the study for tien sa - da nang port improvement project...

THE SOCIALIST REPUBLIC OF VIETNAM MINISTRY OF TRANSPORT PROJECT MANAGEMENT UNIT 85

The Study for

Tien Sa - Da Nang Port Improvement Project (Phase 2)

Final Report

December 2014

JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) JAPAN PORT CONSULTANTS, LTD. THE OVERSEAS COASTAL AREA

DEVELOPMENT INSTITUTE OF JAPAN

1R

JR

14-051

Breakwater

Tien Sa Terminal

Access Road

Pier No.1

Pier No.2

Birth-5

0 100 200 300 m

Satellite Image in Project Site (Tien Sa Port)

Birth-1

Birth-2 Birth-3

Birth-4

Pier No.3

Bathymetric/Topographic Map in Project Site (Tien Sa Port)

Source: Draft Feasibility Study Report for Tien Sa Terminal - Da Nang Port Improvement Project (Phase 2) in Da Nang, 2014, PMU85

Layout Plan Prepared by Study Team

Abbreviations ADB Asian Development Bank AIDS Acquired Immune Deficiency Syndrome ASEAN Association of South-East Asian Nations AH Asia Highway B Beam BA Bidding Assistance BD Basic Design CFS Container Freight Station CKEZ The Central Vietnam Key Economic Zone CS Construction Supervision DARD Department of Agriculture and Rural Development DD Detailed Design DONRE Department of Natural Recourse and Environment DPA Da Nang Port Authority DPC Da Nang Port Holding Limited Liability Campany DWT Deadweight Ton EIA Environment Impact Assessment EIRR Economic Internal Rate of Return EWEC East-West Economic Corridor EZ Economic Zone FIRR Financial Internal Rate of Return GC General Cargo GDP Gross Domestic Product GRT Gross Ton GMS Great Mekong Sub-region HCMC Ho Chi Minh City HIV Human Immunodeficiency Virus HWL High Water Level ICB Interlocking Concrete Block ICD Inland Container Depot IZ Industrial Zone JICA Japan International Cooperation Agency JPY Japanese Yen LOA Length Over All LWL Low Water Level

MONRE Ministry of Natural Recourse and Environment MOT Ministry of Transport NH National Highway ODA Official Development Assistance OECF The Overseas Economic Cooperation Fund OEZ Open Economic Zone O/M Operation and Maintenance PAP Project Affected People PC People’s Committee PIANC International Navigation Association PMU85 Project Management Unit 85 RAP Resettlement Action Plan RS Reach Stacker RTG Rubber-Tyred Gantry RWL Residual Water Level SAPROF Special Terms for Project Formation SEZ Special Economic Zone SS Suspended Solid SSG Ship to Shore Gantry STEP Special Terms for Economic Partnership TEU Twenty-foot Equivalent Unit TOR Terms of Reference VINALINES Vietnam National Shipping Lines VINAMARINE Vietnam Maritime Administration VND Vietnamese Dong VMS Vietnam Maritime Safety WB World Bank

Satellite Image in Project Site (Tien Sa Port) Bathymetric/Topographic Map in Project Site (Tien Sa Port) Layout Plan Prepared by Study Team Abbreviations

CONTENTS

1． Approach of Study ................................................................................................................ 1

1.1 Project Background ................................................................................................................................. 1

1.2 Flow of Study ........................................................................................................................................... 2

2． Review of DFS Report .......................................................................................................... 3

2.1 Objective of Project ................................................................................................................................. 3

2.2 Back Ground and Necessity of Project .................................................................................................. 3 Current Condition of Tien Sa Port ..................................................................................................... 3 (1)

Issues of Da Nang Port and Other Ports in Vietnam .......................................................................... 9 (2)

Current Trend and Policy of Industrial Developments in Da Nang Port Hinterlands ...................... 11 (3)

Activities of Overseas Aid Organizations to Ports Projects in Vietnam ........................................... 42 (4)

Current Condition of Road and Railway Network ........................................................................... 42 (5)

General Concept of Da Nang Port Development ............................................................................. 60 (6)

Traffic Demand for Tien Sa Port ...................................................................................................... 64 (7)

Necessity of Project ......................................................................................................................... 72 (8)

2.3 Project Scope .......................................................................................................................................... 78 Terminal Layout ............................................................................................................................... 78 (1)

Yard Layout ...................................................................................................................................... 81 (2)

Basic Design of Major Facilities ...................................................................................................... 86 (3)

Construction Method and Schedule ................................................................................................. 99 (4)

2.4 Procurement Method ........................................................................................................................... 102

2.5 Draft TOR for Consulting Services .................................................................................................... 103

2.6 Project Cost and Financial Plan ......................................................................................................... 103 Project Cost .................................................................................................................................... 103 (1)

Financial Plan ................................................................................................................................ 105 (2)

2.7 Implementation Schedule .................................................................................................................... 105

2.8 Implementation Structure of Project ................................................................................................. 106

2.9 Management System of Port Development in Central Vietnam ...................................................... 106

2.10 Structure and Budget for Maintenance and Operation ................................................................. 107 Operation System ........................................................................................................................... 107 (1)

Potential Local Operator ................................................................................................................ 108 (2)

Potential International Operator ..................................................................................................... 112 (3)

Maintenance System ...................................................................................................................... 112 (4)

2.11 Operational Efficiency and Economic and Financial Analysis ...................................................... 114 Operational Efficiency ................................................................................................................... 114 (1)

Financial Analysis .......................................................................................................................... 114 (2)

Economic Analysis......................................................................................................................... 127 (3)

2.12 Natural Conditions Study ................................................................................................................. 132 Land and Seabed Elevations .......................................................................................................... 132 (1)

Sub-soil Conditions ........................................................................................................................ 132 (2)

Wind Conditions ............................................................................................................................ 133 (3)

Wave .............................................................................................................................................. 133 (4)

Water Level .................................................................................................................................... 133 (5)

Seismic Condition .......................................................................................................................... 134 (6)

2.13 Environmental Considerations ......................................................................................................... 135 Overview of Project Components that gives Environmental and Social Impacts .......................... 135 (1)

Background of Natural and Socioeconomic Environmental Conditions ....................................... 138 (2)

Organization and Legislation for Environmental Considerations in Vietnam ............................... 139 (3)

Assessment of Alternatives ............................................................................................................ 140 (4)

Scoping and TOR for Environmental Surveys ............................................................................... 141 (5)

Results of Environmental Surveys and Simulations presented in the Project EIA Report ............ 142 (6)

Impact Assessment ......................................................................................................................... 146 (7)

Impact Mitigation Measures and Cost ........................................................................................... 148 (8)

Monitoring Program....................................................................................................................... 150 (9)

Public Consultations .................................................................................................................... 155 (10)

Necessity of Resettlement ............................................................................................................ 157 (11)

Monitoring Form (proposed) ....................................................................................................... 158 (12)

Environmental Check List ........................................................................................................... 162 (13)

Environmental Regulation on Industrial Zones by Da Nang City ............................................... 163 (14)

Post-resettlement Conditions Survey ........................................................................................... 163 (15)

3． ATTACHMENT ................................................................................................................ 166

3.1 Construction Cost ................................................................................................................................ 166

3.2 Draft TOR for Consulting Services .................................................................................................... 170

3.3 Financial Plan ...................................................................................................................................... 182

3.4 Environmental Check List .................................................................................................................. 183

List of Figure

Figure 1-1 Da Nang Port Map ..................................................................................................................1 Figure 1-2 Flow of Study ..........................................................................................................................2 Figure 2-1 Handling Volume of Da Nang Port .........................................................................................3 Figure 2-2 Distribution of Shippers and Consignees of Container Cargo (Provinces) .............................7 Figure 2-3 Facilities Layout of Da Nang Port ..........................................................................................8 Figure 2-4 Container Handling Volume (TEU) of Container Ports in CKEZ Provinces ..........................9 Figure 2-5 Industrial Zone in CKEZ (1) .................................................................................................17 Figure 2-6 Industrial Zone in CKEZ (2) .................................................................................................17 Figure 2-7 Industrial Zone in CKEZ (3) .................................................................................................18 Figure 2-8 Industrial Zone in CKEZ (4) .................................................................................................18 Figure 2-9 Entrance of Da Nang IZ (Left) and Companies Located in the IZ (Center, Right) ...............24 Figure 2-10 Entrance of Hoa Cam IZ (Left), Trailers Turning Around to Enter the IZ from the Da Nang

Port (Center), and Inland Container Depot in the IZ (Right) ..........................................................24 Figure 2-11 Entrance of Hoa Khanh IZ (Left), a Factory Complex Managed by a Japanese Trade Firm

(Center), and Another Japanese Factory (Right) .............................................................................25 Figure 2-12 Construction Site on the Way Connecting Hoa Khanh IZ with Tien Sa Terminal (National

Highway No.1) (Left) and a Trailer Detouring in the City Center (Right) .....................................25 Figure 2-13 Auto Assembly Plant Located in Hoa Khanh Extended IZ (Left and Center), and Road in

the IZ (Right) ..................................................................................................................................26 Figure 2-14 Factory (Left), Road (Center), and Railway Yard (Right) in Lien Chieu IZ .......................26 Figure 2-15 Construction Site of Da Nang Hi-tech Park (Right Picture Shows an Access Road to

National Highway No.1) .................................................................................................................27 Figure 2-16 Main Gate, Factory and Road of Dien Nam - Dien Ngoc IZ ..............................................28 Figure 2-17 Access Road to Dien Nam - Dien Ngoc IZ from Da Nang Port (Left: in Da Nang City,

Center and Right: in Quang Nam Province) ...................................................................................28 Figure 2-18 Gate (Left), Auto Assembly and Chemical Plant (Center), and Another Auto Assembly

Plant (Right) in Chu Lai OEZ .........................................................................................................29 Figure 2-19 Access Road (Right), Gate of Commercial Port (Center) and a Berth of Military Port (Left)

in Ky-Ha Port ..................................................................................................................................29 Figure 2-20 Oil Storage (Left) and Road (Right) in Chan May - Lang Co EZ and Chan May Port

(Right) .............................................................................................................................................30 Figure 2-21 Entrance (Left), Factory (Center) and Expanded Site (Right) of Phu Bai IZ .....................31 Figure 2-22 Current Status of Thuan An Port .........................................................................................31 Figure 2-23 Factory (Left), Access Road (Center), and Entrance of Access Road from National

Highway No.1 (Right) in Tu Ha IZ .................................................................................................31 Figure 2-24 Factory (Left), Commuter Bus (Center), and Location Site (Right) in Phong Dien IZ ......32

Figure 2-25 Access Road to Phong Dien IZ from National Highway No.1 (Left: Intersection with National Highway No.1, Center: Road to be Improved, Right: Overpass of Railways to be Built) ........................................................................................................................................................32

Figure 2-26 Factory of Heavy Manufacturing Industry (Left) and Wood Processing Industry (Center), and Road and Gate (Right) in Dung Quat EZ .................................................................................33

Figure 2-27 Private Ports in Dung Quat EZ............................................................................................33 Figure 2-28 East-West Economic Corridor of the Greater Mekong Subregion and Da Nang Port ........35 Figure 2-29 International Trade Flow for Each National Border in the Northeast Thailand to Lao PDR

........................................................................................................................................................35 Figure 2-30 Location Map of Four Sites (Site A to D) of Savan-Seno SEZ ...........................................36 Figure 2-31 Factories Located in Site B (Left and Center) and Reserved Area (Right) .........................37 Figure 2-32 Factory Located (Left) and Branches of Bank Constructed (Center) in Site D and Trailers

Stopping in the Front of Hyundai Factory (Right) ..........................................................................37 Figure 2-33 Current Status of Savan Park (Site C of Savan-Seno SEZ) as of May 2013 ......................38 Figure 2-34 Gate (Left), Factory (Center), and Reserved Area (Right) in Savan Park ...........................39 Figure 2-35 Improved (Left) and Improving (Center, Right) Section of the EWEC in Lao PDR ..........39 Figure 2-36 Damaged Section of Road not Covered in the Project (a few Similarly Damaged Sections

Remain) ...........................................................................................................................................39 Figure 2-37 National Border between Vietnam (Lao Bao, Left and Center) and Lao PDR (Dan Savanh,

Right). Trailer Covered with a Blue Sheet in Center Picture is Transporting Round Wood ...........39 Figure 2-38 Transshipment Station of Containers in order to Change Chassis and Trailer (Located near

the Checkpoint in Lao, 15 km from the National Border) ..............................................................40 Figure 2-39 Main Port Access Roads......................................................................................................43 Figure 2-40 Major Intersections on Main Port Access Roads ................................................................45 Figure 2-41 Simple Calculation Method for Estimating Roundabout Capacity .....................................46 Figure 2-42 Elevated Intersection at Ton Duc Thang / Truong Chinh / Dien Bien Phu .........................50 Figure 2-43 Current Traffic Condition at Signalized Intersection (No. 8) on Cach Mang Thang 8 Street

........................................................................................................................................................52 Figure 2-44 Traffic Diversion from Cach Mang Thang 8 Street to NH1 by New Bridges .....................53 Figure 2-45 Major Access Road to Da Nang Port from Industrial Zone in CKEZ .................................55 Figure 2-46 Widening from 2 Lanes to 4 Lanes and Phuoc Tuong Pass Tunnel on NH1 ......................58 Figure 2-47 Site of Tho Quang Terminal ................................................................................................62 Figure 2-48 Container and General Cargo Handling Volume in Tien Sa Port ........................................63 Figure 2-49 Current Condition and Improvement Layout Plan ..............................................................64 Figure 2-50 Share by Each Province on Export-Container Cargo Volume of Da Nang Port in the First

Quarter of 2014 ...............................................................................................................................65 Figure 2-51 Share by Each Province on Import-Cargo Volume of Da Nang Port in the First Quarter of

2014 ................................................................................................................................................65

Figure 2-52 Estimated Container Cargo Volume ....................................................................................69 Figure 2-53 Estimated General Cargo Volume .......................................................................................70 Figure 2-54 Result of V/C analysis (2025) .............................................................................................77 Figure 2-55 Recommended Terminal Layout (7A) in DFS Report ........................................................78 Figure 2-56 Distance between Face Line of Berths ................................................................................79 Figure 2-57 Comparison of Berth Layout ...............................................................................................80 Figure 2-58 Typical Cross Section of Pier and Rubble Mound Structures .............................................80 Figure 2-59 Layout Plan prepared by Study Team .................................................................................82 Figure 2-60 Typical Section of Apron .....................................................................................................84 Figure 2-61 Typical Section of Container Road .....................................................................................85 Figure 2-62 Typical Section of Truck/Passenger Road ...........................................................................85 Figure 2-63 Rate of Overtopping for Wave-Absorbing Seawall (Bottom Slope 1/30) ...........................91 Figure 2-64 Necessary Improvement of Breakwater as Seawall ............................................................92 Figure 2-65 Result of Stability Analysis against Circular Failure as Seawall ........................................93 Figure 2-66 Layout of Channel and Basin ..............................................................................................95 Figure 2-67 Typical Pavement Type and Structures ...............................................................................97 Figure 2-68 Layout of Passenger-related Facilities ................................................................................98 Figure 2-69 Water- jet + Vibro-hammer for Pile Driving into Hard Subsoil Layers ..............................99 Figure 2-70 Image of Typical Dredgers to be used in Project ..............................................................101 Figure 2-71 Location of Dredged Material Disposal Site .....................................................................101 Figure 2-72 Organization Structure of Da Nang Port ...........................................................................108 Figure 2-73 Organization Chart of Tien Sa Terminal & Number of Personnel ....................................109 Figure 2-74 VINALINES and Da Nang Port Holding Limited Liability Company ............................. 110 Figure 2-75 Sub-soil Profile along Face Line of New Container Terminal (50,000 DWT) .................132 Figure 2-76 Seismic Intensity in Vietnam.............................................................................................134 Figure 2-77 Project Site in Da Nang City .............................................................................................135 Figure 2-78 Project Site in Tien Sa Terminal of Da Nang Port ............................................................136 Figure 2-79 Location of Dredged Materials Disposal Locations ..........................................................137 Figure 2-80 Aquatic and Terrestrial Sensitive Eco-system near Project Site ........................................138 Figure 2-81 Live Corals in Mui Sung Beach on south Shore of Headland (captured by the Study Team)

......................................................................................................................................................139 Figure 2-82 Organizational Structure of Vietnamese Environmental Authorities ................................139 Figure 2-83 Small Fishing Boats ..........................................................................................................142 Figure 2-84 Location of Simulation (Turbid Water Dispersion at Dredged Material Disposal Area) ..144 Figure 2-85 Construction Photos in Phase 1 and Location of Potential On-land Disposal Area ..........145 Figure 2-86 Image of On-land Dredged Material Disposal Site ...........................................................146 Figure 2-87 Organization Chart for Environmental Management Program .........................................151 Figure 2-88 Location of Monitoring Points ..........................................................................................152

Figure 2-89 Existing Chip Factories in Tien Sa Terminal.....................................................................158

List of Table

Table 2-1 Handling Volume Trend of Da Nang port .................................................................................4 Table 2-2 Handling Record for Container, 2013 .......................................................................................4 Table 2-3 Number of Ships at Da Nang Port ............................................................................................5 Table 2-4 Expected Container Vessels Schedule at Tien Sa Port ..............................................................6 Table 2-5 Handling Equipment of Da Nang Port ......................................................................................7 Table 2-6 Scale of Main Facilities at Tien Sa Terminal ............................................................................8 Table 2-7 Industrial Output Value (at Current Prices) ............................................................................ 11 Table 2-8 Total Retail Sales of Goods and Services of CKEZ Provinces ...............................................12 Table 2-9 Import-Export Turnover of Goods of CKEZ Provinces .........................................................13 Table 2-10 GDP of CKEZ .......................................................................................................................14 Table 2-11 Socio Economic Index of CKEZ in 2012 .............................................................................14 Table 2-12 Industrial Zones in CKEZ .....................................................................................................16 Table 2-13 Owners and Operators of Neighboring Ports ........................................................................21 Table 2-14 Locator’s Operation in Industrial Zones in CKEZ (1) ..........................................................22 Table 2-15 Locator’s Operation in Industrial Zones in CKEZ (2) ..........................................................23 Table 2-16 Summary of Each Site of the Savan-Seno SEZ ....................................................................37 Table 2-17 Tourism Activity of Da Nang city .........................................................................................42 Table 2-18 Outline of Main Port Access Roads ......................................................................................44 Table 2-19 Capacity of General Sections on Main Port Access Roads...................................................44 Table 2-20 Outline and Capacity of Major Intersections on the Major Port Access Roads ....................46 Table 2-21 Description of Traffic Condition by Classification of V/C at General Section ....................50 Table 2-22 V/C Analysis Result at General Section (2012) ....................................................................51 Table 2-23 VIS/CIS Analysis Result at Intersection (2012) ......................................................................51 Table 2-24 Outline of Major Access Roads from Industrial Zone in CKEZ ..........................................56 Table 2-25 Number of Container Ships Under Service in East and South East Asia and Ratio of

Receivable Container Ships at (-12m) and (-14m) Terminals.........................................................61 Table 2-26 Shift of Medium Size Ship to Intra Region (Cascading) (2012-2013) .................................61 Table 2-27 Da Nang Port Handling Cargo Volume in the Past Decade ..................................................64 Table 2-28 Cargo Volume Through Via Tien Sa Terminal and Han River Terminal ..............................68 Table 2-29 Estimated Cargo Volume ......................................................................................................69 Table 2-30 Cruise Ship Regularly Called at Da Nang Port (2013.12~2014.2) .......................................71 Table 2-31 Passenger Ships at Tien Sa Port ............................................................................................71 Table 2-32 Forecast of Passengers at Tien Sa Port .................................................................................71 Table 2-33 Calculation of Present Berth Capacity ..................................................................................72 Table 2-34 Traffic Demand of Tien Sa Port based on Cargo Demand ....................................................73 Table 2-35 Comparison of Forecasted Traffic Demand in 2025 .............................................................74

Table 2-36 V/C Analysis at General Section (2025) ...............................................................................75 Table 2-37 VIS/CIS Analysis at Intersection (2025) .................................................................................76 Table 2-38 Area of Container Stacking Yard ..........................................................................................81 Table 2-39 Operational Conditions for Calculation of Container Handling Capacity ............................83 Table 2-40 Calculation of Container Handling Capacity in Existing Terminal (Phase 1) ......................83 Table 2-41 Calculation of Container Handling Capacity in New Terminal (Phase 2) ............................83 Table 2-42 Alternatives for Comparison of Berth Structure ...................................................................86 Table 2-43 Comparison of New Container Berth (50,000 DWT) Structure ...........................................87 Table 2-44 Comparison of New Container Berth (50,000 DWT) Structure ...........................................88 Table 2-45 Comparison of New Container Berth (50,000 DWT) Structure ...........................................89 Table 2-46 Summary of Comparison of New Container Berth (50,000 DWT) Structure ......................89 Table 2-47 Construction Cost of recommended Structural Alternatives reviewed by PMU85 ..............90 Table 2-48 Damage Limit Rate of Overtopping Wave ...........................................................................91 Table 2-49 Estimation of required Maintenance Dredging Volume .......................................................96 Table 2-50 Typical Pavement Type and Structures .................................................................................97 Table 2-51 Calculation of Buckling during Pile Driving Works ...........................................................100 Table 2-52 Construction Schedule ........................................................................................................102 Table 2-53 Summary of Estimated Project Cost ...................................................................................104 Table 2-54 Possible Implementation Schedule .....................................................................................105 Table 2-55 Owners and Operators of Neighboring Ports ......................................................................107 Table 2-56 Financial Situation of Da Nang Port ...................................................................................109 Table 2-57 Companies Operating Container Terminals in Vietnam (2013) .......................................... 112 Table 2-58 Record of Dredging Volume in Da Nang Port .................................................................... 113 Table 2-59 Operation Indicator and Efficient Indicator ........................................................................ 114 Table 2-60 Key Characteristics of the New Terminal ........................................................................... 115 Table 2-61 Volume of TEU and Number of Container Ship via the Terminal ...................................... 115 Table 2-62 Investment Cost and ODA Loan ......................................................................................... 116 Table 2-63 Unit Revenues of Port Operation ........................................................................................ 116 Table 2-64 Cost of Equipment .............................................................................................................. 117 Table 2-65 Unit Costs for Terminal Operation ..................................................................................... 118 Table 2-66 Result of Financial Analysis ............................................................................................... 119 Table 2-67 Result of Sensitivity Analysis ............................................................................................. 119 Table 2-68 Financial Analysis (Base Case) [Steel Pipe Pile Structure] ................................................120 Table 2-69 Sensitivity Analysis (10% Cost Increase Case) [Steel Pipe Pile Structure] ........................121 Table 2-70 Sensitivity Analysis (10% Container Volume Growth Rate Decrease Case) [Steel Pipe Pile

Structure] ......................................................................................................................................122 Table 2-71 Result of Financial Analysis ...............................................................................................123 Table 2-72 Result of Sensitivity Analysis .............................................................................................123

Table 2-73 Financial Analysis (Base Case) [Concrete Bored Pipe Pile Structure] ...............................124 Table 2-74 Sensitivity Analysis (10% Cost Increase Case) [Concrete Bored Pipe Pile Structure].......125 Table 2-75 Sensitivity Analysis (10% Container Volume Growth Rate Decrease Case) [Concrete Bored

Pipe Pile Structure] .......................................................................................................................126 Table 2-76 Items Included in the Benefit Calculation ..........................................................................127 Table 2-77 Result of Economic Analysis ..............................................................................................128 Table 2-78 Result of Sensitivity Analysis .............................................................................................128 Table 2-79 Economic Analysis (Base Case) .........................................................................................129 Table 2-80 Sensitivity Analysis (10% Cost Increase Case) ..................................................................130 Table 2-81 Sensitivity Analysis (10% Container Volume Growth Rate Decrease Case) ......................131 Table 2-82 Sub-soil Characteristics along New Container Berth .........................................................133 Table 2-83 Comparison of Project Site .................................................................................................141 Table 2-84 Results of Natural Environmental Conditions Survey ........................................................142 Table 2-85 Impact Assessment ..............................................................................................................146 Table 2-86 Environamtal Management Plan: EMP ..............................................................................148 Table 2-87 Air Quality Monitoring .......................................................................................................152 Table 2-88 Coastal Water Quality Monitoring ......................................................................................153 Table 2-89 Waste Monitoring ...............................................................................................................153 Table 2-90 Noise Monitoring ................................................................................................................153 Table 2-91 Vibration Monitoring ..........................................................................................................154 Table 2-92 Sediment Quality Monitoring .............................................................................................154 Table 2-93 Areal Impacts Monitoring ...................................................................................................154 Table 2-94 Traffic Safety Monitoring ...................................................................................................155 Table 2-95 Infectious Disease Monitoring ............................................................................................155 Table 2-96 Cost for Environmental Management and Monitoring by ES and IEMC...........................155 Table 2-97 Proposed Monitoring Forms ...............................................................................................159

1

Lien Chieu port Tien Sa port

Song Han port

Da Nang Bay

1． Approach of Study

This Study has been carried out for Tien Sa - Da Nang Port Improvement Project (Phase 2) (the Project), in a such approach that Draft Feasibility Study Report for Tien Sa Terminal - Da Nang Port Improvement Project (Phase 2) in Da Nang prepared by Project Management Unit 85 (PMU85) of Ministry of Transport (MOT) in 2014 (the DFS Report), will be reviewed and supplemented with necessary data and information by the JICA Study Team, and results of the Study has been discussed with MOT for implementation of the Project under agreement between JICA and MOT. The following understandings and viewpoints on the Project are basis of this Study.

1.1 Project Background

Da Nang port, consisting of Tien Sa port, Song Han port, Lien Chieu port and some specialized ports as shown in Figure 1-1, is the 3rd largest national port following Saigon port in south and Hai Phong port in north in terms of cargo handling volume in the ports. It is said that Da Nang port is a potential gate port on the eastern end of the East-West Economic Corridor, which runs through Indochina countries, i.e. Vietnam, Laos, Thailand and Myanmar. Therefore, The Overseas Economic Cooperation Fund (OECF) conducted Special Assistance for Project Formation (SAPROF) Study for Da Nang Port Expansion Project in 1998, which has recommended improvement of Tien Sa port as Phase 1, expansion of Tien Sa port as Phase 2 and new port construction in Lien Chieu port as Phase 3 in the project.

In the agreement on the above development scenario between OECF and MOT, Da Nang Port Improvement Project (Phase 1) was implemented from 1999 to 2004 under Japanese ODA loan. After completion of Phase 1 of the project, cargo handling volume in Tien Sa port has been steadily increased by 4.4 million tons per year in 2012 exceeding its planned capacity.

Additionally, recent increase in port calls of international passenger ships and solid economic growth of the countries along the East-west Transport Corridor are definite reasons for urgent necessity of the Project. In these circumstances, the DFS Report has been prepared in 2014 by PMU85.

Aiming at realization of the Project, the DFS Report is supplemented in this Study, in aspects of competitive port operation and management, consistency with hinterland development, etc.

Figure 1-1 Da Nang Port Map

Source: Da Nang Peoples Committee” Da Nang City Development Master Plan, 2002”

Tho Quang

2

1.2 Flow of Study

This Study has been proceed as shown in Figure 1-2, following the primary steps below.

