Catalog

Port's Star Rises
ADB Review [ December 2004 ]

With increased economic integration in the Greater Mekong Subregion, the port of Da Nang is growing in importance as a modern trading hub

By Ian Gill, (igill@adb.org)
Principal External Relations Specialist

GEARING UP Da Nang port is being upgraded to meet anticipated demand from neighboring countries in the Greater Mekong Subregion.

DA NANG, VIET NAM, From the 17th century, the port of Hoi An—just 30 kilometers (km) south of Da Nang— enjoyed preeminence with Dutch, Portuguese, Chinese, and Japanese traders because of its location.

Today, Da Nang’s star is also rising because of its location—only this time, much of the impetus is coming from inland. The port’s position at the eastern end of the East- West Economic Corridor—which links Viet Nam to the Lao People’s Democratic Republic (Lao PDR), Thailand, and Myanmar—means its stature will grow with the increasing economic integration of the Greater Mekong Subregion (GMS).

According to the port’s Vice-Director, Nguyen Xuan Dung, “We are enhancing our infrastructure and hope that in the year 2006, when most of the East-West Economic Corridor project is completed, we can boost tourism and increase trade with our neighbors, particularly Thailand and the Lao PDR as well as our own Central Region.”

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Tunnel to Opportunity

A major component of the East-West Economic Corridor that will help accelerate growth is the $200 million Hai Van tunnel through a mountain north of Da Nang. The mountain stands on the section of the East- West Economic Corridor that is also Highway No. 1, which joins the North with the South, Hanoi with Ho Chi Minh City.

FORMER STAR Da Nang's predecessor as a port, Hoi An, is now a tourist resort

At present, using the steep, narrow, and winding 22-km road up and down the mountain can be hazardous and time-consuming. In the rainy season, falling rocks are frequent, making this the most dangerous segment of the road as well as difficult and costly to maintain. A heavy truck can take up to 2 hours to negotiate the pass.

A two-lane road through the new 6.3-km tunnel—billed as Southeast Asia’s longest —will not only be safer but will also cut travel time and costs significantly. The tunnel is due to open in mid-2005. The project is being financed by the Japan Bank for International Cooperation (JBIC).

Speaking above the din of construction inside the tunnel, Project Manager Ichizuru Ishimoto says that demand is projected to rise within a few years to a capacity of 10,000 vehicles a day, and that a second tunnel may be needed in the future. Currently, some 3,500 vehicles use the mountain road daily.

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Eye on Future Needs

"We are enhancing our infrastructure and hope that in the year 2006, when most of the East-West Corridor project is completed, we can boost tourism and increase trade with our neighbors, particularly Thailand and the Lao PDR as well as our own Central Region"

- Nguyen Xuan Dung
Vice-Director, Da Nang Port

The huge increase in traffic will reflect growth in both trade and tourism. On the trade side, Mr. Nguyen says the international port has undergone considerable upgrading in the past few years to handle future needs.

The port has added a breakwater, a container berth, and associated handling equipment. A bridge has been built across the Han River, and an access road to the main highway has been upgraded. JBIC has also financed much of the new work.

In 2004, the international port—the third biggest in Viet Nam after those in Ho Chi Minh City and Haiphong—expects to handle 2.4 million tons of cargo. This figure is projected to rise significantly when transit traffic takes off after the completion of the East-West Economic Corridor and related bridges and tunnels.

The tunnel and improved road will add momentum to Viet Nam’s current tourism drive. Enhanced infrastructure and upgrading of hotels will also help boost visitor arrivals, says Ngo Hoa, Vice-Chairman of the People’s Committee of Thua Thien Hue Province. Of the area’s attractions, he notes that the Imperial City of Hue, the old town of Hoi An, and My Son Holy Land are designated World Heritage sites by the United Nations Educational, Scientific, and Cultural Organization (UNESCO). The Central Region also boasts beaches and ecotourism sites. Festivals abound, and Da Nang, for example, is hosting a “tourism year” in 2005.

For Hoi An, history has come full circle. Many of its historic buildings, which were once full of traders and sailors, have been transformed into art shops, boutiques, and cafes that are now packed with tourists.

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