Haiphong deepsea port adds 4.5m teu capacity with PSA deal

PSA Vietnam, part of Singapore-based PSA International, has signed an agreement to invest in Lach Huyen Port Investment Joint Stock Company. The deal focuses on jointly developing and operating four deepsea container berths at Lach Huyen Port in Haiphong, Vietnam, in cooperation with Lach Huyen International Logistics & Industrial Park. Upon full completion, the facility will add 4.5 million twenty-foot equivalent units (TEUs) of annual handling capacity, reinforcing Haiphong’s status as a key node in global trade. The investment signals growing confidence in Vietnam’s port infrastructure amid a wave of manufacturing shifts into Southeast Asia.

Investment Agreement and Joint Venture Structure

The agreement sees PSA Vietnam take a stake in Lach Huyen Port Investment Joint Stock Company, a local entity overseeing the port development. Together with Lach Huyen International Logistics & Industrial Park, the partners will construct and manage four berths designed for the largest container vessels. While financial terms were not disclosed, the collaboration mirrors PSA’s model of working with local partners to expand its global terminal network. The joint venture aims to leverage PSA’s operational expertise and the local partner’s market knowledge to deliver a competitive deep-sea gateway for northern Vietnam.

Strategic Role of Lach Huyen Port in Northern Vietnam

Lach Huyen Port, located in Haiphong, serves as the primary maritime entry point for Vietnam’s northern economic region, a manufacturing belt that includes Hanoi and surrounding industrial parks. As multinational corporations diversify supply chains, Haiphong has seen rising container volumes, straining existing infrastructure. The new deep-sea berths will accommodate ultra-large container vessels, reducing the need for cargo to be transshipped via larger regional hubs like Singapore or Hong Kong. This direct call capability is expected to lower logistics costs and transit times for Vietnamese exporters, strengthening the competitiveness of locally produced goods.

Capacity Boost and Regional Container Trade

Adding 4.5 million TEUs annually will significantly expand Vietnam’s overall port throughput. Currently, the country’s total container handling capacity is around 25 million TEUs, with the majority concentrated in the south near Ho Chi Minh City. The new Lach Huyen berths will help balance regional cargo flows and cater to the north’s burgeoning electronics, textiles, and machinery exports. Industry data indicates that container traffic in Haiphong has grown at an annual rate exceeding 10% in recent years. Once operational, the expanded port is poised to attract more mainline services, directly connecting northern Vietnam to major markets in North America and Europe without intermediate stops. The project also aligns with government plans to upgrade national logistics infrastructure under the Vietnam Maritime Strategy.

The expansion at Lach Huyen Port represents a pivotal upgrade for Vietnam’s shipping infrastructure. With four new deepsea berths and 4.5 million TEUs of added capacity, the joint venture brings PSA International’s global terminal management knowledge to one of Southeast Asia’s fastest-growing cargo gateways. The project is expected to ease congestion, foster industrial investment, and integrate Haiphong more deeply into global supply chains.

Why This Matters

The investment underscores the growing importance of northern Vietnam as a manufacturing hub, driven by supply chain shifts. Adding deepsea capacity will reduce transshipment reliance and enhance Vietnam's maritime connectivity, potentially attracting more shipping lines and industrial projects to Haiphong.

FAQ

Who is investing in the Lach Huyen deepsea hub?

PSA Vietnam, a subsidiary of Singapore-based port operator PSA International, has signed an agreement to invest in Lach Huyen Port Investment Joint Stock Company. The investment is part of a joint development with Lach Huyen International Logistics & Industrial Park.

How many new berths will be developed?

The project includes the construction and operation of four deepsea container berths at Lach Huyen Port. These berths are designed to handle the largest container vessels.

What is the expected handling capacity of the new facility?

Once fully completed, the new berths will add 4.5 million TEUs of annual container handling capacity. This will significantly boost northern Vietnam's port throughput.

When will the new berths become operational?

No specific timeline for completion has been announced. The 4.5 million TEUs capacity target will be reached once the project is fully built out.

Sources

• PSA International (globalpsa.com)
• Vietnam (vietnam.gov.vn)

Source: Splash247