Flow of Study

Jun

Jul -

Aug

Sep

Oct Nov

Figure 1-2 Flow of Study

2. Review of DFS Report

2.2 Background and Necessity of Project

(3) Current trend and policy of industrial developments in Da Nang port hinterlands

(5) Current condition of road and railway network and industrial zones in Central Vietnam hinterlands

(8) Necessity of project

(6) General concept of Da Nang port development

2.7 Implementation Schedule

2.4 Procurement Method

2.13 Environmental Considerations

2.5 Draft TOR for Consulting Services

(4) Activities of overseas aid organizations to ports projects in Vietnam

2.9 Management System of Port Development in Central Vietnam

2.10 Structure and Budget for Maintenance and Operation

2.11 Operational Efficiency and Economic and Financial Analysis

Preparation and Presentation of Inception Report (ICR)

Preparation and Presentation of Interim Report (ITR)

Preparation and Presentation of Draft Final Report (DFR)

Preparation and Presentation of Final Report (FR)

2.1 Objective of Project

(1) Current condition of Tien Sa port

2.8 Implementation Structure of Project

2.12 Natural Conditions Study

2.3 Project Scope

(7) Traffic demand for Tien Sa port

(2) Issues of Da Nang port and other ports in Vietnam

2.6 Project Cost and Financial Plan

3

2． Review of DFS Report

2.1 Objective of Project

The Project aims to improve Tien Sa port, which is a main terminal of Da Nang port. Hinterlands of Da Nang port are Da Nang city, which is the 3rd largest city in Vietnam and Central Vietnam region. Also Da Nang port is expected to play an important role for the economic development of East-West Economic Corridor countries as its gateway to East Sea. The improvement of the Tien Sa port shall meet the sea traffic demand derived from social and economic development of hinterland regions.

Da Nang port consists of Tien Sa port, Han River port, some specialized ports and Lien Chieu port as the space for future expansion. The improvement of Tien Sa port shall take a functional division among such ports into consideration.

2.2 Back Ground and Necessity of Project

Current Condition of Tien Sa Port (1)

1）Handling Volume Trend for Container, General Goods and Passengers

Tien Sa Terminal is under control of The Da Nang Port. The total cargo volume in the Tien Sa Terminal and the Han River Terminal in 2013 was 5.01 million tons with average growth ratio of 12.8% for the period of 2008 - 2013. Container volume in the Tien Sa Terminal in 2013 was 167 thousand TEU

Figure 2-1 Handling Volume of Da Nang Port

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

2008 2009 2010 2011 2012 2013

Throughput (Da Nang port)

Total General Cargo Container

(t)

4

Table 2-1 Handling Volume Trend of Da Nang port

No. Criteria Unit 2008 2009 2010 2011 2012

2013 Average

growth (%)

I

Total Ton 2,742,257 3,132,343 3,303,036 3,868,545 4,423,388 5,010,238 12.8%

Import Ton 525,906 603,365 645,617 784,891 907,818 1,345,060

Export Ton 1,230,793 1,352,212 1,388,924 1,598,134 1,988,074 2,361,018

Domestic Ton 985,558 1,176,766 1,268,495 1,485,520 1,527,496 1,304,160

II

General Cargo Ton 2,113,242 2,399,659 2,365,880 2,577,800 2,856,054 3,168,321 8.4%

Import Ton 166,001 196,594 160,145 195,594 297,874 594,508

Export Ton 969,257 1,049,545 979,566 934,672 1,121,141 1,592,646

Domestic Ton 977,984 1,153,520 1,226,169 1,447,531 1,437,039 981,167

III

Container TEU 61,881 69,720 89,199 114,373 144,555 167,447 22.0%

Ton 629,015 732,684 937,156 1,290,745 1,567,334 1,841,917

Import TEU 26,616 30,304 34,977 46,888 54,423 68,232

Ton 359,905 406,771 485,472 589,297 609,944 750,552

Export TEU 29,770 31,428 41,312 51,997 61,347 69,852

Ton 261,536 302,667 409,358 663,462 866,933 768,372

Domestic TEU 5,495 7,988 12,910 15,488 28,785 29,363

Ton 7,574 23,246 42,326 37,986 90,457 322,993

Ⅳ Passenger person 29,642 30,129 32,047 38,190 40,888 115,912 31.4%

Source: DPC

with average growth ratio of 22.0％ for the period of 2008 - 2013. General cargo volume in 2013 was 3.168 million in 2013 with average growth ratio of 8.4% for the period of 2008 - 2013. Passenger via the port was about 40 thousand persons in 2013 with average growth ratio of 31.4％for the period of 2008 - 2013.

Regarding container cargo in particular, Da Nang port handled container cargo of 167,447TEU, and their profiles detailed by size, laden or empty and reefer is as shown in Table 2-2.

Table 2-2 Handling Record for Container, 2013

IMPORT EXPORT TOTAL

20’ 40’ 45’ TEUs 20’ 40’ 45’ TEUs 20’ 40’ 45’ TEUs

2013 29,246 27,444 209 84,552 28,373 27,035 226 82,895 57,619 54,479 435 167,447

LADEN 23,402 23,097 10 69,616 24,280 18,120 224 60,968 47,682 41,217 134 130,584

EMPTY 5,844 4,347 199 14,936 4,093 8,915 2 21,927 9,937 13,262 201 36,863

REEFER

(Boxes)

223 1,646 0 3,515

(1,869)

756 2,652 0 6,060

(3,408)

979 4,298 0 9,575

(5,277)

Source: DPC

5

2）Vessels

Tien Sa Terminal is a multipurpose terminal used for container vessels, general cargo vessels, bulk (wood chips) carriers and domestic cargo vessels. The number of ships arriving at Da Nang port has been increasing gradually reflecting current traffic growth.

Table 2-3 Number of Ships at Da Nang Port

2008 2009 2010 2011 2012 2013

General cargo ship 663 661 672 785 868 865

Container ship 303 363 383 465 551 577

Passenger ship 50 51 52 53 57 93

Source: DPC

Seven international and three domestic container shipping lines are providing weekly services via Tien Sa for Intra-Asian countries as shown in Table 2-4. Most of them are feeder services to trunk ports such as Hong Kong, Singapore or Kaoshun where container are transshipped for last destination, not only for Asian countries but for American or European countries. Wanhai line is the only line which provides a direct service via HCM and Taiwan ports to Japan with round schedule of 10 days. Medium size container vessels with around 10,000~20,000DWT are arranged.

According to a shipping line, they are probable to increase their calls potentially able to provide a direct service at Da Nang Port depending on the market by their own arrange or by Space Charter system.

6

Table 2-4 Expected Container Vessels Schedule at Tien Sa Port

As of June, 2014

SHIPPING LINE NAME OF VESSEL GRT DWT LOA PORT OF CALL

FOR

EIG

N

ACL JOST 16,137 17,157 161 DAD-UIH-SIN-HPG-DAD 1,200－1,400TEU weekly(1) HS PUCCINI 16,162 17,350 162

GEMADEPT PACIFIC EXPRESS 8,333 11,117 129 DAD-HPG-HKG－DAD-SGN 700TEU weekly(1) PACIFIC PEARL 8,957 11,064 133

MMC Transpor WARNOW MASTER 17,068 21,146 180 DAD-HKG

1，800－2,200TEU Feeder line of Maersk Line MEDPERL 17,068 21,281 180 DAD-KLG-HKG

weekly(2) WARNOW BOATSWAIN 17,069 21,281 180 DAD-SIN-TPP(Tanjung Pelepas) LEOPARD 16,801 22,985 184

SAMUDERA SHIPPING LINE LTD

SINAR BINTAN 13,576 17,815 148

DAD-UIH-SIN-HPG-DAD 1,100-1,200TEU Feeder line of

NYK Line SINAR BUTON 12,545 15,210 147

weekly(1) SINAR BANDUNG 12584 14984 147 SINAR BRANI 12,559 15,204 147 SITC Container Lines

ICE STAR 7,545 8,143 130 DAD-HKG 1,100TEU

weekly(1) CONTSHIP ACE 7,170 8,279 133 WAN HAI LINES WANHAI 232 17,751 21,008 191 TYO-YOK-HKG-SG

N-DAD-HKG-SKU-XIA-TYO

1,800－2,200TEU weekly(2) WANHAI 263 18,872 23,635 198 WANHAI 271 15,334 18,471 172 DAD-SGN-TCG-TPE-

HKA-MIZ-UKB-OSA-PUS-KLG-TCG-KHH-DAD

WANHAI 261 18,872 23,672 198

Yang Ming YM HAWK 15,167 19,104 168 DAD-HKG 1,500TEU

weekly(1) YM HARMONY 15,167 19,104 168

DO

MES

TIC

BIENDONG BIEN DONG FREIGHTER 5,725 7,082 125 HPH-DAD-HPH 700TEU

monthly(4) VAN LY 4,879 6,832 113 VINAFCO

VINAFCO 25 4,159 5,778 98 HCM-DAD 700TEU monthly(2) VIETNAM NATIONAL SHIPPING LINES

VINALINES DIAMOND 9,957 13,719 148 DAD-VTU-DAD-SGN-DAD 1,100TEU

weekly(1) VINALINES DIAMOND 9,957 13,719 148

Port's Code Index HKG Hong Kong SIN Singapore

VIETNUM DAD Da Nang UIH Qui Nong HPH Haiphong: SGN Hochimin VTU Vongtau

CHINA SKU Shekou XIA Xiamen

KOREA PUS Busan

TAIWAN TCG Taichung KHH Kaoshung KLG Keelumg

JAPAN TYO Tokyo YOK Yokohama HKA Hakata OSA Osaka MIZ Mizushima

7

3）Regional Distribution of Shippers and Consignee

Container cargo from/to Da Nang city occupies Da Nang port and most of other provinces. However those from/to other provinces in total are over Da Nang’s cargo.

Figure 2-2 Distribution of Shippers and Consignees of Container Cargo (Provinces)

4）Handling Operation

Equipment being used for cargo handling is shown in Table 2-5. There is no heavy traffic in the terminal, however container boxes are fully stacked in many places of the container yards.

Table 2-5 Handling Equipment of Da Nang Port

Equipment Quantity(unit) Capacity Quayside container crane 2 36MT/50MT

Rubber tired gantry crane(RTG) 3 36MT Shore crane 2 40MT

Reach stacker 4 42MT Clamp loader 2 5MT Mobile crane 25 10-80MT

Forklift 32 1.5-22MT Tractors, Dump trucks 35 20-40MT

Tugboat 7 500-1,700HP CFS 1 2,160m2

Electric weight bridge 4 80MT Reefer plug 75 points

Source: DPC

Thua Thien Hue13%

Da Nang44%

Quang Nam33%

Quang Ngai8%

Binh Dinh1% Others

1%

Da Nang port container (export + import) hinterlands (provinces)

8

5）Facilities

Existing facilities (layout and scales) of Tien Sa port are as follows. General cargo are handled at Pier 1~2 (Berth 1~4) and container cargo is handled at Berth5. Passenger ships arrive mainly at Berth 1.

Figure 2-3 Facilities Layout of Da Nang Port

Table 2-6 Scale of Main Facilities at Tien Sa Terminal

No. Items Unit Scale Remark I Berths m 965 1 Berth1(General cargo, Passenger ship) m 185 Depth-11m(CD)

2 Berth2(General cargo) m 185 Depth-10m(CD) 3 Berth3(General cargo) m 185 Depth-10m(CD) 4 Berth4(General cargo) m 185 Depth-11m(CD) 5 Berth5(Container cargo) m 225 Depth-12m(CD)

I Warehouses ha 1.4 II Container Freight Station(CFS) m2 1,590 III Yard ha 10.68

1 General yard ha 4.4 2 Container yard ha 6.28

Ⅳ Office & Workshop 1 Office building m2 769.5 2 Customs, agency offices m2 286.7 3 Amenity building m2 450 4 Guard house m2 40 5 Mechanical workshop m2 800 6 Fuel supply station 1 7 Power supply station 4 8 Main gate gate 1 4in/out lanes 9 Container gate gate 1 4in/out lanes

Source: DPC, JICA Study Team (General cargo yard)

Berth1

Berth2 Berth3

Berth4

Berth5

9

Issues of Da Nang Port and Other Ports in Vietnam (2)

-Importance of Tien Sa Port in Container Handling

These days increase of container cargo at Tien Sa port has steadily increased with 22.0% growth rate and the throughput (TEU) reached to 167,000TEU in 2013 which is about 2.4 times of 2008 throughput. As shown in Fig 2-2, handling volume at neighboring provinces are not yet enough due to lack of facilities such as no breakwater, poor container equipment, Tien Sa’s container handling is inevitable for the industries of hinterland regions. Only Qui Nhon port has comparable facility for container handling, however these ports do not compete in container handling market since the distance between Tien Sa and Qui Nhon is about 300 km. Until the improvement of these port facilities in accordance with the port master plan of MOT, Da Nang will continue to attract cargoes from outside provinces.

-Centralization of Tien Sa Port in Container Handling

Tien Sa port has been closer to neighboring province by the improvement of trunk roads (AH1). Also the enforcement of regulation on overloading truck makes truck operators decrease the long whole transportation to HCM or Hi Phong from Da Nang hinterlands. So Tien Sa has become more important than other ports.

Figure 2-4 Container Handling Volume (TEU) of Container Ports in CKEZ Provinces

-Congestion of Container Yard

Container handling volume mostly reaches the capacity of the port from viewpoint of container yard space. Container boxes are sometimes laid outside the yard. In such a congested situation, handling efficiency has been decreased due to lack of enough space for handling.

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2008 2009 2010 2011 2012

TEU

Container throughput

Tien Sa

Ky Ha-Quang Nam

Gemadept-Quan Ngai

Qui Nhon-BinhDinh

10

-Operation Management

According to a certain locator, cranes sometimes got out of order and had to wait for receiving the imported container and this happens few times a year. Enforcement of daily maintenance is necessary and alternative equipment for such accident time should be prepared. Even if such an accident is rare case, the issue is critically serious for companies who ship cargo often via the port.

-High Shipping Cost

According to JETRO and locator’s interviews, transportation cost to export or import container by sea route from Da Nang port is much higher than from HCM port. This is because vessels’ tariff are set to cover the cost for additional call to Da Nang port to shippers. Even so, locators in Da Nang city and neighboring provinces use Da Nang port since that full container trucking cost to HCM is higher than the cost difference between Da Nang port and HCM port. Locators find more merits in low wage cost in operating in Da Nang city and neighboring provinces than the high shipping cost compared with HCM shipping.

-Small Number of Direct Call

The number of container vessels which called at Tien Sa in 2013 was 577, while 303 ships in 2008. Currently about 10 container lines , which ever direct or feeder (to be reloaded), regularly arrive at Tien Sa container terminal. Generally locators in Da Nang have no critical inconvenience to the frequency of calls since they can adjust their shipping in accordance with ship’s call schedule. However some heavy users who ship many TEUs hope that more direct will be scheduled for the reason that direct lines provide schedule with less lead time and safer shipment. According to a certain vessel line, whether direct call is arranged or not depends the volume loaded/unloaded at the port and destinations of those containers. The number of TEU load/unload increased from 204 in 2008 up to 290 in2013. As long as economic activities in hinterland will be grown, more direct calls may be possible.

-Small Number of Vessel Line Schedules via Tien Sa

There are some locaters who are designated by their customers to ship at HCM for the total shipping cost and lead time to the destination. These locators suffer from the cost for trucking from/to HCM. These cases reflect the small number of vessel lines schedules via Tien Sa which satisfy their customers with the shipping schedule and cost.

-Limited Number of Users

General cargo handled at Tien Sa was 2,075 (000ton) in 2013. It is estimated by interview to locators that 70% of the volume is occupied by only 3 exporting locators (wooden chips and sand products). For the vessel line, WANHAI is the only container liner to going to Japan ports. Users of this port should be more diversified for a sustainable management of the port, which also depends on how much handled volume

11

will be increased.

Current Trend and Policy of Industrial Developments in Da Nang Port Hinterlands (3)

Da Nang port hinterland is divided into 2 categories, CKEZ area which is composed of five (5) provinces (Da Nang City, Thua Thien - Hue, Quang Nam, Quang Ngai, Binh Dinh) and East-West Economic Corridor areas. East-West Economic Corridor areas are defined as those along the projected road through Myanmar, Thailand, Laos and Vietnam, which was proposed by ADB.

1）Current Situation of CKEZ

The population of CKEZ in the year is 6.7 million people which is about 7% of the whole country.

The industrial value of CKEZ has been increasing at average growth rate of 51.5% as shown in Table 2-7, much greater than that of the whole country (24.8%). As a result, its occupancy to the whole nation has increased up to 6.1% in 2012 from 2.82% in 2008.

Table 2-7 Industrial Output Value (at Current Prices)

(Unit: billion VNDs)

No. Region Industrial output value at current prices Average

growth (%)

2008 2009 2010 2011 2012

I Whole country 1,903,128 2,298,087 2,963,500 3,695,092 4,627,733 24.87

II CKEZ 53,761 82,133 173,214 223,953 283,049 51.5 1 Hue 7,232 8,854 13,524 17,570 22,715 33.13 2 Da Nang 16,350 18,914 23,943 30,308 36,341 22.10

3 Quang Nam 12,491 15,816 20,640 33,440 46,343 38.79 4 Quang Ngai 6,042 25,505 98,468 122,974 153,894 124.65 5 Binh Dinh 11,646 13,044 16,640 19,660 23,756 19.51

ＩＩＩ % Region / Whole country

2.82 3.57 5.84 6.06 6.12

Source: Statistical Yearbook

As shown in Table 2-8, total retail sales of goods and services of CKEZ has been increasing at average growth rate of 27.6%, just greater than that of the whole country (23.2%). All provinces except for Binh Dinh had average growth rates fairly exceeding that of the whole country.

12

Table 2-8 Total Retail Sales of Goods and Services of CKEZ Provinces

(Unit: billion VNDs)

No. Region 2008 2009 2010 2011 2012 Average growth

(%)

I Whole country 1,007,214 1,238,145 1,614,078 2,004,361 2,324,400 23.25

II CKEZ 63,215 81,180 102,621 128,719 167,809 27.64 1 Hue 9,275 10,961 14,584 17,584 33,259 37.61 2 Da Nang 18,435 26,867 34,103 43,976 51,873 29.52

3 Quang Nam 8,956 11,155 14,179 17,490 23,937 27.86 4 Quang Ngai 10,713 13,400 17,230 21,539 25,482 24.19 5 Binh Dinh 15,836 18,797 22,525 28,130 33,259 20.38


6.28 6.56 6.36 6.42 7.22

Source: Statistical Yearbook, current price

The export turnover of CKEZ has been increasing at average growth rate of 18.8%, greater than that of the whole country (16.3 %) as shown in Table 2-9. As a result, its occupancy to the whole nation has a little bit increased up to 2.38 % in 2012 from 2.19 in 2008. Hue and Quang Ngai had much greater average growth rates than that of the whole country, while Da Nang and Binh Dinh had the less rates. The import turnover of CKEZ has been increasing at average growth rate of 15.3%, much greater than that of the whole country (9.0 %) as shown in Table 2-9. As a result, its occupancy to the whole nation has increased up to 2.53 % in 2012 from 2.02% in 2008. Hue and Quang Ngai had much greater average growth rates than that of the whole country, while other provinces had the less rates.

13

Table 2-9 Import-Export Turnover of Goods of CKEZ Provinces

(Unit: million USD)

No. Region 2008 2009 2010 2011 2012 Average growth

(%)

Export turnover of goods

I Whole country 62,690 57,100 72,190 96,910 114,570 16.3

II CKEZ 62,690 57,100 72,190 96,910 114,570 18.8

1 Hue 1,371.653 1,393.85 1,838.337 2,127.287 2,727.886 44.5

2 Da Nang 107.682 145.399 259.514 380.432 469.022 11.9

3 Quang Nam 575.287 509.000 633.685 778.824 903.011 19.5

4 Quang Ngai 238.684 235.561 256.607 421.380 486.410 63.4

5 Binh Dinh 60.000 182.224 270.045 252.361 428.200 7.9


2.19 2.44 2.55 2.20 2.38

Import turnover of goods

I Whole country 80,710 69,950 84,800 106,750 113,790 9.0

II CKEZ 1,632.503 2,782.985 4,766.550 5,970.970 2,881.951 15.3

1 Thua Thien Hue 81.730 113.365 208.259 255.594 336.005 42.4

2 Da Nang 638.253 651.758 704.778 828.823 880.722 8.4

3 Quang Nam 391.340 413.010 521.632 665.780 475.020 5.0

4 Quang Ngai 375.180 1,472.097 3,349.602 4,473.116 1,040.358 29.0

5 Binh Dinh 146.000 155.800 161.700 154.500 175.000 4.6


2.02 3.98 5.62 5.59 2.53

Source: Statistical Yearbook (Provincial)

GDP of CKEZ has been increasing at average growth rate of 11.7%, much greater than that of the whole country (5.8 %) as shown in Table 2-10. As a result, its occupancy to the whole nation has increased up to 8.85 % in 2012 from 7.08 in 2008. All provinces had 2~3 times (Binh Dinh 1.6 times, Quang Ngai 2.9 times) greater average growth rates than that of the whole country.

14

Table 2-10 GDP of CKEZ

(2010 constant price)

Item Year Average

growth (%)

2008 2009 2010 2011 2012

Nation 1,923,749 2,027,590 2,157,828 2,292,483 2,412,778 5.8%

CKEZ 100,602 112,726 130,228 143,552 156,400 11.7% Thua Thien - Hue 15,352 17,030 19,157 21,212 23,239 10.9%

Da Nang 24,809 27,469 30,788 34,513 37,413 10.8%

Quang Nam 19,613 21,779 24,611 27,708 30,903 12.0%

Quang Ngai 17,764 21,495 29,276 31,131 33,422 17.1%

Binh Dinh 23,064 24,953 26,396 28,988 31,423 8.0%

% Region / nation 5.23% 5.56% 6.04% 6.26% 6.48% Source: Statistical yearbook(provincial), IMF World Economic Outlook Database

As shown in Table 2-11, GDP per capita of Da Nang city is about two times of those of other provinces.

Table 2-11 Socio Economic Index of CKEZ in 2012

Hue Da Nang Quag Nam

Quang Ngai

Binh Dinh CKEZ

Population(000 person) 1,114 973 1,450 1,227 1,501 6,268

17.6% 15.5% 23.1% 19.6% 23.9%

Industrial Output Value(B.VND) 23 36 46 154 24 283

8.1% 12.7% 16.2% 54.4% 8.4%

Retail sales and service(Tr.VND) 33 52 24 25 33 169

19.5% 30.7% 14.2% 14.8% 19.5%

Export turnover(M.USD) 469 903 486 428 528 2,728

17.1% 32.8% 18.1% 12.7% 19.0%

Import turnover(M.USD) 336 880 475 1,040 175 2,881

11.7% 30.5% 16.4% 35.0% 6.3%

GDP(B.VND,2010 constant) 23,239 37,413 30,903 33,422 31,423 54,327

14.9% 23.9% 19.8% 21.4% 20.1%

Per capita GDP (Th. VND,2010 constant) 20,861 38,451 21,312 27,239 20,935 -

(Deviation) 0.46 1 0.47 0.60 0.46

Source: Statistical year book (provincial), IMF World Economic Outlook Database Note: Lower column presents shares between CKEZ

15

2）Development Policies

CKEZ (a)

According to 「Socio-economic development of the Central Vietnam key economic region till 2010, with a vision to 2020] aims following major development objectives」(Decision no. 148/2004/QD-TT）, social and economic policy of CKEZ has been oriented as follows:

- To attain an annual GDP growth rate of 1.2 times and 1.25 times the national average GDP growth rate in the 2006-2010 and 2011-2020 periods respectively.

- To increase the average per-capita annual export value from USD 149 in 2005 to USD 375 by 2010 and USD 2,530 by 2020.

So far this goal has been attained since GDP in CKEZ increased with average growth rate of about 2 times of nation’s, as shown in the Table 2-11. And the plan has listed major solutions to promote the development of following key branches and fields.

- To speed up investment in the construction of Chu Lai open economic zone (Quang Nam province), Dung Quat economic zone (Quang Ngai province) and Chan May economic-commercial development promotion zone (Thua Thien Hue province), and to plan the construction of Nhon Hoi economic zone (Binh Dinh province), so that these economic zones can gradually become the region's development nucleus and centers after 2010.

- To promote the role of Da Nang, Hue and Quy Nhon cities as commercial, service and international transaction centers to assume the commercial, service and transaction functions as well as the role of a tourist center of the whole Central Vietnam and the Central Highlands.

These planned solutions have been promoted to the effect. Industrial output value of CKEZ has grown with more rate than that of the nation. And the role of Hue and Da Nang as commercial center has been strengthened since that growth rates of retail sales and services in Hue and Da Nang are more than those in other provinces of CKEZ.

Da Nang City (b)

According to the socio-economic development master plan of Da Nang city 「Da Nang city’s socio –economic development through 2020」(Decision no. 1866/QD-TTg of the Prime Minister on 08/10/2010), development policy has been oriented as follows:

- To make economic restructuring towards service-industry and raising growth quality towards industrialization and modernization, turning the city into an economic, cultural, scientific and technological center of the region, which joins its neighbor cities to form a North-South economic corridor.

16

- To build and develop Da Nang city into a large urban center of the country, a socio-economic center of the Central region, serving as an important service and seaport center and a hub for international and domestic goods transportation and transshipment; a postal and telecommunications as well as financial and banking center: one of the health, cultural, sports, educational and training, scientific and hi-tech centers of the Central region.

- To restructure the economy towards service- industry, construction-agriculture, which by 2020 will be proportionately as follows: service - 55.6%, industry and construction 42.8%; agriculture -1.6%;

- To maintain an annual economic growth rate of 12-13%, turning Da Nang into a city capable of motivating economic development of surrounding localities;

The direction for service industry has been promoted strongly in Da Nang city, which is confirmed by interviews to locators at Da Nang IZ. This target has been attained so far since that output value of agriculture, forestry and aquaculture decreased only in Da Nang city among other CKEZ provinces, while average growth rate of retail sales of goods and services of Da Nang city is highest of all CKEZ provinces. As for GDP growth, average growth rate was 11.2% for 2008~2012, a little bit lower than the goal targeted in the master plan.

3）Current Situation of Industrial Zones

General Review (a)

Industrial Zones have been driving force of industrial development. IZ located in CKEZ is shown in Table 2-12. Information has been obtained from these IZs.

Table 2-12 Industrial Zones in CKEZ

CKEZ Provinces Industrial Zones(IZ)

Da Nang City Da Nang Aquatic Product Service, Da Nang, Hoa Khanh, Expanded Hoa Khanh, Lien Chieu, Hoa Cam

Thua Thien - Hue Phu Bai, Tu Ha, Phong Dien, Phu Da, La Son, Quan Vinh, Chan May - Lang Co

Quang Nam Dien Nam - Dien Ngoc, Trang Nhat, Dai Hiep, An Hoa - Nong Son, Dong Que Son, Dong Thang Binh, Thuan Yen, Phu Xuan, Chu Lai

Quang Ngai Tinh Phong, Quang Phu, Pho Phong, Industrial Clusters, Dung Quat

Binh Dinh Hoa Hoi, Long My, Nhon Hoa,Nhon Hoi A, Phu Tai

17

Figure 2-5 Industrial Zone in CKEZ (1)


Lien Chieu IZ

Tien Sa Terminal

Min. wage: Group 2Close to Access road to NH1 and the port is developed.Rail freight yard is located.Heavy industry firms are moved here by the local government policy.

High-Tech Park

Min. wage: Group 2The park construction is still on going.A few Japanese firms are ready for mobilization.

Min. wage: Group 3Located in Quan Nam Province. However, only 17km away from Da Nang port.Access road from Da Nang port is improved to four lanes except one section stretching a few hundred meters has not been improved.

Dien Nam-Dien Ngoc IZ

Min. wage: Group 2Located near the intersection of the port access and NH1.ICDs and logistic companies exist thanks to the advantage.Expansion project is on going.

Hoa Cam IZ

Da Nang Aquatic Product Service IZ

Da Nang IZ Min. wage: Group 2The oldest IZ in Da Nang city.Located near the city centre and 7km away from Da Nang port.Area is smaller than other IZ comparatively.

