized countries in 2020, it is clearly defined that the role of the transportation sector is to concentrate on the transportation systems and the urban infrastructure development in main cities in Vietnam. According to this definition, the role of the transportation sector for the period of 2011 to 2015 focuses building up the capacity of international and local port facilities, developing the transportation system to interlink the north and the south, and developing the urban transportations systems8. As described above, it is demanded to build up and increase not only the capacity of local maritime transportation systems but also the capacity of the national transportation system. Therefore, VINAMARINE submitted the Port System Development Plan harmonized with development of other transportation networks through Ministry of Transportation to the Prime Minister’s Office and approved in July 20099. This development plan indicated the development schedule for the port infrastructure and port facilities which will be required in the future and its main guidelines determined the development targets for 2020 concretely, looking to the development level in 2030 as follows: (1) Present status of port facilities10 • The present status of ports as of 2008 are as follows: • There are 17 large-scale ports (Grade-1), 23 medium-scale ports (Grade-2) and 9 small-scale 8 9 10 According to a report on the comment of Transport Minister Dinh La Thang (Member of the Communist Party Central Committee), August 28, 2011 Prime Minister’s Office Decision 5213/TTr- BGTVT 30/7/2009 The study results are not coincident with the figures, but the figures indicated in the Summary of the Master Plan published by the Vietnamese Government are used here. 1-17 ports (Grade-3). • There are approximately 350 berths with the total length of 40,000m (double the length in 1999). • There are 35 access channels to the state-operated ports and 12 channels in other dedicated ports. • The cargo handling volume is approximately 200 million tons (2.7 times the volume in 1999), of which the container handling volume is about 5 million TEU (5.3 times the volume in 1999). • The annual average growth rate is 13%. The Vietnam Port System Development Plan (Master Plan) formulated by VINAMARINE under the guidance of Vietnam Ministry of Transportation in 1999 was approved by the Prime Minister’s Office based on the review of the scope of development (development areas, schedule and items) and the features of the maritime transportation network plan. (2) Background • Maritime Transportation Strategy 2020 • Integration of not only the Vietnamese economy but also the maritime transportation sector with the global market by participation in WTO. • Existence of Maritime Transportation Law of Vietnam (Law No. 40/2005/QH-11) enforced around the time of participation in WTO. • Revision of the role of each sector by revision of the Social and Economic Development Program looking to 2020. • Higher importance of the port system including all means of maritime transportation as the basic infrastructure to promote industrial development and socioeconomic development including development of economic development areas, industrial parks and urban areas, • Higher importance of the port system as the tractive role not only for cargo handling, storage and reshipment, but also for integration with the international economy. (3) Present problems • Lack of standardization • Lack of comprehensiveness in local working processes • Low quality and outdated technology. (4) Outline of developments • Comprehensive development in modernization. • Synchronized development of maritime and land transportation systems • Buildup of port capacity of reshipment ports, international gateway ports, hub ports and other ports, and investments in accordance with the priority order of development, which should be provided for maintenance and synchronized effective operation. • Accessibility of large vessels to ports • Maximized mobility of resources 1-18 • Harmony of port development with environment (5) Targets of development • To meet the demand of the global market for cargo volumes and cargo sizes on vessels using ports. • The cargo volumes predicted in Vietnam are as follows: - 2015: 500 – 600 million tons/year - 2020: 900 – 1,000 million tons/year - 2030: 1,600 – 2,100 million tons/year • The levels of development of main ports to meet the above demands are shown in Table 1-10. Port for Development Van Phong Hai Phong Ba Ria – Vung Tau Central economic development region Large-scale port Large tourist centers Table 1-10 Targets of development of main port facilities Functions of Port Levels of Development International reshipment port Container vessel capacity: 9,000 – 15,000TEU for container vessels International gateway port Vessel capacity: 80,000 – 100,000DWT Container vessel capacity: 4,000 – 8,000 TEU Hub port Passenger-dedicated berths Tanker: 300,000 – 400,000 DWT Ore carrier: 100,000 – 300,000 DWT Gross tonnage: 100,000 GRT Source: Prepared by the Study Team Development of logistics center connecting marine and land transportation systems • Introduction of new technology necessary for qualitative improvement of existing port facilities (6) Master Plan • Functional classification - General ports within the country International reshipment and gateway ports: Van Phong (Khanh Hoa), Hai Phong, Ba Ria – Vung Tau. Local hub ports: Hon Gai - Quang Ninh, Nghi Sơn - Thanh Hoa, Nghe An, Son Duong, Vung Ang - Ha Tinh, Dung Quat - Quang Ngai, Quy Nhon – Binh Dinh, Ba Ngoi - Khanh Hoa, Ho Chi Minh, Dong Nai and Can Tho. - Local ports - Dedicated ports • Classification by controlled sea area 1-19 Table 1-11 Port Group by controlled sea area division Controlled Group Scope of Control and Ports Group 1 Quang Ninh ~ Ninh Binh Ports in Northern Region Group 2 Thanh Hoa ~ Ha Tinh Ports in Central Northern Area Group 3 Quang Binh ~ Quang Ngai Central Ports in Central Region Group 4 Binh Dinh ~ Binh Thuan Ports in Central Southern Area Group 5 Con Dao and Soai Rap Ports along rivers and Tien Giang Port Group 6 Phu Quoc Port and Islands in Southeast Area Source: Prepared by the Study Team (7) Access channel improvement plan The important channels are as follows: - Access channel to Hai Phong Port - Access channels to Vung Tau Port and to Thi Vai River - Access channel to Ho Chi Minh Port along Soai Rap River - Access channel to Can Tho Port, etc. (8) Invested amounts and fund sources • Total investment amount until 2020: 360~440 trillion VND (17 – 21 billion USD) • Total investment amount until 203: 810~990 trillion VND (39– 48 billion USD) • Rate of expenditure in national budget: 12% – 15%; Others use private company funds. For the details of the Development Program, refer to ANNEX-1 “Master Plan for Port System Development until 2020 in consideration of 2030”. 1-20 Chapter 2. Study Methodology 1. Study Methodology Vinamarine (Vietnam Marine Administration) had recognized the importance of introducing the Vessel Traffic System and implemented the technical study of the VTS introduction in Cam Pha Port, Hai Phong Port and Cai Lan Port in the North Area in 2005 for the Decree (No. 1041/2009/QD-TTg) determined by the Government. Based on this Preliminary Study, the Study will be made on the introduction of the VTS, AIS and oceanic environment GIS which have marked high supply records in the marine transportation and port related fields in Japan. The main items of this Study are as follows: (1) Trends of Vietnamese economy and policies of maritime transportation and port systems (through study of literatures and interviews with related agencies and organizations) (2) Analysis into the present status of maintenance and operation of facilities, equipment, channels and ports of related agencies (by collection of information through interviews with related agencies and users) (3) Monitoring of maintenance and operation of the existing GMDSS and detailed examination of the preliminary study by Vinamarine (by collection of information through interviews with related agencies and users) (4) Future forecast of cargo volume and vessel traffic at main ports and extraction of problems (5) Making up of the VTS, AIS and oceanic environment GIS introduction plan and the maintenance and operation plan (based on the consultation with the counterpart agency) (6) Project implementation plan and schedule, and analysis into the capacity of related organizations for implementation of the Project (based on the consultation with the counterpart agency) (7) Economic and financial analysis (EIRR and FIRR calculations) and feasibility study (8) Analysis into environmental and social considerations (by the environmental surveys of the surrounding areas of the target areas of the Project) (9) Ocean accident and pollution studies (by study of literatures and interviews with related agencies) (10) Study of actual status of suspected vessels 2-1 2. Study Method and Organization This Study will be made by the organization as shown in Figure 2-1. Figure 2-1 Study Organization Chart Japan Radio Co., Ltd. Project Manager, Solution Business Division, Acting General Manager, Mr. Katsuhiro NAGAYA Solution Business Division, Mr. Jyuichi SUZUKI / Planning of Operation and Maintenance International Business Department, Group II Mr. Yoshihiko YASHIRO / Transportation Policy of Vietnam International Business Department, Group II Mr. Masata HARA / Maritime Policy of Vietnam Solution Business Division, Mr. Jun NAGASHIRO / Radar Coverage and AIS Solution Business Division, Mr. Masahide KAJI / Marine GIS Solution J – Marine GIS Solution Business Division, Mr. Kaoru HATSUNO / Communication Network International Business Department, Group II, Ms. Miki MATSUOKA / Project Coordination Consultant, Mr. Norifumi TANAKA / Analysis of Environmental and Society Energy Infrastructure Department, Energy Plant & Project Development Group 3 Mr. Homare MORIWAKI / Analysis of Economy and Finance Energy Infrastructure Department, Energy Plant & Project Development Group 3 Mr. Yasunori YMAGUCHI / Economic Policy of Vietnam TOYOTA TSUSHO CORPORATION Source : Prepared by study team 2-2 3. Study Schedule The outline schedule for implementing this Study is shown in Table 2-1. Table 2-1 Item of Activity JULY Study Schedule 2011 AUG SEPT 2012 OCT NOV DEC JAN FEB (Work in Japan) ① 1st Work in Japan Examination of the study method and preparation of the study in Vietnam xx xxxxxxxx x ② 2nd Work in Japan Reporting to related agencies in Japan ▲ Forecast of vessel traffic volume Planning of work processes and equipment Examination of maintenance and operation method Analysis into the capacity of related organizations for implementation of the Project xx xxxxxxx xxxxxxx xxxxxxx Preparation of report xxx xxxxxxxx xxxxx Submission of the draft Report (in Japanese and English versions) ▲ ③ 3rd Work in Japan Correction of the Report xxx Submission of the Final Report ▲ (Work in Vietnam) ① 1st Study in Vietnam Discussions on scope of study Survey of main coastal areas in North Region Survey of main coastal areas in Central Region Survey of main coastal areas in South Region xxx xx xxxx xxxx xxxx Discussions on scope of the Project xxxx ② 2nd Study in Vietnam Discussions and agreement on scope of the Project and Report xxxx xxxx Source : Prepared by study team 2-3 xxx▲ The visiting place and date for implementing this Study is shown in Table 2-2 Table 2-2 Date Visiting Place and Date Visiting place Visit organization 1 23-Sep-11 Ha Noi Vinamarine 2 27-Oct-11 Hai Phong Vietnam Maritime Communication and Electronics Company 3 02-Nov-11 Hai Phong Maritime Administration of Hai Phong 4 02-Nov-11 Hai Phong Northern Vietnam Maritime Safety Corporation 5 03-Nov-11 Hai Phong VINALINES HAI PHONG 6 03-Nov-11 Hai Phong VINAMARINE HAI PHONG 7 14-Nov-11 Ha Noi Vietnam Maritime Search and Rescue Coordination Centre 8 15-Nov-11 Ha Noi Vietnam National Shipping Lines(VINALINE) 9 22-Nov-11 TP.Ho Chi Min VINAMARINE HO CHI MINH CITY 10 23-Nov-11 TP.Ho Chi Min SAIGON NEW PORT CORPORATION 11 23-Nov-11 TP.Ho Chi Min SAIGON PORT COMPANY LIMITED 12 24-Nov-11 TP.Ho Chi Min Maritime Administration of Ho Chi Minh 13 25-Nov-11 Vung Tau Maritime Administration of Vung Tau 14 25-Nov-11 Vung Tau Southern Vietnam Maritime Safety Corporation 15 28-Nov-11 Da Nang Maritime Administration of Da Nang 16 29-Nov-11 Ha Noi Agency for Environmental Impact Assessment and Appraisal 17 01-Dec-11 Ha Noi 18 08-Dec-11 Ha Noi Vinamarine 19 10-Jan-12 Ha Noi Vinamarine Ministry of Agriculture and Rural Development Department of Fishery Source : Prepared by study team 2-4 Chapter 3. Justification, Objectives and Technical Feasibility of the Project 1. Background and Necessity of the Project The Socialist Republic of Vietnam installed the Global Maritime Distress and Safety System (GMDSS) at main ports and rivers under the Japanese yen loan for the period of March 2000 to January 2007 to perform the SOLAS Convention (International Convention for the Safety of Life at Sea) and the SAR Convention (International Convention for Maritime Search and Rescue) as required by International Maritime Organization (IMO). This Project was highly evaluated by the Vietnam-Japan joint evaluation of this Project made in 2008, but it was recommended to build up the Vietnamese capacity to fully comply with the provisions of the said International Conventions by introducing the Automatic Identification System (AIS) and the Vessel Traffic System (VTS). On the other hand, the Vietnamese economy has been continued to show a high growth at an annual rate of 6 to 9% except a period after December 1986 when the Doi Moi Policy was adopted. After Vietnam has recently become a member of the WTO, the economic globalization has increased the imported and exported cargo volumes. Vietnam has a long coastline of about 3,200km extending from north to south and rivers with a total length of 198,000km and many ports are distributed along the coastline and the river. In the international trade, the marine transportation accounts for over 80% and the domestic cargo transportation from south to north depends largely upon sea transportation. Therefore, it is considered that the future increase of cargo handling volumes at main ports will necessarily face the following problems, to which the Vietnamese Government should make urgent solutions: ・ Securing the safety of navigation in coastal waters and main rivers in Vietnam; ・ Building up the capacity of sea transportation by efficient operation of port facilities; ・ Reinforcing the action against ocean pollution due to sea accidents; and ・ Reducing the CO2 emissions from growing marine transportation. To cope with these circumstances, the Vietnamese Government decided officially to install Vessel Traffic Systems at the congested ports and main rivers for 12 years starting from 2010 for the purposes of higher safety and efficiency of marine transportation (Prime Minister’s Decision No. 1041/2009/QD-TTg). In this background, the Study of port maintenance and operation and port development project will be conducted through collection of information and hearing with related agencies. In addition, the project for development of the system for vessel traffic surveillance and the system maintenance and operation program will be planned through the examination of them from the following viewpoints: 1) 2) 3) 4) 5) Securing the safety of vessels’ navigation; Enhancing the efficiency of port maintenance and operation; Taking the measure for protecting the ocean environment in the surrounding waters of ports; Reducing the CO2 emissions in navigation of vessels; and Establishing the concentrated port management system in Vietnam The outline work flow of this Study is shown in Figure. 3.1-1. In this Section, items 1 through 4, and items 9 and 10 will be examined. The above 5 viewpoints are collated with each other and some of them have a trade-off relation. Therefore, the overall evaluation of those points will be made to serve for planning the system development project. 3-1 Figure. 3.1-1 Outline Flow of Work 1. Trends of Vietnamese economy and policies of maritime transportation and port systems 2. Analysis into the present status of maintenance and operation of facilities, equipment, channels and ports of related agencies 3. Monitoring of maintenance and operation of the existing GMDS 4. Future forecast of cargo volume and vessel traffic at main ports and extraction of problems 9. Ocean accident and pollution studies 10. Study of actual status of suspected vessels 5. Making up of the VTS, AIS and oceanic environment GIS introduction plan and the maintenance and operation plan 6. Project implementation plan and schedule, and analysis into the capacity of related organizations for implementation of the Project 7. Economic and financial analysis (EIRR and FIRR calculations) and feasibility study 8. Analysis into environmental and social considerations Source : Prepared by study team In addition, the function of VTS is regurated under the International Convention, such as SOLAS and SAR. There are no altananative mentod to achieve the same function instead of VTS, AIS. Therefore, it is not necessary to consider other plan in the study. 1.1 Trend of Marine Transportation and Port Policy in Vietnam Many ports in Vietnam are located along river basins and the vessel’s draft is shallow and largely affected by the fall and rise of the tide. Large-type vessels have to use barges for cargo loading and unloading at present. This problem resulting in very inefficient marine transportation has already been pointed out. As the ports are located along rivers, their site areas are limited and restrictive for construction of large-scale crane facilities and storehouses. Therefore, the transportation cost becomes high even though the production cost is set to a low value, and the cost competitiveness that the port areas should originally have is reduced. The countermeasures against these problems are also required to promote the invitation of the establishment of factories from developed countries. As the measure for buildup of the marine transportation for the time being, it is considered to develop the ports having deep waters to ensure large vessels to berth, in particular, aiming at international gateway ports. What is unique to ports in Vietnam is that each port is managed in various detailed categories called ‘Cang’ such as simple mooring facility, berth and terminal. Ports are largely divided into 3 categories: state-operated ports, People’s ports and exclusive-use ports. The state-operated ports are managed by VINAMARINE and VINALINES. The local ports are operated by Provinces or the People’s Committees (or People’s Communes under the committees). The exclusive-use ports are dedicated to handling of oil and coal and managed by the subordinate organizations under Ministry of Industry. 3-2 Such unique feature of the Vietnamese ports is an impediment to plan a long-term national port development project. In the Master Plan, the functions of ports including international gateway ports and local hub ports are defined clearly to set the priority order of development and to start the efforts to formulate the comprehensive policy covering all the ports of different categories. The port-related development project was submitted by Vinamarine through Ministry of Transport to the Prime Minister Office and approved in July 2009. It is planned that this project will be implemented to construct the necessary port infrastructure and facilities by 2020 looking to 2030. The concrete items of port development are as follows: ・ ・ ・ ・ ・ ・ Comprehensive modernized port development; Port development synchronized between marine and land transportations; Buildup of port capacity of transit ports, international gateway ports, hub ports and other ports, and investment in port development under priority order which should be synchronous with efficient port maintenance and operation; Accessibility of large-type vessels to ports Maximized mobility of resources Harmony of port development with environment This port development is set to the following five targets: 1) To meet the demands of the world market for vessels’ cargo volumes and cargo sizes; 2) Predicted cargo volumes in Vietnam: - 2015: 500 – 600 million tons/year - 2020: 900 – 1,100 million tons/year - 2030: 1,600 – 2,100 million tons/year 3) The development levels for main ports to attain these targets are shown in Table 3.1-1. Table 3.1-1 Development levels of main ports Port for Development Port Function Development Level Van Phong International transit port Container vessel capacity: 9,000 – for container vessels 15,000 TEU Hain Phong, International gateway Vessel capacity: 80,000 – 100,000 DWT Ba Ria – Vung Tau, ports Container capacity: 4,000 – 8,000 TEU Central economic development area Large-scale ports Hub ports Tanker capacity: 300,000~400,000 DWT Ore vessel capacity: 100,000 – 300,000 DWT Large Tourist Center Berth for passenger Gross tonnage: 100,000 GRT vessels Source : Prepared by study team 4) Development of logistics center connecting between marine transportation and land 5) TtransportationIntroduction of new technology necessary for qualitative improvement of existing port facilities The project based on this study is concerned the items 4) and 5) in the mentioned above. 3-3 The Master Plan categorizes the port functions as follows: A. Domestic general ports 1) International transit/gateway ports: Van Phong (Khanh Hoa) Hai Phong Ba Ria – Vung Tau 2) Local hub ports: Hon Gai - Quang Ninh Nghi Sơn - Thanh Hoa Nghe An Son Duong Vung Ang - Ha Tinh Dung Quat - Quang Ngai Quy Nhon – Binh Dinh Ba Ngoi - Khanh Hoa Ho Chi Minh Dong Nai Can Tho B. Local ports C. Exclusive-use ports For the access channel improvement project, the following important channel are indicated: Access channel to Hai Phong Port Access channels to Vung Tau Port and Thi Vai River Access channel to Ho Chi Minh Port along the Soai Rap River Access channel to Can Tho Port, etc. However, the following items are indicated as the present problems in implementing these development projects: 1) Lack of standardization 2) Lack of comprehensiveness of local execution processes 3) Low quality and out-of-date technology The investment amounts and fund sources necessary for development of these ports are estimated as follows: - Total investment amount up to 2020: 360 – 440 trillion VND (USD 20 – 25 billion ) Total investment amount up to 2030: 810 – 990 trillion VND (USD 46 – 56 billion) Expenditure out of national budget: 12% to 15%, others are funds from private companies 3-4 1.2 Outline of Target Sectors of the Project 1.2.1 Maritime Administrative Agencies (1) Ministry of Transport (MOT) As described in Chapter 1, the water transport administration on inland and at sea as well as domestic aviation and land transportation are controlled by Ministry of Transport (MOT). The MOT is responsible for formulation of national master plans and recommendations for transport-related developments under Prime Minister’s decisions, guidance of local governments under the master plans, formulation, enactment and supervision of transport-related laws, regulations and policies, formulation of various national standards and technical standards for transportation and issue of licenses, and approval of development and construction projects. The organization of the Vietnam Ministry of Transport is shown below. Figure. 3.1-2 Vietnam Ministry of Transport Organization Chart Source : Prepared by study team based on MOT homepage 3-5 (2) Vinamarine Vinamarine is a national agency established in 1992 to control the maritime services in Vietnam. The Director General has the responsibility on behalf of Transport Minister to the Prime Minister and controls the maritime sector in the entire country including all the state-operated maritime organizations (under both the central and local authorities) and non-state-operated maritime corporations, organizations and persons (including foreign organizations and persons making activities within the territory of Vietnam). Vinamarine manages the services including vessel management, port operations, marine transportation service and crew education and a number of special corporations and state-owned companies are under its control. The functions of Vinamarine are as follows: ・ Issue of permission of navigating in the territorial waters of Vietnam to foreign flag vessels and ・ ・ ・ ・ ・ ・ ・ boats; Announcement of ports opened for navigation; Maritime service management; Execution of search and rescue activities; Exercise of port management formalities; Response to maritime safety issues; and Survey and resolution of illegal acts in maritime activities The organization chart of Vinamarine is shown in Figure. 3.1-3. The main departments within Vinamarine which may be involved in implementation of this Project are as follows: ・ Maritime Administrations ・ Planning and Finance Department: Planning and investment for all maritime transportation ・ ・ ・ ・ policies Maritime Safety and Security Department: Planning of safety and security policies for all maritime transportation issues International Cooperation Department: Contact window for international cooperation for all maritime transportation issues Vinamarine Branch in Hai Phong City and Ho Chi Minh City: Branch in charge of maritime administration in the North and South Area of Vietnam Vietnam Maritime Search and Rescue Co-ordination Centre: VMRCC search & rescue center 3-6 Figure. 3.1-3 Vinamarine Organization Chart Source : Prepared by study team 3-7 The main departments and sections under the control of Vinamarine and its external organizations will be outlined below. (3) Maritime Administration (MA) There are 25 Maritime Administrations in Vietnam which make the maritime management in the water areas of their individual jurisdictions. The Maritime Administration is one of the national maritime management agencies as defined in Article 58 of the Maritime Regulations of Vietnam: “The governmental agency which makes the maritime management services in the port waters and local navigable waters is called ‘Maritime Administration’.” In cases of inspection for marine safety management and surveys of accidents and deaths occurring in maritime transportation, each MA has to request for assistance and advice from Vinamarine. It is because the MA has to take careful actions, especially in detaining a vessel. The Master Plan for port development which will be described later states that the ports in each Area shall be managed in the following 6 groups: Table 3.1-2 Management of Port Groups by Sea Area Management Ports and Management Area Group Group 1 Quang Ninh to Ninh Binh Ports in the North Area Group 2 Thanh Hoa to Ha Tinh Ports in the Central North Area Group 3 Quang Binh to Quang Ngai Ports in the Central Area Group 4 Binh Dinh to Binh Thuan Ports in the Central South Area Group 5 Ports along Con Dao River and Soai Rap River, and Tien Giang. Port Group 6 Phu Quoc Port and Islands in the East-South Area Source : Prepared by study team (4) Vietnam Maritime Safety Agency (VMS) The VMS was established in 1975 to operate the maritime safety in Vietnam. Since the organizational reform in 1995, it has been responsible not only for the conventional navigational services, but also for new services including search and rescue actions, safety of vessels and protection of maritime environment and channels. This agency undertakes the maintenance and inspection of lighthouses and beacon systems in Vietnam. The management services for channel beacons and channels (including channel surveys and dredging) had been undertaken by the internal departments of Vinamarine, but the organizational reform was made in 2010 and such services has been transferred to two (2) private companies taking charge of the North Area and the South Area. (5) Vietnam Maritime Safety Inspectorate (VMSI) The VMSI was established under the Prime Minister’s Decision (No. 204/TTg) as of December 28, 1992, under which the VMSI was vested in the following authorities: ・ To supervise the compliance with all the maritime rules and regulations and the international ・ ・ ・ ・ ・ agreements binding all the vessels of Vietnamese flag and foreign flags which are making activity in Vietnam; To inspect the ocean-going vessels, cargoes and equipment on board vessels, port facilities, marine navigation equipment and other related equipment; To command each Maritime Administration to investigate the cause of any accident; To propose any measure for marine safety and environmental protection to Vinamarine; To supervise the compliance with the safety standards for the activity of each Maritime Administration, pilotage, and search and rescue activities; and To promote the knowledge on marine safety and environmental protection. (6) Vietnam Maritime Search and Rescue Co-ordination Center (VMRCC) The VMRCC is an organization established in 1996 and under the control of Vinamarine. It gives direct commands to the groups and department in the maritime industry sector in Vietnam for search and rescue activities at sea and provides support of and coordination with domestic and international organizations in the search and rescue activities. 