Decision No. 13/2008/QD-BGTVT dated August 6, 2008, approving adjustments and supplements to the master plan on development of Vietnam's Inland Waterway Transport up to 2020

DECISION

NO. 13/2008/QD-BGTVT OF AUGUST 6, 2008, APPROVING ADJUSTMENTS AND SUPPLEMENTS TO THE MASTER PLAN ON DEVELOPMENT OF VIETNAM'S INLAND WATERWAY TRANSPORT UP TO 2020

THE MINISTER OF TRANSPORT

Pursuant to the Government's Decree No. 51/ 2008/ND-CP of April 22, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Transport;

Pursuant to the Government's Decree No. 92/ 2006/ND-CP of September 7, 2006, on the formulation, evaluation, approval and management of socio-economic development master plans; and the Government's Decree No. 04/2008/ND-CP of January 11, 2008, amending and supplementing a number of articles of Decree No. 92/2006/ND-CP;

Pursuant to the Prime Minister's Decision No. 16/2000/QD-TTg of February 3,2000. approving the master plan on development of Vietnam's riverway transport up to 2020;

Pursuant to the Government Office's Document No. 6106/VPCP-CN of October 25. 2007, authorizing the Minister of Transport to evaluate and approve according to current regulations the adjustments and supplements to the master plan on development of Vietnam's riverway transport up to 2020:
Considering Vietnam Inland Waterway Administration's Report No. 834/TTr-CDS of June 25,2008, concerning the approval of adjustments and supplements to the master plan on development of Vietnam's inland waterway transport up to 2020;

At the proposal of the director of the Planning and Investment Department.

DECIDES:

Article 1.- To approve adjustments and supplements to the master plan on development of Vietnam's inland waterway transport up to 2020, with the following principal contents:

I. VIEWPOINTS AND OBJECTIVES FOR THE DEVELOPMENT OF VIETNAM'S INLAND WATERWAY TRANSPORT UP TO 2020

1. Development viewpoints

- To make the best use of natural conditions and, at the same time, make planned intensive investment in order to take full advantage of inland waterway transport (transport of cargo in bulk, extra-long and extra-heavy cargo with low freight, minimizing environmental pollution) for the development of inland waterway transport to meet socio-economic development and international economic integration requirements and ensure sustainable development.

- To develop in a coordinated manner waterway transport in terms of channels, routes, ports, wharves, loading and unloading equipment, means of transport and managerial capacity so as to meet the requirements on cargo and passenger transport with safety, increasingly improved quality and at reasonable freight and fare rates.

- To invest in inland waterway infrastructure linked with other transport networks in order to form a continuous and smooth transport system. To combine the development of inland waterway transport with other sectors such as irrigation, hydropower, etc.

- To develop a fleet of new ships and a rational structure suitable to waterway channels, ensuring transport safety.

- To diversify sources of investment capital for inland waterway infrastructure development. The State will invest in renovating, upgrading and maintaining waterway channels and routes and, together with enterprises, invest in important key ports.

2. Development objectives

- Transport:

To meet social requirements on high-quality and competitive transport services at reasonable freight and fare rates; to expand some new transport routes such as coastal, international, container and LASH routes. To develop a fleet of new ships (with an average age of 5-7 years) and a rational structure (pulling and propelling ships: 30-35%; self-propelled ships: 65-70%); the fleet's total tonnage will be 12 million tons.

- Infrastructure:

To extend the length of managed and operated inland waterways; to ensure the same level of navigation in some major waterway channels and routes: to modernize the signaling system; to build canals for river sections crossing big urban centers. To modernize some major ports in key economic zones and special-purpose ports: to increase the rate of mechanized loading and unloading in local ports; to build some passenger ports and wharves.

- Building of new inland waterway vessels:

To develop shipyards in the northern delta and MekongRiver delta regions which will be capable of building and repairing all inland waterway vessels.

II. PRINCIPAL CONTENTS OF THE MASTER PLAN

1. Transport development planning (see Appendix 1):

- The annual cargo transport growth rate will be 6.73-7.02% on average in tons and 7.02-9.6% in ton-kilometers; 6.93-8.32% in passengers and 8.3-11% in passenger-kilometers. Specifically, by 2020, 190-210 million tons of cargo will be handled and 530-540 million passengers transported.

- Transport fleet: By 2020, there will be 12 million tons of crafts and one million passenger seats, with self-propelled ships accounting for 65% and pulling and propelling ships. 35%.

+ On northern waterway routes: Pulling and propelling ships: 1,200-1,600 tons; self-propelled ships: d"500 tons; riverway-cum-seaway ships: 1,000-2,000 tons; a normal-speed passenger ship will have 50-120 seats; and an express passenger ship will have 50-90 seats.