Hoa Khanh IZ Min. wage: Group 2The largest IZ of the existing in the city.There are some vacant lot despite Jetro says its occupancy rate is 100%.

Hoa Khanh IZ

Min. wage: Group 2Next to the Hoa Khanh IZ.Electronic processing, precise mechanics products and car assembling firms are dominant.

Min. wage: Group 22.5km away from Da Nang port.Specialized in aquatic products.Two depots for empty container cargo are located.

Road closeddue to over pass

construction.

Chan May-Lang Co EZ Min. wage: Group 3Close to Chan May port and NH1.Access road to NH1 and the port is developed.No firm was found in the EZ.

Tu Ha IZ Phu Bai IZ

Phong Dien IZ

Min. wage: Group 3Located near the south intersection of NH1 and Hue bypass.The most active IZ in the Province.

Min. wage: Group 3Northernmost IZ of the province.Quite large spaces remain without any buildings.Access road to NH1 is under construction.

Min. wage: Group 3Located near the north intersection of NH1 and Hue bypass.

18



an Yen IZ

u Lai Open Economic Zone

Dung Quat EZ

Dong Que Son IZ

To Quy Nhon Port

To Da Nang Port

Min. wage: Group 4Bulk cargo: Woodchips are exported from Dung Quat port.Container cargo: Exported/ imported via Da Nang port.

Min. wage: Group 370km away from Da Nang port.Incentive investment: Automobile assembly, new material, bio-technology.

wage: Group 3 away from Da Nang port.tive investment: Garment, en products, consumer

s.

Long My IZMin. wage: Group 414km away from Quy Nhon port.Incentive investment: Agro-forestry products, cloths processing, mechanical processing

Min. wage: Group 425km away from Quy Nhon port.Incentive investment: Agro-forestry products, electrical equipment, mechanical processing

Nhon Hoa IZNhon Hoi IZ

Min. wage: Group 410km away from Quy Nhon port.Incentive investment: High-technology, clean engineering

Phu Tai IZ

Min. wage: Group 410km away from Quy Nhon port.Incentive investment: Agro-forestry products, cloths processing, stone processing

19

Main trends and opinions related Da Nang port obtained through interviews with locators in CKEZ IZ are summarized as follow. Table 2-14 also shows the detailed result of the interviews. - The occupancy rate of most of the established IZs in Da gang city (i.e. Da Nang, Da Nang Aquatic Product Service, Hoa Cam, and Hoa Khanh) is reportedly almost 100%, although there remains space to extend or newly build factories in the site. Each IZ seems busy and lively. In addition, new IZs such as Hoa Khanh Extended, Lien Chieu, and Da Nang Hi-Tech Park have been developed. Therefore, production in the IZs of the Da Nang city is expected to increase for at least the next few years.

-Locators utilize Da Nang port more or less for their exporting or importing. Most of interviewee use Da Nang port for 100% of their shipment. Therefore Da Nang port is inevitable for their activities. Existence of the port is one of important elements in their establishment at current site.

-As shown in Table 2-14, destinations of Locator’s trade shipping are globally distributed up to USA or Europe. Locator B in the table who is main user of Da Nang port in container shipping has shown the intension for a increase of EU bound cargo. Japanese locators generally export and import to/from Japan. Foreign locators have come to CKEZ area for the reduction of cost with their market unchanged. So efficient global logistics will become more important key factor as more foreign locators investment will develop.

-Locators at 5 IZ’s in Da Nang city these days have been diversified from light manufacturing to software, designing or logistics support. Nissan automobile factory have opened production at Hoa Cum IZ, and 6 Japanese logistics companies are now in operation.

- The most important reason why the factory is located in Da Nang city rather than Ho Chi Minh City (HCMC) nor Ha Noi City is that the labor cost is cheaper. The minimum wage in Da Nang city is lower since the wage group that the Da Nang city belongs to is different (Da Nang: Group 2, HCMC and Ha Noi: Group 1). Therefore, the largest risk for the industrial development of Da Nang city is that the wage group could be changed to group 1 (i.e. same wage level as the leading cities in Vietnam). During interviews, several people mentioned that they had heard such a rumor. Almost all IZs in Thua Thien - Hue, Quang Nam, and Quang Ngai Province are located in the area of the wage group 3 (Only Hue city belongs to group 2 in these provinces, while some rural area in these provinces belong to group 4). Therefore, in terms of the minimum wage, the firms located in the IZs of these provinces have a large advantage.

-The wage merit covers the relatively high transportation cost of trucking to Hanoi or HCMC , higher ocean freight charge of Da Nang port shipping reflecting the additional call or longer shipping time due mainly due to transshipment at other trunk port.

- As shown in Table 2-14, whenever importing the materials from as well as exporting the outputs to foreign countries, the Da Nang Port is basically utilized, neither HCMC Port nor Hai Phong Port by drayage, especially for foreign investors including Japanese firms, since they decide are located on the

20

premises of the existing of Da Nang Port. There are two exceptions are; i) one company utilizes land shipping when exporting the products to China, and ii) some company utilize land shipping until HCMC when they do not have enough cargo to fill a container. By all means, the amount of exceptional transport which do not use the Da Nang port is very few.

- However, local (i.e. Vietnamese) firms, especially for light industry such as garment industry, accept their customers’ request to utilize HCMC Ports, in order to lower the shipping cost (especially for import cargo) and shorten the shipping time (especially for export cargo). One reason that foreign customers insist on using HCMC Ports may be due to the fact that their contracts are generally FOB (free on board) for export and CIF (cost, insurance and freight) for import; i.e. goods are handed over at the Vietnamese ports for both export and import cases. Therefore, Vietnamese firms have to bear the domestic land shipping cost in Vietnam. Some Vietnamese firms made an effort to shift for their export and import ports to Da Nang Port from HCMC Ports, by sharing the benefit with their customers to reduce the price to sell (or increase the price to purchase), reflecting the saved amount by the reduced land shipping cost. If the level of service of Da Nang Port will be improved in terms of both ocean freight and shipping time, more cargo than currently transported to HCMC Ports by land shipping are expected to shift to Da Nang Port.

-The IZs in Quang Nam become more attractive. Minimum wages is less than that of Da Nang, where development policy has been shifting to tourism and soft industry. Now Da Nang city promotes Japanese companies to locate at Dien Nam - Dien Ngoc IZ in cooperation with Quang Nam province. Establishment sites will be expanded toward neighbor provinces. As shown in Figure 2-2 regional distribution of shippers or consignees of container cargo at the port does necessarily centered at Da Nang city.

- There are several seaports other than Da Nang Port for neighboring provinces, future development plan of which are listed as central region seaport group (group3) in the Vietnam Seaports Development Plan up to 2020 with the vision to 2030 (MOT Master plan:Decision No.2190/QD-TTg). They include Thuan An Port and Chan May Port in Thua Thien - Hue Province, Ky-Ha Port in Quang Nam Province, and Dung Quat Port in Quang Ngai Province. Out of them, Thuan An Port and Ky-Ha Port are local ports which are not usually utilized for the firms located in the IZs in each province. Also, Chan May Port and Dung Quat Port are utilized for bulky cargo (Chan May Port is also utilized for cruise ship), but not for container cargo. In other words, Da Nang Port covers four provinces (Da Nang, Thua Thien - Hue, Quang Nam, and Quang Ngai) in terms of container cargo, while it mainly covers two provinces (Da Nang and Quang Nam) in terms of bulky cargo as its hinterland. Although those neighboring ports have development plan, they will not affect the above coverage of Da Nang port since the plans are formulated in long time span and so far there are no movement for realization of those plans.

21

Table 2-13 Owners and Operators of Neighboring Ports

Port Owner Operator

Tuan An Thua Thien Hue province Thuan Port Joint Stock Company

Chan May Vinashin Chan May Port Co. Ltd

Ky-Ha Ministry of Defence Ky-Ha Port Thuong Thanh Steel Co. Ltd

Dung Quat Gemadept Corporation Gemadept Corporation

Quy Nhon Vietnam National Shipping Line (Vinalines) Quy Nhon Port Limited Company

-Currently only Da Nang port company is only port operator of the port and WANHAI is only container vessel operator for going to Japan without transshipment at other trunk port. Some locators are requesting more marketing promotion to collect cargo for cargo for the company or requesting more punctual shipment even in tough weather ,which would be more realized in the competitive situation.

-Locators generally intend to increase their production, prospecting a shift of production center from China or Indonesia to Vietnam.

22

Table 2-14 Locator’s Operation in Industrial Zones in CKEZ (1)

Source: Jica study team

Quang Nagai IZ

Lien Chieu Da NangAquaticServiceProducts

Dien Nam - Dien Ngoc

A B C D E F G H I

Industry/ ProductsTextile,

Metalwork MotorPurification

tankAutomotive

WiringsElectric

Components Steel IndustryAutomotive

PowerSupplies

ProcessedSeafood Sanitary Ware

Number of Employee 1,000 3,900 10,000 4,000 300

Import

4TEU/ MChina

TaiwanJapan

50TEU/ MChina

2TEU/ MJapan

50TEU/ MJapan

8TEU/ MChina

Hong Kong

4-8TEU/ MHong Kong

7TEU/ MJapan 50%

EU 25%Taiwan 25%

5TEU/ MChina

Export 6TEU/ MJapan

100TEU/ MSEA 30%EU 27%China 22%

6TEU/ MJapan

60TEU/ MJapan 50%China 50%

40TEU/ MChinaUSA

1-6TEU/ MChina

20TEU/ MJapan 80%USA 10%HK 10%

2.2TEU/ MJapan

Import 9Trucks/ MAsia

Few(urgent)

40Truck/ MChinaUSA

10,000ton/ MSouth Africa

Japan

Export18Trucks/ M

Japan

110Truck/ MChinaUSA

10,000ton/ MPhilippine

Use of Da Nang Port 100%Almost100% 100% 100% 50% 100% 0% 100% 100%

2 times ofcurrent

productionnext year

50%increase in

3yearswill increase

20~30%increase in

future

50% increasein future

>anxiety forshortage ofshippingschedule infuture. EU boundwill beincreased

Japaneseclients

expandsexport

2500 workersplant in Quang

NagaiDirect call

necessary forDa Nang's

choiceHCM Port >Da

Nang Port

Truck Cargo Domestic Sale (65%)

Hoa Cam

Intention ofproduction increase

Bulk Cargo

Container

Da Nang IZ

Hoa Khanh

Company

Remarks

23

Table 2-15 Locator’s Operation in Industrial Zones in CKEZ (2)

(b)Situations of IZs

Current situations of IZ in CKEZ is as follows. Some basic information are excerpted from JETRO data.

IZs in Da Nang City a）

- Da Nang IZ

Da Nang IZ has the planned area about 58ha, of which 44ha is now for lease. Current occupation ratio is 75%. Some fields for incentive investment are industry of textile, apparel shoes, electronic processing, food processing. The IZ is located 5km from Da Nang port (Tien Sa port).

Dung QuatEZ

Dung QuatIZ

Thua TienIZ

J K L M N O P Q

Industry/ ProductsBoiler, HeavyEquiopment,

etc.

WoodProcessing

Textile Textile Sports Glove SandProcessing

Wood chip RubberProduct

Number of Employee 2,500 400 4,000

Import

14 TEU/ MChinaKoreaJapan

4TEU/ MChinaAsia

5TEU/ MHong Kong

ChinaTaiwan

2TEU/ MJapan 50%Korea 50%

150TEU/ MChina,

Japan,KoreaEU,SEA

Export

6TEU/ MChina 60%Korea 20%Japan 20%

62TEU/ MUSA 9TEU/ M

USA2TEU/ M

Japan

40TEU/ MAsiaEU

South America

Import

Export 17000t/MJapan 30%

50000t/MJapan

Use of Da Nang Port 100% ofContainer

95% ofContainer

85%(Ex.),30%(Im.)

40% 100% 100% 100% 95-100%

10%/yearincrease will

bemaintained

10%~20%increase in

future

50% increasein future will increase

50% increasein 2 years

Use of ownport

Chip isexported

fromGema Dept

Saigon Portis

designatedby clientsMore callrequested

Lesscompetetivethan HCMC

for USboundcargo

Japnesepulp maker

will shiftinboundingcountries to

Viet Nam

Chemicals viaHCM

Container

Bulk Cargo

Intention ofproduction increase

Da Nang city

Company

Remarks

24

Da Nang IZ is the oldest industrial zone in Da Nang city. Although the area is smaller than other new IZs in Da Nang city, it is located near the city center as well as the Tien Sa Terminal. Several Japanese companies, manufacturers and a logistics company, are located in this IZ.

Figure 2-9 Entrance of Da Nang IZ (Left) and Companies Located in the IZ (Center, Right)

- Hoa Cam IZ

Hoa Cam IZ has the planned area about 221ha, of which 137ha is now for lease. 47 firms are now in operation. Current occupation ratio is 80%. Some fields for incentive investment are industry of electronic processing, food processing, agro-products. The IZ is located 10km from Da Nang port (Tien Sa port).

Hoa Cam IZ is located near the intersection of the port access road and National Highway No.1. Accordingly, many ICDs (Inland Container Depots) and logistics companies are located in the IZ to take advantage of the ideal location. However, vehicles from Tien Sa terminal cannot directly enter the gate of the IZ because there is no left turn lane at the intersection (see left picture of Figure 2-10). Therefore, trucks and trailers to enter the Hoa Cam IZ from Tien Sa terminal have to turn around the access road at the point one kilometer away from the entrance (see center picture of Figure 2-10).

The second phase of the IZ is still expanding and the cargo volume originated from/destined to the IZ is expected to increase in the near future.

Figure 2-10 Entrance of Hoa Cam IZ (Left), Trailers Turning Around to Enter the IZ from the Da Nang Port (Center), and Inland Container Depot in the IZ (Right)

25

- Hoa Khanh IZ

Hoa Khanh IZ has the planned area about 396 ha, of which 298 ha is now for lease. 120 firms are now in operation. Some fields for incentive investment are industry of electronic processing, apparel, mechanical processing, petrochemical products. The IZ is located 20km from Da Nang port (Tien Sa port). Hoa Khanh IZ is the largest IZ of the existing IZs in the Da Nang city.

According to JETRO, the occupancy rate of the IZ is 100%; however, there are several vacant spaces. In addition, the JICA team learned that several companies still have available space within their own property. Two Japanese companies which are located in the IZ have a plan to increase their production levels within a few years. Therefore, the cargo volumes originated from/destined to the IZ are also expected to steadily increase over the next few years at least.

Currently, the ongoing construction of an overpass over the railway on the shortest access route connecting Hoa Khanh IZ with Tien Sa terminal means that trailers and trucks have to detour through the coastal road and narrower road in the city center (see Figure 2-12).

Figure 2-11 Entrance of Hoa Khanh IZ (Left), a Factory Complex Managed by a Japanese Trade Firm (Center), and Another Japanese Factory (Right)

Figure 2-12 Construction Site on the Way Connecting Hoa Khanh IZ with Tien Sa Terminal (National Highway No.1) (Left) and a Trailer Detouring in the City Center (Right)

- Expanded Hoa Khanh IZ

Expanded Hoa Khanh IZ has the planned area about 130ha, of which 97ha is now for lease. 9 firms are

26

now in operation. Current occupation ratio is 53%. Some fields for incentive investment are industry of electronic processing, precise mechanics products, car assembling. The IZ is located 20km from Da Nang port (Tien Sa port). The IZ has been in operation since 2004. Several manufacturers including an auto assembly plant and an auto parts factory are located in the IZ. The auto assembly plant (TCIE Vietnam) is operated by Tan Chong Corporation (Malaysia) in collaboration with Nissan Motor, where the Nissan Sunny is assembled. It opened in June 2013 and produces about 100 cars per month.

Figure 2-13 Auto Assembly Plant Located in Hoa Khanh Extended IZ (Left and Center), and Road in the IZ (Right)

- Lien Chieu IZ

Lien Chieu IZ has the planned area about 198ha, of which 142ha is now for lease. 22 firms are now in operation. Current occupation ratio is 69%. Some fields for incentive investment are industry of precise mechanical processing products, building materials with new technology. In particular, some local factories of heavy industry such as steel and chemical plant have shifted (or will shift) to Lien Chieu IZ from other IZs and the sites near the city center, in line with the local government’s policy of improving the environment for citizens.

The IZ is located 25km from Da Nang port (Tien Sa port) around the intersection of Da Nang Bypass (National Highway No.1) and the old national highway, also near the Hai Van tunnel. The IZ has a railway yard (see right picture of Figure 2-14) branched from the national railway connecting Ha Noi with HCMC. It is also near the planned site of Lien Chieu Port.

Figure 2-14 Factory (Left), Road (Center), and Railway Yard (Right) in Lien Chieu IZ

27

- Da Nang Aquatic Product Service IZ

Da Nang Aquatic Product Service IZ (Da Nang Seafood Service Zone) has the planned area about 50ha, of which 42ha is now for lease. 23 firms are now in operation. Current occupation ratio is 100%. Although this IZ is specialized in the industry of aquatic products, two depots for empty container cargo are also located in the IZ, which are not related with any other firms located in the IZ. The IZ is located 2.5km from Da Nang port (Tien Sa port).

- Da Nang Hi-tech Park

Da Nang Hi-tech Park has the planned area about 238ha in its phase 1 development. Although it was planned to open at the end of 2013, it is still under construction as shown in Figure 2-15. A few Japanese companies have already decided to locate in the IZ. The IZ is located 25km from Da Nang port (Tien Sa port) along Da Nang Bypass (National Highway No.1).

Figure 2-15 Construction Site of Da Nang Hi-tech Park (Right Picture Shows an Access Road to National Highway No.1)

IZs in Quang Nam Province b）

- Dien Nam - Dien Ngoc IZ

Dien Nam - Dien Ngoc IZ has the planned area about 390ha, of which 215ha is now for lease. Current occupation ratio is 87%. Some fields for incentive investment are industry of electronics, agri-aqua products textile. The IZ is located 17km from Da Nang Port (Tien Sa Terminal), which is closer than some IZs in Da Nang city. The nearest port is Da Nang.

Dien Nam - Dien Ngoc IZ is located in the northernmost part of Quang Nam Province. Almost all sections of the access road to Tien Sa Terminal have already been improved to four lanes (i.e. two lanes for each direction). One section stretching a few hundred meters has not been improved (see right picture of Figure 2-17) but it will be in future.

Although the occupancy rate of the phase 1 site is 100% and that of phase 2 is 80%, there seems to be enough space to build new factories, especially in the phase 2 site. The biggest feature of the IZ is that the minimum wage group in Quang Nam Province is Group 3, different from Da Nang city as well as Thua

28

Thien - Hue Province; i.e., the labor cost is much cheaper than that in the IZs of Da Nang city. On the other hand, the quality of the workers is slightly lower than that in Da Nang city, according to the interview survey to Japanese companies which is located in the IZ. Most of workers have never worked in a factory before and have received no training.

Figure 2-16 Main Gate, Factory and Road of Dien Nam - Dien Ngoc IZ

Figure 2-17 Access Road to Dien Nam - Dien Ngoc IZ from Da Nang Port (Left: in Da Nang City, Center and Right: in Quang Nam Province)

- Chu Lai Open Economic Zone

Chu Lai Open Economic Zone (Chu Lai OEZ) consists of five IZs over a planned area about 3,316ha, of which 766ha is now for lease. More than 72 firms are now in operation. Current occupation ratio is 79%. Some fields for incentive investment are industry of automobile assembly, new material, bio-technology. The IZ is located 70km from Da Nang Port. The nearest port is Ky-Ha, but use of Ky-Ha port is not usual due to limited facility of the port. The non-negligible amount of cargo utilizing Tien Sa Terminal is originated from/destined into the OEZ.

29

Figure 2-18 Gate (Left), Auto Assembly and Chemical Plant (Center), and Another Auto Assembly Plant (Right) in Chu Lai OEZ

Figure 2-19 Access Road (Right), Gate of Commercial Port (Center) and a Berth of Military Port (Left) in Ky-Ha Port

- Thuan Yen IZ

Thuan Yen IZ, located between Dien Nam - Dien Ngoc IZ and Chu Lai OEZ in Quang Nam Province, has the planned area about 320ha, of which 16.8ha is now for lease. 10 firms are now in operation. Current occupation ratio is 25%. Some fields for incentive investment are industry of garment, wooden products, and consumer goods.

IZs in Thua Thien - Hue Province c）

- Chan May - Lang Co EZ

Chan May - Lang Co EZ has the planned area about 27,108ha (planned area of phase 1: 560 ha), of which 2,070ha is now for lease. Thirteen firms are now operating in the EZ. Some fields for incentive investment are industry of infrastructure, logistics, and transportation. Although the planned area of the EZ is quite huge, almost no buildings can be currently found in the area except for the Chan May port and a very few facilities such as oil tank. The Chan May port has been already developed and some vessels including cruise ship sometimes call. However, since there is no regular service of maritime container shipping nor gantry cranes for container handling in the port, the shippers in Thua Thien - Hue Province usually use the Da Nang port for container export and import.

30

The distance of the EZ to Tien Sa Terminal is around 60 km, a hour to one and half hour trip. The access road connecting National Highway No.1 with the Chan May port through the EZ site is already developed.

IMPORT EXPORT TOTAL

20’ 40’ 45’ TEUs 20’ 40’ 45’ TEUs 20’ 40’ 45’ TEUs

2013 29,246 27,444 209 84,552 28,373 27,035 226 82,895 57,619 54,479 435 167,447

LADEN 23,402 23,097 10 69,616 24,280 18,120 224 60,968 47,682 41,217 134 130,584

EMPTY 5,844 4,347 199 14,936 4,093 8,915 2 21,927 9,937 13,262 201 36,863

REEFER

(Boxes)

223 1,646 0 3,515

(1,869)

756 2,652 0 6,060

(3,408)

979 4,298 0 9,575

(5,277)

Source: DPC

Figure 2-20 Oil Storage (Left) and Road (Right) in Chan May - Lang Co EZ and Chan May Port (Right)

- Phu Bai IZ

Phu Bai IZ has the planned area about 818ha, of which 2,070ha is now for lease. 38 firms are now in operation. Some fields for incentive investment are industry of construction and trade of IZ’s infrastructure, all round manufacture.

Phu Bai IZ is located around the south intersection of the National Highway No.1 and its Hue bypass; there are two entrances of the IZ towards the old highway and bypass. Also, an international airport is located nearby. This IZ is considered to be the most active of the four IZs in Thua Thien - Hue Province. The occupancy rate of the phase 1 (53 ha) and II (132 ha) sites are reported to be 100%, while phase II (119 ha) is currently being developed.

In Thua Thien - Hue Province, there is another port near Hue City (around 17km away), Thuan An Port, other than Chan May Port. However, the Thuan An Port is too small to use for most firms located in the IZs (see Figure 2-22).

31

Figure 2-21 Entrance (Left), Factory (Center) and Expanded Site (Right) of Phu Bai IZ

Figure 2-22 Current Status of Thuan An Port

- Tu Ha IZ

Tu Ha IZ has the planned area about 250ha, of which 250ha is now for lease. Some fields for incentive investment are industry of construction materials, agro-foresry products, mechanics, and electronics.

Tu Ha IZ is also located around the north intersection of the previous national highway and Hue bypass. Since this IZ has been recently established, a few factories are located in the IZ.

Figure 2-23 Factory (Left), Access Road (Center), and Entrance of Access Road from National Highway No.1 (Right) in Tu Ha IZ

- Phong Dien IZ

Phong Dien IZ has the planned area about 400ha. 7 firms are now in operation. Current occupation ratio is 37%. Some fields for incentive investment are construction materials, sand products, agro-foresry

32

products.

Phong Dien IZ is located in the northernmost part of Thua Thien - Hue Province. Quite large spaces remain without any buildings. Since the IZ is located far from the city, the locater supplied a commuter bus for workers. The access road to the National Highway No.1 needs to be improved and the overpass of the railway is under construction (see Figure 2-25).

Figure 2-24 Factory (Left), Commuter Bus (Center), and Location Site (Right) in Phong Dien IZ

Figure 2-25 Access Road to Phong Dien IZ from National Highway No.1 (Left: Intersection with National Highway No.1, Center: Road to be Improved, Right: Overpass of Railways to be Built)

IZs in Quang Ngai Province d）

- Dung Quat EZ

Dung Quat EZ has the planned area about 10,300ha, of which 2,428ha is now for lease. 112 firms are now in operation. Current occupation ratio is 85%. Some fields for incentive investment are industry of petrochemical products, steel products, and shipbuilding. The IZ is located 30km from Quag Ngai city.

There are several private ports in Dung Quat area such as Gemadept and PTSC. For example, the Gemadept Port handles bulk cargo (mainly woodchip) as shown in Figure 2-27. It also used to handle container cargo when it opened in 2008, but this was discontinued in 2010 because the container volume was lower than expected. Other private ports including those for exclusive use by oil refinery, heavy manufacturing, and shipbuilding company also handle bulky cargo but not container cargo. Therefore, for import and export of container cargo, the firms located in the EZ are considered to mainly utilize Da Nang

33

Port, according to the results of interview survey.

For example, the heavy manufacturing firm located in the EZ has an exclusive berth used mainly for exporting, while it utilizes Da Nang Port (Tien Sa Port) for importing containers (mainly from Korea, China and Japan). Also, the wood processing firm utilizes some private ports in the EZ for exporting woodchip (mainly to China and Korea), while it utilizes Da Nang Port for exporting wood products (mainly to Japan) as container cargo. Some customers which are located in Quang Ngai Province would like to use Quy Nhon Port for exporting containers, not Da Nang Port; however, the land shipping cost is more expensive due to the longer distance, and thus the firms located in the Dung Quat EZ rarely use Quy Nhon Port.

Figure 2-26 Factory of Heavy Manufacturing Industry (Left) and Wood Processing Industry (Center), and Road and Gate (Right) in Dung Quat EZ

Figure 2-27 Private Ports in Dung Quat EZ

IZs in Binh Dinh Province e）

Although Binh Dinh Province is one of five CKEZ provinces, it is generally not included in the hinterland of Da Nang Port based on the interview survey to shippers, observed results by field trip, and fragmentary statistical information provided from DPC.

-Long My IZ has the planned area about 110ha, of which 87.1ha is now for lease. 13 firms are now in operation. Current occupation ratio is 90%. Some fields for incentive investment are industry of agro-foresry products, cloths processing, mechanical processing. The IZ is located 30km from Quy Nhon city. The nearest port is Quy Nhon port.

34

-Nhon Hoa IZ has the planned area about 330ha, of which 225.13ha is now for lease. 6 firms are now in operation. Current occupation ratio is 41%. Some fields for incentive investment are industry of agro-foresry products, mechanical processing, electrical equipment processing. The IZ is located 25km from Quy Nhon city. The nearest port is Quy Nhon port.

-Nhon Hoi A IZ has the planned area about 630ha, of which 445ha is now for lease. 9 firms are now in operation. Current occupation ratio is 8%. Some fields for incentive investment are industry of high and clean technology products. The IZ is located 7km from Quy Nhon city. The nearest port is Quy Nhon port.

-Phu Tai IZ has the planned area about 346ha, of which 243ha is now for lease. 99 firms are now in operation. Current occupation ratio is 90%. Some fields for incentive investment are industry of rock processing, agro-foresry products ,cloths. The IZ is located 10km from Quy Nhon city. The nearest port is Quy Nhon port.

IZ in East-West Economic Corridor f）

The East-West Economic Corridor (EWEC) of the Greater Mekong Subregion (GMS) which connects Vietnam, Lao PDR, Thailand and Myanmar was often referred to in the DFS report since the Da Nang Port is an east gateway port of the EWEC (see Figure 2-28). However, it mentioned neither the current situation of EWEC nor the volume cargoes expected to and from Lao PDR and northeast Thailand through EWEC.