3-8 (7) Vietnam Maritime Ship Communication and Electronic Company (VISHIPEL) The VISHIPEL has been under the control of Vinamarine in the past, but it is privatized at present. The company undertakes the maintenance and operation of the communications systems including 5 coastal broadcasting stations and 2 state-operated broadcasting stations as the GMDSS project was implemented in 2 phases. These 7 broadcasting stations are on standby on a 24-hour basis for search and rescue, medical support, marine weather forecasts and commercial service. (8) Vietnam Inland Waterway Administration (VIWA) There are a number of channels connecting to rivers, lakes, canals and islands (collectively called “inland channels”) in the entire country of Vietnam. The transportation by these inland channels and the relatively small river ports incidental to these channels are managed by VIWA as a branch agency of Ministry of Transport. In addition, the mare activities include the control of fishing vessels, but the fishing vessels are under control of Ministry of Agriculture and Rural Development (MARD). Vietnam Port Association (VPA) is an organization in whose members are public corporations and private operators related to port management and the cargo handling volume at each port and the trend of port policy is reported at its general meeting held every year. 1.2.2 Definitions of Target Services of the Project The basic system components of the vessel traffic surveillance system to be developed in this Project will be the VTS and AIS, which are intended to provide the items of service as described below to port controllers and users requiring such services. It was planned to install the AIS on vessels in phases from July 1, 2002 in accordance with the SOLAS Convention as revised and the construction of AIS shore stations and AIS networks have been making progress in many countries. The services that the use of such VTS/AIS can provide are as follows: (1) VTS Services The services to be provided by VTS relate to the vessel traffic management services as provided in the Resolution A.857 (20) of the IMO General Assembly and are stated in the “Guidelines” in such Resolution. The VTS services are divided into the following: a. Information providing service b. Navigational aid service c. Vessel traffic management service These services are intended to enhance the safety and efficiency of navigation and maintain the safety of life at sea. In addition, the services are also intended to protect the water areas such as important protection districts and work sites as well as off-shore facilities which may have serious impacts on vessel traffic. The 3 service items will be outlined below. a. Information providing service: Information is provided to the water area covered by the VTS service in the form of broadcasting at a regular time in constant intervals, or from time to time as deemed to be necessary on the VTS operator side, or on a request from a vessel. b. Navigational aid service: Navigational aid service is important, especially in difficult navigational or meteorological conditions and provided usually as requested from a vessel, or from time to time as deemed to be necessary on the VTS operator side. c. Vessel traffic management service: This service allows port operators to acquire the vessel traffic management and vessel movement plans for the vessels arriving in and departing from a port or navigating on channels and to prevent the congestive and dangerous conditions of the port. In particular, this service is important in a time span when the traffic is congested, or when the traffic flow of other vessels may be impacted by special transportation of hazardous materials or the like. 3-9 (2) AIS services The services to be provided by the AIS are the following: a) Use of AIS for VTS operation: For instance, the information on the vessels with no carriage of AIS or on the vessels acquired only by VTS is transmitted via AIS. b) Provision of information on GNSS correction values c) Automatic reporting in the forced vessel position reporting system d) Search and rescue activity: Use of AIS in joint search and rescue activities by sea and air. The search and rescue activity is facilitated by indicating the position of a distress vessel on the AIS monitors on the vessels navigating in the vicinity of the distress vessel. e) Route beacons: The AIS equipped with a light buoy can provide the information on position, light quality, tidal currents, weather and visibility. f) Use for port management: The arrival and departure management can be made with high accuracy by acquiring vessel movement information. The AIS can be used effectively for the systems for port facilities management and for information on international maritime transportation can also be used effectively. The information provided by the AIS will be examined in the stage of development in detail, but the following items of information are considered: a) b) c) d) e) f) g) h) i) j) k) l) m) n) o) Accident information; Navigational and meteorological information Cautions on dragging anchor and cargo shifting Warnings on winds above sea, etc. Failures of lighthouses, light buoys, etc. Work information Information on vessel traffic limitations Information on objects on routes Evacuation advice information Tsunami warning and cautions Grounding prevention information Dragging anchor information Collision avoidance information Sea accident site information Proper AIS operation guidance The AIS can be used as an aid for judgment on safety of navigation and it is one of the means of acquiring vessel information and can support the VTS, but it has been pointed out that the AIS is not alternative to the VTS. Therefore, it is considered that both systems are used complementally. By configuring the VTS and the AIS as an integrated information system, especially in port management, the vessel traffic information can be acquired quickly and the vessel arrivals in and departures from a port and the cargo loading and unloading can be scheduled with high accuracy, thereby allowing the use of various port facilities and the port-related services to be managed properly. So, the information available from the VTS/AIS is important for securing the safety of navigation. Furthermore, the comprehensive port management system using the VTS/AIS can make efficient port operation. 1.2.3 Definition of Beneficiary Groups Port operators, channel operators, maritime safety agency, transportation operators, ship owners, cargo owners and (fishing vessels) 3-10 1.2.4 Declaration of no alternative method VTS and AIS are regurated under the International Convention, such as SOLAS and SAR. There are no altanative method instead of VTS and AIS. Therefore, it is necessary to achive of the project with VTS, AIS include extisting GMDSS for development of international port in Vietnam. 1.3 Present Status of Related Agencies and Operation of Their Systems The present conditions of the agencies and departments related to maritime vessel traffic management will be described below from the viewpoints of safety of navigation, efficiency of port operation and oceanic environment and based on the data collected in Vietnam. (1) Safety of vessel navigation The statistic data on sea accidents that occurred in the coastal waters in Vietnam for the past 5 years (2006 to 2010) is shown in Table 3.1-3. The data from the materials for the Southeast Asia Maritime Expert Meeting (number of sea accidents from 1996 to 2000) is also added in the lower column of this table for comparison. The average number of the sea accidents for 5 years is indicated in the left column to see the changes for 10 years. As a result, 101 sea accidents occurred from 1996 to 2000, but the accidents increased about 1.4 times to 143 cases from 2006 to 2010. This data was acquired after the GMDSS was installed and when the search and rescue system was fully established, allowing the statistic data on sea accidents to be acquired accurately. And the number of accidents is limited to the serious major accidents except minor ones and the comparison was made in the same conditions. Therefore, the number of sea accidents is increasing in relation with the developing economic activities in marine transportation and fishery industries. If the port development projects are implemented in future, the number and traffic frequency of vessels will be increasing and the danger in marine traffic will also increase. From this point of view, it is an urgent necessity to introduce the system for reducing the danger in vessel navigation and securing the safety of navigation. Table 3.1-3 Statistics of sea accidents of Vietnamese flag vessels in Vietnamese territorial waters 1996-2000 2006-2010 1996 115 2006 113 1997 87 2007 173 1998 68 2008 128 1999 117 2009 128 2000 120 2010 171 Average for 5 years 1996-2000 101 Source: Average for 5 years 2006-2010 Based on the materials available from VMRCC 3-11 143 Figure. 3.1-4 The ratio of cases of actual mobilization and ship Source : Prepared by study team The number of maritime accidents for each area (North, Central and South) is shown in Figure 3.1-4 , which is actually carried out to rescue after the receiving reported by VMRCC in 2010. As seen from the sea accident cases handled by each local VMRCC in the above figures, it is made clear that there were many accidents of fishing vessels in the South Area and that there were many accidents of cargo vessels in the North Area. The ratios of sea accident cases limited to the coastal waters (within 50NM) of Vietnam are shown in Figure. 3.1-5. Even if the accident cases are limited to the coastal waters, the ratios by Area are not largely changed, but the ratio of cargo vessel accidents in the North Area reached 25%. 3-12 Figure. 3.1-5 The ratio of cases of actual mobilization and ship (within 50NM) Source : Prepared by study team On the other hand, there is another problem with piracy by suspected vessels on routes and coastal waters in addition to the above sea accidents. To cope with this problem, it is necessary to expand the coverage of the systems under the Project separately. The change of piracy cases (including attempted cases) in the ASEAN waters including Vietnam for the past 5 years is shown in Table 3.1-4 for reference. Table 3.1-4 Change of Piracy cases in the ASEAN waters Sea Area 2006 2007 2008 2009 2010 Indonesia Strait of Malacca Malaisia The Philippines Strait of Singpoer Thailand South China Sea Vietnam Total 50 11 10 6 5 1 1 3 87 43 7 9 6 3 2 3 5 78 28 2 10 7 6 11 64 15 2 16 1 9 1 13 9 66 40 2 18 5 3 2 31 12 113 Ratio of Vietnanese waters (%) 3.4 6.4 17.2 13.6 10.6 Source: Based on the “Annual Report 2010 on Piracy and Armed Robbery Cases to Vessels” by Piracy Reporting Centre (PRC), International Maritime Bureau As seen from the number of piracy cases in the Vietnamese waters, about 10 cases occurred for these several years. In comparison with ASEAN countries, the 10% level of the total in the entire ASEAN waters occurred in the Vietnamese waters. Therefore, it is necessary to take the measures such as supervision and regulation separately. 3-13 (2) Higher efficiency of port operation As described previously, the ports in Vietnam are located in the river basins, and the vessel’s draft is shallow and largely affected by the fall and rise of tide. Barges may be used for cargo loading and unloading at large vessels, but in other cases, vessels are waiting for the full tide with higher depth to travel upstream from a river port for loading and unloading. The vessel traffic may also be limited by such natural condition as well as the insufficient undeveloped port facilities to receive vessels. Vessels are forced to wait off shore until the full tide to run upstream. The congestion on the channels within a port may be higher than the statistic number of vessels calling the port. In the hearing with Maritime Administrations in this Study, it was pointed out that it would be necessary to monitor such vessel traffic trend showing that vessels navigate within a port and along a river in the full tide or flood tide in the nighttime. The large ports to be developed in future will be dredged and vessels are strictly required to run on the dredged channels for entering or leaving such ports. For higher efficiency of port operation, it is also necessary to give proper advice to vessels on the entering channel to secure the safety of navigation and ensure quick loading and unloading. It was also pointed out that the meteorological and oceanographic conditions at such dredged port should be monitored more carefully than other ordinary ports to pay attention to the changes. In particular, at the ports in the North Area, the sight is limited by seasonal fogs, thereby increasing the risk of collision accident. (Source: Material of the Seminar for Marine Safety Management at Ha Long Bay, 2005) The meteorological and oceanographic phenomena change locally and with time. There are some ports for which it is desirable to acquire such observatory data quickly in the framework of the future port development. (3) Present status of oceanic environmental protection, conservation and regulation There are many restricted districts in Vietnam for the purpose of oceanic environmental protection. These districts are regulated under the applicable UNESCO convention, Ramsar Convention and IMO MARPOL Convention, of which there is any Convention that Vietnam has not ratified. However, the international move for environmental conservation and regulation will be more active. The list of restricted districts as designated in Vietnam is shown in ANNEX-5-2. The restricted districts as designated for oceanic environment are shown in Table 3.1-5. In particular, there has recently been a move to review the “Particularly Sensitive Sea Area (PSSA)” in the coastal countries. The countries having such sea areas are required to take any preventive measure for oceanic environmental protection by regulating and monitoring vessel traffic at all times. Table 3.1-5 Restricted Districts for Oceanic Environment Number of Type District District 1 World Heritage (National Heritage) Ha Long Bay 6 Can Gio mangrove forest, Cat Ba Island, Kien Giang Coastal Zone, Cu Lao Cham , Ca Mau Coastal Zone, the Western of Nghe An 3 Ha Long, Lang Co, Nha Trang Biosphere Reserve World Beautiful Bay Cat Ba, Con Dao, Bai Tu Long, Phu Quoc, Xuan Thuy, Nui Chua Mui Ca Mau National Protected Disticts 4 Tien Hai, Hon Mun,Cu Lao Cham,Rạn Trào 16 Dao Tran, Co To, Cat Ba, Bach Long Vi, Hon Me, Con Co, Hai Van-Son Tra, Cu Lao Cham, Ly Son, Marine Protected Area Hon Mun, Hon Cau, Phu Quy, Nui Chua, Con Dao, Nam Yet, Phu Quoc Source: Lecture at the 35th Anniversary Meeting of Vietnam Science and Technology Academy National Park 7 The ports in the North Area are located in Ha Long Bay which is a world heritage and the vessel traffic surveillance after port development is important from the view of environmental conservation. At present, this area attracts attention as the candidate for “New 7 Wonders”. If oil spill occurs in any vessel accident, it will give a serious impact on the surrounding environment and decrease the tourists to the important tourism resources in Vietnam, resulting in an economic setback. Especially, 3-14 the river channels in Ha Long Bay are controlled by Vietnam Inland Waterway Administration (VIWA) and in accordance with the river signal rules and the sea channels are under the control of Vinamarine and in accordance with the sea signal rules. However, it has been pointed out that these rules are different for rivers and for sea. (Source: Material for the Seminar on Marine Safety Management at Ha Long Bay, 2005) For Cat Bar Islands, there is a move for establishment of GeoPark and World Heritage and in the surrounding area, it is necessary to consider the oceanic environment more and secure the safety of navigation at Hai Phone Port. There are many oil spill cases in sea accidents in Vietnam. As crude oil is produced in this country, the interest in oil spill accidents is very high and Vietnam has established the cooperative system with Thailand and Cambodia. Within the country, there are 3 oil spill accident response centers in Hai Phong, Da Nang and Tỉnh Bà Rịa-Vũng Tàu. These centers are provided with personnel and equipment and their branches are established at the oil handling ports. Hai Phong and Da Nang Centers are under the direct control of Ministry of Defense. Tỉnh Bà Rịa-Vũng Tàu Center is operated by an oil company, but all the Centers will be operated by VINASARCOM. These situations will be wrapped up based on the “Daily Reports on the Sea Defense” of 2003 and the “Report on the Study of the Southeast Asia Maritime Expert Meeting”. The ocean pollution cases that occurred in the territorial waters of Vietnam or in which Vietnamese flag vessels are involved are shown in Table 3.1-6. Table 3.1-6 Ocean pollution cases due to Vietnamese flag vessels in Vietnamese waters Date Location Spilled Oil Oil Quantity (tons) August 10, 1989 Quy Nhon Fuel oil 200 November 26, 1992 Bach Ho Crude oil 700 September 20, 1993 Vung Tau Fuel and diesel oil 200 May 8, 1994 Saigon Fuel oil 130 October 3, 1994 Cat Lai Diesel oil 1,850 January 27, 1996 Cat Lai Diesel oil 72 August 16, 1998 Nha Be Diesel oil 180 2001 Ganh Rai Fuel oil 900 Source : “Report on the Study of the Southeast Asia Maritime Expert Meeting”.in 2003Source : Prepared by study team For 10 years (1989 to 1998), oil spill of several hundred tons occurred 6 times and one time of oil spill exceeding 1000 tons occurred. If the vessel size becomes larger and the vessels loaded with hazardous materials increase, the risks of grounding and collision accidents will increase. It is required to make quick response and monitor the trend of these vessels and the vessel information including loading of hazardous materials. (4) CO2 emission reduction measure and vessel traffic management In pace with the global trend of international maritime transportation, the regulations for CO2 emissions from vessels were revised in the IMO Convention to obligate the vessels to be provided with the CO2 emission reduction measure as of January 2013. This revision will be outlined below. (Source: Press release on July 19, 2011 from Ministry of Land, Infrastructure, Transport and Tourism: “Details of the Revisions in the Convention adopted by the 62nd Marine Environmental Protection Committee (MEPC62)” ) ・ Background of introduction of CO2 emission regulation: The following 2 points are stated: ① Establishment of international framework: As the international maritime transportation beyond the borders does not fit the framework of exhaust emission quota by country, it was excluded from the Kyoto Protocol. Therefore, it is provided in Article 2.2 of the said 3-15 ② Protocol that the measure for reduction of CO2 emissions shall be examined by IMO. CO2 emissions from international transportation were approximately 870 million tons in 2007. (About 3% of the global emissions were equivalent to the emissions in Germany.) In the future, however, it is foreseen that the emissions will substantially increase as the marine trade volumes in the developing countries increase. It is the urgent necessity to establish the international framework for reduction of CO2 emissions in marine transportation. Drafting of the Convention on the initiative of Japan: Japan as one of the world leaders of maritime shipping and shipbuilding has taken the initiative in the deliberations on the measures for reduction of CO2 emissions from international transportation at IMO by submitting a number of proposals. The revised Convention was also prepared based on the proposals by Japan. ・ Main points of revisions to the Convention: Vessels will be obligated to take the following 2 measures in and after January 1013: ① CO2 emission index for vessels to be built in and after 2013 “Energy efficiency design index”: Introduction of EEDI and enforcement of CO2 emission regulation ② Obligation to make up the energy saving ship operation plan (“Ship Energy Efficiency Management Plan (SEEMP)” ・ Effects of the revised Convention: The effects of the Convention are stated as follows: Expected effects of reduction of CO2 emissions: The vessels to be newly built in and after 2013 are required to meet the CO2 emission criteria set by vessel type. The criteria will be reinforced in phases and the vessels will be replaced with those which have excellent fuel efficiency in turn in future. The on-going vessels will also be obligated to make up the energy saving operation plan to cope with improvement of efficiency of operations. It is expected from these measures that the CO2 emissions will be reduced by about 20% in 2030 and about 35% in 2050 in comparison with the level in the case of taking no measure. ・ Future measures: IMO is making deliberations on the economic framework including the fuel oil charging system and the emission trading scheme (ETS) to promote the higher energy efficiency improvement of vessels than the regulation in this Convention, and some proposals such as the system for giving incentives to vessels which have improved energy efficiency (system for exempting vessels with lower CO2 emission than the regulated value from fuel oil charges) have been made. In taking these trends into account, it can be considered to provide channel and ocean information for effective use to vessels in taking the procedures for quick arrival in and departure from ports and selecting their optimum routes for good environmental contribution in this Project. Therefore, it is recommended to make the examinations on building up the capacity of vessel traffic surveillance and safety management in attaching importance to the efforts in the environment aspect. (5) Desirable port management in Vietnam The development of port facilities in this Project will be able to provide the information on vessels and ports mainly to Maritime Administrations and make the exchange of information between Maritime Administrations, and between port controllers and related agencies at any time. As a result, the port facilities that have been developed so far will realize the system in which such developed port facilities will contribute to the maintenance and operation of ports under the leadership of Vinamarine. It is deemed to be very significant that such system will support the concentrated efforts for port development as a national policy. These 5 viewpoints have not been highlighted in the present situation that the port facilities are developed and operated at each port individually, but those points will be getting more obvious as the number of vessels arriving in and departing from each port and the vessel traffic on routes will be increasing along with the future development of port facilities. From these viewpoints, therefore, it is important to foresee the circumstances, including the measures to 3-16 alleviate any negative impacts, which will become obvious in the future progress of marine transportation to be made by vessel traffic surveillance and safety of navigation in this Project. In the examinations in this Study, the “Port Project for Safety Surveillance” will be proposed in synchronization with each phase of the port development projects in progress in Vietnam and the problems to be foreseen from the above 5 viewpoints will also be solved by implementing such Project. 1.4 Status of Installation and Operation of Existing GMDSS It has the objective to allow Rescue Coordination Centers (RCCs) and vessels to quickly receive a distress signal in event of a sea accident by GMDSS(Global Maritime Distress and Safety System)in order that a RCC and a vessel navigating in the vicinity of a distress vessel can make search and rescue activities within a shortest time. This system is also capable of providing distress, emergency and safety communications as well as marine safety information (including navigational and meteorological warnings). This means that all navigating vessels can acquire necessary information for the safety of themselves and the safety of other vessels in the same sea area. For most of the coast radio stations in Vietnam, it had been urgently necessary to secure the safety of marine traffic in the trend in which the role of domestic marine transportation became important year by year and the number of vessels calling ports was foreseen to be substantially increasing. On the other hand, Vietnam formulated the project of installing coast radio station system and satellite communications equipment to respond to the GMDSS advocated by IMO. The Vietnamese Government developed the GMDSS system on yen loan. In installation and operation of the new system, the guidance of the maintenance and operation procedures through training of personnel, including the review of search and rescue system, was also provided by Japan. However, many problems are left including fishing vessels sailing out off shore without installing sufficient radio equipment, lack of consciousness of problems such as erroneous transmission of a distress signal due to operating mistake, and undeveloped search and rescue scheme. The follwings is a summary of general equipment composition; (1) System configuration of existing GMDSS 1) 2) 3) 4) 5) Class 1 station (NAVTEX 13, MF, HF, VHF): One station (Ho Chi Minh) Class 2 station (MF, HF, VHF): 2 stations (Vung Tau, Nya Chang) Class 3 station (MF, HF, VHF): 3 stations (Tỉnh Kien Giang, Can Tho, Quy Nhon) Class 4 station (unattended: VHF): 12 stations (Bac Lieu, Cam Ranh, Con Dao, Dung Quat, Ha Tien, Ly Son, Nam Can, Phan Thiet, Pho Quoc, Phu Quy, Quang Ngai, Tho Chu), of which Phu Qui and Quang Ngai were relocated to Phang Rang and to Phu Yen respectively. LUT14/MCC15: Hai Phong In the system configuration, LUT is the abbreviated code of Local User Terminal (land receiving station), MCC means Mission Control Center, NAVTEX is navigational telex, MF is a medium frequency, HF a high frequency and VHF a very high frequency communications facility. (2) Sea areas covered by existing GMDSS and effects of its introduction The sea areas covered by the existing GMDSS are categorized into 3 areas: A1 sea area: A radiotelephone communications coverage area of one or more VHF radio coast stations which can continuously use the warning by digital selective call (CH 70/156.525MHz). Normally, it is an area of 20 to 30NM (37 to 56km) from the coast station. A2 sea area: A radiotelephone communications coverage area of one or more MF radio coast stations which can continuously use the warning by digital selective call (2187.5 kHz) (except A1 sea area). In planning the project, it is an area of within 100NM (190km) exclusive of the A1 area, but in 3-17 practice, the MF radio station is capable of communication in the range of up to approximately 400NM (740km). A3 sea area: This area is the communications coverage of Inmarsat geostationary satellites capable of continuously using warning (exclusive of A1 and A2 areas), which covers the area exclusive of A1 and A2 areas from lat.76°N to lat.76°S. It has been reported that the effects as planned was obtained by introducing the above GMDSS system. The “Joint Evaluation Report” that was made after introduction of the system stated the details as follows: 1) Conformity to international conventions As the outputs of this project, ① the installation of GMDSS radio stations in the South Area of Vietnam; and ② the installation of LUTs and the MCC were achieved. As a result, Vietnam could comply with the rules and regulations of the SOLAS and SAR Conventions. In addition, ③ the installation of the GMDSS radio station in the North Area of Vietnam and ④ the installation of the satellite communications facilities were the outputs of the radio coast station project (Phase I) in the North Area. 2) Expansion of communications area In addition to the Phase I project implemented in the North Area of Vietnam, the completion of this project ensured that radio and satellite communications became usable all the sea areas A117, A218 and A319. After completion of the GMDSS project, Vietnam Maritime Communications and Electronics Company (VISHIPEL) taking charge of the facilities of this project has been able to communicate with large vessels navigating in oceans (almost all sea areas) and with small vessels (such as fishing vessels) sailing in coastal waters (about 100km to 200km from coasts depending upon the weather conditions). 