Businesses wanting to ship goods overseas will now spend less after a logistics company opened a so-called dry port at the Savan-Seno Special Economic Zone C in Savannakhet province in March.
General Manager of the Savan Pacifica Stream Development Company Limited, Mr Tee CheeSeng, told Vientiane Times yesterday the dry port could dispatch cargo to other countries using containers, under a system called the Less Container Load.
“We are now testing the dry port's logistics and are currently sending copper from the Sepon mine to overseas locations. We also expect to load eight containers of rubber produced in Laos to send to Malaysia and other countries in the region next week,” Mr Tee said.
“We can also solve the problem of exporting agricultural products such as cassava, rubber and rice, which we didn't export before. The port will be able to load cargo weighing at least 300kg, dispatched by several different businesses, into one container for export to their chosen destination. It will cost less and be faster,” he added.
He explained that in the past Laos had to use containers sourced from seaports in Thailand and Vietnam. The containers would be loaded up in Laos and then transported to coastal ports for onward shipment to other countries. This method meant that transport costs were very high.
The dry port also has its own customs unit where all the containers will be checked before being shipped, after which they will be in transit and do not need to be opened up and checked again.
“We've been trialling this system for three months and are trying to improve it. The dry port helps to cut the cost of logistics, which is especially important for Small and Medium Enterprises. Vegetables and other crops from Pakxong district in Champassak province as well as from other provinces can also be loaded into containers for export,” Mr Tee said.
As an example of the savings to be made in time and money, he said it would now take only two days to ship a container from LaemChabang seaport in Thailand to the dry port logistics area in Savannakhet, compared to five days previously. The cost would also be cut from US$4,320 to US$1,460 and there would be no need to pay a deposit of US$2,290.
Mr Tee said “The dry port will facilitate transportation and make things easier for businesses in Savannakhet province and the more than 40 companies with operations in the special zone.”
The dry port is located in Savan Park in Savan Seno Special Economic Zone C. It is the commercial and industrial hub for the gateway to the global market. Savan Park Zone C is a joint venture between the Lao government and Pacifica Stream Development Company Limited.
Speaking at a media seminar on the Asean Economic Community Vision 2025 yesterday, Deputy Director of the Foreign Trade Policy Department of the Industry and Commerce Ministry, MrSaysanaSayakone, said “The dry port will enable Laos to provide better services in the transport of goods and products, and we can also collect income from these services. It also means that we can transport agricultural products a lot more quickly.”
Source: Vientiane Times, dated 6 July 2016
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