This report focuses on the southern part of Lao PDR along the EWEC as a potential hinterland of Da Nang Port, in addition to the Vietnamese provinces that are mentioned above. In particular, our focus is on the city of Savannakhet including its suburban area where there is great potential for cargo volumes to increase by attracting the manufacturing industry, especially in the Special Economic Zone (SEZ).

According to the statistics of Da Nang Port, the volume of container cargo exported from Lao PDR was around 250 TEUs in 2013 and 370 TEUs in 2012, or 0.4 to 0.6% of the total volume of exported container cargo through Da Nang Port; on the other hand, no containers are imported into Lao PDR through Da Nang Port. The major commodities of containers exported from Lao PDR through the Da Nang Port are wood and wooden products, rubber materials, agricultural products, and tobacco. Wood and wooden products were mainly exported from Attapu Province, which is located in the farthest south-west of Lao PDR, while other products were considered to be exported from Savannakhet Province including the city of Savannakhet. The woods from Attapu Province were also exported as a bulk cargo through Da Nang Port (about 3,300 m3 in 2013 and 10,700 m3 in 2012).

The city of Savannakhet is located 510 km from Da Nang Port (270 km in Vietnam and 240 km in Lao), along the Mekong River. The opposite shore of the Mekong River is Mukdahan, Thailand, connected with the Second Thai-Lao Friendship Bridge, which was opened in 2007 with financial support from a Japanese ODA loan. After the opening of the Friendship Bridge, the city of Savannakhet has been developed as a

35

satellite city of Thailand for economic purposes; i.e. some Thai and other foreign companies (including Japanese companies) with factories in Thailand are shifting some part of labor-intensive processing works to Savannakhet where wages are much lower than in Thailand.

Source: DFS Report

Figure 2-28 East-West Economic Corridor of the Greater Mekong Subregion and Da Nang Port

Thailand to Lao Lao to Thailand

Source: Bank of Thailand HP

Figure 2-29 International Trade Flow for Each National Border in the Northeast Thailand to Lao PDR

Figure 2-29 shows the time-series trade flow (in monetary terms) in each national border in northeast Thailand to Lao PDR. The shares of Mukdahan in both directions have dramatically increased after the opening of the second Friendship Bridge in 2007, especially the flow from Lao to Thailand. Note that after

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Millions of Baht

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Chiang Khan

Tha Li

Khemmarat

Phipun Mangsahan

Mukdahan

Nakhon Phanom

Bung Kan

Nong Kai

Millions of Baht

36

the opening of the Third Thai-Lao Friendship Bridge which connects Nakhon Phanom in Thailand with Thakhek in Lao PDR in 2011, the shares of Nakhon Phanom in both directions have also dramatically increased which has had an effect on the share of Mukdahan.

At any rate, the city of Savannakhet’s economy has benefitted from the closer ties to the Thai economy; therefore, the international logistics industry in the city of Savannakhet also mainly focuses on the connection with Thailand. However, the closest seaport from the city of Savannakhet is Da Nang via the EWEC. The distance to Da Nang Port is less than that to Laem Chabang Port in Thailand (around 700 km away). The shipping time by truck to Da Nang Port is around 10 to 12 hours including the border transit, which is also less than that to Laem Chabang Port (around 13 to 18 hours).

The manufacturing factories in Savannakhet Province are concentrated in the Savan-Seno SEZ and its neighboring area. Figure 2-30 shows the location of the Savan-Seno SEZ. There are four sites around the city of Savannakhet and Seno; the features of each site are summarized in Table 2-16. “Site C” is the most developed while a few companies are also located in “site B” (such as Nikon Corporation, see Figure 2-31), “site D” (such as Daehan Group Co. Ltd., see Figure 2-32), and the neighboring area of site C (such as Hyundai Motor Company, which is the largest factory in Savannakhet Province, also see Figure 2-32).

Source: presentation material of Savan Pacifica Development Co. Ltd.

Figure 2-30 Location Map of Four Sites (Site A to D) of Savan-Seno SEZ

37

Table 2-16 Summary of Each Site of the Savan-Seno SEZ

Site Area Contents Management company

Site A

436ha Trading, Financial Center and Entertainment

Savan City Co., Ltd.

Site B 20ha Logistic and Ware House Savan SENO Special Economic Zone Authority

Site C (Savan Park)

220ha Industrial Estate Savan Pacifica Development Co. Ltd.

Site D 120ha Residential and Commercial Area Savan City Co., Ltd.

Source: Savan City Co., Ltd. HP

Figure 2-31 Factories Located in Site B (Left and Center) and Reserved Area (Right)

Figure 2-32 Factory Located (Left) and Branches of Bank Constructed (Center) in Site D and Trailers Stopping in the Front of Hyundai Factory (Right)

“Site C” of the Savan-Seno SEZ is called “Savan Park” and is managed by Savan Pacifica Development Co. Ltd. Having completed the Phase 2 development (out of the planned four phases), 33 companies have been located in the site including five Malaysian, four Japanese, four Thai, three French, and two Dutch companies (see Figure 2-33). As an example, Toyota Boshoku Lao Co., Ltd. started to produce auto seat covers in April 2014 according to their press release (see Figure 2-34).

According to the interview with the staff of Savan Park, only a small number of containers are currently imported into and exported from the site to/from countries other than Thailand and Vietnam by maritime shipping. However, they expect to increase the number of such containers in the near future by attracting

38

new customers on the strength of their flexibility (i.e. customers have two options: Da Nang Port and Laem Chabang Port) when shipping containers abroad. Forwarders require that the number of international maritime containers be at least 200 units per month in order to set up the ICD (Inland Container Depot) in the site.

Currently, most international maritime containers to/from the site are transported through Laem Chabang Port. According to the interview survey, there are four major reasons why they do not choose Da Nang Port ; i) quality of service of the port, ii) frequency of liner service, iii) safety and security of land shipping and port handling, and iv) speed limitation and other obstacles of truck transport in Vietnam. As a result, the Da Nang Port route via the EWEC is less competitive, although it has an advantage of being closer to the seaport. The lack of competitiveness also means there is less competition among the forwarders which provide the land shipping service with Da Nang Port; therefore, the freight charge of the land shipping between Savannakhet and the Da Nang Port hovers at an almost similar level to that between Savannakhet and Laem Chabang Port (around 1,500 US$ per container).

In terms of the safety of land shipping, the road condition of the EWEC in Lao PDR has been improved in recent years by the grant aid of JICA. Due to the unexpected number of the overweighed dump trucks running from the mining site and insufficient maintenance, damage to the road surface had progressed faster than expected when the EWEC was developed about ten years ago. Therefore, JICA started a road improvement project a few years ago for almost half of the sections in the EWEC in Lao PDR. The project has almost been completed (see Figure 2-35); however, there are still several heavily damaged sections which are outside the scope of the project this time (see Figure 2-36).

Source: presentation material of Savan Pacifica Development Co. Ltd.

Figure 2-33 Current Status of Savan Park (Site C of Savan-Seno SEZ) as of May 2013

39

Figure 2-34 Gate (Left), Factory (Center), and Reserved Area (Right) in Savan Park

Figure 2-35 Improved (Left) and Improving (Center, Right) Section of the EWEC in Lao PDR

Figure 2-36 Damaged Section of Road not Covered in the Project (a few Similarly Damaged Sections Remain)

Figure 2-37 National Border between Vietnam (Lao Bao, Left and Center) and Lao PDR (Dan Savanh, Right). Trailer Covered with a Blue Sheet in Center Picture is Transporting Round Wood

40

Figure 2-38 Transshipment Station of Containers in order to Change Chassis and Trailer (Located near the Checkpoint in Lao, 15 km from the National Border)

In addition to container cargo, a bauxite mine in southeast Lao, which is estimated to contain the worlds’ largest deposit of bauxite, will be important to the regional economy. Mitsui & Co., Ltd. owns the interest to mine it with Rio Tinto. According to the article below, an export facility with a pipeline from the mine will be constructed in Ky-Ha port in Quang Nam Province, not in Da Nang City.

$250 million to build a Vietnam-Laos bauxite pipe

VietNamNet Bridge – An underground pipeline of 240 km long will be built to link from the Sekong and Attapeu plateaus of Laos to Quang Nam province of Vietnam, with a total investment of approximately $250 million.

The Quang Nam Provincial People's Committee has allowed the Vietnam Import Export and Construction Corporation (Vinaconex) and its Lao partner – the Laos Minerals Company, to build a pipe to transport bauxite from the Laos to the Chu Lai Economic Zone.

According to Vinaconex, the bauxite mine in Sekong and Attapeu plateaus are at a height of about 1,150 m, with reserves of 300 million tons of ore. The pipe to transport bauxite to Vietnam will be about 240 km and will be designed at the highest standards of the pipeline manufacturing industry.

The control system will be computerized. Each year, the transmission capacity of this underground pipe is estimated at 7-10 million tons of bauxite ore, through the port of Ky Ha in the Chu Lai Economic Zone.

Total estimated capital investment for this pipe is about $250 million (not including operating expenses and taxes). The pre-feasibility report will be completed in November.

(source: Vietnamnet Bridge, last updated on 27/09/2013, http://english.vietnamnet.vn/fms/business/ 85400/-250-million-to-build-a-vietnam-laos-bauxite-pipe.html)

In summary, currently the cargo including both containers and bulk cargo to/from Lao PDR including

41

Savannakhet and Attapu Province represents only a very small portion of the cargo handled in Da Nang Port (less than 1% of the total amount). If the southern Lao area including the city of Savannakhet realizes rapid economic growth and the issues related to utilizing Da Nang Port such as the road condition of the EWEC are resolved in the near future, one hundred to a few hundred containers per month are expected to be handled in Da Nang Port. In other words, at maximum around 10 thousand containers per year to/from Lao PDR are expected to be handled in the Da Nang Port for the near future.

Regarding EWEC, some Japanese locators pointed that the existence of the EWEC is an additional reason to choose the Da Nang city. For some companies with factories and/or customers in Thailand, Da Nang city was more attractive when they considered setting up in Vietnam, since it is a gateway to the EWEC. However, only few companies actually used the EWEC in their shipping; in addition, it is mostly being used on a trial basis. The EWEC is not being used much due the lack of shipping demand, higher shipping cost (also longer time in some cases), and shaking due to bad road condition. On the other hand, two Japanese companies are regularly utilizing the EWEC (one is an in-house shipping for auto parts company and the other is shipping machine parts to its customer in the electronics industry); the major reason of their choice is that they can save shipping time.

4）Da Nang City’s Promotion Policy for Tourism Sector

The socio-economic development master plan of Da Nang city have guided the city’s economic structure to restructure the economy towards service- industry, construction-agriculture. It has set the goal for promoting

tourism into a spearhead, economic sector of the city which will make up for a large proportion in the city's

economic structure.

Emphasizing of tourism is reflected on the city transportation management. Heavy vehicles are banned to use Thuan Phuoc bridge for the reason that the city government gives priority to tourism for the use of the bridge and the roads linked with it in the coastal zone. And cargo handling facility of Son Han port, which is operated at the center of the city will be relocated to Son Tra district near Tien Sa port.

Currently, Tourism industry of Da Nang city has grown in accordance with the master plan from view point of tourism activity index shown in Table 2-17. Da Nang city receives about 400 thousand overseas tourists of which 40 thousand tourists come by cruise ships calling at Tien Sa port. The average growth rate of recent Tien Sa cruise comers is 8%, which is less than that of foreign visitors to Da Nang city (13%).

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Table 2-17 Tourism Activity of Da Nang city

2008 2009 2010 2011 2012

Tourism Turnover (Mil.dongs) 706,392 767,318 1,094,776 1,749,539 1,898,350

Foreign Visitors (Persons) 257,193 155,912 290,933 402,752 425,495

Number of Hotels 85 137 192 364 370

Number of beds 4,820 6,693 11,160 14,713 15,150

Cruise Visitors (Persons)* 29,642 30,128 32,047 38,190 40,888

*Via Da Nang port Source: Statistical Yearbook of Da Nang city, DPC

Activities of Overseas Aid Organizations to Ports Projects in Vietnam (4)

There have not been a sea port related project since the East –West Transport Corridor Project carried by ADB (1997~1998) in which Da Nang port is assigned a role of the gateway port for seaborne trade to/from north-east Thailand and Laos via National Highway (NH) No.9 and No.1.

Current Condition of Road and Railway Network (5)

Current conditions and related road development plans of access roads to Da Nang port is studied in this section. Subjected access roads are selected to connect industrial zones in Danang City and neighboring provinces to Da Nang port. Main access roads from Da Nang port to industrial zones in Da Nang City is Yet Kieu street - Ngo Quyen street (AH17) – Ngu Hanh Son street - Tuyen Son Bridge - 2/9 street - Cach Mang Thang 8 street - Hoa Cam Intersection, and branched roads to vicinal industrial zones. National highway No. 1 is mainly used as access road from industrial zones in neighboring provinces to Da Nang port.

1）Current Condition of Main Port Access Roads

Road Network (a)

Main port access roads from Da Nang port to NH 1 is Yet Kieu street - Ngo Quyen street – Ngu Hanh Son street - Tuyen Son Bridge - 2/9 street - Cach Mang Thang 8 street - Hoa Cam Intersection and major industrial zones in Da Nang City are accessing to Da Nang port through the main port access roads.

The main port access roads consist of six roads and 18.6 km in total as shown in Figure 2-39 and Table 2-18.

There are five major operating industrial zones and two major industrial zones are under development such as Da Nang High Tech Park and Hoa Khanh Expantion Industrial zone. As shown in Figure 2-39, heavy vehicle passage on major bridges and coastal road in city center is prohibited. Accordingly, roads in peripheral of the city such as National Highway No. 1 (Da Nang Bypass), National Highway No. 14B, and

43

the main port access roads are needed to mainly accommodate port access freight traffic from above industrial parks in Da Nang City.

Source: JICA Study Team (Google Map)

Figure 2-39 Main Port Access Roads

Da Nang Port (Tien Sa Port)

Da Nang IZ

Da Nang Seafood Services

Lien Chieu EZ

Hoa Khanh Expansion IZ

Hoa Khanh IZ Da Nang High – Tech Park

Hoa Cam IZ

1. Yet Kieu Street

2. Ngo Quyen Street

3. Ngu Hanh Son Street

4. Tuyen Son Bridge

5. 2/9 Street

6. Cach Mang Thang 8 Street

La Son – Tuy Loan Expressway

Da Nang – Quang Ngai Expressway

South Ring Road (Phase 1) South Ring Road (Phase 2)

NH1

NH1

NH14B

Tuy Loan IC

Traffic Ban for Heavy Vehicles

Elevated Intersection at Ton Duc Thang / Truong Chinh / Dien Bien Phu

44

Table 2-18 Outline of Main Port Access Roads

No.

Name Length (km)

Cross Section Road Side Land Use

Remarks Number of Lanes

Lane Width (m)

Median Width (m)

Shoulder Width (m)

1 Yet Kieu street 4.38 4 3.75 2.0 3.0 Flat 2 Ngo Quyen

street 6.06 4(4) 3.75(3.00) 2.0 3.0 Urban (Service

Roads) 3 Ngu Hanh Son

street 1.80 4(4) 3.75(3.00) 2.0 3.0 Urban (Service

Roads) 4 Tuyen Son

Bridge 2.11 4 3.75

(3.50) 2.0

(1.3) 3.0

(2.5) Urban (Bridge

Section) 5 2/9 street 0.87 4 3.75 2.0 3.0 Urban 6 Cach Mang

Thang 8 street 3.38 4 3.75 2.0 3.0 Urban

Total 18.6 Source: JICA Study Team

Road traffic capacity on general sections of the main port access roads is preliminarily estimated and the result is shown in Table 2-19. Applied method for capacity estimation is introduced in “the Traffic Capacity of Road” published by Japan Road Association.

Table 2-19 Capacity of General Sections on Main Port Access Roads

No.

Name Number of Lanes

Base Capacity (pcu/h)

Lane Width (m) : Wl

Shoulder Width

(m) : Wc

Road Side Land Use

Capacity (pcu/h)

Remarks

N γL γc γI C 1 Yet Kieu

street 4 2,200 3.75 3.0 Flat 7,920

2 Ngo Quyen street

4(4) 2,200 3.75(3.00) 3.0(0) Urban 6,600 (5,620)

(Service Roads)

3 Ngu Hanh Son street

4(4) 2,200 3.75(3.00) 3.0(0) Urban 6,600 (5,620)

(Service Roads)

4 Tuyen Son Bridge

4 (4)

2,200 3.75 (3.50)

3.0 (2.5)

Urban (Bridge)

6,600 (8,800)

(Bridge Section)

5 2/9 street 4 2,200 3.75 3.0 Urban 6,600 6 Cach Mang

Thang 8 street

4 2,200 3.75 3.0 Urban 6,600

Note; C=2200･γL･γc･γI･N γL=1.0 (Wl≧3.25), γL =0.24Wl+0.27 (Wl <3.25) γc=1.0 (Wc≧0.75), γc =0.187Wc+0.86 (Wc <0.75) γI : Mountain = 0.95, Flat=0.90, Urban=0.75, Bridge=1.0

Source: JICA Study Team

There are two major signalized intersections and seven major roundabouts on the main port access roads as shown in Figure 2-40 and Table 2-20.

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Figure 2-40 Major Intersections on Main Port Access Roads

Intersection capacity on the major port access roads is preliminarily estimated and estimate result and outline of the intersections are shown in Table 2-20. Method of capacity estimation for roundabout follows simple calculation method introduced in “the Planning and Design of At-Grade Intersections” published by Japan Society of Traffic Engineers.


1. Yet Kieu Street

2. Ngo Quyen Street


4. Tuyen Son Bridge

5. 2/9 Street


South Ring Road (Phase 1)

NH1

NH14B

2


1

3

4

5

6

7

8 9

Intersection

Intersection (Roundabout)

Nguyen Tri Phuong Bridge

46

Source: The Planning and Design of At-Grade Intersections published by Japan Society of Traffic Engineers

Figure 2-41 Simple Calculation Method for Estimating Roundabout Capacity

Table 2-20 Outline and Capacity of Major Intersections on the Major Port Access Roads

Road Name Type Connecting Roads Estimated Intersection

Capacity (pcu/h)

a b c d

Yet Kieu street

1 Signalized Intersection

Yet Kieu Le Duc Tho Yet Kieu Le Duc Tho (Cau Manh Quang)

6,500 – 7,500

a

b

c

d

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Capacity (pcu/h)

a b c d

Ngo Quyen street

2 Roundabout

Ngo Quyen Pham Van Dong

Ngo Quyen Cau Song Han 9,990

3 Roundabou

t Ngo Quyen Vo Van Kiet Ngo Quyen Cau Rong 8,800

Ngu Hanh Son street

4 Roundabout

Ngo Quyen Nguyen Van Thoai

Ngu Hanh Son

Cau Tran Tri Ly

8,200

a b

c d

a

b

c

d

a

b

c

d

48


Capacity (pcu/h)

a b c d

Tuyen Son Bridge

5 Roundabout

Ngu Hanh Son

Ho Xuan Huong

Le Van Hien Tien Son 8,600

2/9 street 6 Roundabou

t 2/9 Street Tien Son 2/9 Street Xo Viet Nghe

Tinh 7,600

Cach Mang Thang 8 street

7 Roundabout

Le Thanh Nghi

2/9 Street Cau Hoa Xuan

Cach Mang Thang 8

6,900

a

b

c

d

a b

c d

a

b

c d

49


Capacity (pcu/h)

a b c d

8 Roundabout

Nguyen Huu Tho

Cach Mang Thang 8

Cau Nguyen Tri Phuong

Cach Mang Thang 8

10,300

9 Signalized

Intersection Ong Ich Duong

Cach Mang Thang 8

Ong Ich Duong (Cau Cam Le)

Cach Mang Thang 8

6,500 – 7,500


Related Major Road Development Plan (b)

As for major ongoing road development project in and around Da Nang City is South Ring Road (Phase 1, Phase 2) project as shown in Figure 2-42 and elevated intersection at Ton Duc Thang / Truong Chinh / Dien Bien Phu as shown in Figure 2-42.

“Feasibility Study Sustainable Development of Da Nang City Package D21, Transport Development Planning of Danang City to 2020 Vision to 2030” is being finalized by Da Nang Peoples Committee. Some improvement projects on urban roads are proposed in the Feasibility Study, and no improvement project is proposed for the main port access roads.

a

b

c

d

a b

c d

50

Source: upper, http://vietbao.vn/Xa-hoi/Cau-vuot-gan-90-trieu-USD-o-Da-Nang/22142368/157/

Photo JICA Study Team

Figure 2-42 Elevated Intersection at Ton Duc Thang / Truong Chinh / Dien Bien Phu

Current Traffic Condition and Demand Supply Gap Analysis (c)

Degree of the traffic demand supply gap at general section is generally expressed by Volume to Capacity ratio (V/C) and Table 2-22 shows description of traffic condition by classification of V/C as reference of V/C. Meanwhile, there is no uniform index to express degree of the traffic demand supply gap at signalized intersection and roundabout. Accordingly, proportion of total inflow directional traffic volumes and intersection capacity (VIS/CIS) without consideration of intersection operation is applied as rough indication of degree of traffic demand supply gap at intersection.

In general, road capacity expansion at general section and improvement of operation system and/or structural configuration at intersection are recommended in case that V/C or VIS/CIS exceed 1.0.

Table 2-21 Description of Traffic Condition by Classification of V/C at General Section

V/C Traffic Condition <1.0 No saturated traffic condition

Smooth traffic 1.0 – 1.25 Less than 1-2 hours/day saturated traffic condition

Possible 1-2 hours/day traffic congestion 1.25 – 1.75 Saturated traffic condition at peak hours

Possible 3-4 hour at morning & evening/day traffic congestion 1.75< Generally saturated traffic condition in all day

Chronic traffic congestion

Source: “Road Capacity Manual” Japan Road Association, 1984

Current traffic demand supply gaps at general sections and intersections on the main port access roads are analyzed as shown in Table 2-22 and Table 2-23 based on traffic volume surveyed by “Feasibility Study Sustainable Development of Da Nang City Package D21, Transport Development Planning of Danang City to 2020 Vision to 2030 (Danang F/S)” in 2012.

As a result of the analysis on general sections and at intersections, there are no congested sections and

51

intersections on the main port access roads except one general section and one signalized intersection of Cach Mang Thang 8 street. V/C of 1.16 at general section and VIS/CIS of 1.85 at signalized intersection on Cach Mang Thang 8 street are found and those values are generally required to improve capacity of road and intersection.

Table 2-22 V/C Analysis Result at General Section (2012)

No.

Name Capacity (pcu/h)

Traffic Volume in

2012 (pcu/day)

Peak Traffic Volume (pcu/h)

V/C Remarks

C V 1 Yet Kieu street 7,920 8,214 821 0.10 2 Ngo Quyen

street 6,600

(5,620) 34,716 3,471 0.28 (Service

Roads) 3 Ngu Hanh Son

street 6,600

(5,620) 22,804 2,280 0.18 (Service

Roads) 4 Tuyen Son

Bridge 6,600

(8,800) 42,306 4,230 0.64

(0.48) (Bridge Section)

5 2/9 street 6,600 25,956 2,595 0.39 6 Cach Mang

Thang 8 street 6,600 76,610 7,661 1.16

Note; Peak Factor = 0.1

Source: JICA Study Team, Traffic Volume in 2012 (Feasibility Study Sustainable Development of Da Nang City Package D21, Transport Development Planning of Danang City to 2020 Vision to 2030)

Table 2-23 VIS/CIS Analysis Result at Intersection (2012)

Road Name Type IS Estimated Intersection

Capacity (pcu/h)

IS Traffic Volume in

2012 (pcu/day)

Peak IS Traffic Volume (pcu/h)

VIS/CIS Remarks

CIS VIS Yet Kieu

street 1 Signalized

Intersection 6,500 – 7,500 9,148 915 0.14

Ngo Quyen street

2 Roundabout 9,990 69,869 6,987 0.70

3 Roundabout 8,800 69,869 6,987 0.79 Traffic volume at neighboring intersection of No.2 is applied

due to no survey data

Ngu Hanh Son street



Tuyen Son Bridge

5 Roundabout 8,600 49,144 4,914 0.57

2/9 street 6 Roundabout 7,600 53,370 5,337 0.77

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Capacity (pcu/h)

IS Traffic Volume in

2012 (pcu/day)

Peak IS Traffic Volume (pcu/h)

VIS/CIS Remarks

CIS VIS Cach Mang

Thang 8 street



8 Roundabout 10,300 35,530 3,553 0.34 9 Signalized

Intersection 6,500 – 7,500 102,305 12,030 1.85

Note; Peak Factor = 0.1, Lane Ratio=0.5

Source: JICA Study Team, Traffic Volume in 2012 (Feasibility Study Sustainable Development of Da Nang City Package D21, Transport Development Planning of Danang City to 2020 Vision to 2030)

Nevertheless, some roads connecting to Cach Mang Thang 8 street has been developed as shown in Figure 2-44 and current traffic congestion on Cach Mang Thang 8 street does not seem so serious against the estimated V/C as shown in Figure 2-43.

Considering above current traffic situation on Cach Mang Thang 8 street, new corridors from Cach Mang Thang 8 to NH1 which is developed in recent year with construction of Hoa Xuan Bridge, Nguyen Tri Phuong Bridge, and South Ring Road (Phase 1) contribute to divert traffic from Cach Mang Thang 8 street to NH 1 and mitigate traffic congestion on Cach Mang Thang 8 street. Accordingly, measure for capacity expansion on Cach Mang Thang 8 street is not recommended at least for the present.


Figure 2-43 Current Traffic Condition at Signalized Intersection (No. 8) on Cach Mang Thang 8 Street

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Figure 2-44 Traffic Diversion from Cach Mang Thang 8 Street to NH1 by New Bridges

Major Issues (d)

As for traffic regulation in city center, heavy vehicle passage on major bridges and coastal road in city center is prohibited and traffic enforcement on such roads has been made in an inconsistent manner such as time and place. This situation causes inconvenience on freight forwarding in city. Therefore, authority of traffic regulation in the city should conduct consistent traffic enforcement for freight traffic in the city.


1. Yet Kieu Street

2. Ngo Quyen Street


4. Tuyen Son Bridge

5. 2/9 Street



NH1

NH14B

2


1

3

4

5

6

7

8 9

Intersection

Intersection (Roundabout)

Nguyen Tri Phuong Bridge

Hoa Xuan Bridge

Traffic Diversion by New Bridges

54

2）Current Condition of Port Access Roads from Hinterland

Road Network (a)

There are twenty eight major industrial zones in CKEZ area and NH 1 is mainly used as port access road from those industrial zones to Da Nang port as shown in Figure 2-45 and Table 2-24.