3) Increase in traffic – Increase in communication times through radio coast stations After completion of the GMDSS project, the communication times using the Vietnam coast radio communication system is increasing year by year. The volume of information including navigational warnings, search and rescue information, and meteorological and weather information which are provided by VISHIPEL was almost doubled during the period of 2003 to 2007. This Study made clear that the GMDSS project contributed to the development of maritime transportation and fishing industry by extracting the following opinions and comments: ① ② ③ The good environment was provided by the domestic and foreign investments under the GMDSS project, resulting in the effective use of maritime transportation industry. The fishing vessels can make operations at more remote waters than ever and the information on markets and promising fishing grounds was easily obtained. The capacity of coastal radio communications was higher, ensuring the safety and security of fishing vessels to be improved. It is obvious that the GMDSS project made considerable contribution to the development of fishing industry. In addition, it has been reported that the coastal communications system is widely used for ship-to-shore communications (between vessels, and crew families and offices). Although the equipment for improving the safety of marine traffic was introduced in Vietnam, some problems and issues are pointed out by the parties concerned: (a) lack of communications capacity of fishing vessels (many fishing vessels are not provided with necessary communications equipment); (b) difficulty to standardize the communications protocols beyond various types of vessels; (c) limit of rescue equipment and personnel’s capacity of VMRCC; and (d) limit of the coordination capacity of existing search and rescue system. It has been pointed out that the above (a) and (b) are also very difficult problems for the developed countries, while the problems (c) and (d) are related to the organizational and system capacity, which is also required to be reinforced in Vietnam to make the maximum use of the GMDSS system. It has also been reported that “the coordination procedures in the existing search and rescue coordination system (scheme) are complicated in terms of operation, and that the practical rules of coordination among related ministries 3-18 and agencies, and the guidelines for operation are not established. functioning effectively and efficiently.” Therefore, this system is not In regard to the problems such as lack of organizational and system capacity for search and rescue in Vietnam, JICA (former JBIC) made the “Study of the Organizational Improvement for Maritime Safety through Search and Rescue Activities” (Reference Study of Strategic Organizational Reform Models) in 2004. Based on the recommendations in this Study, Vinamarine formulated the Action Plan for reinforcement of the organizational and system capacity for search and rescue. At present, the organization and system may be better established than that time, but the educational and training facilities are still insufficient and the demand for such facilities was presented in the hearing survey with the VMRCC staff in charge of such field. 3-19 2. Examinations for Determination of Items of the Project 2.1 Port Selection Factors (Demand Prediction) In this Project, it is necessary to select the target port groups and examine the necessary layout of facilities and system scale based on main channels and anchorages at each port. As the factors for determining the development items in this Project, the following indicators are considered: (1) Selection of target ports and future forecast of cargo handling volume Vinamarine formulated the Vietnam Port System Development Plan (Master Plan) in 1999 under the guidance of Vietnam Ministry of Transport and thereafter continued the review of scope (areas, schedule and targets for development), and features and development year of the newest maritime transportation network program and the latest Master Plan was approved by the Prime Minister Office in 2009. In selecting the target ports, the candidate ports in the Master Plan were divided into groups and the forecast cargo handling volume of each group (for 2015, 2020 and 2030) was adopted as a factor for port selection. (2) Category of target ports in Master Plan The ports in Vietnam are categorized by importance in the Master Plan into “Class I” which is a large-scale port to contribute to the economic development in the entire country and between regions, “Class II” which is a medium-scale port to contribute to the regional economic development” and “Class III which is a small-scale port for any industrial activity such as special use”. This factor is considered for port selection. In the Master Plan in which such categories are defined, a total of 40 ‘port groups’ including nearly 300 ports including mooring facilities and berth terminals called “Cang or Ben” was categorized. Thus, it is said that the concept of port in Vietnam is approaching the international standard. As the ports were categorized by importance and scale, the hierarchical structure of ports is defined and it is deemed as one of the basic conditions to formulate the port development and investment strategies in the future. (3) Priority of port development (annual plan) In the Master Plan, the construction of new ports and the rehabilitation of existing ports are included and the work schedule for those items is indicated. It is also necessary to determine the schedule for installing Vessel Traffic Systems to ensure that the manufactured systems will be delivered in the synchronization with the service-in year after completion of the port development. The priority of port development is considered for selection of target ports. (4) Uses of ports In the Master Plan for port development, there are some ports which are categorized into the “Ports of Special Use”. These ports are important for industrial activities such as loading crude oil, coal, and products in developed industrial areas. This item is adopted as an indicator. In particular, the thermal power plant construction program is planned for the coastal areas of Vietnam and it is expected that the construction will make progress. The coal and other materials for power generation will be transported mainly by sea from the North Area of Vietnam. For transportation of those materials, the ports and mooring facilities for the exclusive use will be constructed. Therefore, it will be important to make surveillance of the vessels calling the ports regularly for transportation and the coastal areas including those ports may be the target area for development. The projects of constructing power plants and related ports which PetroVietnam is planning are shown below. 3-20 Table 3.2-1 Source: PetroVietnam Project Summary “WARMLY WELCOME TO PETROVIETNAM“ Table 3.2-2 Source: Power Plant Construction Projects Planned by PetroVietnam Related Port Construction Projects Planned by PetroVietnam PetroVietnam Project Summary “WARMLY WELCOME TO PETROVIETNAM“ (5) Installation of navigational safety equipment In the “Detailed Master Plan” under the Prime Minister’s Decision in 2011, the navigational safety equipment such as VTS and the channel dredging work are planned. This deepening of port waters is considered as a factor for port selection. (6) Natural environmental conditions in port surrounding areas In addition, the oceanic environmental conservation out of 5 viewpoints regarded as important in this Study is considered as a factor for port selection. In the surrounding areas of target ports, it is desirable to take necessary measures to prevent any vessel accidents which have serious impacts on the oceanic environment. It is considered as a factor for port selection whether there is any oceanic environmental conservation district in the environs of a port group. 3-21 The flow of selection of target ports is shown below. Table. 3.2-1 Flow of Selection of Target Ports in the Project Source : Prepared by study team 3-22 2.2 Extraction and Analysis of Problems in Determination of Project Items 2.2.1 Study Process & the result for Project Items The results of sorting the ports in Vietnam in accordance with the factors and procedure for port selection are shown in ANNEX-2. One example is shown in Table. 3.2-1 above, but the examination results of 296 ports are indicated in view of the main factors of examination. The target port groups for the development years (2015 and 2020) in the final stage will be screened from the following viewpoints and shown in Table 3.2-3 . a) Safety surveillance b) Port efficiency c) Oceanic environmental conservation d) CO2 emission reduction e) Centralized management of vessel traffic information 3-23 Table 3.2-4 Selection Table for target Port Inplementation Plan for Target Port Area up to 2015 and up to 2020 ( *: belongs on plural Port Authorities) Port Authority Group No. 1 1 Cảng Vạn Gia 2 Cảng Hải Hà 3 4 5 6 7 2 8 9 10 11 3 12 13 14 15 16 17 18 4 19 20 21 22 23 5 24 25 26 27 28 29 30 31 6 32 33 34 35 36 37 38 39 40 Cảng Cảng Cảng Cảng Vạn Hoa, Mũi Chùa Cẩm Phả Hòn Gai Hải Phòng* Cảng Nghi Sơn (Thanh Hóa) Cảng Nghệ An Cảng Sơn Dương, Vũng Áng Cảng Quảng Bình Cảng Quảng Trị Cảng Thừa Thiên Huế (T.T.Huế) Cảng Đà Nẵng Cảng Kỳ Hà Cảng Dung Quất Cảng Quy Nhơn Cảng Vũng Rô (Phú Yên) Cảng Vân Phong (Khánh Hoà) Cảng Nha Trang, Cam Ranh (Khánh Hoà) Cảng Ninh Thuận Cảng chuyên dùng Nhà máy nhiệt điện Vĩnh Tân Cảng Kê Gà Cảng Vũng Tàu (Bà Rịa - Vũng Tàu) Cảng Đồng Nai Cảng TP.Hồ Chí Minh Cảng Cần Thơ Cảng Vĩnh Long Cảng Hậu Giang Cảng Trà Vinh Cảng Sóc Trăng Cảng cho tàu biển lớn ngoài khơi cửa sông Hậu Cảng chuyên dùng nhập than cho nhiệt điện Cảng Đồng Tháp Cảng Tiền Giang Cảng Bến Tre Cảng An Giang Cảng Cà Mau Proposed Plan -2015 -2020 -2030 Grade1 ITGP RHP others ✔ Grade 2 Hai Phong* ✔ ✔ Note ✔ ✔ ✔ ✔ ✔ ⅠA Ⅰ ✔ ✔ ✔ ✔ Port Type existin plannin g g ✔ ✔ ✔ ✔ ✔✔ Grade 3 ✔ ✔ Quang Ninh ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Nghe An ✔ ✔ ✔ ✔ ✔ ✔ ✔ Ha Tinh ✔ ✔ ✔ ✔ ✔ ✔ ✔ Quang Binh Quảng Trị ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ T.T.Hue ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔✔ ✔ Quy Nhơn ✔ ✔ ✔✔ Nha Trang ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Vung Tau ✔✔ Đồng Nai TP.Ho Chi Minh ✔✔ ✔ ✔ ✔ ✔✔ Dong Thap My Tho An Giang Ca Mau Kien Giang ✔ ✔ ✔ Binh Thuan Can Tho ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Delay of Port Plan ✔ ✔ ✔ ✔ ✔ ✔ For Industry Area For Electric Plant ✔ ✔ 3-24 ✔ ✔ ✔ Source : Prepared by study team ✔ ✔ ✔ ✔ ✔ ✔ ✔ Specialty of electric factory ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Remarks ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Draging ✔ ✔ ✔ ✔ Specialty with combination AIS ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ VTS ✔ ✔ ✔ ✔ Specialty with combination landing ✔ ✔ ✔ ✔ ✔ ✔ ✔ Special Use ✔ ✔ ✔ Master Plan S ✔ ✔ Da Nang Quảng Nam Quang Ngai Ⅱ ✔ Thanh Hoa Cảng Kiên Giang Cảng Bạc Liêu Cảng Phú Quốc Number of Port ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ The course of selecting the target ports will be summarized below. (1) All the ports that were defined as ITGP (international transit and gateway ports) and RHP (regional hub ports) are selected as target ports as a rule. (2) Other ports for special use which have a high priority are selected as target ports. (3) 269 ports in the entire country of Vietnam are divided into 40 port groups and the port development will be made by port group. (4) In the table in ANNEX-2, each of the ports (including terminals and mooring facilities) is defined by port (in terms of grade and use). In this Study, the ports are grouped into 40 port groups to ensure that the overall evaluation will be made to finally clarify the “importance grade of each port group” for implementation of this Project. (See Table 3.2-4.) (5) The target ports for VTS and AIS installation as stated in the Detailed Master Plan are considered as the ports to be developed with priority and indicated in a column of Table 3.2-3. However, this Project will be aimed at the wide-range surveillance of vessel traffic and include other ports than those indicated in the Detailed Master Plan, which were also examined for introduction of VTS/AIS. (6) The target ports were selected for 2 phases up to 2015 and up to 2020 in synchronization with their individual development years. However, the progress of port development in the present stage (such as Hai Phong Port), the development of the hinterland (such as Da Nang) and the thermal power plant construction project requiring marine transportation of fuels were considered in phasing this Project. The local conditions which are not indicated in the above tables were also considered from the following viewpoints: a) Viewpoints of vessel traffic safety surveillance The cargo handling volumes by port group as estimated in the Master Plan for port development are shown in Table 3.2-4. As seen from this table, Group 5 including Vung Tau – Ho Chi Minh is expected to show a high growth in the phase of 2020, and Group 1 including Hai Phong is also expected to handle a doubled cargo volume in the phase from 2015 to 2020. From the viewpoint of vessel traffic safety surveillance, such increase of cargo handling volumes will not absolutely lead to the increase of vessels entering and leaving ports and the congestion on channels within a port because cargo loading and unloading will be carried out at terminals of large ports with deep water depths to ensure the cargo handling with large type vessels. At transit ports, however, a higher number of medium/small-scale vessels will enter and leave the ports. Depending upon the geographic conditions of ports, there are ports in which a number of tourist ships and fishing vessels are running on channels and in environs of anchorages. As seen from the trend toward increasing cargo handling volumes, the importance of vessel traffic surveillance in each area will be higher in future. b) Port operation efficiency To respond to these circumstances, the cargo loading and unloading facilities at ports will be modernized, while the demands for collection and dissemination of vessel-related information to ensure vessels on channels to be guided to berths efficiently will be put in by the port-related parties in the future. 3-25 Table 3.2-4 Estimated cargo handling volumes by port group in Detailed Master Plan Group Group-1 Group-2 Group-3 Group-4 Group-5 Group-6 Source : Mini Max Mini Max Mini Max Mini Max Mini Max Mini Max Cargo Handling Volume 2015 2020 2030 112 146 320 125 176 320 68 129 263 91 186 263 41 82 154 47 104 154 64.5 144 285 94.5 198 285 169 235 393 200 317 681 56 132 216 70 152 305 Prepared by study team (unit : 100 Mt ) c) Viewpoint of oceanic environmental conservation It is necessary to pay highest attention to Ha Long Bay and Cat Bar Island from the viewpoint of environmental conservation. There are large vessels and small fishing vessels running in this water area, which is an important area for vessel traffic surveillance. From this point of view, it is desired to introduce the system in an early stage (2015). d) Viewpoint of centralized management of vessel traffic information It is necessary to exchange information between adjacent Maritime Administrations in some areas. For this purpose, the selection of target ports was considered to ensure the exchange of information between areas. e) Viewpoint of synchronization with port development year The actual port development schedule will be synchronized with the time of installation of port equipment to ensure that the equipment for safety management is introduced at a new port or terminal to match with the opening time for the new port or terminal, but with a sufficient time ahead the service-in time of such port equipment. The progress of the port development projects at present was also considered. 3-26 2.2.2 Arrangement of Problems under Examination (1) Trend of Conventions and Regulations on Vessel Traffic Surveillance As discussed above, for the safety of navigation, the higher efficiency of port management works and the oceanic environmental conservation, it is very useful to integrate the following : ① the means of monitoring vessel movements by vessel traffic surveillance and ② the means of collecting and providing necessary information on navigating vessels with ③ various types of oceanic information. For Vietnam which is promoting the port-related development in order to attain the target cargo handling volumes for the 2015 phase and the 2020 phase looking to 2030, it is necessary to install the above means ① and ② in synchronization with the port development. The outlines of these means are provided in the international conventions and the main items will be summarized below. (Source: From Homepage of Maritime Bureau, Ministry of Land, Infrastructure, Transport and Tourism) (2) International Conventions and Regulations Safety of vessel traffic and vessel tonnage measurement: 1) International Convention of the Safety Of Life At Sea (SOLAS Convention) 1974: The SOLAS Convention provides the international standards including the technical standards for the vessel seaworthiness (durability in navigation) and the vessel structures, lifesaving equipment and navigational instruments to maintain the safety of passengers and crews, and the regulations of conducting regular inspections by the Administration or any authorized organization, issuing certificates, port state control, etc. 2) International Regulation for Preventing Collision at Sea (COLREG): This Regulation provides the internationally standardized navigation and signaling methods to prevent collision accidents of vessels in navigation. Prevention of pollution caused by vessels: 3) International Convention for the Prevention of Pollution from Ships (MARPOL 73/78 Convention): Provides the standards for the structure and equipment to prevent the environmental pollution (oil, hazardous liquid substances, dangerous objects, waste water, wastes and exhaust gases) caused by vessel navigation. Similarly to the SOLAS Convention, this Convention provides the regulations of conducting regular inspections by the Administration and any authorized organization, issuing certificates, port state control, etc. 4) International Convention for the Control and Management of Ships’ Ballast Water and Sediments (BWM Convention): Provides the proper measures for ballast water to prevent the impacts on the oceanic environment in removal of ballast water on ship (sea water loaded as a weight on an unloaded ship). Search and rescue measures in event of sea accident 5) International Convention for Maritime Search and Rescue (SAR Convention): This convention is aimed at establishing the system in which each country provides proper sea accident search and rescue services in its coastal waters and at building the globally standardized search and rescue system by coordination with other related countries. The conventional standard which VTS introduction shall comply with is the “IMO Resolution A.857 (20)” by International Maritime Organization (IMO). Various manuals have been issued by International Association of Marine Aids to Navigation and Lighthouse Authorities (IALA). The document reflecting the recent trend is the “Guidelines and Criteria for Vessel Traffic Services on Inland Waterways and Resolution No. 58”, which are specified for inland rivers and can be used for reference in navigation in congested water areas. Many target ports under this Study are located along rivers, where it is necessary to make more detailed surveillance of vessel traffic than on the coastal routes. The above Guidelines and Resolution” states that the VTS is suitable, especially for the areas including the following 11 items. Multiple items are applicable to many of the target ports in this Study, in which the necessity of VTS introduction is deemed to be high. 3-27 Reference Texts ・ High traffic density; ・ Traffic carrying hazardous cargoes; ・ Conflicting and complex navigation patterns; ・ Difficult hydrographical, hydrological and meteorological elements; ・ Shifting shoals and other local hazards; ・ Environmental considerations; ・ Interference by vessel traffic with other waterborne activities; ・ Number of casualties in an area during a specified period; ・ Existing or planned vessel traffic services on adjacent waterways and the need for cooperation between neighbouring States, if appropriate ・ Narrow channels, port configuration, bridges, locks, bends and similar areas where the progress of vessels may be restricted; ・ Existing or foreseeable changes in the traffic pattern in the area 2.3 Examination of Technical Schemes 2.3.1 Technical Recommendations (1) Development of VTS/AIS and Environmental GIS and Integration with GMDSS The introduction of Vessel Traffic System (VTS), Automatic Identification System (AIS) and GIS for oceanic environmental protection will allow the integrated surveillance of main port waters and channels and enhance the safety, reliability and efficiency of port facilities and maritime transportation, thereby further promoting the economic development in Vietnam. In Vietnam, only the existing GMDSS is provided and it is insufficient to take quick action in any event of sea accident or ocean pollution. In performing the provisions of the SOLAS Convention (International Convention for Safety of Life at Sea) and SAR (Maritime Search and Rescue) Convention that are required by International Maritime Organization (IMO), it is necessary to introduce the VTS/AIS and oceanic environmental GIS and integrate those systems with the existing GMDSS. (2) Present status of existing GMDSS and integration with new systems The coastline of Vietnam extends approximately 3,200km from south to north and the role of maritime transportation in domestic transport and international trade is very large. Therefore, it is an important issue to secure safety and efficiency of vessel navigations. The GMDSS equipment is installed at 24 sites along all the coast in the North, Central and South Areas in Vietnam. The GMDSS has established a global maritime and safety communications scheme by emitting the distress signal from a vessel in distress and requesting for quick and accurate rescue from a search and rescue agency or the vessels sailing in its vicinity. However, the recent economic development is reflected on the drastic increase in passenger and cargo transportation volumes and vessel traffic in the domestic and international waters, and the sea accidents and ocean pollution cases are also increasing. The factors for such increase are deemed to be the development of marine transportation and fishing industry and the quantitative expansion in Vietnam. In the future, if the port expansion and development project is implemented and the traffic of large vessels increases, the probability of large accidents in congested port waters will be very high. Furthermore, in the congested marine traffic situation, a quick response to sea accidents is called for. Therefore, the communication scheme for emergency events should be reviewed. The existing GMDSS allows the information such as distress signals to be received on shore along all the coastal areas of Vietnam, but the vessel traffic surveillance systems (VTS/AIS) to monitor vessel traffic quickly and accurately is not provided sufficiently. The integration of these systems with the existing GMDSS will be required in future. At present if any vessel accident occurs, a distress report is transmitted from the vessel to VMRCC (Vietnam Maritime Search and Rescue Co-ordination Center) by means of GMDSS. The related Maritime Administration is also required to prevent sea accidents and ocean pollution. In addition, from the viewpoint of securing the safety of main routes at sea, it is necessary to establish the 3-28 comprehensive monitoring system for vessel traffic in integration with the VTS/AIS system. Concretely, the “function of communicating emergency and distress signals between vessels and coastal transmitting/receiving stations” that the existing GMDSS has will be integrated with the new VTS/AIS and the environmental GIS for ocean environmental protection. The distress position can be displayed on a chart on the monitor screen to display the vessel traffic situation at the Command Control Center equipped with VTS and other systems to quickly respond to the distress information from the vessel navigating on the coast waters in Vietnam. The distress information can also easily be transmitted to the vessels navigating in the vicinity of the distress site. This scheme allows the safety on main routes to be secured and quick response to be made to detour navigation from the accident area, accident expansion and ocean pollution. (3) Declaration of no alternative method VTS and AIS are regurated under the International Convention, such as SOLAS and SAR. There are no altanative method instead of VTS and AIS. Therefore, it is necessary to achive of the project with VTS, AIS include extisting GMDSS for development of international port in Vietnam. 