+ On MekongRiver delta routes: Pulling and propelling ships: 600-1.200 tons; self-propelled ships: d"500 tons; riverway-cum-seaway ships: 1,000-2,000 tons: a normal-speed passenger ship will have 50-120 seals: and an express passenger ship will have 30-120 seals.

2. Infrastructure development planning

a/Channels and routes:

On the basis of the routes specified in Decision No. 16/2000/QD-TTg of February 3. 2000. to supplement the planning on some routes and adjust technical parameters and grades of the following routes:

In the northern region (see Appendix 2):

To adjust the planning on 5 routes: Cua Day­Ninh Binh. Lach Giang-Hanoi, Quang Ninh-Ninh Binh (through Dao river, Hai Phong). Quang Ninh-Hai Phong-Hanoi (through Duong river), and Quang Ninh-Pha Lai.

- To supplement the planning on 7 routes: Quang Ninh-Ninh Binh through Lach Tray Estuary (in order to reduce cargo volumes transported through Dao river, Hai Phong); Hanoi-Viet Tri-Lao Cai; Viet Tri-Tuyen Quang-Na Hang; Hong Da T-junction-Hoa Binh port; Pha Lai-Da Phuc; Pha Lai-A Lu; and Ninh Binh-Thanh Hoa.

In the southern region (see Appendix 3):

To adjust the planning on 4 routes: Cua Tieu-Cambodia, Dinh An Estuary-Tan Chau, Sai Gon-Ca Mau (through Xa No canal), and Sai Gon-Kien Luong (through Lap Vo canal).

To supplement the planning on 10 routes: Sai Gon-Ca Mau (coastal); Sai Gon-Kien Luong (crossing Dong Thap Muoi and Long Xuyen Quadrangle); Sai Gon-Ben Suc; Sai Gon-Ben Keo; Sai Gon-Moc Hoa: Moc Hoa-Ha Tien: Sai Gon-Hieu Liem; Phuoc Xuyen Canal -Canal 28: Rach Gia-Ca Mau; and Vung Tau-Thi Vai-Mekong River delta.

In Central Vietnam (see Appendix 4):

To supplement the planning on 10 routes: Lach Trao-Ham Rons. LachSung-LenBridge. Caa

Hoi-Ben Thuy-Do Luong, CuaSot-NghenBridge, Cua Gianh-Quang Truong, Nhat Le Estuary-Long Dai Bridge. Cua Viet-Dap Tran (Spillway), Thuan An-Tuan T-junction, Hoi An-Cua Dai-Cu Lao Tram, and Ky Ha-Cua Han (coastal).

c/ Ports and wharves:

In the northern region (see Appendix 5):

- Cargo ports: To adjust the size of 7 pons and supplement the planning on 34 ports, including 5 new ports.

- Passenger ports: To adjust the size of 2 ports and supplement the planning on 4 ports.

- In the Hanoi region: To Study the transformation of Hanoi port into the one serving tourism in combination with clean cargo loading and unloading. To turn Phu Dong port, into the one specialized in container loading and unloading. In the Nam Dinh region. Nam Dinh port will be transformed into a passenger and clean cargo port; the cargo loading and unloading port will be relocated to a suitable place.

In the southern region (see Appendix 6):

- Cao Lanh, My Thoi and Vinh Long ports were approved by the Prime Minister in Decision No. 1024/2005/QD-TTg on seaport group No. 6 (which are not included in the list of inland waterway ports under this master plan).

- To supplement the planning on 26 cargo ports, including 5 new ones, and 15 passenger ports.

In Central Vietnam (see Appendix 7):

To supplement the planning on 6 cargo ports, including one new port.

3. Total capital required for infrastructure investment (see Appendix 8)

a/ The total capital required for the development of inland waterway transport infrastructure until 2010 and during 2011-2020 is estimated at VND 36,780 billion;

b/ List and order of priority projects (see Appendix 9).

4. Major solutions and policies

a/ Infrastructure development investment policies:

- The State will invest in renovating, upgrading and maintaining waterway channels and routes and developing major ports in important areas in order to ensure the proactive operation of the system of inland waterway ports for socio-economic development.

- The State encourages and facilitates domestic and foreign organizations and individuals to invest capital in building works on waterway transport routes and ports under the approved master plan in the form of BOT contract or joint venture according to current regulations.

- For state budget-funded new ports and wharves, the State will gradually allow enterprises to hire infrastructure for commercial operation, and recover part of investment capital.

b/Transport development policies:

- The State encourages different economic sectors to provide transport services. State enterprises will hold only 10-15% of the market share in order to play their pivotal role, concentrating on major commodity items.