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Figure 2-45 Major Access Road to Da Nang Port from Industrial Zone in CKEZ

Chan May – Lang Co EZ Phu Bai IZ

Phong Dien IZ

Tu Ha IZ

Dien Nam – Dien Ngoc IZ

Dong Que Son IZ

Thuan Yen IZ

Chu Lai OEZ Dung Quat EZ

Tinh Phong IZ

Quang Phu IZ VSIP Quang Ngai IZ

Hoa Hoi IZ

Nhon Hoa IZ

Phu Tai IZ

Long My IZ

Nhon Hoi C Nhon Hoi B Nhon Hoi A


Da Nang Seafood Services

Da Nang IZ Da Nang High – Tech Park

Hoa Khanh IZ

Lien Chieu IZ

Hoa Cam IZ

Hoa Khanh Expansion IZ

Dung Quat Port

Quy Nhon Port

NH1 N-S Expressway (Plan) N-S Expressway (Construction)

La Son – Tuy Loan Expressway

Da Nang – Quang Ngai Expressway

Quang Ngai – Quy Nhon Expressway

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Table 2-24 Outline of Major Access Roads from Industrial Zone in CKEZ

Jurisdiction

Name of Industrial Zone

I.D. Major Access Roads

Length (km)

Number of Lanes

Shoulder

Median Pavement Condition

Da Nang City

Da Nang D1a Yet Kieu Street

5 8 4 A A G

D1b Ngo Quyen Street

3 4 A A G

Da Nang Aquatic Product Service

D2 Yet Kieu Street

5 5 4 A A G

Hoa Cam D3a MAR 19 20 4 A A G D3b NH14B 1 4 A A G

Hoa Khanh D4a MAR 19 35 4 A A G D4b NH14B 5 4 A A G D4c NH1 8 2 N/A N/A G D4d Au Co 3 2 A N/A G

Expanded Hoa Khanh

D5a MAR 19 35 4 A A G D5b NH14B 5 4 A A G D5c NH1 8 2 N/A N/A G D5d Au Co 3 2 A N/A G

Lien Chieu D6a MAR 19 43 4 A A G D6b NH14B 5 4 A A G D6c NH1 18 2 N/A N/A G D6d Ta Quang

Buu 1 2 A N/A G

Da Nang High – Tech Park D7a MAR 19 37 4 A A G

D7b NH14B 5 4 A A G D7c NH1 13 2 N/A N/A G

Thua Thien - Hue

Chan May - Lang Co

H1a MAR 19 64 4 A A G H1b NH14B 5 4 A A G H1c NH1 40 2/4 A N/A G

Phong Dien H2a MAR 19 154 4 A A G H2b NH14B 5 4 A A G H2c NH1 130 2/4 A N/A G

Phu Bai H3a MAR 19 106 4 A A G H3b NH14B 5 4 A A G H3c NH1 82 2/4 A N/A G

Tu Ha H4a MAR 19 140 4 A A G H4b NH14B 5 4 A A G H4c NH1 116 2/4 A N/A G

Quang Nam

Chu Lai OEZ A1a MAR 19 99 4 A A G A1b NH1 80 2/4 A N/A G

Dien Nam - Dien Ngoc

A2a Yet Kieu Street

5 24 4 A A G

A2b Ngo Quyen Street

6 4 A A G

A2c Ngu Hanh Son

2 4 A A G

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Jurisdiction

Name of Industrial Zone

I.D. Major Access Roads

Length (km)

Number of Lanes

Shoulder

Median Pavement Condition

street A2d Le Van

Hien Street

5 4 A A G

A2e DT607 6 4 A A G Thuan Yen A3a MAR 19 79 4 A A G

A3b NH1 60 2/4 A N/A G Dong Que Son A4a MAR 19 51 4 A A G

A4b NH1 32 2/4 A N/A G Quang Ngai

Dung Quat G1a MAR 19 121 4 A A G G1b NH1 96 2/4 A N/A G G1c Doc Soi –

Dung Quat 6 2 A N/A G

VSIP Quang Ngai G2a MAR 19 141 4 A A G G2b NH1 122 2/4 A N/A G

Tinh Phong G3a MAR 19 135 4 A A G G3b NH1 116 2/4 A N/A G

Quang Phu G4a MAR 19 147 4 A A G G4b NH1 124 2/4 A N/A G G4c Hai Ba

Trung 3 2 A N/A G

G4d Ly Thanh Tong

1 2 A N/A G

Binh Dinh Hoa Hoi B1a MAR 19 282 4 A A G B1b NH1 260 2/4 A N/A G B1c DT634 3 2 N/A N/A F

Long My B2a MAR 19 316 4 A A G B2b NH1 294 2/4 A N/A G B2c Access

Road (no name)

3 2 N/A N/A F

Nhon Hoa B3a MAR 19 306 4 A A G B3b NH1 280 2/4 A N/A G B3c NH19 7 2 N/A N/A G

Nhon Hoi A B4a MAR 19 319 4 A A G B4b NH1 264 2/4 A N/A G B4c DT635 7 2 N/A N/A F B4d NH19B 29 2/4 N/A N/A,A G

Nhon Hoi B B5a MAR 19 317 4 A A G B5b NH1 264 2/4 A N/A G B5c DT635 7 2 N/A N/A F B5d NH19B 27 2/4 N/A N/A,A G

Nhon Hoi C B6a MAR 19 315 4 A A G B6b NH1 264 2/4 A N/A G B6c DT635 7 2 N/A N/A F B6d NH19B 25 2/4 N/A N/A,A G

Phu Tai B7a MAR 19 309 4 A A G B7b NH1 290 2/4 A N/A G

Note ; MAR: Main Port Access Road, G: Good, F: Fair, B: Bad Source: JICA Study Team

58

Related Major Road Development Plan (b)

Major road development project related to access road from industrial zone in CKEZ to Da Nang port is NH 1 widening project and North – South Expressway as shown below:

NH 1 widening project :

- Improvement 2 lanes to 4 lanes (2 Tunnels, Phu Gia tunnel, Phuoc Tuong Pass Tunnel) - Under construction: Section from Thanh Hoa province – Phu Yen province - Construction Period: up to 2016


Figure 2-46 Widening from 2 Lanes to 4 Lanes and Phuoc Tuong Pass Tunnel on NH1

North – South Expressway projects

a) Da Nang – Quang Ngai Expressway.

- Total length: 139 km - Stage 1: 4 lanes

59

- Stage 2: 6 lanes - Commencement of construction (Stage 1): 2013. - Construction Period (Stage 1): up to 2018.

b) La Son – Tuy Loan Expressway.

- Total length: 80km from Km0 (at intersection with DT14B, La Son town, Phu Loc district, Thua Thien Hue province) to Km79+800 (Tuy Loan interchange).

- Stage 1: 2 lanes - Stage 2: 4 lanes - Commencement of construction (Stage 1): 22/12/2013. - Construction Period (Stage 1): up to 2016.

c) Quang Ngai – Quy Nhon

- Total length: 150km. - Stage : F/S stage.

In addition to NH 1 widening project and North – South Expressway project, several arterial road development project especially east – west corridor are being developed with Decision No. 07/2011/QD-TTg dated 25/01/2011 by the Prime Minister on the approval of the master plan on transport development in the CKEZ to 2020, and orientation to 2030.

Major Issues (c)

There is no outstanding issue on access road from Industrial Zones in CKEZ area to Da Nang port. According to site investigation for all industrial zones, road network with appropriate number of lanes and quality of pavement are fairly developed. Moreover, NH 1 widening project and North –South Expressway project will provide high capacity and high speed road transport service.

3）Current Condition of Railway Network

Da Nang port is not directly linked to any railway station. There is no ports in Vietnam from which cargo handled are transshipped to railway network.

Following new development lines are listed up in “The master plan on transport development in the CKEZ” as projects to be studied.

- Lien Chieu - North South railway (Directly linked to Da Nang port) - Chan May Port, Dung Quat Port, Quy Nhon Port - North South railway (Alternatives to Da Nang ports)

However these are long run project which should be considered at a time when cargo volume handled at these ports increase much enough in order that transportation via railway network is verified from view

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point of transportation efficiency and shipping frequency of railway service schedule.

General Concept of Da Nang Port Development (6)

Functional roles of each port (Tien Sa, Lien Chieu, Song Han, Tho Quang) will be based on current issues of each terminal, requests from hinterland development, existing higher level planning and ongoing improvement projects at Da Nang port. Based on the government policy on functional requirement of the ports and demand in the hinterland of the ports, the terminals for general cargo, container cargo and passenger ships in Tien Sa port will be improved in the Project.

1）Development for Container Cargo

Container cargo handling volume in Tien Sa port has been significantly increased being compared with those in other ports in Vietnam, reflecting expanded economic activities of hinterland provinces. Since container handling volume in neighboring ports have not grown these days (Figure 2-48), the role of Tien Sa as representative container port in central coast provinces has become important.

Container handling volume forecasted in 2.2-(7) will exeed the capacity of current facilities in a few yeares to 2016 as shown in Figure 2-48 Container berth and container yard will have to be expanded,

-as soon as possible for commencement

-as wide as possible for container yard

-as efficient as possible for container handling.

The expansion by above improvement will take about 5 years from now and container handling capacity will be increased by approximately 312 thousand TEU/year, and total capacity will become approximately 540 thousand TEU/year in 2019. Soon after the completion, the terminal will become fully utilized and container demand will exceed this expanded capacity in 2022.

In the MOT Master plan for Tien Sa port, 4000TEU containerships are planned to be accommodated.

As shown in Table 2-14, many locators in Da Nang IZ ships some cargo to East Asia and South East Asia. Generally container vessel lines trends to arrange largeｒ size ships for as long as they can collect enough volume of cargo. So when new capacity will be realized in the end of 2019 and container traffic demand will become about three times of present handling volume, they may arrange direct calls at Da Nang port instead of currently used feeder size vessels by using medium size vessel (3000~5000TEU) which are not receivable in case of existing (-12m) terminal. The arrangement of container ships with larger saize in future than present is getting more probable considering following situations. Firstly, these days container ship size development in East Asia and South East Asia has proceeded mainly by increase of 2000~4000DWT ( 47 ships out of total 93 ships increase from 2010 to 2014 ) as shown in Table 2-25. The ratio of container ships possible to call at (-12m) terminal is 83% of total container ships under

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service in the region in 2010 and will decrease to 73% in 2014, while 93% in 2014 if (-14m) terminal is prepared.

Table 2-25 Number of Container Ships Under Service in East and South East Asia and Ratio of Receivable Container Ships at (-12m) and (-14m) Terminals

Secondly medium size container ships (3000~6000TEU) which had been arranged for trunk line services (ex. Trans-pacific, Asia to Europe) has been replaced with larger vessels such as over-panamax and consequently such medium vessels have been shifted to intra regional services (Cascading trend). Then medium size container vessel will become oversupplied in the market and will become more financially available. Increase (decrease) of container ships from 2012 to 2013 by size and services are shown in Table 2-26. Such cascading trend described above happened from East-West to South-North (5000~7000DWT) or from South-North to Intra East Asia ( 3000 ~5000 DWT).

Table 2-26 Shift of Medium Size Ship to Intra Region (Cascading) (2012-2013)

Intra East Asia trade with comaparatively long services such as Japan or North area and Korea from/to Vietnam is main flow via Tien Sa port.a These trade are likely to be covered by those medium vessels considering of the above cascading trend. In addition, Japanese vessel lines in particular are said to like

Terminal depth Container ship size 2010 2014 Increase～2000TEU 250 280 30

～2000TEU total 250 280(% of Total) 86% 73%

2000～4000TEU 32 79 47～4000TEU total 282 359

(% of Total) 97% 93%4000TEU～ 10 26 16

Total 292 385 93(% of Total) 100% 100%

Source; Internatinal Transpotation Handbook (Ocean Commerce)Note　Maximum container ship size is 2000TEU at (-12m) terminal and 4000TEU at (-14m)terminal

(-12m)

(-14m)

(-14m）～

Container size(DWT)Service regionEast-West -19 -2 -27 11 33South-North -11 -20 33 30 2Intra Reagion 56 1 10 0 0

IntraEast Asia -3 11 3 0 0Source;Sekai no Container Yuso to Shuko Jokyo (2013、Japan Shipping Exchange Inc.)

Note East-West; Asia-North America,Asia-Europe,North America-Europe etc. South-North; Asia-Cetral South America, Asia-Africa, Asia-Oceania,Europe-Central South America, North America-Central South America, Europe-Africa etc. Intra region; Intra Euirope, Intra Asia

8000～10000 10000～～3000 3000～5000 5000～8000

Size Enlargement Oversupply Increase(cascading)

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direct arrangement for keep service quality high. Even if feeder schedule will exist at that time, Tien Sa port need to prepare the berth deep (-14m) enough to accommodate the planed size of container vessel (4000TEU) for realization of direct call desired by many locators.

In accordance with the deepening of container berth, approach channel and zone will be dredged up to depth of (-14m).

2）Development for General Cargo

Recent growth in general cargo handling volume is moderate. This trend is maintained in the forecast as calculated in 2.2-(7). One of viewpoints supporting such moderate growth is that general cargo handling will be more diversified among CKEZ ports as MOT Master plan will be implemented in the long run. At present the project for relocating cargo handling function of Han Son terminal to new Tho Quang terminal is under construction. The project will be completed in 2015 for the relocation with a capacity 1,000 (000ton) as phase1 and will plan to expand the capacity up to 2,000 (000ton) in 2020 according to detailed master plan by MOT.

Figure 2-47 Site of Tho Quang Terminal

Forecasted general cargo volume will not to exceed the capacity of Da Nang thorough the planning period of this study on the condition that general cargo are handled together by Tien Sa terminal and above Tho Quang terminal.

Therefore new expansion other than Tho Quang terminal for general cargo handling function will not be projected, while present facilities will be maintained as same as present situation.

3）Development for Passenger Ships

As for international passenger ships, Tien Sa terminal needs to be flexible for receiving them in consideration of Da Nang city’s policy on tourism promotion.

According to the forecast of the number passenger ships (Table 2-32), about 135 ships will arrive at Tien Sa port in 2025. The occupation ratio of the berth due to passenger ships will be 18.5% (135/365*0.5(stay for half a day)) at the year. On the other hand, the occupation ratio of new container terminal will be 39.4 % in 2025 as calculated in Table 2-59. Considering that said desirable level of occupancy ratio is

Tho Quang terminal (under construction)

Tien Sa terminal

63

around 60%, the new container terminal will be able to accommodate passenger ships. In addition, passenger ships will be able to arrive at existing general cargo berths since general cargo traffic will not exceed the their berths. So passenger ships will not cause a serious congestion before 2025. The shuttle bus route within the port for visitors will be constructed along the edge of port area to keep the passenger flow away from cargo handling place.

4）Future Scenario

The container demand will reach the new capacity (current Berth 5 handling capacity plus new container terminal by the project) in 2022. To accommodate exceeding container cargo, new project will become necessary. Alternatives are as follows:

-To maximize the container handling capacity of Tien Sa by reclaiming up to Pier 2, relocating the berth for general cargo handling to Berth 5 or the navy space if it will be available. This investment will make the terminal continue accommodating the container demand up to around 2027.

-To handle exceeding cargo of Tien Sa at Lien Cheu terminal. Then Lien Cheu will have to be open by 2027 for spilt container handling. If the navy space for general cargo handling is not available, however , Lien Cheu is supposed to begin handling of the spilt general cargo by 2022 where the current general handling berths at Tien Sa terminal will have to be relocated.

This option will need concensus between stakeholders which will take cosiderable to reach. Necessary actions should be taken fairly in advance.

Figure 2-48 Container and General Cargo Handling Volume in Tien Sa Port

Capacity improvement is assumed to be completed in the end of 2019 Tho Quang termonal expansion (phase2) is assumed to be completed in 2020

Tho Quangターミナル増設

0

1000

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2012 2014 2016 2018 2020 2022 2024

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(ooo

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GeneralCargo forecast

Da Nang Capacity

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Figure 2-49 Current Condition and Improvement Layout Plan

Traffic Demand for Tien Sa Port (7)

Traffic demand for Tien Sa port will be forecasted to justify investment in the port. The traffic is divided into general cargo, container cargo and passengers. The demand will be forecasted up to 2025 to clarify when the demand is expected to reach the capacity of Tien Sa port expanded by this project.

1）Forecast of General Cargo and Container Cargo

Hinterland of Da Nang Port: Share of Export and Import Containers by Provinces (a)

Table 2-27 shows transitions of total cargo volume and container cargo volume in the past decade. Figure 2-50 shows export-utilization by container percentage of each province of Da Nang port in the first quarter of 2014 and Figure 2-51 shows that of import-utilization percentage.

Table 2-27 Da Nang Port Handling Cargo Volume in the Past Decade

Year Cargo(ton) Container(TEU)

Total Import Export Domestic Total Import Export Domestic

2004 2,308,973 724,668 739,850 844,455 32,416 13,613 14,078 4,725

2005 2,256,068 595,171 778,440 882,457 34,383 13,995 14,475 5,913

2006 2,371,024 414,791 891,589 1,064,644 37,404 16,837 16,422 4,145

2007 2,736,936 489,272 1,241,204 1,006,460 53,372 25,858 23,943 3,571

2008 2,742,257 525,906 1,230,793 985,558 61,881 26,616 29,770 5,495

2009 3,132,343 603,365 1,352,212 1,176,766 69,720 30,304 31,428 7,988

2010 3,303,036 645,617 1,388,924 1,268,495 89,199 34,977 41,312 12,910

2011 3,868,545 784,891 1,598,134 1,485,520 114,373 46,888 51,997 15,488

2012 4,423,388 907,818 1,988,074 1,527,496 144,555 54,423 61,347 28,785

2013 5,010,238 1,345,060 2,361,018 1,304,160 167,447 68,232 69,852 29,363

Source: Da Nang port

(Current layout) (Improvement layout plan)

Passenger road

Container terminal

G,P

G:General cargo C:Container cargo P:Passenger ship

G

G

C

C,P

65

Source: JICA study team made from the data receipt from Da Nang port

Figure 2-50 Share by Each Province on Export-Container Cargo Volume of Da Nang Port in the First Quarter of 2014

Source: JICA study team made from the data receipt from Da Nang port

Figure 2-51 Share by Each Province on Import-Cargo Volume of Da Nang Port in the First Quarter of 2014

With respect to exports, Da Nang city has the largest share of 30.1% (50.1% if currently unavailable data is disregarded) of the whole. As to import, percentage of Quang Nam province is 35.0 % (47.7% if currently unavailable data is disregarded) and that of Da Nang port is 28.7 % (39.7% if currently unavailable data is disregarded). Further, the majority of Da Nang port handling cargo is accounted for by three province/ municipality named Thua Thien Hue province, Da Nang city and Quang Nam province.

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The share of export cargo of the above three is 50.1% (83.4% if currently unavailable data is disregarded), and that of import cargo is 71.7% (97.8% if currently unavailable data is disregarded)

On the other hand, Quang Ngai province accounts for 7.9% (13.1% if currently unavailable data is disregarded), while Binh Dinh province, which is the farthest province of CKEZ from Da Nang port accounts for around 1.0% of both export and import. According to interviews, most export and import cargo from/ to the province is transported via Quy Nhon port.

There are some data which are not identified in CKEZ area. These seem to come or go from/to neighboring provinces.

Future GDP Growth (b)

In the Decision No.1114/2013/QD-TTg issued by prime minister of Vietnam on the master plan of Socio-economic development of the North & South Central Coast (NSCC) region, in which CKEZ is included, GDP growth rate of the region aimed at 7.5%/year during 2011-2015 and 9%/year during 2016-2020. NSCC is composed by 13 provinces, Than Hoa, Nghe An, Ha Tinh, Quan Binh, Quan Tri,Thua Thien Hue, Da Nang,Quan Nam, Quan Ngai,Binh Dinh, Phu Yen,Khan Hoa andNinh Thuan.In this study, future GDP for demand forecast is based on the GDP growth rate of NSCC considering that cargo demand are not limited within CKEZ area and that suitable future GDP of CKEZ has not found. In forecasting process, GDP growth rate 2020~2025 is assumed to be maintained with same rate as 9.0% as up to 2020.

- Most locators in IZ in the hinterland region are all export /import companies and expressed the intension of production increase in the interview conducted in this study as shown in Table 2-14 and Table 2-15. Such intension is based on a steady trend of global shift of production center to less developed coutries in Asia.

-IZ development has been driving force of economic growth of the hinterland region, where average growth rate of GDP 2008-2012 in CKEZ (11.7%) has been almost two times of that of the Nation (5.8%) . And the IZs have still have unutilized space for new locators.

-Production shift from processing industry to high technology industry in Da Nang city IZ, and regional shift from Da Nang city IZ to other region’s IZ for the merit of low wage will make together the total capacity of IZ of NSCC region..

Elasticity of Cargo Growth with GDP Growth Considering Future Reliability (c)

Elasticity is an index value when a variable value X has a 1% change, what % affects other variable value Y as a result. The advantage of this method is that the value we calculate for elasticity doesn’t depend on the units we use to measure the variables.

Elasticity: η = Rate of change of Y / Rate of change of X

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In this study, elasticity is to be calculated by considering GDP growth rate as the denominator, X, and that of container cargo/ general cargo the numerator, Y, respectively.

Average GDP growth rate in the period of 2008 to 2012 in the region is 11.7%. In the same period, average growth rate of container is 23.6% and that of general cargo is 7.8% shown in Table 2-28.

Then the elasticity during 2008-2012 are calculated as 2.02 for container cargo and 0.67 for general cargo.

In the future new competitive ports may be probable. In addition, some risk factor for the achievement of the goal of growth rate . In this study following reduction to above previous elasticity are assumed to consider such future uncertainty.

Elasticity reduction for future uncertainty

GDP reduction port competition Total reduction 2013-2015 3.3% 5.0% 8.23% 2015-2019 5.6% 5.0% 10.34% 2020-2025 11.1% 10.0% 20.0% Note: GDP reduction is considering the possibility of underperformance, 7.5%→7.25%（2013－2014）,9.0%→

8.5%（2015-2019）,9.0%→8.0% (2020-2025)

Then future elasticity are assumed as follows.

- 2013- 2015 1.856 (container cargo) 0.616 (general cargo)

- 2015- 2019 1.812 (container cargo) 0.601 (general cargo) - 2010-2025 1.616(container cargo) 0.536 (general cargo)

The growth rate of GDP is amplified by these elasticity for forecasting cargo growth rate. The applicability of high elasticity for future container cargo are based on our interview surveys to the locators in the hinterland. Firstly economic growth of the region is expected to be more pulled forward by export industries than before, especially for the industries to use container cargos for import materials and/or export outputs (progress of containerization), secondly some portion of container cargos to utilize HCMC ports (especially for Vietnamese firms) will gradually shift to use Da Nang Port if the level of service (e.g. varied destination and increasing frequency) in Da Nang Port is improved due to the increase of the handling amount.

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Table 2-28 Cargo Volume Through Via Tien Sa Terminal and Han River Terminal

Source:DPC *Note ( ) :Average growth (2008-2012)

Container Cargo Growth (d)

Growth rate of container cargo until 2025 is as follow based on above assumed future GDP and elasticity.

2013-2014 7.5% * 1.856 = 13.92%

2015-2019 9% * 1.81 2 = 16.31%

2020-2025 9% * 1.616 = 14.54%

General Cargo Growth (e)

Using the same method as described above, general cargo growth is assumed as follow.

2013-2014 7.5% * 0.616 = 4.62%

2015-2019 9% * 0.601 = 5.41%

2020-2025 9% * 0.536= 4.82%

Calculation Results of Future Cargo Amount (f)

Cargo volume forecast results of both container and general cargo are shown in Table 2-29. Container cargo volume will reach 508 thousand TEU and 858 thousand TEU in 2021 and 2025. General

No. Criteria Unit 2008 2009 2010 2011 2012

2013 Average

growth (%)

I

Total Ton 2,742,257 3,132,343 3,303,036 3,868,545 4,423,388 5,010,238 12.8% (12.7%)*

Import Ton 525,906 603,365 645,617 784,891 907,818 1,345,060

Export Ton 1,230,793 1,352,212 1,388,924 1,598,134 1,988,074 2,361,018

Domestic Ton 985,558 1,176,766 1,268,495 1,485,520 1,527,496 1,304,160

II

General Cargo Ton 2,113,242 2,399,659 2,365,880 2,577,800 2,856,054 3,168,321 8.4% (7.8%)

Import Ton 166,001 196,594 160,145 195,594 297,874 594,508

Export Ton 969,257 1,049,545 979,566 934,672 1,121,141 1,592,646

Domestic Ton 977,984 1,153,520 1,226,169 1,447,531 1,437,039 981,167

III

Container TEU 61,881 69,720 89,199 114,373 144,555 167,447 22.0%

(23.6%) Ton 629,015 732,684 937,156 1,290,745 1,567,334 1,841,917

Import TEU 26,616 30,304 34,977 46,888 54,423 68,232

Ton 359,905 406,771 485,472 589,297 609,944 750,552

Export TEU 29,770 31,428 41,312 51,997 61,347 69,852

Ton 261,536 302,667 409,358 663,462 866,933 768,372

Domestic TEU 5,495 7,988 12,910 15,488 28,785 29,363

Ton 7,574 23,246 42,326 37,986 90,457 322,993

Ⅳ Passenger person 29,642 30,129 32,047 38,190 40,888 31.4% (8.40%)

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cargo volume will reach 4,430 thousand ton and 5,343 thousand ton in 2021 and 2025. As a result, total demand to be handled will reach 10,023 thousand ton and 14,789 thousand ton in 2021 and 2025.Figure 2-52 and Figure 2-53 show the forecasted result for container cargo and general cargo respectively.

Table 2-29 Estimated Cargo Volume

No. Content Unit Done Forecast result

2012 2013 2015 2017 2019 2021 2023 2025

1 Total 1,000ton 4,423 5,010 5,620 6,813 8,337 10,023 12,133 14,789

2 Container

Growth Rate 16.31% 16.31% 16.31% 14.54% 14.54% 14.54%

Forecast TEU 144,555 167,447 213,709 289,151 391,224 508,434 660,761 858,725

3 General Cargo

Growth Rate 5.41% 5.41% 5.41% 4.82% 4.82% 4.82%

Forecast 1,000ton 2,856 3,168 3,269 3,632 4,034 4,430 4,865 5,343

Figure 2-52 Estimated Container Cargo Volume

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Figure 2-53 Estimated General Cargo Volume

2）Forecast of Cruise Passengers

Passenger of cruise ship via Da Nang port has been increasing gradually. The number and ship size of these cruise ship called at the port also have increased. In 2013 the average size of these cruise ships is about 41,000 Gross Ton(GT) and , a large cruise ship of 75,000GT size (Costa Victoria) called at this port three times.

These cruise ships calls regularly with cruising schedule which includes Da Nang as one of calling port.

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Table 2-30 Cruise Ship Regularly Called at Da Nang Port (2013.12~2014.2)

Table 2-26 shows current (2013.12~2014.2) cruise schedule via Da Nang port. In forecasting future passenger volume, this study uses elasticity method related with GDP total of China, Korea and Taiwan considering that current customers mainly come from North Asia countries which are involved in cruise schedules. In the forecasting process, the elasticity of the number of Da Nang passengers with GDP( China, Korea, Taiwan) = 1.0811, which reflected both actual data for 2008~2012. As for future growth rate of GDP in these countries are assumed based on IMF forecast result.

Table 2-31 Passenger Ships at Tien Sa Port

2011 2012 2013

Max GT (000) 53 61 75

Average GT 23 39 41

Number of ships 53 57 93

Source: DPC, JICA Study Team

Table 2-32 Forecast of Passengers at Tien Sa Port

Total(2013.12～

2014.2)

Perweek

Gemini 50,764 800 230 32 2.7 Sanya-Da Nang, Sanya-Halong Bay-Da Nang

Henna 47,262 1,000 223 23 1.9 Sanya-Tianjin(Chaina)-South Korea-Da nang

Le Soleal 10,992 200 142 7 0.6Hong Kong-HAIphong-Ha Long-Da Nang-Chan May-NhaTrang-HCMC

AzamaraJourney

30,277 694 180 5 0.4 Hong Kong-Ha Long-Da Nang-HCMC-Singpore

SeabournLegend

9,961 208 135 5 0.4Singapore-Laem Chabang-Sihanoukvillle-HCMC-Da Nang-Halong-Hong Kong

Volendam 60,906 1,200 238 3 0.3Singapore-Laem Chabang-Sihanoukville-Phu My- NhaTrang-Da Nang-Halong-Hong Kong

Otheres 75,166 1,500 253 7 0.6ShanHai-Naha-Hong Kong-Sanya-Da Nang-HCMC-Singapore

Total 82 6.8

No. of callsCapacity(persons)

Name ofship

Voyage routeGTShip

length(m)

2007 2008 2009 2010 2011 201224,067 29,642 30,129 32,047 38,190 40,888

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025Cruise　Passengers(persons）

43,594 46,822 50,310 53,971 57,764 61,712 65,856 70,215 74,863 79,818 85,102 90,735 96,741

Cruise ships 61 65 70 75 81 86 92 98 104 111 119 126 135IMF Growth rate 1.074 1.075 1.073 1.070 1.068 1.067 1.066 1.066 1.066 1.066 1.066 1.066 1.066Source: DPC, IMF World Economic Outlook

Actual

Forecast

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Necessity of Project (8)

1）Container

As shown in Table 2-40, the container handling capacity of the existing terminal is 228(000TEU).