2.3.2 Outline of System (1) VTS outline and functions The Vessel Traffic System (VTS) consists of radar equipment, AIS base station, camera equipment, database, multiplex transmission equipment, VHF radio equipment and meteorological sensor system. The echo signals detected by radar are processed and displayed with vessel tracking information in overlay on an Electronic Navigational Chart (ENC). This system has radar equipment and an AIS base station as main sensors and the information from those sensors are processed to be integrated with the information on port waters and channels from camera equipment. The integrated information is displayed on the radar monitor for the concentrated management of vessel traffic in providing effective information for vessel traffic safety and efficient operation of port facilities. The operations of work craft (including tag boats and pilot boats) within the port water and the occupied conditions of berths and the detailed vessel information are stored in the database and put into integrated processing in order to provide necessary information for port management to port controllers. (2) AIS outline and functions The Automatic Identification System (AIS) is designed to broadcast the information including navigational information such as vessel’s position, course and speed, vessel’s name and cargo information in the VHF band by using TDMA technology on a regular basis and to receive and display the vessel information transmitted from other vessels. Under the SOLAS Convention (International Convention for the Safety Of Life At Sea) as revised in 2000, all passenger ships, vessels of 300 tons or more engaged in international voyage, and vessels of 500 tons or more not engaged in international voyage which were newly built on and after July 1, 2002 are obligated to carry the AIS on and after that data, and the existing vessels are obligated to carry the AIS for the period from July 1, 2002 to July 1, 2008. (3) Environmental GIS outline and functions The environmental GIS (Geographic Information System) collects various types of information from shore-based radar stations, shore-based AIS stations, vessels and meteorological support sites as necessary and stores such information as the database in order to display it on multiple monitors and PCs and provide it to the external. The main functions of the environmental GIS are as follows: Support of operation control work on vessels under control as below; ・ Support of works such as monitoring of movements, schedule control and crew management by integrated electronic system 3-29 ・ Fuel consumption reduction and environmental protection by supporting the precision navigation, energy-saving navigation and CO2 emission reduced navigation 1) Features ・ Monitoring of movements of vessel under control ・ Support of optimum precision navigation ・ Support of cargo management ・ Support of crew management ・ Maintenance and failure management 2) Handled information ・ AIS information ・ Information from vessel cameras ・ Meteorological/oceanographic information (Weather Association) ・ Vessel information (equipment, cargoes, vessel deployment, berthing schedule, etc.) 3) Effects ・ Efficient vessel operation plan ・ Navigation with reduced fuel consumption ・ Quick response to failure and maintenance 4) Customers ・ Shipping companies ・ Vessel operation management companies 2.3.3 Service of VTS/AIS Integrated with Environmental GIS (1) Scope of the integrated system In the Study in Vietnam, the Study Team held meetings with the counterpart agency VINAMARINE and related agencies and as the result of hearing with them, the basic concepts of the port development project in Vietnam are intended for the following purposes: a) Review and avoidance of congested routes in entering and leaving ports; and b) Reduction of congested waters. For these purposes, the Vietnamese Government has announced the Master Plan for port expansion development projects. This Study was made to examine the systems for vessel traffic surveillance and safety management capacity building network in accordance with this Master Plan. The target ports for this Study were originally 8 main ports, Cam Pha Port, Hai Phong Port, Cai Lan Port and Hon Gai Port in the North Area, Da Nang Port in the Central Area, and Dong Nai Port, Vung Tau Port and Ho Chi Minh Port. As the result of discussions with the counterpart agency and related agencies, it was determined that the ports should conform to the following Vietnam maritime development plans: ・ For the port development in Vietnam, the Master Plan (Ref.2190/QD-TTg) and the Detailed Master Plan (Ref. 1166/QD-TTg) are established. The Master Plan specifies the selection of ports for development, and the Detailed Master Plan defines the maritime development plans. ・The maritime development plans are intended for 4 fields: - Shipping companies The plan of organizing a shipping company is defined and has been approved by the Government. - Port development In the Master Plan (Ref. 2190/QD-TTg), the Vietnamese coast is divided into 40 port groups and 6 groups, and the port types are defined. (296 ports in totaling the number 3-30 - of ports and the number of terminals) Shipbuilding industry The plans for shipbuilding industry are defined, but are not approved by the Government at present. Efficiency of maritime transportation service The defined plans are divided into the plans for logistics-related facilities and the plans for port operation equipment, both of which have been approved by the Government. The Detailed Master Plan (Ref.1166/QD-TTg) attaches importance to the Vietnam maritime beacon system as port operation equipment and the concrete plans of introducing the equipment such as RACON, AIS, DGPS, VTS and ENC are stated. The target ports for this Study were selected in accordance with the Master Plan (Ref.2190/QD-TTg) and the Detailed Master Plan (Ref. 1166/QD-TTg) and examined on the importance and priority. As a result, 5 port groups to be developed up to 2015 and 11 port groups to be developed up to 2020 were selected. However, the port management in Vietnam is largely different from that in Japan or other countries. One port includes multiple terminals and berths, which are operated by multiple organizations (governmental and private). In this Study, the target ports were handled as ‘port groups’ in considering the port structures unique to Vietnam. Therefore, the scope of development covers very wide areas. The port groups to be developed up to 2015 and up to 2020 are shown in Table 3.2-6 and Table 3.2-7 with the number of ports per group. In Table 3.2-6, 5 port groups to be developed up to 2015 as screened are shown together with the ports and features of each area. 1) Port groups to be developed up to 2015 and their status ・ Hon Gai - - One typical group of 40 groups and belongs to Group 1 in the North Area of Vietnam. The Quang Ninh Maritime Administration controls the following 6 ports: Ben tong hop container Cai Lan, Xi mang Thang Long, Nhiet dien Thang Long, Xi mang Hạ Long, Dau B12 and Khach Hon Gai Cai Lan Port in this group is the first deep sea port in the North Area which was constructed as an international commercial port to complement Hai Phong Port. At present, this port has high vessel traffic and the conventional Cai Lan route is under review. ・ Hai Phong - - One typical of 40 port groups, and belongs to Group 1 in the North Area. Hai Phong is divided into 3 MA jurisdictions (Hai Phong, Thai Binh and Nam Dinh). Of 18 ports as planned, 13 ports are under control of Hai Phong MA. Hoang Dieu (Hai Phong), Vat Cach, Cua Cam, Chua Ve, Doan Xa, Transvina, Green port, Nam Hai (Le Chan), Tong hop, container Dinh Vu, chuyen dung, hang long, roi Dinh Vu, Xang dau Yen Hung, Tong hop Yen Hung (Dam Nha Mac) and Khu ben Lach Huyen Hai Phong Port that is the largest commercial port in the North Area has very high vessel traffic. The conventional Hai Phong route was abolished and a new Han Nam route will be developed. By the change of route, the shallow waters in the entrance of the river port are avoided and the cargo volume is expected to increase. The construction of the Lach Huyen International Port on the new route has been started under the Japan’s ODA. This port is aiming at handling large vessels at the river mouth and establishing a logistics route on which medium-type vessels are induced to the ports at the upstream of the river. The port development plan in this area is attracting a very high attention. 3-31 ・ Da Nang - - - One typical of 40 port groups and belongs to Group 3. 8 ports are planned to be under the control of Da Nang MA: Tien Sa, tong hop Son Tra, xang dau Son Tra, khi hoa long, dam, song Han, tong hop Lien Chieu, xang dau PTSC, Petec, Lien Chieu, xi mang Hai Van Da Nang Port is the largest international trade port in the Central Area which was founded as a commercial port from the end of 19th century to early in the 20th century. Da Nang MA that is located at the eastern start point of the East-West Economic Corridor handles a high cargo volume and expected to introduce VTS equipment. If the VTS equipment is installed, the port will be revitalized and the logistics through the East-West Corridor will also increase. Da Nang is a refuge port from typhoons and vessels enter the port from Nghe An and Quang Nam to seek for refuge when a typhoon approaches When a typhoon came in 2009, over 100 vessels gathered at this port and 20 accident cases occurred. Therefore, the MA desires to introduce the VTS to avoid such accidents in bad weathers. ・ Vung Tau (Ba Rịa - Vung Tau) - One typical of 40 port groups and belongs to Group 5 in the South Area. Of 50 ports planned, the following 40 ports are under the control of Vung Tau MA: Ben tram nghien xi mang Cam Pha, Ben My Xuan A, Ben tram nghien xi mang My Xuan, Ben Sai Gon - thep Viet, Ben tong hop Hong Quang, Ben quoc te Sao Bien, Ben Nha may dong tau Vinalines, Ben tong hop container My Xuan, Ben tong hop quoc te My Xuan, Ben nha may dien Phu My, Ben nha may nghien xi mang Thị Vai (Holcim), Ben quoc te Sai Gon - Viet Nam (SITV), Ben quoc te Thị Vai, Ben Phu My - Ba Ria Serece, Ben PTSC Phu My, Ben nha may thep Phu My, Ben quoc te Cai Mep - Thi Vai (ben tong hop Thị Vai), Ben quoc te SP-PSA, Ben Posco, Ben tong hop Ban Thach, Ben Nha may dong tau Ba Son, Ben Interflour, Ben container Tan Cang - Cai Mep, Ben quoc te Hoa Sen – Gemadept, Ben cang LPG Cai Mep, Ben xang dau Petec Cai Mep, Ben xang dau Cai Mep, Ben tong hop Cai Mep, Ben quoc te Cai Mep (CMIT), Ben quoc te Cai Mep Thi Vai (phan cang container quoc te Cai Mep), Ben container quoc te SP-SSA, Ben Gemalink container Terminal, Ben tong hop va container Cai Mep Ha, Ben cang Cai Mep Hạ hạ luu, Ben cang Thuong mai (phan cang Cat Lo), Ben dau K2, Ben tong hop KCN Dong Xuyen, Ben Vina Offshore, Ben xi nghiep xang dau Thang Loi, Ben nha may dong va SC tau co khi HH Sai Gon, Ben Vietso Petro, Ben dich vu dau khi PTSC, Ben can cu dich vu Sao Mai - Ben Dinh, Ben container Vung Tau, Ben tiem nang (keo dai khu ben Sao Mai - Ben Dinh), Ben tau khach va to hop dich vu du lich, Ben nha may dong tau Long Son, Ben to hop loc hoa dau Long Son, Ben tong hop Long Son - Vung Tau Port is located at the river mouth and it is an entrance port on the main route to TP.Ho Chi Minh Port and Dong Nai Port on the upstream of the river. The 3 port groups Vung Tau, Dong Nai and TP.Ho Chi Minh have close relations with each other and the introduction of route surveillance equipment attracts high attention for wide-area linking. Vung Tau Port handles over 100 vessels per day and has the following 7 factors for introduction of VTS: ・ The number of vessels entering the port accounts for about 60% of the total of vessels in the entire country. ・ The cargo handling volume is very high. ・ The river route in the vicinity of Vũng Tau is curved. ・ There are many fishing vessels and canoes sailing on the route. ・ The port is a transit port for reshipment. ・ It is an international rule to introduce the VTS in a large port. ・ The number of accidents is very high. Cai Mep Thi Vai Port has been developed under Japan’s ODA and is under the control of Vung Tau MA. The port development plan in this area is attracting a very high attention. 3-32 - - ・ TP.Ho Chi Minh - 2) One typical of 40 port groups and belongs to Group 5 in the South Area. The following 51 ports are under the control of HCMC MA: Ben Tan cang, Ben nha may dong tau Ba Son cu, Ben Sai Gon, Ben Tan Thuan Dong、 Ben Ben Nghe, Ben Cong ty lien doanh phat trien tiep van so 1 (VICT), Ben ELF gas Sai Gon, Ben Bien Dong, Ben nha may tau bien Sai Gon, Ben rau qua, Ben Bong Sen, Ben tong hop quoc te ITC Phuu Huu, Ben tram nghien xi mang phia Nam (cty Xi mang Ha Tien I), Ben Phu Huu, Ben Petec, Ben Tan cang Cat Lai, Ben Sai Gon Shipyard, Ben Sai Gon Petro, Ben xi mang Sao Mai (Holcim Viet Nam), Ben KCN Cat Lai, Ben tau khach Phu Thuan, Ben dau thuc vat Navioil, Ben nha may dong tau Shipmarine, Ben nha may dong tau An Phu, Ben tong hop Nha Be, Ben tong kho xang dau Nha Be, Ben Petechim, Ben VK 102, Ben xang dau cong ty Lam Tai Chinh, Ben xang dau hang khong, Ben ben cang tong hop cong ty CP kim khi Tp.HCM, Ben trạm nghien xi mang Cotec, Ben tram nghien xi mang Thang Long, Ben tram nghien xi mang Fico, Ben tram nghien xi mang Chinfon, Ben Tan cang Tan Hiep Phuoc, Ben nha may dien Hiep Phuoc, Ben xi mang Nghi Son, Ben container trung tam Sai Gon (SPCT), Ben Calofic, Ben xi nghiep bot giat Tico, Ben trạm nghien xi mang Ha Long, Ben Tong hop, Ben Sai Gon - Hiep Phuoc, Ben dich vu hau can cang Sai Gon - Hiep Phuoc, Ben ha luu Hiep Phuoc, Ben tiem nang ha luu rach Chim Tren (tinh Long An), Ben dau khi VinaBenny, Ben quoc te Long An, Ben tiem nang thuong luu Rach Cat, Ben xang dau Hiep Phuoc (tinh Tien Giang), Ben tong hop, chuyen dung khac (tinh Tien Giang), Ben tong hop nang luong Tien Giang, Ben ben cang tiem nang (tinh Tien Giang), Ben song Vam Co. The present main route has many curves in the Sai Gon River. It is planned to construct the linear route in the Xai Rap River in a large-scale dredging work. At present, the maritime transportation facilities concentrated in Ho Chi Minh City (located at the upstream of the river) are planned to be relocated to Cai Mep Thi Vai area and also to Xai Rap area when the Xai Rap route is constructed. It is planned to concentrate the vessel handling service on the river mouth and to put the cargo logistics to the land transportation route. The vessels entering and leaving the port in Ho Chi Minh City will be limited to passenger ships and the efforts to increase passengers will be made by securing the safety and security on the route. The cargo reshipment in Cai Mep area as coastal transportation is in trial operation. Port groups to be developed up to 2020 The port groups that will be developed continuously up to 2020 are 11 groups: ・Nghi Son (Thanh Hoa) ・NgheAn ・Sơn Duong、Vung Ang ・Dung Quat ・Quy Nhon ・Van Phong (Khanh Hoa) ・Nha Trang, Cam Ranh (Khanh Hoa) ・Chuyen dung Nha may nhiet dien Vinh Tan ・Ke Ga ・Dong Nai ・Can Tho These port groups are classified by group attribute and MA jurisdiction and arranged by development plan up to 2015 and up to 2020 and are shown in Table 3.2-5 and Table -3.2-6. 3-33 No 1 2 3 4 5 Table 3.2-5 Port Goups in Development Plan up to 2015 Name of Port Group Attribute MA Hon Gai Group 1: North Area Quang Ninh Hai Phong Group 2: North Area Hai Phong Da Nang Group 3: Central Area Da Nang Vung Tau Group 5: South Area Vung Tau (Ba Rịa- Vung Tau) TP.Ho Chi Minh Group 5: South Area HCMC Source : Prepared by study team No 1 2 3 4 5 6 7 8 9 10 11 Table 3.2-6 Goups in Development Plan up to 2020 Name of Port Group Attribute MA Nghi Son (Thanh Hoa) Group 2: Central Area Thanh Hoa Nghe An Group 2: Central Area Nghe An Son Duong, Vung Áng Group 2: Central Area Ha Tinh Dung Quat Group 3: Central Area Quang Ngai Quy Nhon Group 4: Central Area Quy Nhon Van Phong (Khanh Hoa) Group 4: Central Area Nha Trang Nha Trang, Cam Ranh (Khanh Group 4: Central Area Nha Trang Hoà) Chuyen dung Nha may nhiet Group 4: Central Area Binh Thuan dien Vinh Tan Ke Ga Group 4: Central Area Binh Thuan Dong Nai Group 5: South Area Dong Nai Can Tho Group 6: South Area Can Tho Source : Prepared by study team At present, the information on ports in each port group is collected by the relevant MA and gathered as the information in the text level at 2 branches of Vinamarine in the South and in the North. The port operation management system is formed in the basic flow of information from each MA to VINAMARINE Headquarters and the information network in this Study will be configured in considering the hierarchy to meet the flow of operation. (2) Expected effects By the development of VTS/AIS and environmental GIS to provide various types of information in a comprehensive manner, the following effects can be expected: 1) 2) 3) 4) 5) The Vessel Traffic System, the Automatic Identification and the oceanic environmental GIS will effectively function to secure the safety of navigation and reduce the congestion in ports and narrow channels, contributing to the buildup of marine transportation capacity and the reinforcement of investment environment and export capacity. Those systems integrated with the existing GMDSS will allow the safety on main routes to be secured quickly, in particular in event of vessel distress. The energy efficiency control on vessels will allow CO2 emission control and reduction, bringing large economic effects in the environmental aspect. Vietnam is located at the gateway of the Southern Economic Corridor (Thailand, Cambodia and Vietnam) and the East-West Economic Corridor (Thailand, Laos, Myanmar and Vietnam), and it is expected to shorten the lead time of agricultural and industrial products from the surrounding countries and increase the frequency of transportation. The high spin-off effect to promote the economic growth in the ASEAN countries is also expected. The Vietnamese Government plans to increase the export to 4 times or more for the future 10 years. If the export industry is revitalized in Vietnam, it is expected that the import and export in or from Japan will grow, promoting the economic growth in both countries. 3-34 3. Outline of the Project 3.1 Basic Policies for Determination of the Items of the Project The basic policies for this Project are defined as follows: a. The Vessel Traffic System (VTS) will be introduced in each Maritime Administration in Vietnam to make surveillance of main five (5) ports and channels under the 2015 Port Master Plan. b. The VTS will consist of the radar sites for surveillance of movements of navigating vessels, the radio transmitting and receiving stations allowing the communications with navigating vessels, and the automatic identification system (AIS) to ensure port controllers and navigating vessels to identify the attributes of other navigating vessels. c. Marine GIS will be introduced in the data center to provide the navigational information on vessels navigating narrow channels and congested sea areas, ensuring higher efficiency and safety of navigation within port waters and narrow and congested sea areas. In this Project, the information on the vessels navigating in the ports and channels in Vietnam will be managed in a centralized manner to strengthen the vessel traffic management system and to realize higher efficiency and safety of navigation. (1) These purposes are as follows: Construction of radar sites A total of 15 radar sites will be constructed to configure the VTS and AIS at each of the main ports and a radio transmitting/receiving station will also be installed at each radar site. (2) Construction of VTS and AIS network The vessel information, channel information and port information to be transmitted from VTS and AIS will be integrated at each Maritime Administration, which will be networked with each adjacent Maritime Administration and the Vinamarine headquarters via links. (3) Installation of Marine GIS at Data Center As there are the problems of narrow channels and congested waters at main ports, Marine GIS will be installed at the Data Center to support the energy saving navigation and shorter waiting time off shore from the environmental viewpoint. 3.1.1 Vessel Traffic System Development Plan (1) Compliance with IMO Recommendation According to the guidelines under the IMO resolution A.857 (20) as required by International Maritime Organization (IMO), Vessel Traffic Service (VTS) is defined for the following three 3-35 (3) main functions: ・ Higher safety and efficiency of navigation ・ Improvement of safety of life at sea ・ Protection of oceanic environment to improve the above In this Study, it is necessary to perform the above provisions in compliance with the IMO Recommendation. (2) Expansion Development Plan by Vietnam MOT and Vinamarine The Master Plan for the Port Development Program had been formulated in Vietnam. Under this Master Plan, 296 port facilities including 40 typical port groups and terminals were rearranged as described in the preceding section. The development plan under this Project was examined in accordance with the development plans in the phases ending in 2015, in 2020 and in 2030. The target ports in these development phases are shown in Table 3.3-1 and 2 as below. 3-36 Table 3.3-1 Target ports in Phase 1 Source:Prepared by study team Table 3.3-2 Target ports in Phase 2 Source:Prepared by study team 3-37 (3) Functions to be Expanded as Solutions in Vinamarine Master Plan One of the functions to be expanded as a solution is the integration with the GMDSS system as described above. The data flow in the existing GMDSS is in such manner that the system receives the distress signal from a vessel and transmits it to VMRCCs (three branches: Hai Phong, Da Nang and HCMC) and VMRCC Headquarters and Vinamarine Headquaters. As the information links are configured as a network, each Maritime Administration at which a VTS will be installed in this Project will receive such vessel distress information from Vinamarine HQ. 3.2 Concept Design and Specifications of Applicable Equipment 3.2.1 a. System Configuration and Functions of VTS/AIS+Marine GIS to Meet Functional Requirements Development Plan up to 2015 ・ The VTS/AIS system to cover the target surveillance water area will be introduced in 5 target ports for the Phase 1 (2015) of the Master Plan as shown in Table 3.3-1. In addition, the Control/Supervision System will be installed at the Maritime Administrations under the jurisdiction. ・ The vessel traffic information collected at the Maritime Administrations (MAs) will be jointly used by Vinamarine branches and adjacent MAs and transmitted to the Data Centers such as Vinamarine HQ. ・ The information from the existing GMDSS is transmitted from the VMRCC Headquarters to Vinamarine HQ, which will transmit a vessel’s distress information to each MA. ・ In Group 1, the vessel traffic information from Hai Phong MA and the adjacent Quang Ninh MA includes the information on the World Heritage Ha Long Bay. Therefore, it is necessary to make the exchange of data and information between both MAs to prevent ocean pollution and accidents. ・ In Group 5, the existing VTS has been installed at Ho Chi Minh City MA. This system and associated equipment will be integrated with the new VTS to be introduced. In addition, the exchange of information among Dong Nai MA, Ho Chi Minh City MA and Vung Tau MA will be made directly with each other because they have close relations with each other in monitoring same main channels individually. ・ The system image under the Development Plan for Phase 1 (2015) is shown in Figure 3.3-1. 3-38 Figure 3.3-1 System image under the Development Plan for Phase 1 (2015) Source:Prepared by study team 3-39 b. Development Plan up to 2020 ・ The VTS/AIS system to cover the target surveillance water area will be introduced at 11 target ports in Phase 2 of the Master Plan as shown in Table 3.3-2. The Control/Supervision System will also be installed at the Maritime Administrations under the jurisdiction. ・ In Group 6, the exchange of information will be made among My Tho MA, Can Tho MA, Dong Thap MA and An Gian MA directly with each other because they have close relations with each other in monitoring same main channels individually. ・ The system image under the Development Plan for Phase 2 (2020) is shown in Figure 3.3-2. 3-40 Figure 3.3-2 System image under the Development Plan for Phase 2 (2020) Source:Prepared by study team 3-41 c. Examination on Construction of Data Center The VTS information collected by each Maritime Administration will be gathered by Vinamarine Headquarters. In construction of the Data Center, three (3) concept cases are considered as shown in Figure 3.3-3 through Figure 3.3-5. c-1 Data Center Concept Case A The data center concept case A is shown in Figure 3.3-3. Figure 3.3-3 Data center concept (Case A) Source:Prepared by study team ・ The method of installing the data center system at Vinamarine HQ is not adopted. ・ The method of installing the data center systems at Vinamarine branches is adopted. ・ The redundancy configuration of the data center system is integrated with Vinamarine branches; ・ The dual data center systems are required within each Vinamarine branch. ・ As a disadvantage, the vessel information service will be provided from Vinamarine HQ and it is necessary for each Vinamarin branch to access to its data center to receive and transmit data whenever the data is provided. service is provided, the network traffic will increase. (Whenever the information The lower-rank agencies such as Vinamarine branches will not disseminate any information directly to other 3-42 agencies. Therefore, it is necessary to disseminate information from Vinamarine HQ to such lower-rank agencies.) ・ The information service in case A is not ideal because the service sources are distributed. ・ The system is surely simple and at low cost in comparison with cases B and C, but it is disadvantageous that the information is not concentrated at the Vinamarine HQ. ・ It is necessary for Vinamarine HQ to have personnel in charge of operation and maintenance. c-2 Data center concept case B The data center concept case B is shown in Figure 3.3.4. Figure 3.3-4 Data center concept (Case B) Source:Prepared by study team ・ ・ ・ ・ The method of installing the data center system at Vinamarine HQ is adopted. The method of installing the data center systems at Vinamarine branches is adopted. The redundancy configuration is used between Vinamarine HQ and branches. All the vessel information service is concentrated at Vinamarine HQ, and it is ideal to provide information from the headquarters. ・ However, it is necessary for each Vinamarine branch to have the personnel in charge of operation and maintenance. 3-43 c-3 Data center concept case C The data center concept case C is shown in Figure 3.3.5. Figure 3.3-5 Data center concept (Case C) Source:Prepared by study team ・ The method of installing the data center system at Vinamarine HQ is adopted. ・ The method of installing the data center systems at Vinamarine branches is not adopted. ・ The method of constructing the data center at a representative port in each group is adopted. ・ The redundancy configuration is used by Vinamarine HQ and the representative port in each group. ・ As all the vessel information service is concentrated at Vinamarine HQ, it is ideal to provide information from the headquarters. ・ In cases A and B, each Vinamarine branch is required to have personnel in charge of operation and maintenance. In case C, the data center is constructed at a representative port in each group, where the VTS equipment is also installed and the maintenance personnel of the VTS center can provide maintenance service to the data center without requiring new maintenance personnel. 3-44 The relative cost comparison of these cases is shown in Table 3.3-3. In the table, the number of vessels handled by each port group is assumed to be 1, and the introduction ratio of the database (DB) to be installed is categorized: 6 for large-scale DB, 3 for medium-scale DB and 1 for small-scale DB. Whether operation and maintenance personnel are necessary or not is also indicated. Table 3.3-3 Relative cost comparison for Data Centers Case DB Scale / Place of Installation A Medium-scale DB Server: Branch Required Units Total 4 12 (2x2) (3x4) 1 12 2 (6+3x2) 1 9 3 (6+1x3) Introduction Ratio M&O Personnel Evaluation 4 New ○ Large-scale DB server: B C Headquarters Medium-scale DB server: Branch Large-scale DB server: Headquarters Small scale DB server: MA Regend Source:Prepared by study team 3-45 4 Increase at HQ ○ New 3 Increase at HQ Same as VTS ◎ ◎ : superior ○:better d. Results of hearing with related agencies for construction of Data Center d-1 Hai Phong MA The results of hearing with Hai Phong MA will be described below and the photos of this Maritime Administration are shown in Photo 3.3-1. ・ The Hai Phong MA has 65 staff members. ・ 10 members are working for VHF control in the 24-hour shift. ・ Hai Phong MA receives a distress signal from VMRCC by IP data, FAX, mail or VHF. ・ The rescue area is different between VMRCC and Hai Phong MA. ・ As the adjacent Quang Ninh MA covers the World Heritage Ha Long Bay, it is desired to exchange the data and information between both MAs. ・ It is desired to introduce a CCTV system for a monitoring system in addition to the VTS/AIS system. This is because the MA is located at the river port where there is high vessel traffic in the full tide in the nighttime. ・ Hai Phong MA is in renovation at present. It has been determined to build a 7-floor building in the premises in which the VTS control center and the data center will be provided at the same floor. Photo 3.3-1 Hai Phong MA: MA building and name plate / Source:Study team 3-46 d-2 Vinamarine Hai Phong North Branch The results of hearing with Vinamarine Hai Phong North Branch will be described below and the photo of the branch is shown in Photo 3.3-2. ・ Vinamarine Hai Phong North Branch has 17 staff members. ・ The main function of this branch is the transport administration in the North Area, handling the applications (flag, visa and ownership) by sea-going vessels, Vietnam Credit Association (bank loan), vessel value certification and issue of crew qualifications. The database (Data Center) is installed at Vinamarine HQ and HCMC South Branch, having redundancy system configuration. ・ The number of registered vessels is about 300 vessels per year, most of which are of Vietnamese flag. ・ The applications and registrations of vessels with Vinamarine Hai Phong North Branch are made only for sea-going vessels, and the river-going vessels are handled by another section. ・ There are a small number of information exchanges between Vinamarine Hai Phong North Branch and Hai Phong MA, but it is expected to increase if the port systems are installed. It is desired to provide the VTS information for public reading because such information will be useful for shipowners and crews to file applications and obtain accident information. ・ In addition, there was a demand for public reading of information on accident analysis in distress. Photo 3.3-2 Building of Vinamarine Hai Phong North Branch / Source:Study team 3-47 d-3 Da Nang MA The results of hearing with Da Nang MA will be described below and the photo of this MA is shown in Photo 3.3-3. ・ The Da Nang MA has 32 staff members, of which 7 members (including 2 managers) are working on a 24-hour basis. ・ The main equipment is only a VHF controller at present. ・ The statistic number of vessels of arrival and departure increased for the years of 2008 to 2009, but decreased in 2010 because of increase in large-type vessels the gross tonnage of which are becoming higher. ・ It is necessary to make exchange of information with adjacent MAs. Da Nang MA is provided with safficient repairing equipment and receives many requests for repairs from Hue and Quang Nam. The means of communications are limited to FAX, TEL and mail. ・ At river ports, vessels arrive and depart in the nighttime in full tide. There are additional lightings along the river, but it is desired that CCTV equipment will be provided. ・ The key point of surveillance by Da Nang MA is the environ of TIEN SA (which is a port constructed by Japanese ODA and the Feasibility Study (JICA) of new terminal construction (for adding terminals) has been completed one year before.) ・ The river ports, Song Thu and Nai Hien are planned to be relocated to Hai Son (X50) in 2012. Song Han will be relocated 5 years later. ・ There is a plan to relocate the area off shore on the beach side of Da Nang in future because it is a tourist resort. (PHAO MY KHE is located off shore as the anchorage for tankers of Petro Vietnam and others.) ・ Da Nang MA, which is located at the eastern start point of the East-West Economic Corridor, handles high cargo handling volume. equipment. So it is desired to introduce VTS If VTS equipment is installed, it is expected that the port will be revitalized and the logistic volume in the East-West Economic Corridor will substantially increase. ・ Da Nang is a port of refuge from typhoons. Vessels come from Nghe An and Quang Nam to seek for refuge when a typhoon approaches. gathered at this port and 20 accident cases occurred. In 2009, 100 vessels (To avoid such accidents, the VTS equipment is required.) ・ Each port in Da Nang is a friendly port of Kawasaki Port in Japan mainly for interexchange of personnel). 