Vietnam and Singapore firms set up logistics joint venture

The joint venture will specialize in providing warehouse, loading and unloading, packing and customs clearance services and other services related to road, rail and waterway transportation at Quang Binh – Dinh Vu ICD (Inland Container Depot) in Hai Phong.

In its first phase, the company will invest in transport and customs clearance services on an area of 10 hectares at the ICD.

Quang Binh Import and Export is a producer and distributor of fertilizer, chemicals, agro-aqua products, food and beverages, bonded warehouse and yard service, and import-export and import & re-export service.

Ranked among the top 500 largest firms in Vietnam by the Vietnam Report Company (VNR) last year, it is also a leading provider of warehousing and logistics services in Hai Phong.

Understanding the importance of ICDs in the interntional logistics and supply chain, the company decided to invest in the Quang Binh – Dinh Vu ICD last year.

The Quang Binh-Dinh Vu ICD will be developed in three phases, with the first phase including a warehouse capable of handling 100,000 tons of goods per year and yard’s capacity of 250,000 TEU per year. Once completed, Quang Binh-Dinh Vu will be one of the biggest ICDs in northern Vietnam.

ICDs are inland customs clearance points used by importers and exporters. A combination of customs departments, carriers, freight forwarders and customs brokers allow exporters and importers to save time and money.

The joint venture with Transworld GLS Vietnam aims to make the operation of the Quang Binh-Dinh Vu ICD more effective.

Transworld Singapore is one of the fastest growing companies in Asia and owns nearly 40 container ships and more than 30,000 containers, particularly well-known for its refrigerated container.

Transworld QBV ICD JSC is looking to develop Quang Binh – Dinh Vu ICD to be an enclosed logistics chain service that entails depot, yard, warehouse, transportation, LOLO equipment and auxiliary infrastructure, serving as the biggest transit and customs clearance point in Northern Vietnam.

Speaking at the signing ceremony, Mahesh Sivaswamy, chairman of Transworld Singapore, said: “Starting operation, the Transworld QBV ICD will contribute to cost reduction for enterprises by speeding up and improving efficient clearance service at the port. We engage that the volume of import and export cargo going through our depot is going to significantly increase, making a positive contribution to the budget of Hai Phong City.”