India’s Adani Ports and Special Economic Zone Ltd (APSEZ) has reportedly secured a significant deal to develop a new greenfield port in Da Nang, Vietnam. The Lien Chieu port, located along Vietnam’s central coast, is expected to become a crucial maritime gateway, alleviating the burden on the overloaded Tien Sa port and enhancing hinterland connectivity to Thailand, Laos, and Myanmar.
Karan Adani, Managing Director of APSEZ, confirmed in an interview with Bloomberg that the company has received “in-principle approval” from the Vietnamese government to develop the Lien Chieu Port. Although construction of the port commenced in 2022, the project faced significant delays due to the absence of a committed investor.
“We are targeting countries that are high on manufacturing or high on population, which will lead to high consumption. We are focusing on export volumes in these countries,” stated Karan Adani, highlighting the strategic importance of Vietnam in Adani’s broader investment strategy.
Lien Chieu is now the fourth asset in Adani’s rapidly expanding international terminals portfolio. The company has recently acquired stakes in Israel’s Haifa port, Colombo in Sri Lanka, and the Port of Dar es Salaam in Tanzania. This expansion underscores Adani’s commitment to enhancing global trade infrastructure and connectivity.
The development of the Lien Chieu port involves two main components. The first component, supported by public funds amounting to approximately $140 million, includes the construction of shared infrastructure such as breakwaters, shipping channels, and access roads. The second component, which the Vietnamese government has been seeking an investor for, involves the development of the wharf area. This phase aims to build eight container berths and six general cargo berths, along with supporting facilities, at an estimated cost of $1.9 billion.
Major Expansion of Adani’s International Terminals Portfolio
With Adani Ports selected as the investor, construction of the first phase is expected to commence soon. This phase will involve the construction of two 750-meter berths designed to accommodate containerships with a capacity of 8,000 TEUs and above. Additionally, work has already begun on a six-lane, two-mile coastal road that will connect the national road system to the Lien Chieu port, facilitating efficient cargo movement.
The Lien Chieu port is poised to play a pivotal role in Vietnam’s maritime infrastructure. It is strategically positioned to handle the increasing volume of cargo and reduce the strain on the Tien Sa port, which has been struggling with congestion due to the rapid growth of Vietnam’s economy and its increasing integration into global trade networks. The new port will significantly enhance the country’s capacity to handle larger vessels and higher cargo volumes, thereby boosting its competitiveness in the regional and global markets.
Furthermore, the development of Lien Chieu port is expected to have a substantial economic impact on the central region of Vietnam. By improving connectivity and infrastructure, the port will attract more businesses and industries to the area, fostering economic growth and creating job opportunities. It will also enhance the region’s logistics and supply chain capabilities, making it an attractive destination for foreign investment.
Adani Ports’ investment in the Lien Chieu port is part of its broader strategy to expand its footprint in key global markets. The company’s focus on countries with high manufacturing output or large populations aligns with its goal of capturing significant export volumes and tapping into high-growth markets. Vietnam, with its rapidly growing economy and strategic location, fits perfectly into this strategy.
In addition to its international expansion, Adani Ports continues to invest in enhancing its domestic infrastructure. The company’s flagship Mundra Port in India remains a critical hub for trade and logistics in the region. By leveraging its expertise and resources, Adani Ports aims to develop world-class port infrastructure that meets the highest standards of efficiency and sustainability.
As the construction of Lien Chieu port progresses, it will be closely monitored by industry stakeholders and investors. The successful completion of this project will not only strengthen Adani Ports’ position as a global leader in port development but also contribute significantly to Vietnam’s economic growth and integration into the global trade network.