3-48 ・ In the past, S&R action has been made jointly with VMRCC, but no joint action is conducted at present because of different jurisdiction. However, S&R action will be taken if required. Photo 3.3-3 Front view of DaNang MA / Source:Study team 3-49 d-4 HCMC MA The results of hearing with HCMC MA will be described below and the photo of the MA building is shown in Photo 3.3-4. ・ The VTS equipment in repairs will start its operation on January 25, 2012. (The operation work is done in 3 shifts on a 24-hour basis.) ・ The VTS in repairs has the main objective of surveillance of anchoring positions of vessels. ・ There are 24 operators (who are organized in 4 groups of 3 operators per group and working at 2 centers). ・ Ho Chi Minh City MA, Dong Nai MA and Vung Tau MA require the joint use of information and desire the exchange of information among them. ・ The Soai Rap Route is controlled by Ho Chi Minh City MA, ・ It is also very important to monitor small boats on radar. (There are many contact accidents with small vessels (not equipped with AIS) which are neglecting the rules for sailing in curved and narrow channels. ・ CCTV is not necessary at around the river mouse, but it is desired to introduce near Saigon Port, in curved or narrow channels. ・ It is desired to install VTS equipment near Saigon Port, in a curved channel and at the mouth of Soai Rap River. ・ It is a rule to receive a prior report from the vessels in entering the port when they are navigating in the nighttime. ・ The exchange of information with remote MAs (for example, in the Central Area) is also considered to be necessary. ・ The MA undertakes the work of transmitting vessel accident information to vessels in the surrounding water area via VHS link and disseminating the information to press and Web after accident occurrence. ・ Whenever a navy vessel enters the port suddenly, the MA informs of it to VINAMRINE by telephone. ・ The VTS operator training program is implemented for each group of 3 trainees of which one is experienced as supervisor. The supervisor is trained in Singapore and other operators are engaged in training at sea for one year. ・ If VTS equipment increases in future, it is considered to increase the number of operators. 3-50 Photo 3.3-4 HCMC MA: Front views of building / Source:Study team 3-51 d-5 Vung Tau MA The results of hearing with Vung Tau MA will be described below and the photo of the MA is shown in Photo 3.3-5. ・ The staff of Vung Tau MA consists of 70 members (of which 13 members are in charge of VHS control). ・ They are working in 3 shifts by a 2-person group and on a 24-hour system. ・ Vung Tau Port has more than 100 vessels of arrival and departure per day. ・ The sea accident rescue is not managed as a rule. (Only major accidents are managed.) ・ There are 7 reasons for the importance of VTS equipment for Vung Tau MA as follow: - There are many vessels entering and leaving this port which are approximately 60% of the total in the entire country. - The cargo handling volume is so high. - The river channel is curved around Vung Tau Port. - A number of fishing boats and small boats (canoes) are sailing on the channel. - The port is a transit port for reloading cargoes. - It is an international rule to introduce the VTS in a large port. - The number of accidents is very high. ・ Ho Chi Minh City MA and Dong Nai MA transmit the information on navigating vessels to Vung Tau MA by FAX by 14:30 at latest in the afternoon. ・ Cai Mep Thi Vai is under jurisdiction of Vung Tau MA. ・ It is desired to make joint use of the information from the VTS of Ho Chi Minh City MA. (At present, the information on the VTS repaired by Ho Chi Minh City MA can be monitored from the Vung Tau VTS Control Center which is a branch of Ho Chi Minh City MA.) ・ The VTS information from other MAs in the North and Central Areas is not required. ・ In introduction of a new VTS, the CCTV cameras are required to maintain the monitored records. 3-52 Photo 3.3-5 HCMC MA: Front view / Source:Study team 3-53 d-6 VMS-South: Vietnam Maritime Safety-South The results of hearing with VMS-South will be described below and the photo of it is shown in Photo 3.3-6. ・ The staff of VMS-South consists of 200 members and VMS-South is an IALA member. ・ It possesses 4 vessels (of which one vessel has been used since 50 years or more before under the rule of France and another one is a crane vessel) and 17 high-speed boats. ・ The jurisdiction of VMS-South covers the Central South Area, the South Area and many islands. ・ VMS-South controls 17 channels. Of course, the Vung Tau –Ho Chi Minh City route, Cai Mep Chi Vai and Soai Rap route are also controlled by VMS. ・ VMS-South undertakes the maintenance of channels (planning, maintenance and repairs) and surveillance, as well as maintenance and operation of channel equipment (lighthouses, buoys and beacons). ・ It provides warnings to fishing boats on channels and pilot service, and participates in search and rescue actions at sea. ・ Accident information is informed from VMS to each MA and the Government directs the agency responsible for distress rescue. ・ If any work is done on a channel, VMS gives warnings and guidance to vessels around the channel. ・ The monitoring system for lighthouses, buoys and beacons are provided. ・ The AIS base station is installed by VMS for supervision of the equipment (lighthouses, beacons, etc.) In future, 2 or more station sites will be constructed. ・ VMS-South has electronic charts created by it similarly to VMS-North. ・ The route plans are made up by CMB and enforced by VMS. (All route plans are not absolutely enforced by VMS.) ・ If requested by Vinamarine, VMS may execute the training for distress rescue and take actions against accidents in other water areas than routes. 3-54 Photo 3.3-6 Front view of Vietnam Maritime Safety-South / Source:Study team 3-55 d-7 Saigon Port The results of hearing with Saigon Port will be described below and the photo of a terminal is shown in Photo 3.3-7 . ・ Saigon Port is a company having the history of 165 years. ・ It has 4 terminal areas (Ny Long, Khan Hoi, Tan Tung 1, Tan Tung 2) ・ Ny Long and Khan Hoi is united as one terminal at present, having the length of 1733 m and capable of berthing a vessel of 30,000 tons. ・ Tan Tung 1 has the length of 709m and capable of berthing a vessel of up to 35,000 tons, but it is under the extension work to enable a vessel of 45,000 tons to berth. (Dredging work is also necessary.) ・ Tan Tung 2 has the length of 222m and is capable of berthing a vessel of 20,000 tons. ・ The Soai Rap route is planned to be relocated to HIEP Port and Ny Long and Khan Hoi terminals will be relocated. (An industrial complex is planned to be constructed in the vicinity of HIEP.) ・ The sites of Tan Tung 1 and Tan Tung 2 will remain only as a tourist resort because the environment is considered to be important. ・ The advantages of Saigon Port are that it has a long history and is famous for maritime transportation (because it has established human resources and technology), and that new equipment has been introduced by bank finance. ・ If VTS is introduced in each MA, it is desired to use the information from the VTS positively. However, it is necessary to examine what effects are expected in terms of cost and other factors. (There are cases in which a vessel planned to enter the port does not arrive, and the information on such vessel’s position is inquired to the vessel agent.) ・ There is an interest in the information on the cargoes loaded on vessels. (It is desired to use the information for checking the possibility of environmental pollution and hygienic aspects. 3-56 Photo 3.3-7 Saigon Port: Terminal / Source:Study team 3-57 d-8 Results of examination of data center form As the results of the relative cost comparison of data centers in Table 3.3-3 and the results of hearing with related agencies, the data center concept will be examined in PLAN C. The data center is provided at Vinamarine HQ at present, but it may be an independent agency. (In the past, there have been cases in which SAR and Coast Radio Stations are independent organizations.) 3-58 e Sea route inspection (Ho Chi Minh City MA to Vung Tau MA) The on-the-spot inspection of the sea route that was made from Ho Chi Minh City MA to Vung Tau Port by a high-speed watercraft will be described below. The visual inspection on the comments resulting from the hearing with Ho Chi Minh City MA was made. The total route distance from Ho Chi Minh City MA to Vung Tau MA is 78km and the inspection by the high-speed watercraft tool about 90 minutes. The route chart is shown in Figure 3.3-7. A: Saigon Passenger Terminal (Ho Chi Minh City) ・ The inspection team embarked at the passenger terminal located at the upper stream of Saigon Port Photo 3.3-8 High-speed watercraft / Source:Study team B: Mooring conditions ・ The mooring zones are arranged along the river around Saigon Port. ・ The river width is narrower than 400m. Photo 3.3-9 Looking out on mooring zone /Source:Study team 3-59 C: Confluence point for veering ・ The vessel veers after stopping and moving astern at the confluence point with the main river (of 1.5km wide). ・ It is necessary for the vessel to turn its heading in paying attention to other vessels around it. ・ This point is a zone with many accidents and high congestion. D: North route veering point ・Entering the north route for small boats ・ Veering after stopping and moving astern because the river width is as narrow as 600m. ・The river width becomes more and more and more narrow. E: Narrow point ・The river width at this zone is most narrow on the north route. ・The river bank from this point is a forest zone and there is a point where the veering of 90° is required. ・There is a radar dead zone for the existing VTS at Ho Chi Minh City MA. ・ This point is a zone with many contact accidents. Figure 3.3-6 Narrow zone on north route Source:Prepared by study team based on the Google map F: Confluence point with south route ・It is necessary to pay attention to the surrounding area because this point is a confluence point with the south route for large vessels. ・The high-speed watercraft used for this inspection stopped at this point temporarily. 3-60 G: South route ・The channels on the south route are set for large vessels. ・ The river width continues to be about 500m, but there is a dangerous point where a vessel is required for its heading turn of about 300°. H: High-speed operation area ・ The high-speed watercraft is operated at a high speed in the river mouth area. ・This is a relatively secure area for steering. I: Fishing vessel anchoring area ・Many fishing vessels gather around Vung Tau Port. ・It is necessary to pay attention to the surrounding area when entering the port. Photo 3.3-10 Looking out on Vung Tau Port / Source:Study team The route from Ho Chi Minh City MA to Vung Tau MA is a living route and there are considerably many passengers. It is inefficient to move on land on this section and this sea rout is not absolutely safe though it is a very important route to ensure the shortest travel. The traffic of cargo vessels and passenger ships bound for Ho Chi Minh City Area as well as operation of fishing boats is very heavy on this route. Ho Chi Minh City MA is also reinforcing the supervision of this route. In the inspection trip, it was thought that the development of a seamless radar surveillance system, the joint use of information between Ho Chi Minh City MA and Vung Tau MA and the wide-area management was important and that the integrated VTS management system was advantageous. 3-61 Figure 3.3-7 Ho Chi Minh City – Vung Tau Route Chart Source:Prepared by study team based on the Google map 3-62 3.3 Details of Proposed Project: Results of Examination of Sites and Project Cost As a result of the theoretical design of radar sites and equipment installations in the target port areas of this Project, the rough layout of main equipment and the system configuration will be described below. As these are examined on the desk, it is necessary to make final decision on the actual installation sites in making the detailed design to review the installation sites, the operational conditions and the power supply equipment. a. Guidelines for radar site installations For installing radar equipment at radar sites, the radar range for detecting vessels by radar was examined. The radar range depends upon vessel sizes based on the transmitter output power, antenna length and antenna installation height. (The radar range is smaller for small boats.) The radar signal is not expected to be looped back from any obstacle, but travels in line of sight. If the transmitter power is 25kW, the antenna length 18ft, and the antenna installation height 50m above the sea level, the radar range (NM) to a target vessel (t) is roughly estimated as follows: 10t (FRP vessel): 7 NM 10t: 10 NM 100t: 17 NM 1000t : 23 NM Many ports in Vietnam are operated as river ports on rivers with curves, where mainly small vessels are sailing at shallow waters. Therefore, the radar sites with a radar range (7 to 10 NM) were selected by attaching importance to detection of 10t-class vessels. The radar range from a river port was determined as a line-of-sight range by linear analysis in consideration of the form of the river. The existing VTS radar system at the Ho Chi Minh City MA is installed at a mountain top to provide a wide coverage and intended to detect large-type vessels. In this area of Ho Chi Minh City MA, it is considered to install new radar sites in the dead zones of the existing VTS system and river points where vessel accidents (contact accidents) have occurred frequently, and to integrate them with the existing system. b. Guidelines for AIS site installations The AIS uses VHF signal propagation which is expected to be looped back and the line-of-sight range is also expected. 3-63 In this Study, 40NM was adopted as a usual VHF range and it was considered to select the policy of installing the AIS equipment at the same facility as each radar site (at the antenna installation height of 50m above the sea level). Each AIS installation site was also selected to ensure the effective use of signal reception with an adjacent Maritime Administration. c. Guidelines for leased transmission lines The basic policy for the information transmission link between each radar/AIS site and the corresponding Maritime Administration is to use a leased line in placing stress on stability. The microwave transmission links is adopted to ensure stable information transmission to each Maritime Administration. For the joint use of the information acquired by one Maritime Administration with other MAs, it is considered to use the Internet circuit within Vietnam and to secure the privacy by adoption of VPN. d. Guidelines for installation at a bay mouth For installation of radar and AIS at the mouth of a bay, importance is attached to surveillance of the off shore waiting areas and the channels for entering and leaving ports. It is also considered that the surveillance of vessels navigating along the coasts of Vietnam will be realized by installing radar and AIS at the bay mouth for a group of ports and aimed at developing a seamless surveillance system if the VTS is installed all the port groups in future. 3-64 3.3.1 Outline of Development If necessary systems are installed in two phases up to 2015 and up to 2020 in this Project, the coverage in which the vessel-related information along the coasts of Vietnam can be acquired and provided are shown in the figures below. As the result of examination of the layout of radar sites and other facilities, the rough system configuration by Area is shown below. Figure 3.3-8 Coverage Area of Development up to 2015 200km Source:Prepared by study team based on Google map 3-65 Figure 3.3-9 Coverage Area up to 2020 200km Source:Prepared by study team based on the Google map 3-66 3.3.2 Hon Gai Area Figure 3.3-10 Hon Gai Area: Layout plan for radar sites and others Source:Prepared by study team based on the Google map 3-67 Figure 3.3-11 Hon Gai Area: System Configuration Diagram Maritime Administration of Qunag Ninh Network equipment VHF Antenna VHF TRX Network Manager Processor Micro TRX Video Conference Terminal Meteorological System Vessel Database System AIS Server CCTV Monitor Multi-Sensor Integrated Processor VTS-AIS Integrated Processor Recording / Playback Processor Multi-Function Console for Operator Micro Wave Antenna Radar Antenna Radar Site-No.1 Radar Antenna Radar Site-No.2 Micro Wave Antenna Micro Wave Antenna RADAR TRX Micro TRX RADAR TRX Micro TRX CCTV System Radar Data Processor Meteorological Sensor CCTV Camera CCTV Camera CCTV System Radar Data Processor VHF / GPS Antenna Power Supply AIS Base Station Transponder Micro Wave Antenna Micro TRX Power Supply Multi-Function Console for Operator Multi-Function Console for Operator Power Supply Source:Study team 3-68 3.3.3 Hai Phong Area Figure 3.3-12 Hai Phong Area: Layout Plan for radar sites and others Source:Prepared by study team based on the Google map 3-69 Figure 3.3-13 Hai Phong Area: System Configuration Diagram Maritime Administration of Hai Phong Radar Antenna Radar Site-No.1 Radar Antenna Radar Site-No.2 Micro Wave Antenna RADAR TRX Micro TRX CCTV System Radar Data Processor Micro Wave Antenna CCTV Camera RADAR TRX Micro TRX CCTV System Radar Data Processor CCTV Camera Network equipment VHF Antenna VHF TRX Network Manager Processor Micro TRX Video Conference Terminal Meteorological System Vessel Database System Micro Wave Antenna Micro TRX Power Supply Data Center System Micro Wave Antenna Power Supply Meteorological Sensor Radar Antenna Radar Site-No.4 Radar Antenna Micro Wave Antenna Micro Wave Antenna RADAR TRX CCTV Monitor Radar Site-No.3 Micro TRX RADAR TRX Micro TRX CCTV System Radar Data Processor VTS-AIS Integrated Processor CCTV Camera CCTV Camera CCTV System Radar Data Processor VHF / GPS Antenna Power Supply AIS Base Station Transponder Micro Wave Antenna Micro TRX Multi-Function Console for Operator AIS Server Multi-Function Console for Operator Multi-Sensor Integrated Processor Multi-Function Console for Operator Micro Wave Antenna Micro TRX Micro Wave Antenna Micro TRX Radar Antenna Power Supply Radar Site-No.5 Recording / Playback Processor Micro Wave Antenna RADAR TRX Micro TRX CCTV System Radar Data Processor CCTV Camera Power Supply Power Supply Source:Study team 3-70 3.3.4 Da Nang Area Figure 3.3-14 Da Nang Area: Layout Plan for radar sites and others Source:Prepared by study team based on the Google map 3-71 Figure 3.3-15 Da Nang Area: System Configuration Diagram Source:Study team 3-72 3.3.5 Vung Tau (Ba Rịa - Vung Tau) Area Figure 3.3-16 Vung Tau Area: Layout Plan for radar sites and others Source:Prepared by study team based on the Google map 3-73 Figure 3.3-17 Vung Tau Area: System Configuration Diagram Source:Study team 3-74 3.3.6 TP.Ho Chi Minh Area Figure 3.3-18 TP.Ho Chi Minh Area: Layout Plan for radar sites and others Source:Prepared by study team based on the Google map 3-75 Figure 3.3-19 TP.Ho Chi Minh Area: System Configuration Diagram Maritime Administration of HCMC Radar Antenna Radar Site-No.3 Network equipment Micro Wave Antenna RADAR TRX Micro TRX VHF Antenna CCTV Camera VHF / GPS Antenna Radar Site-No.1 Radar Antenna CCTV System Radar Data Processor Micro Wave Antenna RADAR TRX Micro TRX CCTV System Radar Data Processor VHF TRX Network Manager Processor Micro TRX Video Conference Terminal Meteorological System Vessel Database System AIS Server VTS-AIS Integrated Processor Multi-Sensor Integrated Processor Multi-Function Console for Operator Recording / Playback Processor Multi-Function Console for Operator CCTV Monitor Multi-Function Console for Operator Micro Wave Antenna CCTV Camera AIS Base Station Transponder Meteorological Sensor Micro Wave Antenna Power Supply Micro TRX Micro Wave Antenna Micro TRX Radar Antenna Data Center System Power Supply Radar Site-No.2 Micro Wave Antenna RADAR TRX Micro TRX CCTV System Radar Data Processor CCTV Camera Power Supply Radar Antenna Radar Site-No.1 Existing RADAR TRX Micro Wave Antenna Power Supply Micro TRX Micro Wave Antenna Radar Antenna Radar Antenna VHF / GPS Antenna Radar Site-No.3 Existing RADAR TRX Micro TRX AIS Base Station Power Supply Radar Site-No.2 Existing RADAR TRX Micro Wave Antenna Micro TRX Power Supply Micro Wave Antenna Micro TRX Network equipment Micro Wave Antenna Micro TRX VTS System Exsisting Power Supply Micro TRX Micro Wave Antenna Source: Prepared by study team 3-76 VTS System 3.3.7 Nghi Son (Thanh Hoa) Area Figure 3.3-20 Nghi Son (Thanh Hoa) Area: Layout Plan for radar sites and others Source:Prepared by study team based on the Google map 3-77 Figure 3.3-21 Nghi Son (Thanh Hoa) Area: Source: Prepared by study team 3-78 System Configuration Diagram 3.3.8 Nghe An Area Figure 3.3-22 Nghe An Area: Layout Plan for radar sites and others Source:Prepared by study team based on the Google map 3-79 Figure 3.3-23 Nghe An Area: System Configuration Diagram Maritime Administration of Nghe An Network equipment VHF Antenna Radar Antenna Radar Site-No.3 Micro Wave Antenna RADAR TRX Micro TRX CCTV System Radar Data Processor VHF TRX Network Manager Processor Micro TRX Video Conference Terminal Meteorological System Vessel Database System Micro Wave Antenna CCTV Camera Meteorological Sensor Power Supply CCTV Monitor Radar Antenna Radar Site-No.1 VTS-AIS Integrated Processor Micro Wave Antenna RADAR TRX Micro TRX Radar Antenna Radar Site-No.2 Micro Wave Antenna CCTV Camera Micro Wave Antenna CCTV System Radar Data Processor RADAR TRX Micro TRX CCTV System Radar Data Processor Micro TRX Multi-Function Console for Operator AIS Server Multi-Function Console for Operator Multi-Sensor Integrated Processor Multi-Function Console for Operator CCTV Camera Power Supply VHF / GPS Antenna AIS Base Station Transponder Micro Wave Antenna Reapeater Station Micro TRX Micro Wave Antenna Micro TRX Micro TRX Power Supply Power Supply Recording / Playback Processor Micro Wave Antenna Power Supply Source: Prepared by study team 3-80 3.3.9 Son Duong and Vung Ang Area Figure 3.3-24 Son Duong and Vung Ang Area: Layout Plan for radar sites and others Source:Prepared by study team based on the Google map 3-81 Figure 3.3-25 Son Duong and Vung Ang Area: System Configuration Diagram Source: Prepared by study team 3-82 3.3.10 Dung Quat Area Figure 3.3-26 Dung Quat Area: Layout Plan for radar sites and others Source:Prepared by study team based on the Google map 3-83 Figure 3.3-27 Dung Quat Area: System Configuration Diagram Source: Prepared by study team 3-84 3.3.11 Quy Nhon Area Figure 3.3-28 Quy Nhon Area: Layout Plan for radar sites and others Source:Prepared by study team based on the Google map 3-85 Figure 3.3-29 Quy Nhon Area: System Configuration Diagram Source: Prepared by study team 3-86 3.3.12 Van Phong (Khanh Hoa) Area Figure 3.3-30 Van Phong (Khanh Hoa) Area: Layout Plan for radar sites and others Source:Prepared by study team based on the Google map 3-87 Figure 3.3-31 Van Phong (Khanh Hoa) Area: System Configuration Diagram Source: Prepared by study team 3-88 3.3.13 Nha Trang and Cam Ranh (Khanh Hoa) Area Figure 3.3-32 Nha Trang and Cam Ranh (Khanh Hoa) Area:Layout Plan for radar sites and others Source:Prepared by study team based on the Google map 3-89 Figure 3.3-33 Nha Trang and Cam Ranh (Khanh Hoa) Area: System Configuration Diagram Source: Prepared by study team 3-90 3.3.14 Vinh Tan Area Figure 3.3-34 Vinh Tan Area: Layout Plan for radar sites and others Source:Prepared by study team based on the Google map 3-91 Figure 3.3-35 Vinh Tan Area: System Configuration Diagram Source: Prepared by study team 3-92 3.3.15 Ke Ga Area Figure 3.3-36 Ke Ga Area: Layout Plan for radar sites and others Source:Prepared by study team based on the Google map 3-93 Figure 3.3-37 Ke Ga Area: System Configuration Diagram Source: Prepared by study team 3-94 3.3.16 Dong Nai Area Figure 3.3-38 Dong Nai Area: Layout Plan for radar sites and others Source:Prepared by study team based on the Google map 3-95 Figure 3.3-39 Dong Nai Area: System Configuration Diagram Source: Prepared by study team 3-96 3.3.17 Can Tho Area Figure 3.3-40 Can Tho Area: Layout Plan for radar sites and others Source:Prepared by study team based on the Google map 3-97 Figure 3.3-41 Can Tho Area: System Configuration Diagram Source: Prepared by study team 3-98 3.4 Equipment at Site The equipment to be installed in each port area in this Project is shown in Figure 3.3-42 and 3.3-43 as image diagrams for reference. The tables of site quantities are shown in Table 3.3-4 and 3.3-5. Figure 3.3-42 Radar site image diagram Source: Prepared by study team 3-99 Figure 3.3-43 VTS Center image diagram Source: Prepared by study team 3-100 Table 3.3-4 Phase 1 Table of Quantities at Phase-1 (Unit: Set) Remote Center Area (VTS/AIS Site, Repeater Data Center Station) Hon gai 2 - Hai Phong 5 1 Da Nang 1 1 Ba Ria - Vung Tau 4 - TP.Ho Chi Minh 3 1 - Vinamarine headquarters Source: Prepared by study team Table 3.3-5 Phase 1 Table of Quantities at Phase-1 (Unit: Set) Remote Center Area (VTS/AIS Site, Repeater Data Center Station) Nghi Son 4 - Nghe An 3 - Vung Ang 4 1 Dung Quat 3 - Quy Nhon 2 - Van Phong 3 - Nha Trang, 3 1 Vinh Tan 1 - Ke Ga 3 - Dong Nai 4 - Can Tho 4 1 - Vinamarine headquarters Source: Prepared by study team 3-101 3.5 Overall Project cost The breakdown tables of the overall project cost in Phase 1 and Phase 2 of this Project are shown in Table 3.3-6 and Table 3.3-7. Table 3-3-6 Phase 1 Project Cost ( up to 2015 ) Foreign No. 1 Description Currency Domestic (1000 Yen) (1000 VND) Information Communication Equipment 1.1 Hon Gai ¥481,500 1.2 Hai Phong ¥990,500 1.3 Da Nang ¥418,500 Vung Tau 1.4 (Ba Ria - Vung Tau) ¥810,500 1.5 TP.Ho Chi Minh 1.6 Vinamarine Headquarters ¥704,500 ¥139,400 Sub Total 2 Construction fo r each site 3 Installation, inspections 4 Training and O&M Support ¥3,544,900 VND 92,914,271 ¥460,700 ¥54,000 Total of 1-4 5 Consulting fee Total of 1-5 6 Contingency (5% of total- of 1-5) ¥4,059,600 VND 92,914,271 ¥202,980 VND 4,645,713 ¥4,262,580 VND 97,559,984 ¥213,129 VND 4,877,999 Total of 1-6 ¥4,475,709 VND 102,437,984 Total (Equiv.J thousand Yen) ¥4,475,709 Total Project Cost in JPY.000 ¥4,862,267 Total (Equiv.US thousand $) US$57,381 (Unit: 1,000 VND) ¥386,558 US$4,956 US$ = ¥78 ¥1= VND 265 Source: Prepared by study team 3-102 Table 3-3-7 Phase 2 Description No. 1 Project Cost ( up to 2020 ) Foreign Currency (1000 Yen) Information Communication Equipment 1.1 Nghi Sơn (Thanh Hoa) 1.2 Nghe An ¥830,500 1.3 Sơn Dương、Vung Ang ¥910,500 1.4 Dung Quat 1.5 Quy Nhơn ¥534,500 1.6 Van Phong (Khanh Hoa) 1.7 Nha Trang, Cam Ranh (Khanh Hoa) ¥790,500 1.8 Vinh Tan 1.9 Ke Ga ¥467,500 ¥767,500 ¥867,500 ¥85,500 Sub Total 2 Cnstruction 3 Installation, inspections 4 Training and O&M Support ¥7,661,000 VND 200,800,088 ¥1,210,084 ¥100,417 Total of 1-4 ¥8,971,501 VND 200,800,088 Consulting fee ¥554,744 Total of 1-5 7 ¥507,500 ¥750,500 1.12 Vinamarine Headquarters 6 ¥667,500 ¥481,500 1.10 Dong Nai 1.11 Can Tho 5 Domestic (1000 VND) VND 10,040,004 ¥9,526,245 VND 210,840,092 ¥476,312 Contingency (5% of total- of 1-5) VND 10,542,004 Total of 1-6 ¥10,002,557 VND 221,382,097 Total(Thousand Japanese Yen) ¥10,002,557 Total project cost in JPY,000 ¥10,837,961 Total (Equiv.US thousand $) US$128,238 (Unit: 1,000 VND) ¥835,404 US$10,710 US$ = ¥78 ¥1= VND 265 Source: Prepared by study team 3-103 3.6 Proposed Technology: Problems and Solutions in Adoption of Systems It is necessary to set up a network using microwave links for data communications between radar stations and Maritime Administrations. However, the microwave links are required to acquire the license for the operating frequencies differently from the wireless LAN using the ISM frequency band. If the frequency license is not acquired for the use of microwave links, it is necessary to consider the use of optical fiber links as the alternative network. Therefore, an early application should be filed to acquire the radar frequency license in pace with the time of system introduction. 