Sun, 14th Jul 2024 20:11 (GMT +7)

World Bank approves $107 million to enhance inland waterway safety in Việt Nam

Sunday, 23/06/2024 | 16:11:51 [GMT +7] A  A

The newly approved southern region waterways and logistics corridor development project seeks to increase freight traffic and reduce travel time on the critical east-west and north-south transport corridors.

Boats travelling on the Chợ Gạo Canal, Tiền Giang Province. — VNA/VNS Photo

The World Bank has approved a US$107 million credit to enhance the capacity, efficiency, and safety of inland waterways in the southern region of Việt Nam, while also aiming to reduce greenhouse gas emissions in the transport sector.

The newly approved southern region waterways and logistics corridor development project seeks to increase freight traffic and reduce travel time on the critical east-west and north-south transport corridors.

This project will connect key production hubs with Việt Nam's major deep-water port, boosting export competitiveness.

According to Mariam Sherman, World Bank Country Director for Việt Nam, Cambodia, and Laos, waterways of Việt Nam's southern region have great potential to be a cheaper, greener, and safer transport mode.

This project directly support Việt Nam's ambitious goals of enhancing inland waterway transport competitiveness, reducing carbon emissions in the transport sector, and boosting the country’s trade competitiveness.

Upgrading the east-west transport corridor will cut the transport distance by approximately 30 per cent between the Mekong Delta's largest port in Cần Thơ and Việt Nam's busiest port in HCM City.

Improvements to the north-south transport corridor will directly connect the Mekong Delta and the hinterland with Việt Nam's primary deep-water port, facilitating international trade, reducing emissions, and lowering logistics costs.

Shifting to inland waterway freight transport is crucial for reducing carbon emissions in Việt Nam's transport sector.

Road freight, which accounts for about 80 per cent of greenhouse gas emissions in the transport sector, emits six times more carbon than waterway transport.

The project will also support the installation of navigation aids and the improvement of sharp bends on the waterway, enhancing safety.

The World Bank's 2022 country climate and development report for Việt Nam identifies promoting inland waterway transport as one of the most impactful measures to reduce greenhouse gas emissions in the transport sector.

The Mekong Delta is a key region for Việt Nam, leading the country in agricultural production and aquaculture for both domestic consumption and export.

Source: VNS