- To further specify such specialized laws as the Law on Cooperatives and the Law on Enterprises for promoting production and creating a healthy competitive environment in transport activities, first of all a model charter for transport cooperatives.

c/ Human resource development policies:

- To intensify investment in specialized training institutions and enable them to keep up with the transport sector's development, acquire and apply modem training sciences and technologies to meet the country's development and international economic integration requirements.

- To adjust in an appropriate manner training durations and contents at each level, especially for professional certificates of shipmasters, chief engineers and specialized technical managers.

- To formulate criteria for state management titles.

- To provide basic and advanced training for managers who have not yet obtained professional qualifications as required.

d/ Renewal of specialized state management organization:

- To reorganize the structure of the Vietnam Inland Waterway Administration according to the Law on Inland Waterway Transport as an agency performing specialized state management nationwide.

- On the basis of reviewing, assessing and drawing experience in the pilot equitization of riverway management sections, to study and propose suitable models, mechanisms and policies applicable to the remaining riverway management sections.

- To increase the number of port authorities for managing centrally managed transport routes. The number of port authorities must suit geographical characteristics and operation of regional ports and wharves. In parallel with their reorganization, to pay attention to financial mechanisms applicable to port authorities.

- To increase inspection forces to reach each inspector's management norms based on the length of rivers and canals. To apply packaged staff and finance mechanisms in and. at the same time, define specific tasks of waterway inspectorates in order to avoid overlapping the functions and tasks of waterway police and registry offices.

Article 2.- Organization of management and implementation of the master plan

1. Ministries, branches and provincial/ municipal People's Committees shall, within the ambit of their functions, tasks and powers, coordinate with the Ministry of Transport in implementing the objectives of the master plan on inland waterway transport development, ensuring uniformity and synchrony with the implementation of socio-economic development plans of branches and localities.

2. Management of the master plan

- The Ministry of Transport shall decide the adjustment of ports under the master plan. In case the adjustment or supplementation of the master plan is proposed by investors and provincial-level People's Committees based on their actual conditions, Vietnam Inland Waterway Administration shall submit such adjustment or supplementation proposal to the Ministry for consideration and approval according to its competence to meet socio-economic development requirements.

- The Vietnam Inland Waterway Administration is responsible before the Minister of Transport for managing the master plan and coordinating with local functional agencies in organizing the implementation of the approved master plan.

- Investments in renovating, upgrading or building inland waterway channels and routes as well as ports and wharves must suit the approved master plan and comply with investment and construction management regulations.

- Before approving their local inland waterway transport development plannings. People's Committees of provinces and cities shall reach agreement with the Vietnam Inland Waterway Administration in order to avoid overlapped investment and ensure uniformity from the central to local levels.

- The building of river-spanning works and irrigation works on waterway transport routes such as road and railway bridges, power grids, water-partition and -taking sluices, etc., must be consulted with the Vietnam Inland Waterway Administration in order to ensure the suitability of their works' sizes to inland waterway grades under planning.

Article 3.- This Decision takes effect 15 days after its publication in "CONG BAO."

Article 4.- The director of the Ministry's Office, the director of the Planning and Investment Department, the director of the Vietnam Inland Waterway Administration and heads of concerned units shall implement this Decision.

APPENDIX 1

TRANSPORT CRITERIA

(Attached to the Transport Minister's Decision No. 13/2008/QD-BGTVT of August 6. 2008)

INLAND WATERWAY TRANSPORT AND CIRCULATION VOLUME
(including domestic and international transport)

INLAND WATERWAY TRANSPORT AND CIRCULATION VOLUME

(Based on general forecasts under the project on additional adjustments to Vietnam's transport development strategy up to 2020)

APPENDIX 2

ADJUSTMENT AND SUPPLEMENTATION OF THE PLANNING ON MAJOR WATERWAY CHANNELS AND ROUTES IN THE NORTHERN REGION UP TO 2020

(Attached to the Transport Minister's Decision No. 13/2008/QD-BGTVT of August 6, 2008)

APPENDIX 3

ADJUSTMENT AND SUPPLEMENTATION OF THE PLANNING ON MAJOR WATERWAY CHANNELS AND ROUTES IN THE SOUTHERN REGION UP TO 2020

(Attached to the Transport Minister's Decision So. 13/2008/QD-BGTVT of August 6, 2008)

APPENDIX 4

SUPPLEMENTATION OF THE PLANNING ON MAJOR WATERWAY CHANNELS AND ROUTES IN CENTRAL VIETNAM UP TO 2020

(Attached to the Transport Minister's Decision No. 13/2008/QD-Bộ Giao thông vận tải of August 6, 2008)