3.6.1 Problems in Vinamarine Expansion Development Project of VTS, AIS and Marine GIS The main functions of the Vessel Traffic System (VTS) are defined in the Guidelines of IMO Resolution A.857 (20). by IEC. The Automatic Identification System (AIS) is also defined internationally All the systems delivered from Japan comply with the specifications under those standards. Therefore, it has no problem in introducing such systems in a foreign country because they will be developed in accordance with such international rules. The oceanic information provided by the VTS and AIS is represented as a “chart” and “positions”. The GIS is adopted to provide the positional information on land as represented by the car navigation system and Map Site and the use of GIS is penetrated widely among users. It is anticipated that the conventional port expansion development projects for port management aiming at safety and security by the use of VTS/AIS will be implemented steadly as stated in the Master Plan approved by the Vietnamese Government and as stated expressly by Vinamrine as the responsible agency. This Study also made clear that the joint use of various types of information collected by the VTS/AIS system to be introduced for port management is demanded by many related agencies in Vietnam as follows: ・ Support of channel design service agency by providing vessel traffic volume and flow information; ・ Support of distress and rescue service agency by providing vessel movement information; ・ Support of marine facility management service agency by providing marine equipment information (including channel beacons); ・ Support of World Heritage protection service agency by providing vessel movement information, and meteorological and oceanographic information; ・ Support of ship operation management service agency by providing vessel movement information, and meteorological and oceanographic information for maritime transportation; and 3-104 ・ Support of vessel registration and management service agency by providing sea accident information. The equipment at Vinamarine Center to build such support system as Marine GIS will make it effective to expand the information network in Vietnam and can be deemed to conform to the governmental policies. It is also within the future outlook of Vinamarine to establish a new service of disseminating such information available from such system to companies in the private sector. 3.6.2 Recommendation for Maintenance and Operation System In this project, a personnel planning is mentioned as follows. 1) VTS/AIS sites and Repeater stations are unmanned operation in principal. 2) Two operators and one supervisor by 4 shift working and one administrator are arranged at each VTS/AIS center. PhaseⅠ: 5 areas total 65persons PhaseⅡ:11areas total 143 persons 3) Two staff s are arranged by 4 shift working and two administrators , total 10 persons are arranged under PhaseⅠat Data center equipments in Vinamarine. Increasing of the personnel under phase II is not considered. The number of persons is changed according to the scale of ports. Table 3-3-8 Personnel Required Plan (Phase I) Area VTS/AIS Data Center 65 persons - ・Hon Gai ・Hai Phong ・Da Nang ・Vung Tau ・TP.Ho Chi Minh - Vinamarine HQ Total 65 persons Source: Prepared by study team 3-105 10 persons 10 persons Table 3-3-9 Personnel Required Plan (Phase II) Area VTS/AIS Data Center 143 persons - - - ・Nghi Sơn (Thanh Hoa) ・Nghe An ・Sơn Dương、Vung Ang ・Dung Quat ・Quy Nhơn ・Van Phong (Khanh Hoa) ・Nha Trang, Cam Ranh (Khanh Hoa) ・Vinh Tan ・Ke Ga ・Dong Nai ・Can Thơ Vinamarine HQ Total 143 persons - Grand Total(PhaseⅠ, PhaseⅡ) 208 persons 10 persons Source: Prepared by study team 3.6.3 Training Program At present, a sufficient number of VTS equipment engineers have been assigned to each Maritime Administration, except some MAs. engineers. It is necessary to establish the training system to foster such For the most effective use of new VTS equipment to be introduced in future, it is mandatory to strengthen the management system of each MA including training of engineers and related staff, educational exercises, procurement and administration of maintenance parts along with formulation of the development project. In Japan, there are a number of excellent port surveillance systems and operation personnels and such enivornment is the most suitable for training. Therefore, it will be taken up as one of the items of this Study to implement the training program for training a supervisor having 5-year experience for each Maritime Administration in Vietnam. 3-106 Chapter 4. Evaluation of Environmental and Social Impacts 1.Analysis into Actual Conditions in Environmental Aspect Ports at river mouth of the Mekong and Red River Delta plays major role of Vietnamese maritime transportation industry for sustaining large markets of Ho. Chi. Ming City and Hanoi respectively. Ports along the coast line form the North to the South are located in perspective and dedicated to sustain mainly local economy in their backyards. Some ports are under renovation or newly development due to the pressure of the brisk economic growth in the whole country. The access channels to major ports located at river mouth of the Mekong and the Red River are very narrow and shallow in depth. Large vessels must wait the timing of entering ports on flood tide or transship their cargos onto small barges or boats. In other ports vessel traffic has been increasing more corresponding to the economic growth. Major ports including those along the coast line have became crowd seriously or congested more, and then the navigational environment became serious where the number of see accidents has leaped up since 2009 Table 4-1 Statistics of sea accidents of Vietnamese flag vessels in the territorial waters of Vietnam Year 2006 2007 2008 2009 No. of Vessel Calls 21,987 26,830 29,715 15,652 No. of registered fish boats 21,232 21,552 22,729 24,990 No. of rescue requests 197 244 236 222 No. of sea accidents 13 17 13 42 No. of rescued vessels/boats 20 38 29 38 Percent of accidents/vessel calls 0.06% 0.06% 0.04% 0.27% Source: VMRCC (Vietnam Maritime Rescue Coordination Center) 2010 38,097 25,346 249 128 40 0.34% Figure.4-1 Statistics of sea accidents of Vietnamese flag vessels in the territorial waters of Vietnam 45,000 300 40,000 250 35,000 30,000 200 25,000 150 20,000 15,000 10,000 5,000 0 Commercial Vessel Traffic(Calls) Number of Registered Fishery Boats Number of Cases 100 SAR boat 50 Total of accident report 0 2006 2007 2008 2009 2010 Source: VMRCC The figure.4-1 gives moves of number of commercial vessel traffic, number of registered fishery boats, number of accidents, number of saved boats, and total number of accidents. It is clearly understood that the number of accident reports has increased sharply since 2009. It is more concerned with increase number of vessel accidents as the number of commercial vessel calls increase. The ocean pollution accidents that have recently occurred in the territorial waters of Vietnam or in which the Vietnamese flag vessels have been involved are shown in Table 4-2, while Table 4-2 shows the statistics of sea accidents in Vietnam. 4-1 Table 4-2 Ocean Pollution in which Vietnamese flag vessels are involved in the territorial waters of Vietnam Date of Accident Location Spilled Oil Volume of Oil (tons) August 10, 1989 Qui Nhon Fuel oil 200 November 26, 1992 Bach Ho Crude oil 700 September 20, 1993 Vung Tau Fuel and Diesel oil 200 May 8, 1994 Saigon Fuel oil 130 October 3, 1994 Cat Lai Diesel oil 1,850 January 27, 1996 Cat Lai Diesel oil 72 August 16, 1998 Nha Be Diesel oil 180 2001 Ganh Rai Fuel oil 900 Source: Report in the Meeting of Maritime Experts in South-East Asia 2. Expected improvement with the Project The Vessel Traffic Management System (VTS) consists of an AIS base station and radar equipment as the main sensors to make integrated processing of information on vessels navigating in a sea area to be controlled and to make concentrated management of such vessels on a radar display screen and provide effective information for safe navigation of those vessels and efficient operation of port facilities to vessels, port controllers and channel controllers. In addition, the VTS has the functions of monitoring the operating conditions of work boats (such as tag boats and pilot boats) and processing the information in integration with the database in which the conditions of berth usage and detailed vessel information can be registered in order to provide necessary information for port management to port controllers. The VTS can also develop the map information on the controlled water area and channels and navigational information on other vessels on a map by the use of a GIS system. In other words, the VTS/AIS functions enable not only port controllers to make the efficient use of port facilities but also channel controllers to secure the safety of channels, and navigating vessels to prevent accidents such as collisions with vessels and grounding on shallows and to reduce fuel consumption through optimum navigation under planned operation management. This Project is expected to give 4 main effects as follows: 1) Buildup of cargo handling capacity at a port; 2) Reduction of fuel consumption by optimum navigation of vessels in considering congested conditions at a port of call as planned and channel conditions; 3) Reduction of vessel accidents in narrow channels and ports and coastal waters; and 4) Expected spin-off effects such as early discovery of suspected vessels and illegal dumping of waste within surveillance sea areas Efficiency in cargo handling capacity is resulted in capability of port facilities such as water depths at berthing wharfs, channel conditions up to wharfs, number and area of wharfs, number of cranes, storehouses and access roads and the institutional management system such as processes and procedures of import/export, customs clearance and quarantine, loading and unloading, the pilotage, etc. Introduction of a VTS/AIS system is expected to contribute to efficient use of wharfs and access channels, and shortening waiting time for vessels to use wharfs and channels. However, it is difficult to calculate how much waiting time shorten, because cut-off time may depend on port conditions (such as number of wharfs, distances of access channels and cargo volumes). Therefore, the quantitative analysis of shortening time is not made here. It is possible for each vessel to set an optimum route and schedule and reduce the waiting days off shore at a port of call by installing the GIS navigation aid applications in and adding the climatic and tidal information on routes and the congestion information at the port to the VTS/AIS system and installing a corresponding terminal on the vessel. The result of a verification test made by Tokyo University of Marine Science and Technology in a coastal water area in Japan shows that the fuel consumption of a 4-2 vessel can be reduced by 5%1 in average on an optimum route calculated by the same system as described above. In short, if an appropriate terminal is installed on the vessel, the carbon dioxide emission from the vessel can be reduced about 5%. However, the environmental effect cannot be considered in this Project because the selection of an optimum route depends upon ship’s heading and the scope of this Project does not cover any terminal equipment. Nevertheless, it is expected in implementing this Project to give the opportunity of reducing fuel consumption to the vessels calling ports in Vietnam. 90% of the sea accidents (requiring sea rescues) in Japan occurred within the range of 40km from coasts2. This indicates that the sea area with a higher vessel density has a higher probability of accident occurrence. In taking notice of the accident rate of freight vessels, tankers and passenger ships, the accident rate has been about 0.05% of all the vessels entering and leaving ports including also fishing vessels and pleasure boats since 2000, because the facilities and systems to maintain the safety of routes are fully provided in Japan. If the rate of 0.05% is applied to the number of vessels entering and leaving ports in Vietnam indicated in the port statistics by Vietnam Port Association, the number of sea accidents is about 20 per year, which is largely different from the number of accidents as shown above. However, it can be expected that the number of sea accidents in Vietnam will be able to be decreased to 20 accidents per year if the facilities and equipment including the ocean route identification are fully provided. The introduction of the System will promote the accurate monitoring of the navigational conditions of vessels and strengthen the capability of surveillance of suspected vessels, but it will not directly contribute to the reduction of ocean pollution accidents due to illegal dumping of waste and sea accidents. However, the deterrence by buildup of surveillance capacity and quick actions after early discovery of accidents can be defined, allowing the preventive measures against expansion of ocean pollution to be taken quickly. 3. Environmental and Social Concerns due to the Project 3.1Checking Items in the next stage The project is categorized in “Category C” in the “Guidelines for Environmental and Social Considerations” set by Japan International Cooperation Agency (JICA), which means they are likely to have minimal or little adverse impact on the environment and society. The countermeasure is left to Implementation agency and carried out based on the Vietnamese legislations. A necessary check item for the project implementation and expected results for the moment are shown from the following item 1 in 10. Item 1: Project site Major ports are Hon Gai, Hai Phong, Nghi Shon, Nghe An, Son Duong-Vung Ang, Da Nang, Dung Quat, Nha Trang-Quy Nhon, Van Phong, Cam Ranh, Vinh Tan, Ke Ga, Vung Tau, Dong Nai, Ho Chi Minh City and Can Tho, while 49 radar sites, which has a building and a tower respectively, will be connected with those major ports by grouping from 1 to 5 radar sites. Item 2. Feature of Project 2-1 Works of Project ・ The radar sites are located at 49 places around main ports mentioned above. A site space is 1 2 According to the statistics materials in 2010 by Maritime Safety Agency of Japan, the total number of sea accidents requiring sea rescues was 1,875 including fishing and general vessels, of which 83% occurred within 3 nautical miles (about 5.6km) from coasts and 95% within 20 nautical miles (about 37km) from coasts. The vessels of less than 5 GT accounted for 70% and those of less than 500 tons 84% (only fishing vessels 100%). This shows that many sea accidents relate to small vessels. Calculated based on the statistics by Japan’s Maritime Safety Agency 4-3 around 200-300 ㎡ with a building of 100 ㎡ of the floor space, while a tower of 10-30m high will be constructed respectively. ・ VTS and the AIS system are equipped in port offices, while the data center will be located in Vinamarine head office. ・ Maritime environment GIS navigation systems are equipped with in port offices which administrates narrow access channels and congested ports. 2-2 Necessity of the Projects and complying with Prim Minister Decision ・ Prime Minister decision “No.: 2190/QD-TTg December 24th and 2009” DECISION ON: Approval on Planning for the development of Vietnam's Seaport up to 2020, orientating up to 2030 ・ Prime Minister decision “Ref. 1166/QD-TTg July 14, 2011” DECISION On approval to Project for development of maritime safety in Vietnam up to 2020, orientation up to 2030 2-3 Alternatives of the Project ・ No alternative because VTS/AIS installation at major ports based on the recommendation of IMO (International Maritime Organization) 2-4 Explanation of Project to stakeholders ・ Done with Vietnamese Port Associations and Vietnamese Shippers’ Associations from the viewpoint of strengthening, securing port system safety. ・ Necessary to explain local communities and adjacent inhabitants, when radar site locations are confirmed. Item 3. Assumption of complaint from local residents according to Project execution There was no complaint from local residents around radar sites of Ho Chi Minh City ports which experimentally introduced as same system as those in the project although it has not worked since a natural disaster in 2009. Item 4. Necessity of environmental assessment (EIA and IEE, etc.) Mandatory. It is necessary to execute EIA according to a Vietnamese Revised Environmental Law 2005 and related Ordinance No.140/2006/ND-C. Item 5. Other approvals on other legislations: No. Item 6. Concerns of negative impact on nature and social environment surrounding project sites: There is no natural reserve, no inhabitant moving, no large development nor land leveling. Item 7. Possibility of causing serious problems in living life of inhabitants, nature and social climate: No Item 8. Negative influence on environmental and social conditions Nothing Item 9. Possibility of changing Scope of Works of the Project Although Scope of Works has been conducted and specified, but locations of radar sites may be moved due to the physical and environmental reasons. Item 10. Disclosing information and stake-holder meeting The meeting with local stake-holders must be held based on a Vietnamese Revised Environmental Law and related Ordinance No.140/2006/ND-C. Table 4-3 gives an example of environmental, social consideration checklist, with reference to that of “Environmental, Social Assessment Guideline” of JICA, and the implementation agency is required to carry out the assessment based on the mentioned-above check item and checklist in the next steps. 4-4 Table 4-3 Sample of Check List for Environmental Impact Assessment Yes: Y Concrete environmental, social consideration Check items No: N (reason, grounds, and easing plan etc. of Yes/No) Items 1. Approval and Explanation N EIA report will be prepared at the time of next feasibility study period. N Evaluated by the EIA report. (a) Have the environmental assessment report (EIA report) etc. been made? (1)EIA and environmental approval (b) Have the EIA report etc. been approved by MONRE? (c) Does the approval of the EIA report etc. accompany additional terms? Dose the countermeasure meet to additional terms? N (d) Has the implementation agency obtained approvals, if any? (a) Has the implementation agency announced and disclosed the project to stake-holders, and obtained understandings? (2)Explanation to local (b) Was the comment such as residents reflected on contents of the project? stake-holder (b) Was the comment such as residents reflected on contents of the project? (3)Examination of (a) Are alternatives of the project plan (including item that lies environmental and alternatives social when examining it) examined? 2. Pollution and Contamination (1)Air pollution (2)Water contamination (3) Waste (4)Soil pollution N (a) Does the air pollutant (sulfur oxide (SOx), nitrogen oxide (NOx), and dust, etc.) exhausted from the infrastructure facilities and the incidental equipment, etc. that meet the national emission standard and environmental standards, etc? Are measures against an atmospheric quality taken? (b) Do the power supply and the heat source such as accommodations adopt the fuel with a small exhaust coefficient (carbon dioxide, , nitrogen oxide and sulfur oxide, etc.)? (c) Do the power supply and the heat source such as accommodations adopt the fuel with a small exhaust coefficient (carbon dioxide, nitrogen oxide and sulfur oxide, etc.)? (a) Do the infrastructure facilities and drain or the ooze water from the incidental equipment etc. meet to the national emission standard and environmental standards, etc? (a) Are the infrastructure facilities and waste from the incidental equipment processed and appropriately disposed of according to regulations of a country concerned? (a) Are the soil and measures that do not contaminate the subterranean stream performed with the infrastructure facilities and drain and the ooze water, etc. from the incidental equipment? 4-5 N N Y N Necessary to confirm the conditionality on approval No other approval is necessary. done at preparing EIA report ditto The site plan in the pre-feasibility study is done on minimizing negative impact on environment (a) No air pollutant, etc. from the facilities N N N N N No accommodation or similar facility is planned No waste water from facilities No waste from facilities No waste water from facilities Items Check items (5) Noise and vibration (a) Do the noise and the vibration adjust to the standard in a country concerned etc. (6) Subsidence (a) When a large amount of underground water drawing up is done, might the subsidence be caused? (7)Stink (a) Is there a stink source? Are measures of the stink prevention taken? Yes: Y No: N Y N N Concrete environmental, social consideration (reason, grounds, and easing plan etc. of Yes/No) Taken necessary countermeasures at construction phase No draining up underground water No exhaust from facilities 3. Natural Environment (1)Sanctuary (2)Ecosystem (3) Hydrologic (4)Geographic (a) Is the site located in the Sanctuary decided in a law and an international agreement, etc. in a country concerned? Does the project influence Sanctuary? (a)Does the site include important wildwood, ecology of the virgin forest and the tropics habitat (coral reef, mangrove marsh, and tidal flat, etc.) in? (b) Does the site include the habitat of a valuable pieces treated by a law or an international agreement, etc? (c)When an important influence on the ecosystem is feared, are measures to (d)When an important influence on the ecosystem is feared, are measures to decrease the influence on the ecosystem performed? (e) Do you influence the waters environment such as rivers for the water supply by the project (land surface water and underground water)?Are measures to decrease the influence on the aquatic life etc. performed? (a) Is the flow of land surface water and underground water influenced harmfully changing by the project in the water system? (a) Are the site and peripheral geographical features and the geologic structure modified by the project on a large scale? N N N No sanctuary surrounding planned sites No such place surrounding planned sites ditto N ditto N ditto N N N ditto No impact because the project never require water. 200-300 m2 will be leveled at each site. But no impact on any environmental factors 4. Social Environment (1)Resident moving (a)Is non-voluntary resident move caused along with the execution of the project? Is the effort to make the influence by the move a minimum performed when causing it? (b)Is an appropriate explanation concerning compensations and the life rebuilding measures done before it moves to the resident who moves? (c)Is the investigation for the resident move performed, and is the move plan of the life base after it makes amends, and it moves by the reacquisition price made including the recovery? N N N N (d)Is compensation money paid before it moves? N (e)Is the compensation policy settled on with the document? 4-6 Not necessary of inhabitant moving ditto ditto ditto ditto Items Yes: Y No: N Check items (f)Dose the plan care appropriately for moving residents especially to the socially vulnerable of the woman, the child, the elderly person, the poorest segment of the population, and the minority and indigenous people, etc? (g)Is the mutual agreement with residents before their moves? (h)Is the system to execute the resident move appropriately straightened? Are an enough execution ability and the budget measures lectured on? (i)Is there a plan monitoring the influence by the move? (j)Is there a mechanism of claims? (a) Dose the project cause problems resident's life? Is there any countermeasure that eases the influence, if necessary? (a) Might the precious heritage and the historic site, etc. be ruined by the project in (3)Cultural heritage archeology, historically, culturally, and the religion? Moreover, is the measures provided in a domestic method in a country concerned considered? (a) Especially, when the spectacle that should be considered exists, do it influence harmfully on the other hand? Are necessary measures taken when there is an (4)Scenery/Spectacle influence? (b) Might the spectacle be ruined by making large-scale accommodations and the building multistory? (a) Is consideration that reduces minority and the indigenous people' influences on the culture and the lifestyle performed? (5)Minority (b)Are various rights concerning minority and indigenous people' land and resources esteemed? (a)Is the law concerning the working environment in a country that should observe it in the project concerned defended? (b)Are the safety consideration in hard respect to the people of the installation of (b)Are the safety consideration in hard respect to the people of the installation of the safety facility that lies industrial injury prevention and the management of the poisonous substance, etc. related to the project taken measures? (6) Working (c)Is the action on a soft side on the person of the execution of the decision of the environment safety hygiene plan and the safety education and training (The road safety and public health are included) to the worker etc. etc. related to the project planned and executed? (d)Is appropriate measures lectured on so that the guard worker who relates to the project may occasionally violate person related to the project and local populace's safeties? Source : Prepared by study team (2)Life and living 4-7 Concrete environmental, social consideration (reason, grounds, and easing plan etc. of Yes/No) N ditto N ditto N ditto N ditto N ditto N No negative impact on life and living of surrounding inhabitants N No such place surrounding planned sites N No important place/ruin surrounding planned sites N ditto N No negative impact on life and living surrounding planned sites N ditto Y Sites will be constructed under the same regulation as that of office buildings Y Y Y ditto ditto ditto 3.2 Alternatives substituting the planned project. Vietnamese government on July 22,2009 decided to introduce Vessel Traffic Monitoring and Management System into congested ports and main rivers as the most important items over the years from 2010 to 2012, in order to enhance the safety, reliability and efficiency of maritime transportation in coastal waters and ports. The system must be complied with the International Convention for the Safety of Life at Sea (SOLAS convention). That means there is no choice to take alternative means. Accordingly Vietnam Marine Administration (VINAMARINE) planed to install the vessel traffic system and the automatic identification system at the main ports. The project will be outlined as follows: • Construction of radar sites A total of about 49 radar sites will be constructed at 18 main ports and main rivers in Vietnam to install the VTS/AIS systems and the radio transmission/receiving stations. • Installation of VTS/AIS systems The operation management centers will be constructed at main ports and rivers to install the VTS/AIS systems. • Installation of navigation system equipped with ocean environment GIS The navigation system equipped with the ocean environment GIS will be installed at the operation management centers as there are problems with narrow channels and congestions at Cam Pha, Hai Phong, Cai Lan and Hong Guy Ports in North Region, Da Nang Port in Central Region, and Dong Nai, Vung Tau and Ho Chi Minh Ports in South Region. Although existing buildings and facilities are employed as many as possible, 49 radar sites will be nearly constructed. Each radar site usually requires a land of 200-300 m2, a building for equipment and a tower of 10-30 meter high. When the site is constructed, noise and soil overflow are concerned. Since employing VTS/AIS as recommended by the International Convention, the implementing agency can not select other technology. The number of radar sites may decrease from 49 to 18 if the site is located at a mountain top. But construction works at a mountain top often requires an approach road and leveling of ground. Table 4-4 Comparison of construction works and coverage of VTS/AIS Number of radar sites Coverage of VTS/AIS Construction work Influence on environment 49 Seamless coverage Limited scale for only Small sites 18 Many shadows Large scale for levering Large mountain top and approach roads Source : Prepared by study team 3.3 Information from stake-holders Stakeholders are supposed to be the maritime transportation administrator, the port authority, ports’ users, the rescue organization. The Vietnamese Ship-owner Association, Vietnamese Port Association, and Vietnamese Maritime Rescue Co-ordination Center replied the project is necessary and inevitable to meet the international standard as well as increasing vessel traffic. On the other hand, it doesn’t yet execute interviews to local communities in the vicinity of the radar side in this study. So that scale of construction for each site can be small and a planned location is often moved based on physical condition such as possibility of electricity. 