YCH Group, T&T Group breaks ground for US$200m Vietnam superport
HOMEGROWN logistics giant YCH Group announced on Friday (Dec 24) that it has broken ground for a US$200 million multimodal logistics hub in Hanoi with its joint venture partner, Vietnamese conglomerate T&T Group, on Thursday.
Dubbed the Vietnam Superport, the hub is the largest logistics infrastructure project spearheaded by a Singaporean company in Vietnam, with a planned area of more than 83 ha.
In its press statement, YCH stated that the facility, which will have a cargo capacity of about 850,000 20-foot equivalent units (TEUs), is scheduled to go live in 2024.
The first phase of its construction is set to complete in stages between 2022 and 2023, while the second phase is expected to be completed in stages between 2024 and 2025.
When completed, it will be the "first of its kind" multimodal logistics hub with an integrated dry port and advanced supply chain nerve centre based on 4 pillars - connectivity, sustainability, scalability and agility - YCH highlighted.
The area - which is surrounded by 20 industrial parks - is connected by road, rail, air and sea, with road and rail linking China's Yunnan province, Kunming city, to Hanoi city and eventually ends at Hai Phong international port.
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With logistics being among the fastest-expanding sectors in Vietnam, YCH said the Superport will act as "crucial infrastructure support for Vietnam's burgeoning exports" and contribute to Industry 4.0 and the human resource development goals in the country.
The group added that it will serve as a supply hub for manufacturing operations in Hanoi's Vinh Phuc province, which has been projected to increase exponentially as manufacturing shifts to Vietnam.
Its groundbreaking ceremony on Thursday was attended by government officers from both nations, including Singapore's Minister for Manpower Tan See Leng, who tuned in virtually, and Vuong Dinh Hue, president of the National Assembly of Vietnam.
Tan, who is also Second Minister for Trade and Industry, said the event marks another milestone in the economic partnership between the 2 countries, borne out of the partnership between YCH and T&T.
"I am confident that Superport will strengthen logistics and supply chain connectivity in the region through technology and innovative solutions," he said.
Tan added that the hub will also create jobs and opportunities for both Singapore and Vietnam companies, including small and medium-sized enterprises.
YCH executive chairman Robert Yap said Thursday's ceremony represents a "significant step forward" for YCH and T&T in pushing the frontier of supply chain excellence.
The project was conceived in November 2020 and is backed by the Asean Smart Logistics Network, a South-east Asian trade bloc that aims to boost intra-regional supply chain connectivity.
Without giving more details on Friday, YCH revealed that there are already plans to increase and enhance its existing investment in Vietnam, for additional warehousing capacity and on another major logistics infrastructure project.
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