Friday , June 21 2024

HCMC transport department mulls $1.3-bln renovation of roads leading to ports

The HCMC Department of Transport wants to upgrade 11 roads to improve connectivity with five ports and has sent a proposal to the administration seeking approval.

The VND30.5 trillion (US$1.3 billion) they are budgeted to cost could be raised by increasing the public spending proposed in 2021-25, the department said.

The five ports for which it plans to improve connectivity are Phu Huu and Cat Lai in Thu Duc City, Sai Gon in District 4, Tan Thuan in District 7, and Hiep Phuoc in Nha Be District.

The roads leading to them carry huge container-truck traffic but are all narrow and have been degraded for years.

The city started to collect seaport infrastructure fees on a trial basis in June and formalized it in April this year.

The lowest fee of VND7,500 ($0.64) per ton applies to goods not transported in containers, and the highest of VND2.2 million to 40-foot containers after all were halved in August.

As of August 18, the latest date for which figures are available, almost VND1.1 trillion had been collected.

The city has said the port infrastructure fees will be used to build bridges and upgrade major roads near ports to reduce congestion and ease cargo transport.

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