4-9 4. Outline of Vietnamese Legislation for Environmental and Social Considerations The Vietnamese Government revised the Environmental Protection Law in full scale in 2005 and introduced the Strategic Environmental Assessment (SEA) into it. The schedule of revision of the Environmental Law and the schedules of enactment of the related regulations are as follows: 1998 - Enactment of the Environmental Protection Law 2005 - Revision of the Environmental Protection Law (hereinafter referred to as the “Revised Environmental Protection Law”) 2006 - “Decree for the detailed enforcement regulations and guidelines for the Environmental Protection Law” (Decree No. 80/2006/ND-CP) - All national projects are required to subject to the strategic environmental assessment (SEA). - The environmental impact assessment report shall accompany the Feasibility Study Repot. The Strategic Environmental Assessment (SEA) is required in formulating the following strategy and plans: 1) Economic and social development strategy, master plan and individual development plans in the national level; 2) Development strategy, master plan and individual development plans in the country scale; 3) Economic and social development strategies, master plans and individual development plans for Provinces or Cities under direct control of the Central Government; 4) Top-priority economic area development plans; 5) Comprehensive development plans for river basins across multiple Provinces. This SEA shall be enforced simultaneously with planning each of the plans and the SEA report shall state the following items: 1) Outline of the goal, scale and features of an environment-related project; 2) Comprehensive descriptions of natural, socioeconomic and environmental conditions related to the project; 3) Prediction of adverse environmental impacts that may result from implementation of the project; 4) Notes on the sources from which the assessed values, materials and data as well as methods are provided; 5) Provision of general directivity and measures of solutions to environmental problems in the course of implementing the project. For the SEA, the Ministry of Natural Resources and Environment (for any project across Provinces, the People’s Committee in each Province) organizes an assessment committee to assess the project based on the opinions of experts and the comments of local residents and the People’s Committee and approve it if there is no problem. The project for buildup of the capacity for vessel traffic surveillance and safety management in Vietnam is examined in terms of its necessity, system development processes and feasibility, and the strategic environmental assessment will be made within this framework. This Project consists of the development of the VTS/AIS systems and setup of the radar network as one of their system components for main ports and water channels in Vietnam. The Master Plan for the coastal port systems in the Project (Planning for the development of Vietnam’s Seaport up to 2020, orientating up to 2030 No.: 2190/QD-TTg December 24th, 2009) and the vessel traffic safety system development project (Project for development of maritime safety in Vietnam up to 2020, orientating up to 2030 Ref. 1166/QD-TTg July 14, 2011) by VINAMARINE are subject to the Prime Minister’s approval. At this time point, the SEA is also enforced. In the future, the Environmental Impact Assessment (EIA) should be made within the framework of the feasibility study of this Project and ahead of the stage of implementing this Project. The Revised Environmental Law and the related decrees provide that the EIA shall be made for the following: 4-10 1) Important national projects; 2) Partial use of nature protection districts, national parks, historical and cultural remains districts, natural heritages, registered places of scenic beauty, and projects having adverse impacts on environment; 3) Projects that may have adverse impacts on water sources, river basins, coastal areas and ecological system protection districts; 4) Infrastructure construction projects in economic districts, industrial complexes, high-tech complexes, export processing zones and household industry villages; 5) New construction projects in urban areas and concentrated housing areas; 6) Projects exploring and using large-scale groundwater and natural resources; and 7) Other projects which may have large adverse impacts on environment. The work of radar sites in the river valley and the coast region is planned in the project, and the implementation agency must acquire the approval by submitting EIA report complied with "Revised Environmental Law and related ordinance (Decree No. 80/2006/ND-CP)" in August, 2006 for approval. Preparation of EIA report is stipulated to carried out at the time of preparing Feasibility Study report, and must be submitted the report to Ministry of Transport with feasibility study report. According to Article 20 of Revised Environmental Law, the report must cover the followings. 1) 2) Detailed explanation of business Report with feasibility study report and Ministry of Transport forwards the repot to MONRE. 5. Responsibilities of Vietnam (Implementing Agency and Other Related Agencies) for implementing the Project As MONRE advised that the project shall meet the requirement speculated in Article 20 set force by the Revised Environmental Law and related Ordinance, the implementation agency is required to submit EIA report to Ministry of Transport with the feasibility study report, and then Ministry of Transport immediately forwards EIA report to MONRE. MONRE takes at least 3 months for the evaluation, and it approves the project implementation. 4-11 Chapter 5. Financial and Economic Evaluation 1. Project Cost As described in Chapter 3, the alternative means in this Project could not be found. Therefore, it is recommended to implement this Project for supervision of safety of marine navigation in 2 phases to be completed in 2015 and 2020 respectively. The ports to be developed in Phase 1 will be Hon Gai, Hai Phong, Da Nang, Vung Tau (Ba Rịa - Vung Tau), TP Chí Minh and the management and monitoring system for vessel traffic at each port at the headquarter of Vinamarine, and it is planned to start their construction works in May 2013 and complete them in March 2016. The project cost for Phase 1 is shown in Table 5-1. Table 5-1. Project Cost for Phase-1 Japanese Yen No Item VND(1,000) Remarks (¥1,000) 1 Vessel Traffic monitoring and management system 1.01 Hon Gai 481,500 1.02 Hai Phong 990,500 1.03 Da Nang 418,500 1.04 Vung Tau (Ba Rịa - Vung Tau) 810,500 1.05 TP.H Chi Minh 704,500 1.06 Vinamarine Headquarters 139,400 Sub-Total 3,544,900 2 Constructions 2.01 Hon Gai 12,620,446.73 2.02 Hai Phong 25,961,687.40 2.03 Da Nang 10,969,173.32 2.04 Vung Tau (Ba Rịa - Vung Tau) 21,243,763.39 2.05 TP.Ho Chi Minh 18,465,430.36 2.06 Vinamarine Headquarters 3,653,770.04 Sub-Total 3,544,900 92,914,271.23 3 Installation, inspections 460,700 4 Training and O&M Support 54,000 Total of 1-4 4,059,600 92,914,271.23 5 Consulting fee 202,980 4,645,713.56 Total of 1-5 4,262,580 97,559,984.79 6 Contingency (5% of total- of 1-5) 213,129 4,877,999.24 Total (1-6) 4,475,709 102,437,984.03 Total(Thousand Japanese Yen) ¥4,475,709 ¥386,558 ( Total project cost in ¥,000 ¥4,862,267 ) Total(Thousand US$) $57,381 $4,956 Source : Prepared by study team Exchange rate: US$1=¥78.0; ¥1=VND265 as of Nov. 2011 The Phase 2 of the Project includes 11 ports and some additional works in Vinamarine headquarter as shown in the Table 5-2. The construction work is planned to be started in July 2017 and completed in December 2019. The project cost is estimated as shown in Table 5-2. 5- 1 Table 5-2 Project Cost for Phase-2 Japanese Yen No Item VND(1,000) Remarks (¥1,000) 1 Vessel Traffic monitoring and management system 1.01 Nghi Son (Thanh Hoa) 830,500 1.02 Nghe An 667,500 1.03 Son Duong、Vung Ang 910,500 1.04 Dung Quat 534,500 1.05 Quy Nhon 481,500 1.06 Van Phong (Khanh Hoa) 790,500 1.07 Nha Trang, Cam Ranh (Khanh Hoa) 507,500 1.08 chuyen dung Nha may nhiet dien Vinh Tan 467,500 1.09 Ke Ga 750,500 1.10 Dong Nai 767,500 1.11 Can Tho 867,500 1.12 Vinamarine Headquarters 85,500 Sub-Total 7,661,000 2 Constructions 2.01 Nghi Son (Thanh Hoa) 21,767,977.17 2.02 Nghe An 17,495,634.87 2.03 Son Duong、Vung Ang 23,864,832.28 2.04 Dung Quat 14,009,613.24 2.05 Quy Nhon 12,620,446.73 2.06 Van Phong (Khanh Hoa) 20,719,549.61 2.07 Nha Trang, Cam Ranh (Khanh Hoa) 13,301,924.64 2.08 chuyen dung Nha may nhiet dien Vinh Tan 12,253,497.08 2.09 Ke Ga 19,671,122.05 2.10 Dong Nai 20,116,703.76 2.11 Can Tho 22,737,772.66 2.12 Vinamarine Headquarters 2,241,013.90 Sub-Total 7,661,000 200,800,088 3 Installation, inspections 1,210,084 4 Training and O&M Support 100,417 Total of 1-4 8,971,501 200,800,088 554,744 10,040,004 5 Consulting fee 9,526,245 210,840,092 Total of 1-5 476,312 10,542,005 6 Contingency (5% of total- of 1-5) 10,002,557 221,382,097 Total (1-6) ¥10,002,557 ¥835,404 Total(Thousand Japanese Yen) ¥10,837,961 ) ( Total project cost in ¥,000 $128,238 $10,710 Total(Thousand US$) Source : Prepared by study team Exchange rate: US$1=¥78.0; ¥1=VND265 as of Nov. 2011 5- 2 The total costs in the Project Phase 1 and Phase 2 are shown in Table 5-3. Table 5-3 Total Costs of Project for Phase 1 and Phase 2 Japanese Yen No Item VND(1,000) Remarks (¥1,000) Vessel Traffic monitoring and management 1 11,205,900 system 2 Construction 293,714,359 3 Installation, inspections 1,670,784 4 Training and O&M Support 154,417 Total(1-4) 13,031,101 293,714,359 757,724 14,685,718 5 Consulting fee 13,788,825 308,400,077 Total(1-5) 689,441 15,420,004 6 Contingency 14,478,266 323,820,081 Total(1-6) ¥14,478,266 ¥1,221,963 Total(Thousand Japanese Yen) ¥15,700,228 ) ( Total project cost in ¥,000 $185,619 $15,666 Total(Thousand US$) Source : Prepared by study team Exchange rate: US$1=¥78.0; ¥1=VND265 as of Nov. 2011 In estimation of the equipment investment amount, the equipment cost is estimated in the CIF price basis and the local construction work cost is estimated by using the consumer price index to correct the procurement costs in similar projects which have been implemented in Vietnam in recent years. The consulting price is estimated on the basis of per diem operation cost. 5- 3 2. Outline of Results of Preliminary Financial and Economic Analysis 2.1 Preliminary Financial Analysis In regard to revenues in implementing this Project, it is impossible to collect any new fees from port users. The main purpose of the VTS/AIS functionality is to realize efficient operation of ports and channels and safety of navigation in ports for port and channel controllers. Usually, port and channel users pay the port use tax or port dues for using port facilities. These typical charges are shown in Table 5-4 taking the example of the example of Ho Chi Minh Port (Cat Lai container terminal). Table 5-4 Breakdown of Port Use Charges by Example of Cat Lai Wharf of Ho Chi Minh Port1 No. Item Unit Cost Remarks 1 Dockage charge US$0.0031/hour/GT Paid to: Port Authority 2 Tonnage tax US$0.032/GT×2 (two-way) Paid to: Port Authority 3 Navigation due US$0.1/GT× 2 (two-way) Paid to: Port Authority 4 Pilotage charge US$0.0015/GT× distance× 2 (two-way) Paid to: Pilot company Standard 5 Tag boat fee US$800/10,000GT Paid to: tag boat company Source : Prepared by study team Note: No.1 through No.3 are the same across the entire country and No.4 and No.5 are a little different from port to port. For example, the cost for a container vessel of 1000 TEU (10,000 GT) class entering and leaving Cat Lai Wharf in Ho Chi Minh Port is roughly estimated to be US$6,3002. As mentioned above, the costs such as port facility charge for the port facilities to be constructed in this Project are collected as other charge items and it is considered as difficult for VINAMARINE to raise such charges by implementing this Project. As this Project will be implemented in 2 phases as described in the preceding Section, the maintenance and operation expenses for the facilities to be constructed in this Project may be different because the M&O system is different after completion of Phase 1 and after completion of the entire Project. Therefore, the maintenance operation expenses are estimated in referring to the present budget scale and number of personnel of VINAMARINE as shown in Table 5-5. Table 5-5 Maintenance and Operation Expenses per Employee (based on price as of November 2011) Unit Price Unit Price Item (VND) (US$) Remarks Wages 70,000,000 3,387 Electricity charge 30,000,000 1,451 Communications cost 1,500,000 73 Fuel cost 14,000,000 677 Other expenses 6,000,000 290 Source : Prepared by study team Exchange rate: US$1=¥78.0; ¥1=VND265 as of Nov. 2011 1 2 By interview with shipping companies in Vietnam as of October 2011. Same as above 5- 4 Table 5-6 IP network charge per point (based on November 2011) Item Remarks Unit Cost (VND) Unit Cost (US$) 581 Annual IP network charge 12,,000,000 IP network subscription fee 1,000,000 48 Only at the time of subscription Source : Prepared by study team In addition, the financial analysis of this Project was made on the following conditions: a. b. c. d. e. f. g. Period for assessment: The durable service life of the equipment is 20 years. Currency exchange rate: Exchange rate: US$1=¥78.0; ¥1=VND265 (as of Nov. 2011) Inflation: The inflation has an impartial influence on revenue and expenditure. The inflation rate is estimated to be 9.26% in average over the previous year based on the average of the consumer price indexes for 8 years from 2003 to 2010. Exchange rate between foreign currency and Vietnamese VND: According to the currency policy of the Vietnamese authority, the currency rate between the domestic currency and US$ currency was depreciated yearly at 3.36% in average for 8 years from 2003 to 2010 and it is anticipated that it will decrease at the same rate in future3. The exchange rate between US$ and ¥ is assumed to be constant. Investment amount: The demand for funds during the periods of construction works are assumed to be 30% for the initial period, 40% for the medium period and 30% at the end of this Project based on the past experience in similar projects. For the foreign currency for assessment, the assessed amount in the VND currency depreciated to the US$ currency will be used. Since the equipment and systems will be installed at coastal area, their damages by sea air will be considered and it is assumed that main equipment will be replaced every 10 years. In calculating the balance of accounts in the above conditions, the costs as shown in Table 5-7 are obtained. As no revenue from this Project is expected, the internal rate of return is not calculated here. Revenue: Subsidy from Ministry of Transport is assumed as the revenue from the project. Subsidy is assumed to cover the capital expenditure as well as Operation and maintenance expenses Discount Rate: Discount rate is 15% which is the legal interest rate for applying on deposits with commercial banks. The discount rate is used for conducting Net Present Vale (NPV) as well as Benefit-Cost ratio (B/C). Under such conditions, Financial Rate of Return (FIRR), NPV and B/C ratio are obtained in the following table. Table 5-7 Financial Rate of Return (FIRR), NPV and B/C ratio Case FIRR NPV B/C Remarks Base Case 0% 0 1 10% increase 0% 0 1 Supposed as the subsidy covers increased of Investment amount. 10% decrease minus -457 Bill. VND 0.9 Supposed as the subsidy is cut off by 10% of Revenue Source : Prepared by study team And a preliminary financial analysis for the Base Case is given in the Table 5-8. 3 Source: Calculated based on various types of data of Statistics Directorate General of Vietnam 5- 5 Table 5-8 Year Projection Year CPI (=100 as of 2011) Index of to US$ REVENUE CAPEX Phase-1 Foreign Portion in ¥ 000 Foreign Portion in US$ 000 Value of Foreign Portion in VND in Mill Local Portion in VND in Mil Phase-2 Foreign Portion in ¥ 000 Foreign Portion in US$ 000 Value of Foreign Portion in VND in Mill Local Portion in VND in Mil No of IP Connections Subscription Fee IP Connections Investment Schedule in VND Million Phase-1(Foreign Portion, VND Mil.) Phase-1(Local Portion, VND Mil.) Phase-2(Foreign Portion, VND Mil.) Phase-2(Local Portion, VND Mil.) CAPEX TOTAL OPEX Factors No. of Staff No. of IP Network Use Expenses Labor Cost per Staff Electric Power Fee per Staff Communications Expense per Staff Fuel and Oil Expense per Staff Others (5% of total 1-4) per Staff Yearly Charge for IP-Private Network OPEX TOTAL CASH OUT TOTAL Cash Balance FIRR NPV (VND Mil.) B/C Source : Prepared by study team Preliminary Financial Analysis <Base Case> 2011 2012 100.00 100 0 (Unit: million VND ) 109.26 103.09 0 2013 1 119.38 106.28 952,375 2014 2 130.43 109.56 618,114 2015 3 142.51 112.94 480,404 2016 4 155.71 116.43 14,320 2017 5 170.12 120.03 1,162,856 2018 6 185.88 123.74 1,603,268 2019 7 203.09 127.57 1,252,706 2020 8 221.90 131.51 59,253 2021 9 242.44 135.57 64,740 2032 20 642.22 189.47 171,493 4,862,267 62,337 1,288,501 102,438 1,328,316 111,924 1,369,360 122,288 1,411,674 133,612 1,455,294 145,984 1,500,263 159,502 1,546,621 174,272 1,594,412 190,410 1,643,679 208,042 1,694,469 227,306 1,746,828 248,355 2,441,361 657,879 10,837,961 138,948 2,872,060 221,382 2,960,806 241,882 3,052,295 264,280 3,146,611 288,753 3,243,841 315,491 7 10 3,344,076 344,706 3,447,408 376,625 3,553,933 411,501 3,663,750 449,606 11 22 3,776,959 491,239 3,893,667 536,728 5,441,778 1,421,764 915,689 36,686 564,669 53,445 436,598 43,805 0 1,421,573 164,600 1,586,174 1,099,125 134,904 1,234,029 0 0 0 952,375 618,114 480,404 0 1,034,222 112,988 1,147,210 0 0 0 75 7 75 7 75 7 75 7 218 18 218 18 218 18 0 0 0 0 0 0 0 952,375 0 0 0 0 0 0 0 0 618,114 0 0 0 0 0 0 0 0 480,404 0 8,175 3,503 175 1,635 701 131 14,320 14,320 0 8,932 3,828 191 1,786 766 143 15,646 1,162,856 0 9,759 4,182 209 1,952 836 156 17,094 1,603,268 0 10,662 4,570 228 2,132 914 171 18,677 1,252,706 0 33,861 14,512 726 6,772 2,902 479 59,253 59,253 0 36,997 15,856 793 7,399 3,171 524 64,740 64,740 0 98,003 42,001 2,100 19,601 8,400 1,387 171,493 171,493 0 0% 0 1 5- 6 2.2 Preliminary Economic Analysis The benefit may be deprived by the surcharge of the insurance on trade commodity. Nippon Kowa insurance company require the surcharge on trade commodities/goods when shippers use aged vessels. The percentage of surcharge varies depending on the age of vessels and indicates additional 0.1 % to regular insurance rate in case of vessels of 10-15 years old. Some of Vietnamese shippers may accept as same percentage as those if they use the safe navigation in ports. Therefore 0.1% on the trade value, which usually stands for insurance value, is supposed as the benefit of the project. The domestic cargo is excluded in the analysis. 1) Benefit Calculation The differences of charter rates in Vietnam are shown in Table 5-9. Table 5-9 Conducting method of insurance surplus Average value per ton of trade US$2,527 Conducted trade value per trade volume commodities/goods from the year 2000 to 2009 (1) Proportion of trade volume to Volume of 7% freight by transport sector Additional surcharge % to the regular 0.1% Equivalent to the surcharge of employing insurance tariff 10-15 year vessel (2) Average benefit value per ton US$ 0.18 Source: (1): Statistical Office of Vietnam, (2) Source: Nippon Kowa Insurance Corporation The number of ship’s calls, cargo handling volumes and number of containers at the ports for which this Project will be implemented in Phase 1 and Phase 2. Table 5-10 Predicted Number of Beneficiary Vessels, Cargo Volume and Number of Containers at Ports under this Project 2015 2020 2025 2030 Year Ports under Phase 1 Number of ship’s calls (vessels) 46,566 117,316 317,069 900,140 Cargo handling (tons) 166,771 297,759 531,970 950,950 volume Number of containers (TEU) 14,512,943 40,574,108 113,563,698 318,210,472 Ports under Phase 2 Number of ship’s calls (vessels) 21,408 33,499 54,169 Cargo handling (tons) 46,331 76,379 126,481 volume Number of containers (TEU) 1,491,340 3,857,606 10,043,775 Source : Prepared by study team 2032 1,379,753 1,199,856 480,660,010 66,166 154,952 14,753,495 These predicted figures were obtained in the following procedure: a. b. 4 Calculation of growth rate from 2011 to 2032 The cargoes are divided into North, Central and South Regions because it is possible to adopt alternate routes depending upon the grade of development of land and marine logistics networks. The number of ship’s calls, cargo handling volume and container handling volumes that are changing in each of such Regions for 5 years from 2005 and 20104 and the average growth rate in each year to the previous year are obtained and the growth rate is applied to each of the ports under this Project. Calculation of number of ship’s calls at each port and its growth rate Based on the location of each port, the growth rate in each Region obtained in item a. above is applied to the handling volumes at each port to calculate the number of ship’s calls at each port. Source: Statistics materials of Vietnamese Port Association. 5- 7 In the benefit calculations, it is necessary to convert the prices into international prices, but such prices will be not corrected based on the standard conversion factor because the source of value is supposed as an international price. 2) Cost Calculation The equipment investment amounts and maintenance and operation expenses as described in the Preliminary Financial Analysis are cost items. In this case, the differences between domestic prices and international prices will be corrected by using the standard conversion factor as described later. a. Standard Conversion Factor (SCF) SCF is a coefficient to correct a distortion of a domestic price to the corresponding international price. In this report, the SCF is calculated based on the import/export amounts and customs revenues from 2007 to 2009 as shown in Table 5-11. Table 5-11 Import and Export Amounts and Import Customs Revenues in Vietnam 2007 2008 2009 Import amount (million US$)* 48,561.4 62,685.1 57,096.3 Export amount (million US$)* 62,764.7 80,713.8 69,948.8 Import customs revenue (million US$)** 3,439.9 5,582.0 4,511.9 Export customs revenue (million US$)** 0.0 0.0 0.0 Source: * Statistics Directorate General of Vietnam ** WB Official exchange rate (LCU per US$, period average) The calculation method is as follows: SCF= 2007 – 2009 import/export total/(2007 – 2009 import/export total + Total customs revenue) = 0.966 Of the revenue, equipment investment amount, and maintenance and operation expenses, the domestic procurement amount is multiplied by this SCF to obtain the international price. b. d. e. f. Exchange rate As adopted in the preliminary financial analysis, the conversion rates: ¥1= VND265 and US$1= ¥78 (as of November 2011) are applied. Inflation Usually the inflation rate is excluded to have equal influence on both benefit and costs. As the economic growth and the substantial increase in wages for employees are expected in Vietnam, the inflation is estimated to rise at an annual increase rate of 9.26% over the previous year during the period of assessment based on the average value of the consumer price indexes during 8 years from 2003 to 2010. Exchange rate between foreign currency and Vietnam VND According to the currency policy of Vietnam authority, the currency exchange rate of Vietnamese VND to US$ was depreciated yearly at 3.06% in average for 8 years from 2003 to 2010. It is also anticipated to be depreciated at the same rate in future5. On the other hand, it is assumed that the exchange rate between US$ and Japanese yen is constant. Investment amount The demands for funds during the periods of construction works are estimated to be 30% in the initial period, 40% in the medium period and 30% at the end of the Project. For the foreign exchange for assessment, the assessed amount in the Vietnamese VND depreciated to the US$ will be used. 3) Sensitivity The economical internal rate of return is calculated in the basic case and in the cases that the benefit decreases 10% and that the equipment investment increases 10%. The preliminary Economical Internal Rate of Return (EIRR), Net Present Value (NPV) and Benefit-Cost (B/C) Ratio calculated in the above conditions are shown in Table 5-12. 5 Source: Calculated based on the data issued by Vietnam Statistics Directorate General 5- 8 Table 5-12 Results of Preliminary Economic Analysis Case EIRR NPV (Bill. VND) Basic case 39% 13,879 Benefit decrease rate 37% 11,573 of 10% Equipment investment 37% 12,923 increase rate of 10% Source : Prepared by study team B/C 6.22 5.44 5.51 The detailed results of these calculations are shown in Table 5-13a to 13c below. In this benefit calculation, the tankers, dedicated vessels such as ore vessels, special craft and fishing vessels are not considered at all, but the results of preliminary economic analysis show that the benefit in each of the above three cases exceeds 15%6 as a target in this Project to be implemented in Vietnam. Therefore, it can be concluded that this Project will be feasible from the viewpoint of economy. 6 The legal interest rate of deposit with commercial banks is around 15% as of Nov. 2011 5- 9 Year CPI (=100 as of 2011) Index of VND to US$ Standard Conversion Factor Benefit Phase-1 (Ton ,000) Cargo (Ton, 000) Container (TEU ,000) Container (Ton equivalent, 000) Phase-2 (Ton ,000) Cargo (Ton, 000) Container (TEU ,000) Container (Ton equivalent, 000) Increased benefit/ton (VND) Increased Value (VND Mil. ) Cost Capital Expenditure Foreign Portion (VND Mil. ) Local Portion (before conversion, VND Mil.) Converted Local Portion (VND Mi.) Operation and Maintenace Local Portion (before conversion, VND Mil.) Converted Local Portion(VND Mil.) Total Cost Balance EIRR NPV (VND Mil.) B/C Source : Prepared by study team Table 5 – 13a 2013 119.38 106.28 0.966 Detailed Results of Preliminary Economic Analysis (Basic Case) 2014 2015 2016 2017 2018 2019 130.43 142.51 155.71 170.12 185.88 203.09 109.56 112.94 116.43 120.03 123.74 127.57 0.966 0.966 0.966 0.966 0.966 0.966 178,431 187 17,824 178,243 2020 221.90 131.51 0.966 2030 537.98 178.28 0.966 2032 642.22 189.47 0.966 406,039 298 40,574 405,741 14,960 46 1,491 14,913 4,397 4,533 4,673 4,817 963,489 1,219,906 1,544,647 2,028,000 3,183,056 951 318,210 3,182,105 100,564 126 10,044 100,438 6,531 21,443,987 4,807,800 1,200 480,660 4,806,600 147,690 155 14,753 147,535 6,940 34,393,179 0 0 0 219,134 210 21,892 218,923 269,136 236 26,890 268,900 330,566 265 33,030 330,301 3,893 4,013 4,137 4,265 761,011 915,689 564,669 436,598 0 36,686 53,445 43,805 0 112,988 164,600 134,904 0 0 0 35,430 51,615 42,305 0 109,119 158,965 130,285 0 0 0 0 0 0 0 0 14,320 15,646 17,094 120,337 143,656 0 951,119 -951,119 39% 13,878,635 6.22 0 616,284 -616,284 0 478,904 -478,904 0 0 13,829 15,110 16,509 0 1,143,342 1,594,368 1,244,520 16,509 761,011 -179,853 -374,461 300,127 2,011,491 116,217 116,217 21,327,770 138,737 138,737 34,254,442 1,034,222 1,421,573 1,099,125 Exchange rate : US$1=¥78.0, ¥1=VND265 as of Nov. 2011 5-10 Table 5-13b Detailed Results of Preliminary Economic Analysis (Benefit decrease rate of 10%) Year 2013 CPI (=100 as of 2011) 119.38 Index of to US$ 106.28 Standard Conversion Factor 0.966 Benefit Phase-1 (Ton ,000) Cargo (Ton, 000) Container (TEU ,000) Container (Ton equivalent, 000) Phase-2 (Ton ,000) Cargo (Ton, 000) Container (TEU ,000) Container (Ton equivalent, 000) Increased unit value/ton (VND) 3,504 Increased Value ( VND Bil. ) Cost Capital Expenditure Foreign Portion ( VND Bil. ) 915,689 Local Portion ( before conversion, VND 36,686 Mil .) Converted Local Portion ( VND Mi. ) 35,430 Operation and Maintenance Local Portion ( before conversion, VND 0 Mil .) Converted Local Portion( VND Mil.) 0 Total Cost 951,119 Balance -951,119 EIRR 37% NPV ( VND Mil. ) 11,572,672 B/C 5.44 Source : Prepared by study team 2014 130.43 109.56 0.966 2015 142.51 112.94 0.966 2016 155.71 116.43 0.966 2017 170.12 120.03 0.966 2018 185.88 123.74 0.966 2019 203.09 127.57 0.966 178,431 187 17,824 178,243 219,134 210 21,892 218,923 269,136 236 26,890 268,900 330,566 265 33,030 330,301 2020 221.90 131.51 0.966 2030 537.98 178.28 0.966 2032 642.22 189.47 0.966 406,039 3,183,056 298 951 40,574 318,210 405,741 3,182,105 14,960 100,564 46 126 1,491 10,044 14,913 100,438 4,335 5,878 1,760,343 18,708,519 4,807,800 1,200 480,660 4,806,600 147,690 155 14,753 147,535 6,246 30,031,335 3,612 3,723 3,839 684,910 3,957 867,140 4,079 1,097,916 4,205 1,390,182 564,669 436,598 0 1,034,222 1,421,573 1,099,125 0 0 0 53,445 43,805 0 112,988 164,600 134,904 0 0 0 51,615 42,305 0 109,119 158,965 130,285 0 0 0 0 0 0 0 14,320 15,646 17,094 120,337 143,656 0 616,284 -616,284 0 478,904 -478,904 0 0 0 1,143,342 684,910 -276,202 13,829 1,594,368 -496,452 15,110 1,244,520 145,662 16,509 116,217 16,509 116,217 1,743,834 18,592,301 138,737 138,737 29,892,597 Exchange rate : US$1=¥78.0, ¥1=VND265 as of Nov. 2011 5-11 Table 5-13c Detailed Results of Preliminary Economic Analysis (Equipment investment increase rate of 10%) Year 2013 2014 2015 2016 2017 2018 2019 2020 2030 2032 CPI (2011=100) 119.38 130.43 142.51 155.71 170.12 185.88 203.09 221.90 537.98 642.22 Index of to US$ 106.28 109.56 112.94 116.43 120.03 123.74 127.57 131.51 178.28 189.47 Standard Conversion Factor 0.966 0.966 0.966 0.966 0.966 0.966 0.966 0.966 0.966 0.966 Benefit Phase-1 (Ton ,000) 178,431 219,134 269,136 330,566 406,039 3,183,056 4,807,800 Cargo (Ton, 000) 187 210 236 265 298 951 1,200 Container (TEU ,000) 17,824 21,892 26,890 33,030 40,574 318,210 480,660 Container (Ton equivalent, 000) 178,243 218,923 268,900 330,301 405,741 3,182,105 4,806,600 Phase-2 (Ton ,000) 14,960 100,564 147,690 Cargo (Ton, 000) 46 126 155 Container (TEU ,000) 1,491 10,044 14,753 Container (Ton equivalent, 000) 14,913 100,438 147,535 Increased unit value/ton (VND) 3,893 4,013 4,137 4,265 4,397 4,533 4,673 4,817 6,531 6,940 Incleased Value ( VND Mil. ) 761,011 963,489 1,219,906 1,544,647 1,955,937 20,787,243 33,368,150 Cost Capital Expenditure Foreign Portion ( VND Bil. ) 1,007,257 621,136 480,258 0 1,137,645 1,563,731 1,209,037 0 0 0 Local Portion ( before conversion, VND 40,355 58,789 48,186 0 124,286 181,060 148,395 0 0 0 Mil .) Converted Local Portion ( VND Mi .) 