lOMoARcPSD|39211872 HO CHI MINH CITY INTERNATIONAL UNIVERSITY SCHOOL OF INDUSTRIAL ENGINEERING & MANAGEMENT Course: International Transportation and Logistics GROUP PROJECT Comprehensive transportation and logistics analysis of Buon Ma Thuot City Group of class: Wednesday class - Group class 3 Group number: G08 List of Full name – ID Phạm Khôi Nguyên – IELSIU19222 Huỳnh Thiện Nhân – IELSIU19224 Hồ Văn Việt Nhật – IELSIU19226 Trần Huỳnh Tố Nhi – IELSIU19054 Vũ Thị Ngọc Nhi – IELSIU19055 HCM, December 2022 1 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 Table of Contents I. Transport infrastructure of Buon Ma Thuot city for available modes of transport description. The shipment’s multimodal transport operation. External factors’ influences on Vietnam’s logistics industry and solution.
55 2 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 Table of Figures FIGURE 1: BUON MA THUOT CITY MAP. 6 FIGURE 2: NATIONAL HIGHWAY 14 CONNECTION. 9 FIGURE 3: NATIONAL HIGHWAY 16 CONNECTION. 10 FIGURE 4: NATIONAL HIGHWAY 27 CONNECTION.
10 FIGURE 5: THE DETAILED SHIPMENT IN ROUTE 1. 18 FIGURE 6: THE DETAILED SCHEDULE OF SHIPMENT FROM CAT LAI TERMINAL TO LAUSANNE BY MAERSK. 22 FIGURE 7: THE COST QUOTED BY MAERSK. 22 FIGURE 8: THE DETAILED SHIPMENT IN ROUTE 2.
24 FIGURE 9: THE DETAILED SHIPMENT IN ROUTE 3. 28 FIGURE 10: MACRO LOGISTICS SYSTEM. 43 FIGURE 11: LOGISTIC INFRASTRUCTURE IN RELATION TO GDP AND INVESTMENTS. 44 3 Downloaded by mon hon (monmon1@gmail.
Objective: This project has several objectives. One of the objectives is to research and describe the transport infrastructure of Buon Ma Thuot City for its available transportation modes. Another objective is to recommend 3 alternatives for the multimodal transport operation of a shipment from Buon Ma Thuot City to a European city. Finally, this project evaluates some external factors’ influences on Vietnam’s logistics industry and recommends at least 3 solutions for further improvement.
Scope and limitation: 2. Scope of work: To be done Description Timeline Task 1 Describe transport infrastructure of Buon Ma Thuot City for available modes of transport Road transport (overview, main road, infrastructure Week 4, 5 condition, development orientation) Air transport (overview, routes, operation agency, Week 6, 7 infrastructure condition, development orientation) Task 2 Suggest 3 options for multimodal transport operation of a shipment (LCL or FCL) from Buon Ma Thuot to a European city 4 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 Define framework Week 4 Search case, purchase order, sales contract, trade Week 4 document related to coffee cargo Research cargo specification Week 5 Clarify shipment info and cargo specification Week 5 Find possible routes and corresponding transportation Week 6 modes Find route information (distance, lead time, cost, Week 7 document, 3 PLs, etc.) Suggest routes and corresponding 3 PL Week 8 Evaluation and recommendation Week 8 Task 3 Evaluate the impact of some external factors’ influences on Vietnam’s logistics industry and suggest at least 3 solutions for further improvement List external factors that impact Vietnam’s logistics Week 4 industry Evaluate how these factors impact Vietnam’s logistics Week 5, 6 industry in detail Suggest solutions to deal with the influences Week 7, 8 5 Downloaded by mon hon (monmon1@gmail. Buon Ma Thuot City overview Figure 1: Buon Ma Thuot City Map 6 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 Buon Ma Thuot city, situated in the Central Highland of Vietnam, is known as the capital city of Dak Lak province. It accounts for about 2.87% of the natural area of Dak Lak province.
The city boundaries are defined as follows: Cu M'Gar district in The North borders, Krong Ana and Cu Kuin districts In the Southern border, Krong Pak district in the eastern borders; Buon Don and Cu Jut districts (Dak Nong province) in the western borders. Buon Ma Thuot city is divided into 13 wards and 8 communes. Several industrial parks and clusters are located surrounding the city such as Hoa Phu, Phu Xuan Industrial Park, Ea Dar, Tan An, and Ea H’Leo industrial cluster, which attract a large number of investors and contribute to the area's economy. With a large number of industrial parks and groups, the demand for transporting goods to factories and for its customers in these sites increases.
This attracts many logistics service providers in Buon Ma Thuot City and Dak Lak province. Buon Ma Thuot has its advantages in coffee production, with an output of over 550,000 tons of green coffee per year. Another principal industrial crop in Dak Lak is rubber, which greatly impacts the region's growth, stability, and export turnover, with an annual output of over 34000 tons. The products are exported to several nations in the world including Germany, the Netherlands, Malaysia, the United States, and China.
Overall, the agricultural products of Buon Ma Thuot - Dak Lak are sold to more than 68 nations and territories worldwide, particularly in major markets like the United Kingdom, France, the US, and Japan which have high standards for product quality and food safety. Buon Ma Thuot - Dak Lak currently has more than 90 import-export businesses, 21 of which engage in the regular import-export business, and 3 businesses with foreign investment. In the 2016–2020 period, exports of USD 2,898 million reached 76.8% of the plan (USD 3,765 million), growing at an average rate of 5% per year; imports of USD 471 million increased at an average rate of 108.9% per year, reaching 636.5% of the plan (USD 74 million). 7 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 II.
