Overcoming the challenges of the market in 2023, Gemadept (Stock code: GMD), the leading enterprise in Vietnam's port operation and logistics industry, always promotes the spirit of pioneering and innovation. It also has many outstanding solutions to promote efficiency and optimize resources, contributing to improving the quality of maritime services and enhancing Vietnam's position in the global value chain.
The year 2023 was shrouded in uncertainty, marked by global geopolitical instability due to ongoing conflicts and major economies, including the US and China, recovered rather slowly after the Covid-19 pandemic. Even Vietnam's economy fell short of its growth target. Forecasts from reputable organizations all predicted that 2024 will continue to be a difficult and challenging year.
The past three years have been a rollercoaster for the global seaport industry. In 2021, charter rates skyrocketed and congestion happened at ports due to supply chain disruptions. However, by 2023, the opposite has happened, demand for goods has decreased, and many large shipping lines have been forced to implement cutbacks and restructure their routes.
Facing an extremely unpredictable market with many uncertain variables, Gemadept's unwavering spirit to conquer challenges and excel drives them to continuously improve processes, enhance productivity, and embrace new technologies. This has greatly improve the service quality, achieved through close collaboration with customers and partners, sharing burdens and fostering mutual growth.
OVERCOMING THE WAVES
Overcoming difficulties and challenges, Gemadept has not only ensured the smooth production and business activities of the entire port system stretching from North to South, but has also opening its doors to new service routes and welcoming the world's most advanced vessels.
The successful operation of the world's largest and smartest container vessel, M/V OOCL Spain, by Gemalink Port on its maiden voyage connecting Asia to Europe marked a huge milestone in 2023. The OOCL Spain has the world's largest carrying capacity of 24,188 TEU (more than 232,000 DWT), with a total length of 399.99 meters and width of 61.3 meters. Being chosen as the first port of call for the M/V OOCL Spain was a major honor, not only for Gemadept but also for our country's maritime industry, and has become a source of immense pride.
Furthermore, Gemalink has completed dredging the approach channel to a depth of -16.5 meters, while the Ministry of Transport has dredged the Cai Mep-Thi Vai channel to -15.5 meters, ensuring the port can accommodate the largest vessels. Since coming into operation, Gemalink has consistently broken operational records, achieving the highest loading and unloading productivity in the region to provide outstanding service quality worthy of a modern and professional deep-sea port in the region.
Continuing the efforts to expand its operation, in May of 2023, Gemadept has put into operation Phase 2 of Nam Dinh Vu Port Cluster at the vital trade gateway of Hai Phong City.
With doubled capacity, berth and container yards, synchronous construction and investment in infrastructure and equipment, and having technology compliant with international standards, the combined Nam Dinh Vu phases 1 and 2 can simultaneously accommodate 4 to 5 vessels up to 48,000 DWT (equivalent to 2,500-3,000 TEUs). This enhanced capacity ensures the Port meet the evolving needs of partner shipping lines.
Responding proactively and flexibly to the general difficulties of the economy, Gemadept has maintained its strong support from customers and partners, maintain its market share, and continued to expand its service chains in key markets.
THE PIONEER STEP
In 2023, Vietnam reached the pinnacle of its diplomatic relations by establishing "Comprehensive Strategic Partnerships" with all six of the world's largest economies: the United States, China, Russia, Japan, Korea, and India.
Ongoing implementation of Free Trade Agreements (FTAs), particularly new generation agreements like CPTPP, EVFTA, and RCEP, promises to solidify and grow Vietnam's economic and trade ties with partner countries. These agreements' tariff reduction roadmaps will further boost trade by fostering the flow of goods through Vietnamese seaports, not only strengthening economic partnerships but also stimulating the development of its maritime infrastructure.
Beyond its FTAs, Vietnam boasts a skilled workforce, competitive labor costs, and a developing transportation network – all of which draw corporations and their supply chains. This influx fuels Vietnam's manufacturing engine, creating a surging demand for efficient import and export logistics, opening doors for those ready to navigate the region's booming trade.
In parallel with this shifting trend, major manufacturers worldwide are raising the bar for domestic transportation and logistics partners, demanding both advanced seaport infrastructure and a focus on digitalization and greening.
Gemadept has partnered with the Ministry of Transport, the Vietnam Maritime Administration, and other port businesses to actively contribute to the development of Vietnam's maritime infrastructure. In the near future, there is a project to dredge the Ha Nam canal to a channel depth of -8.5m, allowing access for 48,000 DWT vessels. This will attract many shipping lines to the Dinh Vu – Hai Phong area and position Vietnam to capitalize on the thriving intra-Asia trade route in the near future.
Furthermore, Nam Dinh Vu port phase 3 will be starting construction in 2024. When all 3 phases are completed, Nam Dinh Vu Port will be the largest river port in the Northern region, able to receive the largest feeder ships and intra-Asia vessels in the river port area. It will then stand as the key gateway connecting to the region's deep-sea ports.
In the South, Gemalink is actively preparing for phase 2 of its deep-sea port, with meticulous research and procedural steps well underway. This expansion will see operating capacity and berth length doubled, unlocking greater trade opportunities between Vietnam and the world.
ENHANCING VALUE
Driven by a relentless pursuit of operational efficiency, enhanced competitiveness, and a commitment to meeting evolving customer and partner demands, Gemadept has consistently implemented and continues to refine most state-of-the-art technological solutions. These include the SmartPort application, alongside the innovative RiverGate and SmartGate platforms.
These applications' introduction offers increased value to customers by significantly reducing time and costs, and improve the user experience. Moving forward, Gemadept will advance further in technology and digital transformation, continuously creating value for all stakeholders.
Alongside digitalization, "greenification" is another key and pioneering initiative in developing Gemadept's Port and Logistics Ecosystem. This commitment to sustainability not only contributes to environmental protection but also positions Gemadept as a pioneer in the industry.
Over the past years, Gemadept has undertaken concrete and practical initiatives to protect the environment, empower society, and meet Green standards, ultimately paving the way for Vietnamese goods to reach major global markets. This commitment is shown in several key actions: conducting greenhouse gas inventories for emission reduction at the ports, prioritizing renewable energy use in ports and distribution centers within the Ecosystem, initiating and coordinating with partners to develop the "Seed for Sea" mangrove planting program in the Mekong Delta, developing the Eco-Port model at Dung Quat Port, which leverages advanced technology and applying advanced technology flexible management practices to optimize productivity and minimize environmental impact. Through these efforts, Gemadept Port and Logistics Ecosystem strives to become a “green link” in the global supply chain
With many efforts and achievements in operation, Gemadept and 3 other Vietnamese representatives were honored in Forbes Asia's Best Under A Billion list (best businesses with revenue under 1 billion USD in Asia) in 2023. This is a testament to Gemadept’s dedicated efforts and consistent operational achievements amidst challenging times. This recognition not only shines a spotlight on Gemadept's ability to navigate difficulties but also serves as a powerful source of motivation and inspiration, elevating the global standing of Vietnamese businesses.
Firmly overcoming the waves, moving forward steadily in a period of many difficulties and challenges in the world, the region and the port – logistics industry, Gemadept deserves the recognition as a pioneering enterprise, actively contributing to Vietnam's ascent in the global value chain.