38,973 56,776 46,536 0 120,031 174,862 143,314 0 0 0 Operation and Meintenace Local Portion (before conversion, VND 0 0 0 0 0 14319.5232 15645.511 17094.285 120337.335 143655.674 Mil.) Converted Local Portion( VND Mil. ) 0 0 0 0 0 13,829 15,110 16,509 116,217 138,737 Total Cost 1,046,231 677,913 526,794 0 1,257,676 1,752,421 1,367,461 16,509 116,217 138,737 Balance -1,046,231 -677,913 -526,794 761,011 -294,187 -532,515 177,186 1,939,428 20,671,025 33,229,412 EIRR 37% NPV ( VND Mil. ) 4,923,417 B/C 5.51 Source : Prepared by study team Exchange rate: US$1=¥78.0; ¥1=VND265 as of Nov. 2011 5-12 Chapter 6. Planned Project Schedule 1. Project Phases The objective of this Project is to build up the capacity of ports for safe navigation of vessels using the ports and narrow channels by using the VTS/AIS and environmental GIS and it is desirable to make the maintenance and operation of these systems as an integrated system. However, this Project will be implemented in 2 phases ending in 2015 and in 2020 in taking into consideration the vessel traffic trend in each of the ports and the use of narrow channels in river ports as described in Chapter 3. The ports for which this Project will be implemented in Phase 1 are Hon Gai and Hai Phong in the North Region and Vung Tau and Ho Chi Minh in the South Region, which have been more congested along with the increasing cargos for logistics than ever. In addition, Da Nang Port in the Central Region which is expected to function as the logistics base for the East of Thailand and the South of Laos as a result of ASEAN Integration in 2015 will be covered by Phase 2. These 5 ports is defined as “International Gateway Ports” or “Hub Port for the surrounding ports in Each Area” in the Master Plan. The Phase 2 will cover a total of 11 ports: Nghi Son, Nghe An, Vung Ang, Dung Quat, Quy Nhon, Van Phong, Nha Trang, Vinh Tan, Ke Ga, Dong Nai and Can Tho, which are functioning as the logistics base for individual areas and in the hinterland of which large-scale industrial complexes and huge power generation plants are constructed. After completion of Phase 1, it will be necessary to develop a system to maintain the safety of vessels using the ports and build up the port maintenance and operation. In consideration of this, it is anticipated that a period of about one year will be taken to develop this system and that, after the one-year period, the developed system will be deployed in the ports covered by Phase 2. The standard schedule to implement this Project based on the above plans is shown in Table 6-1. 6-1 2. Considerations for Project Schedule In execution of the Project Schedule, it is desirable that the works under Phase 1 of this Project at Hong Gai and Hai Phong ports in the North Region and at Vung Tau and Ho Chi Minh ports in the South Region will be implemented concurrently with the individual development projects which are making progress in those ports separately. From this point view, it is desired to start the Phase 1 works as early as possible. Therefore, it is necessary to take the procedure for environmental assessment for this Project in parallel with the verification assessment of the detailed works to be executed in this Project which will be made in the Ministry of Transport of Vietnam. Vinamarine which is deemed to be the implementing agency of this Project will file the application for this environmental assessment procedure with Ministry of Natural Resources and Environment (MONRE) in accordance with the Decree 28 (April 2011) and Circular 26 (July 18, 2011) issued by MONRE. The period of assessment will be within 60 days after the application and it will take much time until the results are notified. To carry forward this Project to the next stage of Feasibility Study promptly, it is necessary to make the environmental assessment concurrently in parallel with the verification assessment of the detailed works of this Project. 6-2 Table 6-1 Project Implementing Schedule Source:Prepared by study team 6-3 Chapter 7. Implementing Organization 1. Outline of Implementing Agency of Vietnam Vietnam Ministry of Transportation (MOT) is an administration controlling all the matters related to transportation including means of land transportation (roads and railways), inland water transportation and marine transportation. The MOT has the main functions including making up of and recommendations for national master plans for development of transportation and traffic systems, guidance of local governments and related ministries and agencies under national master plans, formulation, enactment and supervision of laws, regulations and policies concerning transportation management, preparation of various national standards and technical standards for transportation and issue of licenses, and approval of development and construction projects. The organization responsible for administration of maritime transportation under the control of MOT is Vietnam National Maritime Bureau (Vinamarine), which was established in 1992 to manage the vessel traffic management, port operation, maritime transportation services and crew training and has a number of external special corporations and state-own enterprises under its control. In the past, it had been responsible for all the oceangoing and domestic services and embraced more than 30,000 personnel in the companies and organizations under its control. At present, however, the greater part of its commercial activity has been transferred to the state-operated shipping company (VINALINE) (shipping business and port operation) and the state-operated shipbuilding company (VINASHIN) (shipbuilding), and Vinamarine is an organization specialized in administration functions. The organization chart of Vinamarine is shown in Fugure. 7-1. The organization and functions of Vinamarine will be outlined from the viewpoint of implementing this Project below. ・ Issue of permission for navigation in the territorial waters of Vietnam to foreign-flag vessels and boats ・ Announcement of ports open for navigation ・ Management of maritime services ・ Enforcement of search and rescue activities ・ Execution of procedures for port management ・ Response to maritime safety problems ・ Survey and settlement of illegal acts in maritime transportation activities 7-1 Figure. 7-1 Organization Chart of Vinamarine 7-2 2. Organizational System to Implement the Project in Vietnam 2.1 Port Operation Maritime Administration which is a subordinate agency of Vinamarine is “a governmental agency specialized in maritime management services in the port water areas and local navigable waters” and it is deployed in each of 25 districts of jurisdiction. Maritime Administration is one of the national maritime management agencies as defined in Article 58 of Maritime Regulations: “the governmental agency specialized in maritime management services in the port water areas and local navigable waters is referred to as “Maritime Administration”. In making inspection for safety management at sea and surveying the death and accidents caused in maritime transportation, Maritime Administration should request Vinamarine for advice and assistance. It is because Maritime Administration should take judicious actions especially in cases such as taking vessels into detention. Each Port Authorities which will be actual operator for the system under control and management of Vinamarine do not have any plan to be privatelized it’s organization and/or to entrust the system with outer organization 2.2 Operation of Vessel Traffic Surveillance The operation of vessel traffic surveillance will be outlined taking the case of Hai Phong Port in the largest port city in the North Region of Vietnam. Hai Phong Maritime Administration that controls Hai Phong Port has 82 staff members including one Director and two Vice Directors to make port control activities in the water areas of Hai Phong Port. The organization chart is shown in Figure.7-2. Hai Phong Maritime Administration consists of 6 Divisions: Legislation, and Finance and Account under the direct control of Director, and Port Management, Safety and Investigation, Administration and Personnel, and Cat Hai Branch under the control of two Vice Directors. The main functions and services of the Maritime Administration include: ① Advice and recommendations for making up master plans for port development in Vietnam; ② Administration, supervision and guidance of maritime transportation businesses; ③ Channel management for safety of vessels, and development and introduction of navigational 7-3 aid systems; ④ Control of vessels entering and leaving Hai Phong Port; ⑤ Provision of port services and collection of port charges; ⑥ Enforcement of laws and regulations for maritime transportation management; ⑦ Seizure of vessels by request from related agencies. Figure 7-2 Organization Chart of Hai Phong Maritime Administration Director Vice Director Vice Director Port Safety and Management Investigation Legislation Finance and Administration Cat Hai Account and Personnel Representative Source: Materials received from Hai Phong Maritime Administration The Maritime Administration has an operation system working on a 24-hour base to take a quick search and rescu (SAR) action in event of sea accident occurrence within Hai Phong Port. When it receives a distress warning or emergency warning from a vessel within the sea area under its jurisdiction or the radio coast station operated by Vietnam Ship Communications Public Corporation (VISHIPEL), the Maritime Administration confirms the location of the vessel and its situation and informs necessary information to Vietnam Maritime Rescue Coordination Center (VMRCC) to make distress rescue activity in linking with the Center. The Vessel Traffic System that is expected to be introduced in this Project is capable of monitoring the vessel movements within the Port waters in real time. The Maritime Administration will be able to take quick action for a sea accident by making joint use with VMRCC of the information collected by this system. 7-4 2.3 Organization for Implementing the Project The actual operator of the Vessel traffic System which is expected to be introduced in this Project will be each of the Maritime Administrations under the control of Vinamarine. However, it is necessary to organize the Project Management Unit (PMU) in Vinamarine in order to make centralized management of the entire Project because this Project is aiming at introducing the integrated system for the purpose of strengthening the linkage between Maritime Administrations, but each Maritime Administration will not launch an organization to implement a project individually. To implement this Project by making the use of ODA fund, the PMU should be established under the decision of Prime Minister Office 131/2006/ND-CP “Decree on Issuance of Regulation on Management and Utilization of Official Development Assistance” and in accordance with the following procedure: 1) Ministry of Planning and Investment will issue the Notification on the organization chart, functions and roles of the PMU; 2) Ministry of Planning and Investment and Ministry of Transportation will approve the documents on this Project before the implementing agency will issue the decision on establishment of the PMU; 3) The implementing agency will employ a Consultant in charge of management of the Project in accordance with the related law or regulation of Vietnam. 7-5 3. Capacity Assessment of Implementing Agency of Vietnam and Countermeasures 3.1 Operation and Maintenance System Vinamarine implemented the “Radio Coast Station Development Project (1997 – 2007)” to maintain safety of vessel traffic and to take quick action in event of sea accident under the Japanese yen loan and introduced the Global Maritime Distress and Safety System. In addition, in the background of the increasing cargo handling volume at main ports in Vietnam along with the drastic increase of marine transportation volume, it was the urgent necessity to operate the port facilities in an efficient and safe manner. In March 2005, Vinamarine made the field surveys aiming at introducing the Vessel Traffic System in Vietnam and made the feasibility study in the technical and cost aspects on this Project independently. In August 2008, a Vessel Traffic System was introduced temporarily at Ho Chi Minh Port in Vung Tau Province, but a trouble in installation of the system. Vietnam Ship Communications Public Corporation (VISHIPEL) under the control of Vinamarine employed a consultant to make the basic design study for the repair and recovery of the system trouble. The “Radio Coast Station Development Project” as mentioned above received very high evaluation in the assessment made by the Vietnam – Japan joint assessment team after completion of the Japanese yen loan project, saying “this Project has no problem in terms of the capacity of the implementing agency and the maintenance and operation system and is expected for high sustainability.” As a result, the project implementing capacity of Vinamarine was proved. As it was experienced in the Radio Coast Station Project Phase I and Phase II and familiarized with the Japanese yen loan scheme, Vinamarine is expected to able to implement the new Project in a seamless manner. In September 2011, one JICA expert was dispatched to Vinamarine to give professional advice on the technical cooperation in port operation and maintenance and the development of the Vessel Traffic System and the Distress and Safety System. Based on the expert’s advice, therefore, Vinamarine has established a support system to implement this Project. The operation and maintenance of the Vessel Traffic System to be introduced in this Project will be undertaken by each Maritime Administration under the control of Vinamarine. Cat Hai Branch of Hai Phong Maritime Administration has already enforced the 24-hour system for watching Ha Nam channel by the means of VHF and other communications and will have no problem with its maintenance and operation capacity if the VTS is introduced. 7-6 3.2 Financial Conditions for Maintenance and Operation The application for the annual budget for the maintenance and operation expenses necessary for the Vessel Traffic System to be introduced in this Project will be filed by each Maritime Administration with Vinamarine. Each Maritime Administration can collect the port charges for the port services provided to port users such as shipping companies, playing the role of public utility entity. The budget for operation and maintenance of port facilities that each Maritime Administration possesses are borne by Vinamarine. For instance, the annual budget for operation and maintenance of the facilities possessed by Hai Phong Maritime Administration amounted to 6 billion VND (equivalent to 22.6 million yen) in 2010, which was allotted to Hai Phong Maritime Administration. According to the hearing from Hai Phong Maritime Administration, the budget allotted to it is enough to allow all the operation and maintenance works to be done. 3.3 Plan of Supporting the Implementing Agency of Vietnam To demonstrate the project effects and maintain the sustainability of this Project for a long time, it is very important to combine transfer of technology with training for maintenance and operation. In maintaining the functionality and stability of the Vessel Traffic System to be introduced in this Project, it is essential to prepare the maintenance and operation manual for the system and to make the maintenance and inspection of the system on a daily and regular basis. In order that the port staff deal with the operation and maintenance of a newly introduced system, it is necessary not only to transfer the technology of the system to the port personnel through on-the-job training (OJT), but the port staff should accumulate the knowledge and experience on the operation and maintenance of the system though the training of port staff members by level of duty and in accordance with office regulations and through the dispatch to Japan of the managing staff of the implementing agency for training in Japan. 7-7 Chapter 8. Technical Advantages of Japanese Companies 1. International Competitiveness of Japanese Companies and Possibility of Contract Award to Japan 1.1 Objectives of this Project One of the objectives of this Project is to introduce an integrated Vessel Traffic System in Vietnam. It is important to develop a VTS in each port individually for “activating the port” and “maintaining safety and security”, but the information gathered by means of the VTS can be used effectively for “joint use of information by adjacent ports”, “use for vessel navigation services”, “supervision of channel equipment”, “countermeasure for congested water areas”, “channel traffic analysis for improvement”, “sea accident analysis”, “ocean pollution analysis” and “CO2 emission regulation”. This Project is intended to network individual VTS systems as an integrated system to allow the joint use of information by and dissemination of information to related agencies. The dissemination of information to related agencies is made in the form of access to Web which requires no dedicated terminal or software. As the information to be handled and required by information users is diverse, it is necessary to establish the forms of display which are different depending upon types of information. For this purpose, the integrated VTS will adopt the Geographic Information System (GIS) for joint use of information by different users and be configured with multi-layer architecture to register each type of information per layer and with system expandability allowing the information users to select necessary information easily. The GIS-based information technology is absolutely required for the integrated VTS, in addition to the conventional VTS technology. 1.2 Trend of Geographic Information System (GIS) The GIS technology has been widely spread in many applications such as car navigation systems and the route guidance in Web map site in the land-use field, and the system to plot the position information on a map such as hazard map in the disaster prevention field. The GIS can demonstrate a high effect in grasping information by enhancing the visibility of users. On the other hand, in the maritime and oceanic field, the GIS has already been introduced in the Electronic Chart Display and Information System (ECDIS) for displaying channel beacons and own/other ships as a ship operation support system for safety and security of navigation. 8-1 Also, the VTS system uses the technology for displaying port information on a chart, but it is introduced as a single system at each port in many cases and configured as a system dedicated to each port in general. The greatest feature of the GIS is that the multi-layer architecture can be configured by type of information, allowing the users to make easy comparative analysis with other information by layer selection. It can demonstrate an enormous effect in a system handling many types of information. Marine GIS is capable of not only monitoring vessel movements, but also monitoring, analyzing and taking action against ocean pollution. The GIS features also flexible expandability for many applications by the multi-layer architecture to configure information contents. In the GIS field, the importance of contents technology to meet the demands of users is recognized based on the multi-layer stacking technology and the researches into such technology by many organizations are making progress. 1.3 International Competitiveness of Japanese Companies At present, the researches on “Marine GIS” in which the GIS multi-layer architecture is used in the maritime and oceanic systems are made by universities and institutes in japan. In 2010, Tokyo University of Marine Science and Technology developed the “Advanced Navigation System” ahead of the world, which is used for ship operation management, vessel movement analysis and optimum routing researches. For the regulation of CO2 emissions from vessels by IMO (International Maritime Organization), the Maritime Bureau, Ministry of Land, Infrastructure, Transport and Tourism, Japan advocates the environmental contents strongly to the world and Japan is recognized as a “Country propelling ocean environment forward.” In July 2011, the IMO regulation of CO2 emission from vessels was approved and the shipping operators will be called for the control of CO2 emissions under this IMO regulation. For the ship operation management taking account of the CO2 emission regulation, the systems adopting the Marine GIS are deemed to be effective for handling diverse types of information and the Marine GIS will be spread not only among universities and institutes, but also to the oceanic and maritime centers and ship operation management centers. For ship operation management, the GIS is surely used to display ship’s positions as used in Europe, but there are only a few examples of full-scale “Marine GIS” with multi-layer architecture. In Japan, some private shipping companies have introduced the “Marine GIS” in their systems aiming 8-2 at advanced ship operation management. In addition, NEDO (independent administrative institution, New Energy and Industrial Technology Development Organization) announced to make the study of actual conditions of ship operations in the framework of the “Project Finding Study for the Project for Support of Efficient Operation of Cement Transport Vessels in Indonesia” in the cooperation with an Indonesian cement transport vessel operator “PT INDOBARUNA BULK TRANSPOT”. In this project, energy saving volume measured by Japanese technology, “Marine GIS”, will be investigated As mentioned above, the Marine GIS technology in multi-layer architecture has been attracting keen attention overseas as well as in Japan. The Marine GIS which will be adopted in the project will be designed based on the advanced technology developed by Tokyo University of Marine Science and Technology on 2010. In this Project, it is aimed to integrate VTS system to the Radar and ICT technology, by the adoption of Marine GIS technology which leading by Japan. With regard to comparison of supply record for the integrated VTS by the adoption Marine GIS between Japan and other countries, there are no conspicuous supply record for the same because it is a pioneer system by using unique Japanese technology and is only available at Tokyo University of Marine Science and Technology for research purpose level so for. 1.4 Possibility of Contract Award to Japan In taking into consideration the details as described above and the development of contents in the cooperative projects by academic, industrial and public sectors in Japan, the possibility of the contract for this Project being awarded to Japan is deemed to be considerably high. 8-3 2. Main Equipment Items and Amounts with Possibility of Procurement from Japan The project will be implemented in 2 phases which are to be completed by year 2015 and 2020 respectively. Table 8-1 and Table 8-2 shows items and amounts to be procured from Japan. Table 8-1 No. Phase1 Project Cost from Japan Description Foreign Currency (1,000 Yen) 1 Information Communication Equipment 1.1 Hon Gai ¥481,500 1.2 Hai Phong ¥990,500 1.3 Da Nang ¥418,500 Vung Tau 1.4 (Ba Rịa - Vung Tau) ¥810,500 1.5 Ho Chi Minh ¥704,500 1.6 Vinamarine Headquarters ¥139,400 Sub Total 2 Installation, Adjustment and Inspection 3 Training and Maintenance Consultant Fee Contingency Fee (5% of Total (1-4)) Total (1-5) Grand Total ¥4,059,600 ¥202,980 Total (1-4) 5 ¥460,700 ¥54,000 Total (1-3) 4 ¥3,544,900 (Equiv.J thousand Yen) Grand Total (Equiv.US thousand $) Source : Prepared by study team ¥4,262,580 ¥213,129 ¥4,475,709 ¥4,475,709 US$57,381 US$ =JPY 78 8-4 Table 8-2 No. Phase2 Project Cost from Japan Description Foreign Currency (1,000 Yen) 1 Information Communication Equipment 1.1 Nghi Son (Thanh Hoa) ¥830,500 1.2 Nghe An ¥667,500 1.3 Son Duong、Vung Ang ¥910,500 1.4 Dung Quat ¥534,500 1.5 Quy Nhon ¥481,500 1.6 Van Phong (Khanh Hoa) ¥790,500 1.7 Nha Trang, Cam Ranh (Khanh Hoa) 1.8 Chuyen dung Nha may nhiet dien Vinh Tan ¥467,500 1.9 Ke Ga ¥750,500 1.10 Dong Nai ¥767,500 1.11 Can Tho ¥867,500 1.12 Vinamarine Headquarters ¥85,500 Sub Total 2 Installation, Adjustment and Inspection 3 Training and Maintenance Total (1-3) 4 Consultant Fee ¥7,661,000 ¥1,210,084 ¥100,417 ¥8,921,501 ¥554,744 Total (1-4) 5 ¥507,500 Contingency Fee (5% of Total (1-4) ¥9,367,470 ¥476,312 Total (1-5) ¥10,002,557 Grand Total (Equiv.J thousand Yen) ¥10,002,557 Grand Total (Equiv.US thousand $) US$128,238 Source : Prepared by study team US$ =JPY 78 8-5 3. Necessary Measures for Promotion of Contract Award to Japanese Companies 3.1 Provision and Promotion of Advanced Environmental Technology of Japan Ahead of Others ① The Vessel Traffic System that is planned to be introduced in Vietnam in this Project will be integrated with the environmental GIS (Geographic Information System) to provide oceanic contents for CO2 emission control by shipping operators, and monitoring and analysis of ocean pollution. ② The technologies created from the projects implemented by the tie-up of the academic, industrial and public sectors will be provided. The oceanic contents were advocated by Ministry of Land, Infrastructure, Transport and Tourism of Japan and developed by Tokyo University of Marine Science and Technology for the ship operation management, vessel movement analysis and optimum route researches. ③ The technology that conforms to the CO2 emission regulation for vessels as advocated by IMO (International Maritime Organization) will be provided. 3.2 Promotion of Regional Cooperation and Integration between Japan and Asian Countries ① Promotion of efficient port management at main ports and smoothing of regional trade aiming at seamless logistics with Asian countries supported by Japan. ② Development of investment and business environments in Vietnam to appropriately meet the trend toward drastic increase and advance of international logistics 3.3 Financial Support from Japanese Government In the project, Japanese ODA will be used. Even at the stage of the actual operation after handing over the system, technical support from Japanese Government will be provided. 8-6