On the other hand, according to the demand estimates container cargo demand, reaching 292(000TEU) in 2017 as shown in Table 2-29, greater than the existing terminal capacity. Therefore, in order to contribute to the economic development of Da Nang port hinterland and Da Nang port, expansion/improvement of existing facilities in Tien Sa Terminal is absolutely imperative.

2）General Cargo Berths

Verification on necessity of the Project is made comparing forecasted demand and present capacity of Tien Sa terminal.

The present capacity of the berths are calculated in Table 2-33 by the formula below.

(365 x Weather Factor x Berth Occupancy Ratio / Seasonal Peak Ratio) x (24 x (Average Cargo Volume per Ship / (Average Cargo Volume per Ship / Productivity of Crane x Handling Lines / Ship x Time Utilization Factor) + Additional Time for Berthing))

Forecasted demand of general cargo to be handled at Berth No. 1-4 will not exceed those of present capacity of the berths until 2025. It is noted that handling capacity of general cargo took capacity of Tho Quang terminal (under construction), 1,000 (000ton) up to 2018 and 2,000(000ton) from 2019 into account.

Table 2-33 Calculation of Present Berth Capacity

Parameter Berth 1 Berth 2 Berth 3 Berth 4 1. Average Cargo Volume / Ship 30,000 ton 30,000 ton 30,000 ton 30,000 ton 2. Time Utilization Factor 0.9 0.9 0.9 0.9 3. Handling Lines / Ship 1 4 2 2 4. Crane Productivity 300 30 120 120 5. Handling Time / Ship 111 278 139 139 6. Additional Time 3 3 3 3 7. Capacity / Day 6,310 2,564 5,074 5,074 8. Weather Factor 0.95 0.95 0.95 0.95 9. Berth Occupancy Ratio 0.6 0.6 0.6 0.6 10. Seasonal Peak Factor 1.2 1.2 1.2 1.2

Capacity of Tien Sa terminal 1,093,934 ton 444,586 ton 879,773 ton 879,773 ton 3,298,066 ton

Capacity of To Quang terminal Up to 2018: 1,000,000 ton From 2019: 2,000,000 ton

Total Capacity (Tien Sa + To Quang) Up to 2018: 4,298,066 ton From 2019: 5,298,066 ton

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3）Access Road

Road traffic capacity of the main port access roads between Tien Sa port and Hoa Cam junction, which was constructed in Phase 1 of the Project, is reviewed whether it is enough to accommodate the road traffic derived from the port use demand.

Traffic Demand of Tien Sa Port (a)

Traffic demand of Tien Sa Port is estimated based on forecasted cargo volume of Tien Sa Port in foregoing section. Condition of the estimate is as follows:

- Port operation date per year : 347 days - Vehicle exchange rate : General Cargo 20.0ton/vehicle (based on actual traffic data of Da Nang port in May 2014) - Ratio of container 20’ and 40’: 1:1. - Container empty ratio : 25% - Empty vehicle ratio :50% - Other vehicles : 50% of bulk truck and container trailer - PCU Exchange Ratio : Truck 2.5, Container Trailer 3.0 Traffic demand of Tien Sa Port is estimated as shown in Table 2-34.

Table 2-34 Traffic Demand of Tien Sa Port based on Cargo Demand

Year 2012 2013 2015 2017 2019 2021 2023 2025

Cargo

Demand

Bulk (000 ton) 2,856 3,168 3,449 3,754 4,022 4,443 4,880 5,399

Container (TEU) 144,555 167,447 214,305 228,000 395,324 540,000 540,000 540,000

Traffic

Demand

(Vehicle/

day)

Truck 823 913 994 1,082 1,178 1,282 1,395 1,519

Container Trailer 694 804 1,029 1,096 1,900 2,596 2,596 2,596

Car 759 859 1,012 1,200 1,432 1,720 2,079 2,527

Total 2,276 2,576 3,035 3,378 4,510 5,598 6,070 6,642

Traffic

Demand

(pcu/day)

Truck 2,058 2,283 2,485 2,704 2,945 3,205 3,488 3,798

Container Trailer 2,083 2,413 3,088 3,288 5,700 7,788 7,788 7,788

Car 2,276 2,576 3,035 3,599 4,296 5,160 6,236 7,580

Total 6,417 7,271 8,607 9,59112 12,941 16,153 17,512 19,166


Examination of Traffic Demand on the Main Port Access Roads (b)

“Feasibility Study Sustainable Development of Da Nang City Package D21, Transport Development Planning of Danang City to 2020 Vision to 2030 (Da Nang F/S)” which is being finalized and “the Study on the Integrated Development Strategy for Da Nang City and Its Neighboring Area (DaCRISS)”

74

conducted by JICA in 2010 are carried out traffic demand study in Da Nang City and some sections of the main port access roads are covered by above studies.

Traffic demand forecast in Da Nang F/S and DaCRISS are covering entire road network of the main port access road. However, reference of traffic demand forecast result in Da Nang F/S is limited comparing with DaCRISS. Therefore, the JICA Study Team calibrate traffic demand forecast result in DaCRISS with using proportion between traffic demand forecast result in Da Nang F/S and in DaCRISS. The proportion between Da Nang F/S and DaCRISS is 0.63 as shown in Table 2-35 and the JICA Study Team propose 0.70 as correction value for traffic demand forecast result of DaCRISS in consideration of deviation of the values.

Table 2-35 Comparison of Forecasted Traffic Demand in 2025

No.

Name Peak Traffic Volume in 2025 (pcu/h)

a) / b)

a) Da Nang F/S b) DaCRISS

1 Yet Kieu street - 1,962 -

2 Ngo Quyen street 3,921 5,781 0.68 3 Ngu Hanh Son

street - 5,624 -

4 Tuyen Son Bridge 2,624 4,867 0.54 5 2/9 street 3,705 5,525 0.67 6 Cach Mang Thang 8

street - 13,302 -

Average 0.63 Note; Peak Factor = 0.1, Modal share of traffic demand forecast scenario :Bicycle/Motorcycle:Car:Bus=50:15:35 Source: JICA Study Team, Traffic Volume in 2025 “Da Nang F/S” :Feasibility Study Sustainable Development of Da

Nang City Package D21, Transport Development Planning of Danang City to 2020 Vision to 2030, “DaCRISS” : Study on the Integrated Development Strategy for Da Nang City and Its Neighboring Area, JICA, 2010

Demand Supply Gap Analysis in 2025 (c)

Traffic demand supply gaps at general sections and intersections on the main port access roads in 2025 are carried out as shown in Table 2-36 and Table 2-37 based on the predicted cargo traffic volume and other traffic volume estimated with correction value examined in foregoing section. As a result of the analysis, general section of Cach Mang Thang 8 street and intersections on Tuyen Son Bridge, 2/9 street, and Cach Mang Thang 8 street are forecasted as saturated sections.

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Table 2-36 V/C Analysis at General Section (2025)

No.

Name Capacity (pcu/h)

Peak Traffic Volume in 2025 (pcu/h)

Traffic Volume of

Tien Sa Port in 2025

(pcu/h)

V/C Remarks

DaCRISS Correction Value (0.7)

1 Yet Kieu street

7,920 1,962 1,373 1,196 0.41

2 Ngo Quyen street

6,600 (5,620)

5,781 4,046 0.90 (Service Roads)

3 Ngu Hanh Son street

6,600 (5,620)

5,624 3,936 0.88 (Service Roads)

4 Tuyen Son Bridge

6,600 (8,800)

4,867 3,406 0.80 (0.64)

(Bridge Section)

5 2/9 street 6,600 5,525 3,867 0.87 6 Cach Mang

Thang 8 street

6,600 13,302 9,311 1.70

Note; Peak Factor = 0.1, Modal share of traffic demand forecast scenario :Bicycle/Motorcycle:Car:Bus=50:15:35 Source: JICA Study Team, Traffic Volume in 2025 “DaCRISS” : Study on the Integrated Development Strategy for Da

Nang City and Its Neighboring Area, JICA, 2010

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Table 2-37 VIS/CIS Analysis at Intersection (2025)


Capacity (pcu/hour)

Peak IS Traffic Volume in 2025

(pcu/h)

Traffic Volume of

Tien Sa Port in 2025

(pcu/h)

VIS/CIS Remarks

DaCRISS Correction Value (0.7)

Yet Kieu street

1 Signalized Intersection

6,500 – 7,500 3,854 2,697 1,916 0.70

Ngo Quyen street

2 Roundabout 9,990 7,136 4,995 0.69 3 Roundabout 8,800 9,192 6,434 0.95

Ngu Hanh Son street

4 Roundabout 8,200 5,338 3,736 0.68

Tuyen Son Bridge

5 Roundabout 8,600 10,040 7,028 1.04 (*2024)

2/9 street 6 Roundabout 7,600 9,199 6,439 1.05 (*2024)

Cach Mang Thang 8

street

7 Roundabout 6,900 9,199 6,439 1.21 Traffic volume at neighborin

g intersection of No.6 is applied due to no

survey data

8 Roundabout 10,300 16,455 11,518 1.30 9 Signalized

Intersection 6,500 – 7,500 8,471 5,929 1.20

Note; Peak Factor = 0.1, Lane Ratio=0.5, *: The year VIS/CIS exceeds 1.0

Source: JICA Study Team, Traffic Volume in 2025 “DaCRISS” : Study on the Integrated Development Strategy for Da Nang City and Its Neighboring Area, JICA, 2010

Conclusions and Recommendations of the Main Port Access Roads (d)

The demand supply gap analysis results show more than 1.0 of V/C and VIS/CIS on general section of Cach Mang Thang 8 street and intersections at Tuyen Son Bridge, 2/9 street, and Cach Mang Thang 8 street in 2025. Although VIS/CIS values at intersections on Tuyen Son Bridge and 2/9 street are a little more than 1.0, they will not exceed 1.0 until 2024. VIS/CIS values at intersections on Cach Mang Thang 8 are 1.20~1.30 and V/C value on general section is 1.70 in 2025. However, as is explained in foregoing section of 2.2, (5), 1), (c), some roads connecting to Cach Mang Thang 8 street has been developed as shown in Figure 2-44 and road network of Hoa Xuan Bridge is not included in DaCRISS traffic demand forecast. Moreover, share of traffic volume of Tien Sa port is not high compared with other urban traffic on Cach Mang Thang 8 street. Therefore, improvement of Cach Mang Thang 8 should be considered from the comprehensive aspect of urban transport planning including introduction of public transport system. In conclusion, there will be no necessity of access road improvement due to the increased port related traffics.

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Figure 2-54 Result of V/C analysis (2025)

0.10

0.41

(2025~)

0.28

0.90

(2025~)

0.18

0.88

(2025~)

0.14

0.70

(2025~)

0.70

0.69

(2025~)

0.79

0.95

(2025~)

0.60

0.68

(2025~)

0.39

0.87

(2025~)

0.57

104

(2024~)

1.16

1.70

(~2025)

1.85

1205

(~2025)

0.34

1.30

(~2025)

0.77

1215

(2025~)

0.77

1.05

(2024~)

0.64

080

(2025~)

V/C:2012

V/C:2025

(the year exceeding the capacity)

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2.3 Project Scope

Scope of the Project consists of construction of container terminal and channel and basin dredging. In the container terminal, major port facilities, such as container berth, revetment, seawall, container yard and road, buildings are constructed.

As mentioned in MOT’s instruction (No. 698/TB-BGTVT, issued on 24 September 2013), cargo handling equipment, such as SSG and RTG, will not be procured in the Project. However, civil structures and utilities necessary for operation of the cargo handling equipment, such as crane rails, reinforced traveling lanes, electricity lines and junction boxes, etc. in the container terminal will be installed in the Project.

Terminal Layout (1)

1）Basic Conditions

In the DFS Report, 11 alternatives of terminal layout have been compared and discussed. Among those alternatives, 7A shown in Figure 2-55 is recommended. This alternative, as originally proposed in SAPROF Study in phase 1 of the Project, is selected to develop land area behind the existing breakwater for construction of new container terminal to cope with increasing demand in container cargo handling in the port.

Source: DFS Report

Figure 2-55 Recommended Terminal Layout (7A) in DFS Report

Present Port Layout (June 2014) New Container Terminal

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Basic conditions of the above terminal layout are as follows.

Existing facilities for bulk cargo handling

Current function of existing warehouses and Pier No. 1 and 2 have to be kept to satisfy present demand in bulk cargo handling in the port.

Face line of new container berth

Face line of the new container berth is set keeping 40m from tip of Pier No. 1, consisting of clearance for ongoing extension works of Pier No. 1 and future installation of the container berth structure toward Pier No. 2 as shown in Figure 2-56.

Face line of sub-berth, perpendicular to the 50,000 DWT container berth, is set keeping 93m distance from face line of Pier No. 1 in accordance with Vietnamese technical standards as below (B of two (2) vessels which will berth at the same time + 1.5 times of B of larger vessel.

28.3m (B of 30,000 DWT GC) + 22.8m (B of 16,000 DWTGC) + 28.3 x 1.5 = 93m

Applying a European standard, minimum distance can be calculated at 87m = 28.3m x 2 + 30m for tugboat assistance.

Faceline of container terminal is kept 396m including 330m of new container berth for 50,000DWT

vessels. 396 m is also possible to accommodate 10,000 DWT (berth length: 170m) and 20,000 DWT

(berth length 220m) container vessels at the same time or 100,000 GT passenger vessel (Loa: 324m).

Figure 2-56 Distance between Face Line of Berths

Length of breakwater

In order to ensure efficient cargo handling at the berths, a harbor calmness simulation has been carried out in the DFS Report by means of a simulation software “MIKE” developed by Danish Hydraulic Institute. The simulation is based on the wave data from 2002 to 2012 purchased from the UK Meteorological Office. The simulation result says that the length of existing breakwater of 450m ensures wave height in front of the new and existing berths below requirement for efficient container handling operation, i.e. 0.5m for 99.98% of days in a year.

Pier No.1

Pier No.2

New Container Berth (50,000DWT) / 330m

93m

40m

Extension of Pier No.1 (25m)

Sub-berth

New Container Terminal

396m

185m

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In the detailed design for phase 1 of the Project, similar simulation was conducted based on the wave data developed by Japanese global weather forecast model from 1993 to 1994. The simulation result says that breakwater length of 450m create same wave conditions above for 97.7% of days in a year. Therefore, extension of the existing breakwater is not necessary.

Sub-berth

As a result of discussion with MOT, no cargo handling berth will be allocated on the perpendicular face to the new container berth (shown in Figure 2-56 as Sub-berth) as Case-2 in Figure 2-57 because of the following reasons.

- As described in Development Scenario of this report, general cargo volume in the port can be handled at only Pier No. 1 and No.2.

- If no ship berths to this face, container handling capacity in the new container terminal can be increased by 2,1000 TEU/year (291,000 TEU/year to 312,000 TEU/year) in the extended container stacking yard as shown in Figure 2-57.

- Construction cost can be reduced by selecting a rubble mound structure shown in Figure 2-58, instead of pier structures.

- Rubble mound structure is flexible with future expansion of the container berth toward Pier No.2.

Figure 2-57 Comparison of Berth Layout

Pier Structure Rubble Mound Structure

Figure 2-58 Typical Cross Section of Pier and Rubble Mound Structures

Case-1: (Recommended in DFS Report) Berthing Ship + Apron

Case-2: (Recommended by Study Team) No Berthing Ship + Extended Container Stacking Yard

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Yard Layout (2)

1）Basic Conditions

Based on the above conditions and recommendation, yard layout plan of 7A in the DFS Report is reviewed.

It is noted that cargo handling capacity of Tien Sa terminal, especially container handling capacity, is now being limited due to lack of space for container stacking yard. In other words, increasing container stacking yard area must have higher priority than increasing number of berth and container handling equipment. Therefore, the yard layout plan of 7A is reviewed from this point of view.

In addition, following information provided by MOT and DPC are also considered in review and preparation of the yard layout plan.

Existing wood chip factory area in terminal

According to DPC, land lease contracts between two (2) wood chip factories and DPC have been expired in June 2014. However, DPC said that about one (1) ha of a stock yard for each factory will be kept in the terminal area for loading operation to their ships for a few years only. Construction works of the Project will start after a few years, therefore, the area for wood chip factories are not allocated in the layout plan prepared in this Study.

Naval area adjacent to terminal

According to the Da Nang PC’s Decision (838/QD-UBND issued on 31 January 2012), Da Nang PC has agreed to transfer land-use right of the adjacent naval land area to DPC. However, MOT sais that ministerial agreement between MOT and Ministry of Defense (current land-use right holder) has not been made yet. Therefore, expansion of the yard area toward the naval area is impossible in Phase 2 of the Project.

2）Layout Plan

Reviewing the layout plan of 7A presented in the DFS Report, the Study Team prepared a layout plan shown in Figure 2-59, which ensures 46,000 m2 of the container stacking yard listed in Table 2-38.

Table 2-38 Area of Container Stacking Yard

Yard Area (m2) Container Stacking Yard (laden container) 32,000 Container Stacking Yard (laden reefer container) 1,500 Container Stacking Yard (empty container) 12,500

Total 46,000

Major differences in the terminal layout plans between 7A in the DFS Report and one prepared by the

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Study Team are as follows.

Layout of CFS, considering possible future expansion.

Layout of container stacking yard along the sub-berth perpendicular to the new container berth (225m), considering the recommendation in the previous section (see Figure 2-57 and 57).

Figure 2-59 Layout Plan prepared by Study Team

3）Calculation of Container Handling Capacity

Under the operational conditions listed in Table 2-39, container handling capacity of the port in the existing and new container terminals are calculated at 227,632 TEU and 312,244 TEU as shown in Table 2-40 and Table 2-41, respectively.

Total container cargo handling capacity in the port, sum of the existing and new container terminal capacities, is calculated at about 540,000 TEU.

In the case of pier structure proposed in the DFS Report, the capacity of new container terminal is 291,224 TEU due to a loss of slot space along the pier as shown in Figure 2-57. In the DFS Report, capacity of the

Existing Container Terminal

Existing General Cargo Terminal

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new container terminal is calculated at only 183,800 TEU because the area in front of CFS is kept as open yard.

Table 2-39 Operational Conditions for Calculation of Container Handling Capacity

Item Conditions Ground Slot (number) Number in layout plan (Figure 2-59)

Stacking Height (tire)

- Existing container yard (Phase 1) Laden (RTG) : 3.5, Empty : 4.0, Reefer : 3.0

- New container yard (Phase 2) Laden (RTG): 4.5, (RS): 3.5 Empty : 4.0, Reefer : 4.0

Operation Days / year (day) 347 Peak Ratio 1.25 Average Dwell Time (day) Laden: 6, Empty: 9, Reefer: 5

Container Ratio (%)

- Existing container yard (Phase 1) Empty/Laden: 55.6 (Phase 1 planned), Reefer/Laden: 7.1 (Phase 1 planned)

- New container yard (Phase 2) Empty/Laden: 28.2 (2013 actual), Reefer/Laden: 7.3 (2013 actual)

Table 2-40 Calculation of Container Handling Capacity in Existing Terminal (Phase 1)

Parameter Laden (RTG)

Laden (RS) Empty Reefer

Ground Slot (number) a 864 0 630 60 Stacking Height (tire) b 3.5 3.5 4 3 Dwelling Capacity (TEU) c = a x b 3,024 0 2,520 180 Operation Days / year (day) d 347 347 347 347 Peak Ratio e 1.25 1.25 1.25 1.25 Average Dwell Time (day) f 6 6 9 5 Container Handling Capacity (TEU/year) g = c x d / (e x f) 139,910 0 77,728 9,994 Total (TEU/year) 227,632

Table 2-41 Calculation of Container Handling Capacity in New Terminal (Phase 2)

Parameter Laden (RTG)

Laden (RS) Empty Reefer

Ground Slot (number) a 678 246 416 60 Stacking Height (tire) b 4.5 3.5 4 4 Dwelling Capacity (TEU) c = a x b 3,051 861 1,664 240 Operation Days / year (day) d 347 347 347 347 Peak Ratio e 1.25 1.25 1.25 1.25 Average Dwell Time (day) f 5 5 8 4 Container Handling Capacity (TEU/year) g = c x d / (e x f) 190,378 40,807 62,738 18,322 Total (TEU/year) (Rubble mount structure) 312,244

Reference In case sub-berth is pier structure 291,000 TEU

DFS recommendation (OP7A) 183,800 TEU

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4）Dimensions of Major Facilities in Terminal

General dimensions of major facilities in the new container terminal are presented below.

Container Gate

Necessary number of traffic lane in the container gate is calculated at five (5) lanes by the formula below. Since existing container gate has three (3) lanes, two (2) additional lanes need to be constructed.

N = Tn x St / (Go x Ef) = 1,167 x 3 / (24 x 60 x 0.5) = 5

N: necessary number of traffic lane Tn: number of traffic (number per day) = 540,000TEU/year x 0.75 (20 feet:40 feet=1:1) /347 days = 1,167 St: stopping time at gate (minutes per traffic) = 3 Go: gate operation hours (hour per day) = 24 Ef: efficiency factor = 0.5

CFS

Necessary floor area of CFS in the new container terminal is calculated at 2,100m2 by the formula below.

A = Cn x Ac x St / Ef = 14 x 30 x 4 x1.25 = 2,100

A: necessary floor area (m2) Cn: number of laden container to be handled (number per day) = 232,000TEU/year x 0.02 (2% of total container) /347 days = 14 Ac: area for vanning/devanning (m2 per container) = 30 St: days for vanning/devanning (day) = 4 Pr: peak ratio = 1.25

Apron

Along the container wharf, apron having 50m width is allocated for efficient container handling in the berth.

Figure 2-60 Typical Section of Apron

Apron Width = 50m

Setback = 2.5m Crane Rail Span = 30m Space for Hatch Cover & Buffer = 17.5m

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Inner Road

- Container Road

Total width of 15m, consisting of four (4) traffic lanes and shoulders, is allocated for container trailers in the terminal.

Figure 2-61 Typical Section of Container Road

- Truck/Passenger Road

Total width of 9m, consisting of two (2) traffic lanes and shoulders, is allocated for trucks and passenger buses in the terminal. This road, together with structure of the seawall shown in Figure 2-64, will have a function as a buffer for avoiding excessive overtopping wave reaching to the container yard in storm condition.

Figure 2-62 Typical Section of Truck/Passenger Road

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Basic Design of Major Facilities (3)

Basic design of following major facilities presented in the DFS Report is reviewed in consideration of natural and operational conditions presented in this report.

- New Container Berth (50,000 DWT) - Breakwater/Seawall - Channel and Basin - Terminal Pavement - Passenger-related Facilities

1）New Container Berth (50,000 DWT)

In the DFS Report, three (3) structural alternatives are compared and discussed. In this study, however, in order to verify advantages of the selected alternative in the DFS Report in technical and economic aspects, totally five (5) structural alternatives shown in Table 2-42, including two (2) alternatives added by the Study Team, are compared.

Table 2-42 Alternatives for Comparison of Berth Structure

Type of Alternative Remarks A1. Bored Concrete Pile Compared in the DFS Report.

A1 is selected due to lowest cost and possible to be constructed by local contractors.

A2. Concrete Caisson A3. Steel sheet Pipe Pile A4. Steel Pipe Pile

Added in comparison by the Study Team A5. Steel Pipe Pile Strut

It is naturally understood that driving of piles into hard subsoil layer will directly raise construction cost and lengthen construction period of the berths. Thus the alternatives of A4 and A5, which can reduce number of piles to be driven, are added in the comparison. Major basic design conditions are as follows.

Water Level: HWL = CDL+1.36m, LWL = CDL+0.41m, RWL = CDL+1.04m

Crown Elevation: CDL+4.9m as proposed in the DFS Report in consideration of Vietnamese technical standards, elevation of existing berths and preference of port users. CDL+4.9m = HWL + Storm Surge + Climate Change + Storm Wave (wave top from HWL)

= CDL+1.36m + 2.0m + 0.35m + 1.1m

Berthing Bsin Water Depth: CDL-14.5m for 50,000 DWT container ships, considering Japanese technical standards (CDL-14m is required) and allowance for sedimentation (Minimum 0.4m) as specified in Vietnamese technical standards.

Surcharge Load: 1.0 t/m2 (ordinary condition), 0.5 t/m2 (seismic condition)

Seismic Load: kh = 0.1 (equivalent seismic coefficient)

87

Table 2-43 Comparison of New Container Berth (50,000 DWT) Structure

Alternative Structure A1. Bored Concrete Pile

1) Major Construction Method: Bore subsoil and fabricate in-situ reinforced concrete piles in the bored holes

using steel pipe caising and frame. 2) Construction Period (396m): 28 months 3) Construction Quality Control: Difficult due to large volume of underwater concrete works although condition

of concrete after placing cannot be seen because it is totaly covered by steel pipe frames.

4) Construction Cost Ratio: 1.00 A2. Concrete Caisson

1) Major Construction Method: Fabricate and install reinforced concrete caisons using floating dock mobilized

from abroad. 2) Construction Period (396m): 20 months 3) Construction Quality Control: Not difficult but more construction steps. 4) Construction Cost Ratio: 1.63

88


Alternative Structure A3. Steel Sheet Pipe Pile

1) Major Construction Method: Drive steel sheet pipe pile walls and steel pipe support piles using diesel/hydraulic hammer and water-jet + vibro-hammer.

2) Construction Period (396m): 23 months 3) Construction Quality Control: Not difficult. 4) Construction Cost Ratio: 1.18 A4. Steel Pipe Pile

1) Major Construction Method: Drive steel pipe piles using diesel/hydraulic hammer and

water-jet + vibro-hammer. 2) Construction Period (396m): 15 months 3) Construction Quality Control: Not difficult. 4) Construction Cost Ratio: 0.98

89


Alternative Structure A5. Steel Pipe Pile Strut

1) Major Construction Method: Drive steel pipe piles using diesel/hydraulic hammer and water-jet + vibro-hammer, and install strut members using floating crane.

2) Construction Period (396m): 13 months 3) Construction Quality Control : Not difficult. 3) Construction Cost Ratio: 1.12

Structural comparison has been made in terms of construction period, quality and cost. As a result of comparison, it has been revealed that “A4. Steel Pipe Pile Structure” is recommendable among five (5) alternatives as presented in Table 2-46. Calculation sheets of preliminary construction cost per meter are presented in ATTACHMENT 3.1.

However, if it is known in the detailed design stage that subsoil layer is much harder than expected in this Study, A5. Steel Pipe Pile Strut, which drives the least number of steel pipe pile into the hard subsoil layer, might become “Recommendable”.