Transport infrastructure of Buon Ma Thuot city for available modes of transport description 1. Overview The road transport system of Buon Ma Thuot City has 3 main expressways and several minor road networks which help the city easily do freight transportation between Buon Ma Thuot and its neighboring regions and connect to the coastal city which has a harbor to conduct sea transportation to other regions of Vietnam and foreign nations. Buon Ma Thuot's road infrastructure basically satisfies the people and freight demand, but the road condition is badly degraded. The Buon Ma Thuot road transportation has its regulations that the peak time frame of freight transportation operates between 6 a.
The restriction of peak hours is intended to organize traffic efficiently and improve urban traffic safety. Buon Ma Thuot; gradually and successfully implement provincial laws governing urban road transportation operations and the percentage of passenger vehicles that can accommodate individuals with impairments traveling there. Main roads Buon Ma Thuot City possesses the intersection of the three National Highways including National Highways 14, 26, and 27. National Highway 14 connects the cities in the North such as Pleiku city (178 km), Kon Tum city (228 km), Da Nang (520 km), and cities in the South including Dak Nong (83.5 km), Binh Phuoc (220 km), Binh Duong (291 km), Ho Chi Minh City (363 km) in the South of the city.
National Highway 26 links the city to the East which has coastal cities, connecting Ninh Hoa (154 km) and Nha Trang (187 km) which is the 8 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 national marine tourism center and the hub of international sea transportation with the Van Phong deep-water port, considered as a critical sea gateway of the Central Highlands. National Highway 27 connects the city to Da Lat City (211 km) and to Phan Rang - Thap Cham City (314 km). Currently, the national highway is small and degraded, with many regular traffic accidents. Figure 2: National Highway 14 connection 9 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 Figure 3: National Highway 16 connection Figure 4: National Highway 27 connection 10 Downloaded by mon hon (monmon1@gmail.
Infrastructure condition The transport network in the province is quite complete, meeting the demand for goods freighting and the people's travel needs, which creates favorable conditions for cooperation and development among the provinces in several fields. However, in comparison to other regions in the country, the road traffic system in Buon Ma Thuot City and Dak Lak province is still on the small scale. Many roads that have been constructed and operated for more than 15 years are degraded currently but have not been repaired and upgraded. The road transport network only serves inter-provincial and inter-regional connectivity in the Central Highlands and Central coastal regions, furthermore, the infrastructure in the Cambodia-Laos-Vietnam development triangle has not yet met the requirement.
The national highway system has not been subsidized for renovation and upgrading. This national highway condition in Buon Ma Thuot City is degraded, which causes goods trade to slow, spending a long time to transport goods, and logistics costs high. This led to losing considerable competitive opportunities for goods, and agricultural products which cannot be transported for too long. As a result, the bad road infrastructure hinders the goods and services growth and the province’s economic development.
Development orientation At the end of 2019, the Dak Lak Provincial Party Committee issued a policy to build the Khanh Hoa - Buon Ma Thuot expressway which has a length of 117.5 km, a total investment of nearly VND 22,000 billion, is expected to start before November 30, 2023, and be complete in December. The expressway is expected to decrease the travel time between the two areas and at the same time support the province's socio-economic growth. The expressway’s starting point is the intersection of national highway 26B and national highway 11 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 1, Nam Van Phong port area, Ninh Hoa town (Khanh Hoa). The endpoint will intersect Ho Chi Minh road to avoid the east of Buon Ma Thuot city (Dak Lak).
Overview Buon Ma Thuoc Airport is situated near the provincial capital Buon Ma Thuot in Đắk Lắk province, which can be accessed by National Highway 27. The airport has another name , Phung-Duc Airport, which possesses an active runway and a second incomplete runway that cannot be operated. The airport plays a crucial role in inter-regional traffic, connecting the Central Highlands with the Southeast, Central, and South Central Coast. The airport This airport is expected to be handled 1,500,000 passengers in 2022.
The airport runway has a length of 3,000 meters and a width of 45 meters with auxiliary equipment including night lights, ladder trucks, forklifts, and conveyors to ensure that this airport can meet the operation of commercial aircraft such as A320, A321, and modern military aircraft day and night. The airport capacity is designed to serve business development tasks. economy, security, and defense in the Central Highlands region.2 Route and operating agency Buon Ma Thuot airport connects to other domestic airports across Vietnam regions, which play an important role in the city and Dak Lak province to transport freight and passenger to other Vietnam regions. 12 Downloaded by mon hon (monmon1@gmail.com) lOMoARcPSD|39211872 Route Operating agency Distance Lead time (km) (hour) Buon Ma Thuot - Tan Son Nhat VietJet Air, Vietnam 260 1 International Airport, Ho Chi Minh City Airlines, Pacific Airlines Buon Ma Thuot - Da Nang International VietJet Air, Vietnam 378 0.9 Airport Airlines, Pacific Airlines Buon Ma Thuot - Noi Bai International VietJet Air, Vietnam 978 1.8 Airport, Hanoi Airlines, Bamboo Airways Buon Ma Thuot - Vinh Airport, Nghe An VietJet Air, Vietnam 724 1.4 Airlines, Bamboo Airways Buon Ma Thuot - Tho Xuan Airport, Thanh Vietnam Airlines 850 Hoa Buon Ma Thuot - Cat Bi International VietJet Air, Vietnam 915 Airport, Hai Phong Airlines Buon Ma Thuot - Chu Lai Airport, Quang VietJet Air, Vietnam 313 Nam.
Airlines Table 1: Domestics Buon Ma Thuot air route 13 Downloaded by mon hon (monmon1@gmail. Runway After many upgrades and renovations, Buon Ma Thuot airport currently possesses 01 take-off and a landing runway with an area of 3,000mx 45m, with the symbol 09/27. Along with that is a taxiway with a size of 209m x 18m, which connects the take-off and landing runways with the apron.