"Awaken" the import-export freight rail capabilities

The first cargo train for export from Binh Duong to China departed on September 27, 2023. Photo: T.D

Expanding transportation methods

At the end of September, an international multimodal train transported the first batch of a company's goods, including approximately 500 tons of cassava starch used for food, directly from Song Than Station in Binh Duong province to China. The cargo was officially launched. The customs procedures for export were handled by the Binh Duong Customs Department, and the declaration was processed through the Automated Customs Data Processing System (VNACCS/VCIS) with Green Lane clearance (exempting detailed document checks and physical cargo inspections) for the cargo.

According to Nguyen Tran Hieu, the director of the Binh Duong Customs Department, this event opened up a new method of transporting goods that alleviates the pressure on road transportation, reduces transportation costs, and allows businesses to enhance their import and export capabilities. It promotes the manufacturing and processing activities of businesses in Binh Duong province and the broader Southern region. Furthermore, it provides opportunities for businesses to easily access industrial centers, production facilities, and auxiliary materials in China, such as Guangzhou and Guangxi.

Regarding imported goods, in October 2023, the Vietnam Railways Corporation is planning a trial shipment of 1-2 containers from different owners, imported from China to the CFS-TBS Tan Van warehouse, under the management of the Binh Duong Customs Department. Depending on the situation and the purpose of using imported materials, companies (consignees) can register their customs declarations according to corresponding types (business, processing, or manufacturing for export) to serve production, trade, and consumption.

Nguyen Hoang Thanh, Deputy General Director of the Railway Transport and Trade Company (Ratraco), a subsidiary of Vietnam Railways Corporation, emphasized that Binh Duong is a province with very strong industrial development and numerous industrial parks and export-import activities with the Chinese market. The introduction of international multimodal rail transportation services provides businesses in Binh Duong with a new transport option, enabling cost savings in logistics. Previously, businesses in Binh Duong primarily imported and exported goods through Cat Lai and Cai Mep ports. Thanks to rail transport, businesses can handle procedures directly in Binh Duong, and then the railway sector will transport the goods from Binh Duong to China. Transshipments can also be made from China to third countries like Russia, Europe, and many others.

Removing obstacles

Sharing thoughts on the transportation of goods by rail, Le Manh Ha, CEO of TBS Logistics, expressed his happiness that the operation of international multimodal trains transporting export goods from Song Than Station to China is a positive development for export-oriented businesses in general and those providing export services to China in particular. Previously, to send goods to China, businesses had to transport them by road to Yen Vien Station (Hanoi) or Dong Dang Station (Lang Son), then proceed with customs declarations for export. Now, businesses can directly declare customs procedures at the Binh Duong Customs Department, and Song Than Station can take the goods directly to the neighboring country. This significantly reduces time and costs for businesses.

Previously, in February 2023, the Vietnam Railways Corporation (VNR) also launched international multimodal operations at Kep Station (Bac Giang). In Phase 1 (2023-2024), VNR organized international multimodal trains on the Kep - Dong Dang (Lang Son, Vietnam) - Bang Tuong (China) route with an average frequency of 1.5 - 2 train pairs per day. This is considered a significant step in the development strategy to enhance the international multimodal transport capacity of Vietnam's railways, reduce the load on the Yen Vien (Hanoi) and Dong Dang international multimodal stations, and expedite customs clearance of goods. Cargo, especially agricultural products and fruits, can be quickly transported for export to China, avoiding the need for customs clearance at the border, which could affect the quality of goods.

When customs procedures can be carried out at logistics hubs or within industrial zones, import-export businesses can handle customs in the domestic area, as opposed to going to the border and waiting in line as before. This significantly reduces time and procedures for businesses, contributing to minimizing logistics costs and reducing the cost of products when they reach consumers. Simultaneously, it helps local areas develop their regional economies, while the railway also has the opportunity to increase freight revenue.

However, according to the representatives of Tien Khanh Import-Export Co., despite the advantages of rail transport such as smooth transport processes and lower transportation costs compared to other forms of transportation, concerns arise because the conditions, infrastructure, loading docks, and logistic services are outdated and inadequate. As a result, businesses still prioritize road transportation.

Moreover, some businesses are concerned that when the volume of goods increases, the railway faces many issues because Vietnam's railway infrastructure is outdated and seriously deteriorating. Transportation capacity is low due to limit ations in railway stations, loading yards, bridge load capacities, and a lack of connectivity with other modes of transportation, especially with seaports. The shortage of transport vehicles (locomotives and cargo cars) is also a significant challenge when facing a sudden increase in the volume of transported goods.