Table 2-46 Summary of Comparison of New Container Berth (50,000 DWT) Structure

Structural Type A1. Bored

Concrete Pile A2. Concrete

Caisson A3. Steel Sheet

Pipe Pile A4. Steel Pipe

Pile A5. Steel Pipe

Pile Strut Construction

Period (396m) 28 months 20 months 23 months 15 months 13 months

Construction Quality Controle

Difficult Not difficult but more const. steps

Not difficult Not difficult Not difficult

Construction Cost Ratio

1.00 1.63 1.18 0.98 1.12

Recommendation -- -- -- Recommendable --

90

It is noted that the structural comparison described above was made among the typical section of five (5) alternative structures designed by the Study Team, in order to compare the alternatives in the same design conditions. Therefore, the structural dimensions are different from those of alternative structures presented in the DFS Report.

For verification, PMU85 reviewed construction cost of recommended alternative structures, i.e. Bored Concrete Pile pier structure recommended in DFS Report and Steel Pipe Pile pier structure in this report. As shown in Table 2-47, the review results revealed that construction cost of Steel Pipe Pile pier structure is lower than that of Bored Concrete Pile pier structure.

Table 2-47 Construction Cost of recommended Structural Alternatives reviewed by PMU85

Alternative Bored Concrete Pile pier structure

recommended in DFS Report Steel Pipe Pile pier structure recommended in this report

Typical Cross Section

Construction Cost (JPY/m)

7,373,077 (1.0) 6,647,246 (0.9)

2）Seawall

340m of the existing breakwater from landside-end will be altered to a seawall structure due to development of a land area by reclamation work behind it. In order to ensure required functions and stability of such part of the structure, necessary verifications are made as described below.

Prevention of excessive overtopping wave

According to the Japanese technical standard, allowable overtopping wave rate behind seawall is described as shown inTable 2-48.

Since the area behind seawall is paved as inner road and container yard, allowable rate of overtopping wave of 0.2 m3/m・sec is applicable for verification.

91

Table 2-48 Damage Limit Rate of Overtopping Wave

Type Covering Rate of Overtopping Wave (m3/m・s)

Revetment (Seawall) Apron paved

Apron unpaved

0.2 m3/m・s

0.05 m3/m・s

Figure 2-63 Rate of Overtopping for Wave-Absorbing Seawall (Bottom Slope 1/30)

As a result of verification by the diagrams presented in the Japanese technical standard shown in Figure 2-63, the seawall need to raise its parapet elevation from CDL+5.2 to CDL+7.9m (2.7m raised) and CDL+6.2m (1.0m raised) at shore and land side ends, respectively. Also, the area covered by wave dissipating blocks need to be extended 100m toward tip of the breakwater in front of the caisson, in order to reduce overtopping wave as shown in Figure 2-64.

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Section A-A (Ruble Mound Structure)

Section A-A (Caisson Structure)

Figure 2-64 Necessary Improvement of Breakwater as Seawall

(Reclaimed Terminal Area)


Caisson Structure (160m) Rubble Mound Structure (290m)


Existing Wave Dissipating Block (16-25t)

Extension of Wave Dissipating Block (25t) L=100m

Breakwater (110m) Seawall (340m)

Section A-A

93

Stability against Circular Failure

Due to reclamation behind, the breakwater needs to be evaluated regarding its stability against circular failure toward sea-side as seawall structure taking account of maximum potential surcharge load of 2.0t/m2

on and behind the seawall. Figure 2-65 shows that calculated safety factors are higher than those of minimum requirement of 1.3, thus the seawall structure is stable against circular failure.

Over a few years, in general, strength of foundation layers beneath the breakwater is improved due to vertical load (self-weight) of the structure. However, such temporal improvement factor is not considered in the above calculation to conduct conservative evaluation.

Section A-A (Ruble Mound Structure) SF=1.431>1.3 Section A-A (Caisson Structure) SF=1.905>1.3

Figure 2-65 Result of Stability Analysis against Circular Failure as Seawall

3）Reclamation

Reclamation area will be filled with sand exploited from vicinal source. Sandy materials dredged from channel and basin area could be used as a reclamation materials. The Study Team calculated volume of reclamation at about 0.7 Million m3 without compensation volume for settlement.

4）Soil Improvement in Reclaimed Yard Area

Soil boring survey results are presented in the DFS Report. Laboratory test results of No.2, 3 and 7, which are located in the reclamation area, indicate that there are two (2) subsoil layers which are classified as cohesive soil with thickness of two (2) to three (3) m. Consolidation of those layers after reclamation and during operation are expected to be small and quick due to small void ratio, plasticity index, compression index and large compression coefficient of the soil layers as evaluated in natural conditions in DFS report.

Based on the above soil characteristics, settlement of terminal yard would reach 80% of final settlement of about 50cm at 150 days after completion of the reclamation works. It could be said that no soil improvement work is necessary if residual settlement of about 10cm during operation period is acceptable. Final judgment could be made after obtaining further soil investigation results.

94

5）Channel and Basin

Channel and turning basin for maneuvering of 50,000 DWT container vessels need to be dredged down to CDL-14m. In the DFS Report, basic dimensions of channel and basin are calculated in accordance with Vietnamese technical standards and PIANC guideline as below. Layout of channel, basin and navigation aids are shown in Figure 2-66.

In the DFR Report, soil boring survey in the channel and basin areas was not conducted. According to the survey results conducted in phase 1 of the Project, which covers most of the channel and basin areas in phase 2, the seabed to be dredged down to CDL-14m will be not hard materials, such as Clayey Silt and Sandy Clay having N-values of about 0 to 10 and 30 at some spots. Dredging sections of channel and basin can be formed by slope gradient of 1:5 to 1:10. The Study Team calculated volume of dredging in the channel and basin areas at approximately 1.6 Million m3 with side slope of 1:10 including over dredging in depth of 0.3m and in width of 2.0m.

Dredged materials will be disposed at an on-land reclamation area (to be approved in the Project EIA Report which is now under preparation for resubmission to MONRE). Main dredging and disposal works will be carried out by a middle-size local trailing suction dredger (1,500-3,000m3 class) which is capable to dredge down to CDL-20m. Dredging and disposal works near structures will be carried out local grab dredgers and barges.

Channel

Depth: CDL-14m for 50,000 DWT container vessels without tidal restriction Width: 150m as single-lane channel Alignment: Channel center line is kept on the existing alignment for widening and deepening of

new channel.

Turning basin

Depth: CDL-14m for 50,000 DWT container vessels without tidal restriction Diameter: 400m: 1.5 times of ship length between perpendiculars (Lpp), R=258m (Lpp of

50,000 DWT container ship) x 1.5 = 387m => 400m. However, in accordance with Japanese technical standards and PIANC guideline, a minimum radius of turning circle for safe maneuvering of large-size ships attended by tugboat(s) is specified as 2 times of Loa. Thus, Diameter = 274m x 2 = 548 =>550m.

As a result of discussion with MOT, diameter of the turning basin will be 550m in accordance with Japanese technical standards and PIANC guideline, keeping 50m distance from face line of the new container berth to accommodate berthing ship in between in accordance with Vietnamese technical standards.

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Navigation Aids

Lighting Buoy: Six (6) nos. of lighting buoys are installed at entrance of channel and boundary of turning basin.

Lighting Beacon: A lighting beacon is installed on the south-east corner of the container berth.

Figure 2-66 Layout of Channel and Basin

Maintenance Dredging

With regard to the maintenance dredging, DPC is responsible in the present berthing basin area (in front of the berths), while VINAMARINE is responsible in channel and turning basin areas. According to the maintenance dredging records in the past provided by DPC and VINAMARINE, recent maintenance dredging volume in the present area can be calculated approximately at 24,000m3/year and 153,000m3/year, respectively as shown inTable 2-49. Assuming that sedimentation rate of approximately 0.3m/year in the present area is nearly same with that in the expanded area, maintenance dredging volume in the expanded area by the Project and total volumes are estimated as shown inTable 2-49. Maintenance dredging in the berthing basin area in front of the new container terminal will be carried out by the selected new terminal operator.

Legend Light Buoy Light Beacon

96

Table 2-49 Estimation of required Maintenance Dredging Volume

Responsible Body Maintenance Dredging Volume (m3/year)

Present Area Expanded Area by Project Total

DPC/New Terminal Operator 24,000/DPC 9,500/New Terminal Operator 33,500

VINAMARINE 153,000 52,000 205,000

In phase 1 of the Project, flood mud survey was carried out covering the area in front of Tien Sa terminal. During the survey, flood mud was not found on the seabed. However, in order to confirm potential maintenance dredging volume in the expanded channel and basin areas in the Project, to carry out numerical simulation of siltation in detailed design stage is recommendable.

6）Terminal Yard Pavement

Terminal yard will be covered by several types of pavement structures depending on the strength of reclaimed land surface to be covered and expected load intensity on the pavement.

The pavement types shown in Figure 2-67 are those constructed in Cai Mep ODA International Container Terminal and popularly used in the international container terminal in Vietnam. Area to be covered by the each pavement types in the terminal area is listed in Table 2-50.

97

Container Road Truck /Passenger Road

Apron Transfer Crane Lane

Container Stacking Yard/Plate

Figure 2-67 Typical Pavement Type and Structures

Table 2-50 Typical Pavement Type and Structures

Type Structure Area (m2) Container Road ICB 50,200

Truck/Passenger Road ICB 18,500 Apron Concrete 26.100

Transfer Crane Lane Concrete 3,400 Container Stacking Yard/Plate Asphalt Concrete/Concrete 27000

98

7）Passenger-related Facilities

In recent circumstances that passenger ships call Tien Sa terminal sometime twice a week, separation of cargo and passenger handling operations for safe and efficient port operation is now in urgent needs.

However, Tien Sa terminal is quite narrow and neither origin nor final destination of the passenger ships, thus construction of permanent and dedicated facilities for passenger handling operation and services in the terminal is not feasible.

Therefore, as shown in Figure 2-68, it is recommendable that when passenger ships berth in the new container terminal, temporally Passenger Control Area is set up at the end of new berth to let passengers get on/off shuttle buses to/from their visiting sites outside the terminal. For security and safety reasons, passengers will not be allowed to get off the shuttle busses in the terminal area. Therefore, all required immigration and quarantine procedures must be completed within the Passengers Control Area on leaving from and arriving at their ships.

In the Passenger Control Area, the required procedures will be done under temporary tents set on a concrete apron area. Due to expected overtopping wave in a storm condition in this area, construction of permanent structures, such as passenger terminal office, is not recommendable.

The shuttle buses must use Truck/Passenger Road in the terminal area, which is usually used by trucks and other port-related vehicles. Port operator has to give priority to the shuttle buses in the road.

Figure 2-68 Layout of Passenger-related Facilities

: Truck/Passenger Road

: Passenger Control Area

99

Construction Method and Schedule (4)

1）Construction Method

Possible construction method of major facilities is described as bellow. However, based on the latest design and

construction conditions to be obtained in the survey and detailed design stages, the methods described below

might be changed or combined with other methods.

Container Berth

Wharf structure will be constructed by a number of steel pipe piles. Those piles (L=29m) are supplied as a

single segment to the construction site so that field welding works for pile connection can be avoided. Since

hard subsoil layer (N>50: Granite fully weathered into Sand, Clay with Gravel) is expected to appear in the

elevation deeper than CDL-16m, steel pipe piles are driven by water-jet + vibro-hammer, then in a last meter, hit by diesel/hydraulic hammer for verification of required bearing capacity of each piles.

Pile driving by water-jet + vibro-hammer shown in Figure 2-69 is a popular method, because it can install

steel pipe piles into hard layers efficiently having little damage on piles comparing with hard driving by

diesel/hydraulic hammer.

Figure 2-69 Water- jet + Vibro-hammer for Pile Driving into Hard Subsoil Layers

In order to verify that steel pipe piles are not damaged during driving works using a practically largest diesel/hydraulic hammer, calculation is made in Table 2-51 as recommended by Steel Pipe Pile Association

in Japan. As a result of calculation, it is verified that damage (buckling) will not occur in the steel pipe piles of

D=1,200mm, t=12mm.

100

Table 2-51 Calculation of Buckling during Pile Driving Works

Diameter of pile D (mm) 1,200.0 Wall thickness of pipe pile t (mm) 12.0 Grade of steel material SKK490 Pile head elevation m 4.00 Ground elevation m -12.90 Driving elevation m -24.90 Sectional area of pile Ａ cm2 447.87 Section modulus of pile Ｚ cm3 13,170 Moment of inertia of pile section area I cm4 790,196 Radius of gyration r cm 42.00 Coefficient of horizontal subgrade reaction kgf/cm3 1.650 β cm-1 0.004156 1/β m 2.406 Steel and casting steel γP kgf/cm3 0.00785 Elastic wave velocity CP cm/sec 5.12E+05 Young's modulus of pile EP kgf/cm2 2.1E+06 Weight of hammer WH kgf 12,500 Drop height of hammer h cm 120 Sectional area of hammer AH cm2 3,115 Sectional area of cushion AC cm2 7,854 Lapsed time after a hammer shock ｔ sec 0.002 Yield strength σty kgf/cm2 3,200

Examination of blow stress

Blow stress σ2 kgf/cm2 1,491 Buckling stress σmax kgf/cm2 2,640 Buckling stress in eccentric condition σc kgf/cm2 1,875 Judgment OK: σ2<σmax,σc

Long-column buckling

Effective buckling length of pile l 1 cm 1,790 Depth of the virtual fixed point l R cm 241 Embedded length l D cm 1,100 Buckling length l K cm 1,421.4 Slenderness λ 33.840 Buckling coefficient ω 1.048 Impact energy P tf 667.935 Buckling stress σ kgf/cm2 2,073 Judgment OK: σ2<σ

Channel and Basin Dredging

Approximately 1.6 Million m3 of seabed materials, consisting of 0.2 Million m3 along the container berth face

line and 1.4 Million m3 in the channel and turning basin areas, will be dredged in the Project.

In view of working efficiency and safety, grab dredger(s) will be used along the container berth face line

(vicinity of structure) and trailing suction hopper dredger(s) will be used in the channel and turning basin areas

(large open area especially in busy local traffic). Both types of dredgers shown in Figure 2-70 having

sufficient dredging capacity are available in Vietnam.

101

Figure 2-70 Image of Typical Dredgers to be used in Project

All of dredged materials will be disposed at the disposal site, which is a future reclamation area owned by a

private developer located at 5km distant from the dredging area shown in Figure 2-71. According to PMU85,

contractor of the Project will be allowed to dispose (pumped) dredged materials into an area enclosed by rubble

mound revetment free of charge. Therefore, the dredging cost estimated in the later section consists of dredging,

dredged material transport of 5km and disposal by pumping. Costs for construction of embankment and

leveling of disposed materials are not included.

Figure 2-71 Location of Dredged Material Disposal Site

2）Construction Schedule

As requested by PMU85, construction schedule is prepared to complete in 30 months. Critical work would be

berth construction work to ensure the earliest enclosure of the reclamation area followed by reclamation,

terminal pavement and building works.

Grab Dredger Trailing Suction Hopper Dredger

On-land Disposal Location (5km from dredging area)

Channel & Basin Dredging Area

102

Table 2-52 Construction Schedule

2.4 Procurement Method

Possible procurement packages in the Project could be divided into following two (2) packages.

Package-1: Consulting Services on Detailed Design, Bid Assistance and Construction Supervision of Ties Sa – Da Nang Port Improvement Project (Phase 2)

Package-2: Construction of Port Facilities of Ties Sa – Da Nang Port Improvement Project (Phase 2)

In accordance with JICA’s “Guidelines for the Employment of Consultants under Japanese ODA Loans” and “Guidelines for Procurement under Japanese ODA Loans”, biding method, conditions of contract, selection method of consultants and contractors, etc. of the packages will be examined in consideration of procurement conditions in similar projects.

As for consultant selection for Package-1, there are two (2) cases, Quality and Cost Based Selection (QCBS) and Quality Based Selection (QBS). QBS selection should be the first option, otherwise consultant should be selected from shortlisted consulting firms to ensure quality of the services.

As for contractor selection for Package-2, Single Stage Two Envelope Bidding under International Competitive Bidding (ICB) would be appropriate. According to the above guidelines, the size of contract would be appropriate as a single contract to ensure competitive circumstances under ICB.

103


In the Project, consultant services will be procured for survey, detailed design, bid assistance and construction supervision. A draft TOR for the procurement Package-1: Consulting Services for 64 months, including 12 months of defect liability period of construction works, is prepared in ATTACHMENT 3.2.

2.6 Project Cost and Financial Plan

Project Cost (1)

Direct project cost, which consists of construction and consulting services costs, is estimated inTable 2-53. Basically, unit rate of material, labor and equipment, which is available in Vietnam, are used referring to the latest unit price list issued by Da Nang PC. As shown in the Table, total direct project cost, excluding management fee and profit, contingency, price escalation and taxes & duties, is estimated at 7,378,592,291 JPY and 7,702,326,243 JPY in cases Steel Pipe Pile or Bored Concrete Pile is chosen for container berth construction, respectively.

104

Table 2-53 Summary of Estimated Project Cost 1.0 VND = 0.0049 JPY

Item Quantity Foreign Portion (JPY) Local Portion (VND) Total in JPY 1. Construction Cost

(1) Temporary Works

L.S. --- 13,463,229,000 65,969,822

(2) Reclamation 700,000m3 --- 111,435,352,000 546,033,225 (3)-1 Container

Berth (SPP) 396m 1,842,616,512 163,908,644,724 2,645,768,871

(3)-2 Container Berth (BCP) 396m 606,020,984,285 2,969,502,823

(4) Revetment 225m 10,419,119 20,695,609,347 111,827,605 (5) Seawall

(parapet installation)

290m --- 2,001,368,189 9,806,704

(6) Breakwater (wave

dissipating block installation)

100m 17,715,429 23,655,553,668 133,627,642

(7) Dredging (incl. Navigation Aids)

1.6 mill. m3

--- 296,460,000,000 1,452,654,000

(8) Container Yard and Road

L.S. --- 149,733,554,773 733,694,418

(9) Terminal Buildings/Facilities

L.S. --- 55,256,811,000 270,758,374

(10) Terminal Utilities/Facilities

L.S. --- 104,990,128,485 514,451,630

Sub-total-1 (SPP) 1,870,751,060 941,600,251,186 6,484,592,291 Sub-total-2 (BCP) 28,134,548 1,383,712,590,747 6,808,326,243 2. Consulting Services

(1) DD, BA and CS

600,000,000 60,000,000,000 894,000,000

Sub-total 600,000,000 60,000,000,000 894,000,000 Total-1 (SPP) 2,470,751,060 1,001,600,251,186 7,378,592,291 Total-2 (BCP) 628,134,548 1,443,712,590,747 7,702,326,243

Note: SPP: in case Steel Pipe Pile structure is chosen for container berth construction. BCP: in case Bored Concrete Pile structure is chosen for container berth construction.

105

Financial Plan (2)

The above estimated project cost will be covered by eligible portion of ODA loan amount. Approximate annual disbursement amount is calculated and attached in ATTACHMENT 3.3.

2.7 Implementation Schedule

Based on the standard processes of Japanese ODA operation and recommended periods in JICA’s “Guidelines for the Employment of Consultants under Japanese ODA Loans” and “Guidelines for Procurement under Japanese ODA Loans”, possible implementation schedule of the Project, starting from pledge by Japanese Government to the end of defect liability period of the construction package, is shown in Table 2-54.

This schedule was drawn aiming at completion of construction project (issuance of handover certificate) at the end of 2019 as requested by PMU85.

Table 2-54 Possible Implementation Schedule

106

2.8 Implementation Structure of Project

The management of the project is implemented in accordance with Decision No.12/2009/ND-CP by the Government on the management of work construction investment projects.

- The MOT is the project owner and PMU85 is assigned to act as a role of project management.

- PMU85 directly manage and use investment capital to implement the construction investment in accordance with the contents approved by competent authorities. PMU85 shall be responsible to the MOT for the project management during the construction.

- Operation of the project shall be put out to tender in accordance with Decision No..21/2012/ND-CP by the Government on management seaports and navigation channels to select a capable contractor in finance and experience.

- Bidding model of this project after completion is to invite bids for the terminal operation similar to the one applied for tha Cai Mep-Thi Vai international Port or Lach Huyen Port, except for that investment in equipment responsible for this operator in this project while the equipment is invested by the Government and is leased to the operator in the Cai Mep-Thi-Vai project.

2.9 Management System of Port Development in Central Vietnam

The ports in Vietnam are classified into six (6) regional groups due to their location and classified into three (3) classes due to their roles, which are Class1: national seaport (regional hub port), Class2: local seaport (provincial port), and Class3: specially-used seaport for industry. This classification is based on Decision no.16/2008/QD-TTg by prime minter and has positioned general role of Vietnam ports.

- Vietnam Seaports Development Plan up to 2020 with the vision to 2030 (MOT Master plan) is a guideline for seaports investment in long future scope. The plan is based on the port classification in order that duplicated investment in same area is excluded. MOT controls every port development based on the Master plan thorough the authorization process in which MOT accepts any development plan.

- Table 2-55 shows seaports in central coast zone (Group zone 3: from Province north to province south) with handling volume, owner and operator. Quy Nhon port is included in the table to consider the competition between ports in these area although the port belongs to Group 4. Owners are Vinalines (State owned company), provincial governments and investment corporations.

- As regional hub port（Class1）in the central coast region, three ports are listed . These ports have differentiated roles. Dung Quat will be specialized in heavy industrial port. Quy Nhon have its hinterland (central south provinces and central highlands provinces) different from that of Da Nang port. In addition Quy Nhon and Da Nang are distant enough that their hinterland is clearly separated.

- VINALINES owns Chan May port, Quy Nhon port as well as DaNang port. Developments of these ports

107

will be adjusted within the governance of Vinalines group.

- Lien Cheu is only a plan in the master plan and so far nothing for seaport entity. It is a component terminal included in Da Nang port (Class1). In the plan it is guided to be developed stepwise to complement the capacity of Tien Sa terminal to maintain Da Nang as regional hub.

- Class 2 seaports handle mainly general cargos in their provincial area as is indicated in relatively small handling volume. These Class 2 ports developments will be controlled in order that they do not compete for collecting interprovincial cargo.

Table 2-55 Owners and Operators of Neighboring Ports

Source: Vietnam seaports association

2.10 Structure and Budget for Maintenance and Operation

Operation System (1)

Operation and management of the new terminals shall be put out to tender in accordance with Decree no. 21/2012/ND-CP dated 21/03/2012 by the Government on management seaports and navigation channels to select a capable operator in finance and experience, introducing PPP scheme for maximizing of operation efficiency. This scheme shall be similar to the preceding tender on Cai Mep international port. By this scheme, the State is responsible for investing in port infrastructure and for dredging of access channel to terminal in investment phase and operation phase. And the awarded operator is responsible for investing in handling equipment and also responsible for maintenance, repair work of port infrastructure facilities, equipment and maintenance dredging of the leasing area.

Port class TerminalCurrenthandling(000ton)

Owner Operator

Quan Binh 2 Quan Binh 120 State Capital Investment Corporation Quang Binh Port Limited Company

Quan Tri 2 Quan Tri NA NA NA

Tuan An 90 Thua Thien Hue province Thuan Port Joint Stock Company

Chan May 1,500 Vinalines Chan May Port Co. Ltd

Tien Sa 4,200 Vinalines Da Nang Port Co.Ltd

1 Han River 810 Vinalines Da Nang Port Co.Ltd

Lien Cheu 0 Nothing (only plan) Nothing (only plan)

Ky-Ha 2 305 The People’s Committee of Quang Nam ProvinceKy-Ha Chulai Quang Nam Investmentand Development company limited

Dung Quat 1 NA Gemadept Corporation Gemadept Corporation

Quy Nhon 1 6,256 Vietnam National Shipping Line (Vinalines) Quy Nhon Port Limited Company

Tua Thien Hue 2

Da Nang

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Potential Local Operator (2)

1）Da Nang Port Holding Limited Liability Company

As a potential operator, DPC is desirable mainly from a view point of efficient operation such as common use of container yard, entrance gate, IT system and marketing activities. A smooth Interface with Government by an unified operator in dredging at channel and turning basin and in the phase of future development since these area is being shared with one operated by exting DPC. JICA study team obtained same opinions from relevant persons in discussions of this issue.

Figure 2-72 Organization Structure of Da Nang Port

Source:DPC Home-page

The Affi l iated Enterprise

The Affi l iated Companies

Danalog

Cotraco

Tugboat Enterprise

Son Tra Port Company

ORGANIZATION STRUCTURE

Department

Da Nang Port Holding Limited Liabillty Company

Menber's Council

General Director

Operation Dept

Planning & Investment Dept

SONG HAN HandlingEnterprises

Han river Terminal

TIEN SA HandlingEnterprises

Tien Sa Terminal

Finance & Accounting Dept

Supervisor

Civil work Engineering Dept

Engineering & Technology Dept

Son Tra Project Management Dept

General Administration Dept

Business Dept

Personal Salary Dept

Deputy GeneralDirector charge of

Business

Deputy GeneralDirector charge of

Operation

Deputy GeneralDirector chaege of

Engineering

109

Figure 2-73 Organization Chart of Tien Sa Terminal & Number of Personnel

DPC have experienced terminal operation business for many years. It is operated by 407 personnel currently and 167 thousand TEU have been were handled in 2013. DPC goes well in financial aspect as is shown in its financial statement (Table 2-56).

Table 2-56 Financial Situation of Da Nang Port

It has recorded an increasing sale owing to growing container handling and has keeping plus profits. In addition it has upturn trend in equity aspect since equity ratio and retained earning plus dividend have

SUM(152)

SUM(255）

Source:DPC

Figures in ( ) are number of personnel Total number of personnel (407)

Organization chart of Tien Sa terminal ＆ number of personnel

Director

Deputy directors

Office Dept

(16)

Container Yard(54)

Operation Dept(12)

Security Team(21)

Warehouse Dept(20)

RepairWorkshop

(29)

LiftingGroup

(25)

IndustrialHygieneGroup

(13)

ToolsGroup

(4)

StevedoringGroup(144)

TruckingGroup(52)

Shore craneGroup

(17)

Director

Deputy directors

Office Dept

(16)

Container Yard(54)

Operation Dept(12)

Security Team(21)

Warehouse Dept(20)

RepairWorkshop

(29)

LiftingGroup

(25)


(13)

ToolsGroup

(4)


TruckingGroup(52)

Shore craneGroup

(17)

Director

Deputy directors

Office Dept

(16)

Container Yard(54)

Operation Dept(12)

Security Team(21)

Warehouse Dept(20)

RepairWorkshop

(29)

LiftingGroup

(25)


(13)

ToolsGroup

(4)


TruckingGroup(52)

Shore craneGroup

(17)

Director

Deputy directors

Office Dept

(16)

Container Yard(54)

Operation Dept(12)

Security Team(21)

Warehouse Dept(20)

RepairWorkshop

(29)

LiftingGroup

(25)


(13)

ToolsGroup

(4)


TruckingGroup(52)

Shore craneGroup

(17)

(million VND)2010 2011 2012 2013

Revenue 255,795 359,130 412,860 471,473Profit after tax 6,860 8,399 19,701 51,712Asset 433,236 500,367 505,681 787,830Debt 211,308 258,923 244,244 262,133Owned euity 218,277 232,766 240,583 492,956(Euity ratio) 0.50 0.47 0.48 0.63Minority interests 3,650 8,678 20,854 32,740Stock Capitalization 189,930 199,101 198,446 462,967Retained ernings 5,472 6,791 14,362 11,500Dividend 0 0 3,880 11,924(Source:Financial statemet of Da Nang port holding limited liability company)

110

been stable and upturn trend.

2）Vinalines

DPC is 97.5% owned by VINALINES,a state owned company. Other 2.5% have been owned by new investors in the equitization process implemented in June 2014. VINALINES was established in1995 and Its business consists of three block "Port Operation", "Shipping" and "Logistics" In the period before global economic crisis from 2008, all organizations under VINALINES was run effectively and had profits. Increased in come and profit resulted in good finance status and payment capability. State capital was preserved and increased from 1.496 billion VND to 8,577 billion VND in 2010.

From the end of 2008 due to the long depression of global economy, the remarkable reduction in price of sea transportation, the increase of fuel price and materials, the poor market forecast and organization management, VINALINES was in difficult finance situation.

Figure 2-74 VINALINES and Da Nang Port Holding Limited Liability Company

According to the Government report No.146/BC-CP on VINALINES, it has tuned to loss profit situation from 2011 after it recorded he downturn profits of 897 billion VND(2008),317 billion VND(2009),142 billion VND(2010) . It was reported VINALINES suffered consecutive loss in 2013 reflecting the

State Own Compan ies

97.5% 2.5%

100% 100%

The Affiliated Enterprises The Affiliated Companies

Sorrce: VINELINES, Wensite news (Da Nang port to launch IPO in june:Talk Vietnam and Vinalines set to launch IPO's for five large port operators: News VietNamNet)

Ministry of Transport

Tien Sa Terminal

Song Han Terminal

DANALOG

Truck Transport

COTRACO

construction & Maintenance

TUGBOATEnterprise

MA Danang

PMU8 VINAMARINE

SON TRAPort

Company


Tien Sa Terminal

Song Han Terminal

DANALOG

Truck Transport

COTRACO


TUGBOATEnterprise

MA Danang

PMU8 VINAMARINE

SON TRAPort

Company


Tien Sa Terminal

Song Han Terminal

DANALOG

Truck Transport

COTRACO


TUGBOATEnterprise

MA Danang

PMU8 VINAMARINE

SON TRAPort

Company


VINALINES

Da Nang portHolding

Limited Liability Company

Tien Sa Terminal

Song Han Terminal

DANALOG

Truck Transport

COTRACO


TUGBOATEnterprise

Port Authority Danang

PMU8 VINAMARINE

SON TRAPort

Company

private

111

precedent overinvestment in various fields and these days downturn in shipping business.

On the other hand, it is currently in the midst of restructuring process based on [The restructure plan of VINALINE in 2012-2015 approved by Decision No.276/QD-TTg dated 4th Feb.2013. According to Annual Report of VINALINE 2013, it has been actively conducting the restructure projects as follows:

-To arrange businesses: It has reduced a number of 11businesses, completed the withdrawal of capital at insurance company investment capital, and conducted the bunkrupcy process for Vinashinlines and Falcon.

-Equitization process: It concentrates on the equitization of enterprises as one of the key activities in business renewal. It has commenced equitization of 8 companies out of 16 companies which were named to be equitized in 2012-2015.

-To implement the restructure of fleets: It sold 12 vessels with total tonnage of 390,000 tons. It has suspended the new building projects so far and shall only consider the new projects as the shipping market shows better conditions.

It will take more years to complete these restructuring projects, however VINALINES will be gradually settling their difficulties with the supports from the Government. In 2013 it recorded a upward or stable activity in shipping business , which are 29 million tons of total shipping volume (2% increase of 2012), 65 million tons of total cargo throughput (same as 2012), 22,315 billion VND of total revenue (3% increase of 2012) in spite of slimming the businesses although it could not produce profits due to heavy cost burden caused by overinvestment in past years.

112

Potential International Operator (3)

Table 2-57 shows companies who are operating container terminals in Vietnam.

Table 2-57 Companies Operating Container Terminals in Vietnam (2013)

SOURCE：Drewry Maritime Research, ”Global Container Terminal Operator 2013”

Following companies are operating with rather same handling volume as expected volume at the new Tien Sa terminal.

-Mitsui (Portek) Portek is singapore based and Mitsui corporation owned operator which is operating 8 terminals in the world. It specialized in the medium size termnals and contributes 16% of VICT, Ho Chi Min.

-DP World It is Debui based operator and one of 4 four big global operators. It exploits in developing countries compared with other global operators. It is operating terminals in Tanjung Perak, Manila, Leam Chabang and contributes 80% of Saigon container terminal.

Maintenance System (4)

Operator is responsible for maintenance of port facilities and equipment and it will do the maintenance works as the role of business of private company as long as the operator runs profits. Items and costs for maintenance are listed in Table 2-65 in financial analysis and the result of analysis shows that those costs will be sufficiently covered by their revenues. Regarding maintenance dredge, it is shared by MOT who is responsible for keeping the safety of navigation channel and turning basin based on ‘Decision

Operator Port Terminal Name Nature of Involvement2012Capacity('000 teu)

2012Throughput('000 teu)

2012Utilisation(%)

% Share-holding

2012Equity TeuThroughput('000 teu)

HutchisonPort Holdings

Cai MepSaigon InternationalTerminals

70% shareholding in cooperative jointventure. Terminal became operationalin August 2010

800 1 0.1 70.0% 0

APMTerminals

Cai Mep Cai Mep International50% share in JV with Vinalines (35%)and Saigon Port (15%)

1,100 576 52.4 50.0% 288

PSAInternational

Cai MepSP-PSA InternationalPort (Phase I & II),Vung Tau

JV with Saigon Port, first phaseoperational 2009

500 6 1.2 49.0% 3

DP WorldHo ChiMinh City

Saigon PremierContainer TerminalPh-1 & 2

80% equity stake in JV with TanThuan Industrial Promotion Co.Terminal became operational inOctober 2009

960 400 41.7 80.0% 320

SSA Marine /Carix*

Cai-LanCai Lan InternationalContainer Terminal

JV with Cai Lan Port InvestmentJoint Stock Co.

173 37 21.3 49.0% 18

Hanjin Cai MepTan Cang-Cai MepInternational Terminal

JV with Saigon Newport Company,MOL and Wan Hai Lines. The terminalstarted operation in Jan 2011

1,150 544 47.3 21.3% 116

APL/NOLHo ChiMinh City

Vietnam InternationalContainer Terminal

47% shareholding 678 345 50.9 47.3% 163

MOL Cai MepTan Cang-Cai MepInternational Terminal

JV with Saigon Newport Company,Hanjin and Wan Hai Lines. Theterminal started operation in Jan2011

1,150 544 47.3 21.3% 116

Mitsui(Portek)

Ho ChiMinh City

Vietnam InternationalContainer Terminal(VICT)

16% shareholding with APL (47%) 678 345 50.9 16.0% 55

* Operations in Cai Lan commenced operations on August 31, 2012. Capacity and throughput figures are for the period Sep-Dec 2012 only

113

No.21/2012/ND-CP on management of seaport and navigable channels’ and the operator who is responsible for dredging of berth front basin.

Table 2-58 shows the record of dredging volume of the past 3 years of Da Nang port. Every two years they have done dredging work regularly and sufficiently judging from the fact that there have been no accidents or claims from vessel operators. MOT dredging is financed by the State budget for which charges collected from vessels are allocated.

As for the operator’s cost for the berth front dredging, the volume is not much.

Table 2-58 Record of Dredging Volume in Da Nang Port

2011 2012 2013 Current (per year)* 2020～(per year)**Channel &Turning Basin Vinamarine 231 0 305 153 205

Berth front Da Nang Port 0 44 60 24 34* Current volume is converted into averaged one because dredging works is cnducted one a few years. ** Necessary dredging volume after completion is estimated as proportion to enlarged area of access chanel and tturnig basin

Dredging area ResponsibilityMaintenance Doredging volume （000m3)

114

2.11 Operational Efficiency and Economic and Financial Analysis

Operational Efficiency (1)

Since that the this project aims at expanding the container handling capacity, operational improvement is limited to the handled volume related index. The improvement generally means increase of cargo or ship gross tonnage or size growth of ships all of which new terminal will accommodate. Improvement in 2021 is as follow.

- Container cargo will increase by 280,434 TEU

- Ship Gross Tonnage and wharfage charge will increase by 11,712 (000) ton and by 112,634 (000)yen respectively

-The new terminal will be able to receive 50,000DWT container ship while 30,000DWT is upper limit without the project

- Berth occupancy will be 39.4% and improved by 3.1 % compared with 42.5% of without case where ship size distribution is same as now due to ship draft limitation.

- Containerization factor of Tien Sa terminal whole will increase by 16.7% since that container cargo increase more than general cargo due to the container cargo handling at the new terminal.

Table 2-59 Operation Indicator and Efficient Indicator

Financial Analysis (2)

1）Basic Method and Premises

To evaluate the efficiency of the project investment, cash flow of the project (including costs for works construction, cost for production operation, etc.) is analyzed.

The evaluation has been conducted in two cases regarding the wharf sutructure - steel piles case and concrete bored piles case- , costs of the project of which are different.

Without caseNew Terminal Existing Terminal Existing Terminal

Operation indicatorCargo （TEU) 167,447 280,434 228,000 228,000 280,434Ships　Gross　Tonnage (000ton) 7,022 11,712 9,562 9,562 11,712Berth　Occupancy　Ratio 31.1% 36.5% 42.5% 42.5% 6.0%

30,000 50,000 30,000 30,000 20,000Wharfage Charges (000yen) 90,490 112,634 123,213 123,543 112,634Effect indicatorCargo （TEU) 167,447 280,434 228,000 228,000 280,434Cotenarization factor 36.8% 36.1% 16.7%55.8%

With case (2021)ImprovementCurrent(2013)

Maximum Ship size（DWT)

115

Assumptions for the analysis are as follows,

Development Plan (a)

Tien Sa Terminal – Da Nang Improvement Project (Phase II) aims to expand the existing Tien Sa Terminal enabling to accommodate container ships up to 50,000DWT with a new terminal.

Table 2-60 Key Characteristics of the New Terminal

Project name Ship type Maximum size of ship Berth length

(m)

Tien Sa Terminal – Da Nang (Phase II)

Container 50,000DWT 396m

The main operation features : The project will be completed construction in 2019, and put into operation in 2020.

The volume of cargo throughput and the number of container ship calls via Tien Sa Terminal from 2020 is shown in the table below:

Table 2-61 Volume of TEU and Number of Container Ship via the Terminal

Items 2020 2021 From 2022

Container Cargo volume(TEU) 217,995 280434 312,000

Container ship calls 649 717 746

Number of container ship calls was calculated based on the historical relation at Tien Sa terminal between total container handling volume at the terminal and load/unload volume per ship (y=0.712E +02ln(x) -2.685E+ 03) .

Investment Cost and ODA Loan (b)

Investment cost and financial terms regarding ODA loan Agreement with Japan are assumed as follows. - Loan interest: 1.4% (Construction), 0.01% (Consultant Service) - Grace period: 10 year - Repayment: 30 year - Corporate tax rate: 22%

116

Table 2-62 Investment Cost and ODA Loan (000JPY)

Steel pipe pile structure Concrete bored pile structure

Investment cost ODA loan investment ODA loan

2015 233,828 185,167 235,264 185,167

2016 244,835 211,245 244,849 211,245

2017 2,824,332 2,528,101 3,001,936 2,705,780

2018 3,091,773 2,767,479 3,300,307 2,973,663

2019 3,725,736 3,340,082 4,006,699 3,615,294

2020 628,952 575,595 682,881 628,245

Total 10,749,459 9,607,671 11,471,939 10,319,397 Note: Exchange rate at 2014 August is applied.

Operation Revenue (c)

Revenues obtained from port operation are classified into government charge, container handling charge and charges for other port services. They are calculated based on unit revenue per TEU or per ship as is shown in Table 2-63.

Table 2-63 Unit Revenues of Port Operation Yen 1.00=VND205

Items (000VND) (000JPY)

/ship /TEU /ship /TEU Revenue of Government 86,600 - 422.4 - Tonnage charges 27,040 - 131.9 - Maritime safety charges 49,000 - 239.0 - Pilot charges 8,448 - 41.2 - Procedure charges 2,112 - 10.3 - Revenue of Port handling - 961 - 4.7

Loading and unloading charges - 961 - 4.7 Port others 39,642 50 193.4 0.2 Wharf charges for ship 31,420 - 153.3 - Charges for tying and untying rope 2,788 - 13.6 - Fresh water charges 4,800 - 23.4 - Garbage disposal charges 634 - 3.1 - Storage charges - 50 - 0.2

*Source: DFS report

117

Expenditure (d)

Cost of Equipment a）

The operator is assumed to invest in three (3) units of gantry crane and other equipment (RTG, reach stacker, etc.). Table 2-64 shows the necessary investment cost on the following premise of replacement terms.

-Gantry Crane: Once every 20 years

-Other equipment: Once every 10 years

Table 2-64 Cost of Equipment

Equipment unit Cost (000JPY)

2019 Gantry crane* 3 3,500,505

Others** (RTG, Reach stacker, etc.) set 1,011,458

2029 Others set 1,011,458

2039 Gantry crane and others 3&set 4,511,963

2049 Others set 1,011,458 *Unit cost of gantry crane 166,835(000yen) is based on the Case of Cai mep-ThiVai project

* *Costs of other equipment (RTG, reach stacker, etc.) is calculated using the ratio 28.9% (Others/Gantry crane)

of the DFS Report

Operation Cost b）

Operation costs every year are classified into those proportioned to handled container volume such as fuel consumption or power etc. and those constant regardless of handling such as salary for indirect employee or maintenance of fixed asset and dredging etc. Unit costs for these operation items are shown in Table 2-65

118

Table 2-65 Unit Costs for Terminal Operation

Items Unit Price (Yen 1.00=VND205)

(000VND) (000JPY) Fuel consumption /TEU 92.9 0.45 Power 27.9 0.14 Water 11.2 0.05 Salary for direct works 37.0 0.18 2-58Social/ Health Insurance / Trade Union 8.9 0.04 Others cost 27.8 0.14 Maintenance of fixed assets Constant 21,822,690 106,452 Property Insurance 6,751,229 32,933 Salary for indirect employees 14,304,000 69,776 Social/ Health Insurance / Trade Union 3,432,960 16,746 Office – run expenses 3,547,392 17,304 Maintenance Dredging 32,913,000 160,551 Water surface rental cost 63,528 310

Total /TEU 205.7 1.00

Constant 82,834,799 404,072 *source: DFS report

2）Result of Financial Analysis

Case of Steel Pipe Pile Structure (a)

Precondition c）

・Evaluation period: 50 years ・Operation start year: 2020 ・Social discount rate 7.6% ( assumed to be current rate of Vietnam State 10 years bond)

Result of Financial Analysis d）

The result of financial analysis is shown with efficiency index in Table 2-66. The result of the sensitivity analysis is shown in Table 2-67. The calculation process of these index is shown in Table 2-68~Table 2-70.

Since FIRR is calculated as 11.01% exceeding the 7.6% that is assumed as social discount rate at 10 years government bond, the project can be judged to be financially feasible. NPV calculated as JPY1,380 million and cost-benefit ratio as 1.06 also show the feasibility of the project.

In addition, since that project is held feasible, even in the case of unfavorable conditions (10% cost increase, 10% decrease in container growth rate) as shown in the result of the sensitivity (Table 2-67), the feasibility of the project is reliable.

119

Table 2-66 Result of Financial Analysis

No. Efficiency index Unit Result

1 Evaluation period Years 50

2 Total Investment JPY(million) 10,749

3 Loans (Construction) % 1.4%

4 Loans (Consultant Service) % 0.01%

5 Total Net Present Value (NPV) JPY(million) 1,380

6 Internal Rate of Return (FIRR) % 11.01%

7 Cost/ Benefit ratio (B/C) Times 1.06

8 Payback Period year 17

Table 2-67 Result of Sensitivity Analysis

Case Base Case Case-1 Case-2

Investment costs - 10% increase -

Container Volume Growth Rate* - - 10% decrease

FIRR 11.01% 8.94% 9.84%

NPV (JPY(million)) 1,380 572 974

B/C 1.06 1.02 1.04

*10% decrease of the container demand growth rate

120

Table 2-68 Financial Analysis (Base Case) [Steel Pipe Pile Structure]

Financial analysis (Base case) [Steel pipe pile structure] grace yearrepayment

yearcorporate tax

rateB/C

in JPY 10 30 22% 1.06

loan incomerevenue income(Port Handling)

revenue income(Port others)

revenue income(government)

total investmentinvestment

(equipment)operation cost loan interest loan repayment corporate tax total income expenditure net income (NPV) Accumlated

2015 0 0 185,167,559 185,167,559 185,167,559 233,828,815 0 0 0 0 233,828,815 0 0 -48,661,256 1.000 185,167,559 233,828,815 -48,661,256 -48,661,256

2016 0 0 211,245,778 211,245,778 396,413,337 244,835,784 0 0 0 0 244,835,784 0 0 -33,590,006 1.076 196,325,072 227,542,550 -31,217,478 -79,878,734

2017 0 0 2,528,101,067 2,528,101,067 2,924,514,404 2,824,332,736 0 0 0 0 2,824,332,736 28,504,225 -28,504,225 -296,231,669 1.158 2,183,583,929 2,439,446,608 -255,862,679 -335,741,413

2018 0 0 2,767,479,440 2,767,479,440 5,691,993,844 3,091,773,227 0 0 0 0 3,091,773,227 112,687,492 -112,687,492 -141,191,717 -324,293,786 1.246 2,221,506,504 2,481,823,075 -260,316,570 -596,057,983

2019 0 0 3,340,082,340 3,340,082,340 9,032,076,184 3,725,736,253 4,511,963,745 0 0 0 0 8,237,699,998 166,449,969 -166,449,969 -307,641,686 -4,897,617,658 1.340 2,491,770,775 6,145,495,236 -3,653,724,461 -4,249,782,444

2020 217,995 649 575,595,219 1,021,918,024 178,670,283 274,162,927 2,050,346,453 9,607,671,403 628,952,639 622,811,563 0 0 150,807,734 1,402,571,937 166,449,969 685,489,702 377,848,016 647,774,516 1.442 1,421,562,291 972,442,181 449,120,110 -3,800,662,334

2021 280,434 717 0 1,314,619,873 207,048,849 302,888,780 1,824,557,502 9,607,671,403 0 685,463,770 117,174,100 0 188,203,326 990,841,196 166,449,969 855,469,664 1,233,317,680 833,716,307 1.552 1,175,665,914 638,455,197 537,210,717 -3,263,451,617

2022 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 9,607,671,403 0 717,137,556 117,174,100 0 219,412,331 1,053,723,986 166,449,969 997,328,775 2,230,646,456 944,366,414 1.670 1,196,545,544 631,016,865 565,528,679 -2,697,922,938

2023 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 9,607,671,403 0 717,137,556 117,174,100 0 219,412,331 1,053,723,986 166,449,969 997,328,775 3,227,975,231 944,366,414 1.797 1,112,031,175 586,446,901 525,584,274 -2,172,338,664

2024 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 9,607,671,403 0 717,137,556 117,174,100 0 219,412,331 1,053,723,986 166,449,969 997,328,775 4,225,304,007 944,366,414 1.933 1,033,486,222 545,025,001 488,461,221 -1,683,877,442

2025 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 9,607,671,403 0 717,137,556 117,174,100 0 219,412,331 1,053,723,986 166,449,969 997,328,775 5,222,632,782 944,366,414 2.080 960,489,054 506,528,811 453,960,243 -1,229,917,199

2026 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 9,287,415,690 0 717,137,556 113,268,296 320,255,713 220,271,607 1,370,933,173 166,449,969 1,001,234,579 6,223,867,361 627,157,227 2.238 892,647,820 612,465,036 280,182,784 -949,734,415

2027 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 8,967,159,976 0 717,137,556 109,362,493 320,255,713 221,130,884 1,367,886,647 166,449,969 1,005,140,382 7,229,007,743 630,203,753 2.409 829,598,345 567,940,519 261,657,826 -688,076,589

2028 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 8,646,904,263 0 717,137,556 105,456,690 320,255,713 221,990,161 1,364,840,120 166,449,969 1,009,046,185 8,238,053,928 633,250,280 2.592 771,002,180 526,650,199 244,351,980 -443,724,608

2029 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 8,326,648,549 0 1,011,458,745 717,137,556 101,550,886 320,255,713 222,849,438 2,373,252,339 166,449,969 1,012,951,989 9,251,005,917 -375,161,939 2.789 716,544,777 851,083,398 -134,538,621 -578,263,230

2030 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 8,006,392,836 0 717,137,556 97,645,083 320,255,713 223,708,714 1,358,747,067 166,449,969 1,016,857,792 10,267,863,709 639,343,333 3.000 665,933,807 452,850,185 213,083,622 -365,179,607

2031 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 7,686,137,122 0 717,137,556 93,739,280 320,255,713 224,567,991 1,355,700,540 166,449,969 1,020,763,595 11,288,627,305 642,389,860 3.228 618,897,591 419,920,839 198,976,751 -166,202,856

2032 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 7,365,881,409 0 717,137,556 89,833,476 320,255,713 225,427,268 1,352,654,014 166,449,969 1,024,669,399 12,313,296,703 645,436,386 3.474 575,183,634 389,384,010 185,799,625 19,596,769

2033 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 7,045,625,696 0 717,137,556 85,927,673 320,255,713 231,091,666 1,354,412,609 144,608,508 1,050,416,663 13,363,713,367 643,677,791 3.738 534,557,281 362,351,534 172,205,747 191,802,516

2034 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 6,725,369,982 0 717,137,556 82,021,870 320,255,713 238,662,235 1,358,077,374 114,102,635 1,084,828,339 14,448,541,705 640,013,026 4.022 496,800,447 337,669,130 159,131,317 350,933,833

2035 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 6,405,114,269 0 717,137,556 78,116,066 320,255,713 239,521,511 1,355,030,847 114,102,635 1,088,734,142 15,537,275,848 643,059,553 4.328 461,710,453 313,114,915 148,595,538 499,529,371

2036 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 6,084,858,555 0 717,137,556 74,210,263 320,255,713 240,380,788 1,351,984,321 114,102,635 1,092,639,945 16,629,915,793 646,106,079 4.656 429,098,934 290,344,736 138,754,197 638,283,568

2037 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 5,764,602,842 0 717,137,556 70,304,460 320,255,713 241,240,065 1,348,937,794 114,102,635 1,096,545,749 17,726,461,542 649,152,606 5.010 398,790,831 269,229,072 129,561,759 767,845,327

2038 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 5,444,347,128 0 717,137,556 66,398,656 320,255,713 242,099,341 1,345,891,267 114,102,635 1,100,451,552 18,826,913,094 652,199,133 5.391 370,623,448 249,647,795 120,975,653 888,820,980

2039 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 5,124,091,415 0 4,511,963,745 717,137,556 62,492,853 320,255,713 242,958,618 5,854,808,486 114,102,635 1,104,357,355 19,931,270,449 -3,856,718,086 5.801 344,445,584 1,009,295,139 -664,849,555 223,971,425

2040 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 4,803,835,702 0 717,137,556 58,587,050 320,255,713 243,817,895 1,339,798,214 114,102,635 1,108,263,159 21,039,533,608 658,292,186 6.242 320,116,714 214,650,849 105,465,864 329,437,289

2041 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 4,483,579,988 0 717,137,556 54,681,247 320,255,713 244,677,172 1,336,751,688 114,102,635 1,112,168,962 22,151,702,570 661,338,712 6.716 297,506,240 199,036,024 98,470,216 427,907,506

2042 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 4,163,324,275 0 717,137,556 50,775,443 320,255,713 245,536,448 1,333,705,161 114,102,635 1,116,074,765 23,267,777,335 664,385,239 7.227 276,492,788 184,556,143 91,936,645 519,844,150

2043 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 3,843,068,561 0 717,137,556 46,869,640 320,255,713 246,395,725 1,330,658,634 114,102,635 1,119,980,569 24,387,757,904 667,431,766 7.776 256,963,557 171,128,782 85,834,775 605,678,925

2044 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 3,522,812,848 0 717,137,556 42,963,837 320,255,713 247,255,002 1,327,612,108 114,102,635 1,123,886,372 25,511,644,276 670,478,292 8.367 238,813,715 158,677,495 80,136,220 685,815,145

2045 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 3,202,557,134 0 717,137,556 39,058,033 320,255,713 248,114,279 1,324,565,581 114,102,635 1,127,792,175 26,639,436,451 673,524,819 9.003 221,945,832 147,131,386 74,814,446 760,629,591

2046 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 2,882,301,421 0 717,137,556 35,152,230 320,255,713 248,973,555 1,321,519,055 114,102,635 1,131,697,979 27,771,134,430 676,571,345 9.687 206,269,360 136,424,703 69,844,657 830,474,248

2047 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 2,562,045,707 0 717,137,556 31,246,427 320,255,713 252,627,796 1,321,267,492 101,398,253 1,148,308,165 28,919,442,594 676,822,908 10.423 191,700,149 126,764,622 64,935,527 895,409,775

2048 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 2,241,789,994 0 717,137,556 27,340,623 320,255,713 258,408,387 1,323,142,279 79,028,646 1,174,583,575 30,094,026,170 674,948,121 11.215 178,159,990 117,978,153 60,181,837 955,591,612

2049 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 1,921,534,281 0 1,011,458,745 717,137,556 23,434,820 320,255,713 261,419,834 2,333,706,668 69,246,053 1,188,271,971 31,282,298,140 -335,616,268 12.067 165,576,199 193,387,786 -27,811,587 927,780,024

2050 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 1,601,278,567 0 717,137,556 19,529,017 320,255,713 262,279,110 1,319,201,396 69,246,053 1,192,177,774 32,474,475,914 678,889,004 12.985 153,881,226 101,597,169 52,284,057 980,064,081

2051 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 1,281,022,854 0 717,137,556 15,623,213 320,255,713 263,138,387 1,316,154,870 69,246,053 1,196,083,577 33,670,559,491 681,935,530 13.971 143,012,291 94,203,107 48,809,184 1,028,873,265

2052 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 960,767,140 0 717,137,556 11,717,410 320,255,713 263,997,664 1,313,108,343 69,246,053 1,199,989,381 34,870,548,872 684,982,057 15.033 132,911,052 87,346,704 45,564,348 1,074,437,613

2053 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 640,511,427 0 717,137,556 7,811,607 320,255,713 264,856,940 1,310,061,817 69,246,053 1,203,895,184 36,074,444,056 688,028,583 16.176 123,523,282 80,988,896 42,534,386 1,116,971,999

2054 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 320,255,713 0 717,137,556 3,905,803 320,255,713 265,716,217 1,307,015,290 69,246,053 1,207,800,987 37,282,245,043 691,075,110 17.405 114,798,589 75,093,455 39,705,134 1,156,677,134

2055 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 717,137,556 0 320,255,713 266,575,494 1,303,968,763 69,246,053 1,211,706,791 38,493,951,834 694,121,637 18.728 106,690,139 69,626,784 37,063,355 1,193,740,489

2056 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 717,137,556 0 0 266,575,494 983,713,050 69,246,053 1,211,706,791 39,705,658,624 1,014,377,350 20.151 99,154,404 48,816,350 50,338,054 1,244,078,542

2057 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 717,137,556 0 0 270,051,459 987,189,015 53,446,211 1,227,506,633 40,933,165,257 1,010,901,385 21.683 92,150,933 45,528,665 46,622,268 1,290,700,810

2058 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 717,137,556 0 0 278,845,343 995,982,899 13,474,012 1,267,478,832 42,200,644,089 1,002,107,501 23.331 85,642,131 42,689,809 42,952,322 1,333,653,132

2059 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 4,511,963,745 717,137,556 0 0 281,809,626 5,510,910,927 0 1,280,952,844 43,481,596,933 -3,512,820,527 25.104 79,593,059 219,524,731 -139,931,672 1,193,721,460

2060 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 717,137,556 0 0 281,809,626 998,947,182 0 1,280,952,844 44,762,549,777 999,143,218 27.012 73,971,244 36,981,993 36,989,251 1,230,710,711

2061 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 717,137,556 0 0 281,809,626 998,947,182 0 1,280,952,844 46,043,502,620 999,143,218 29.065 68,746,509 34,369,882 34,376,627 1,265,087,338

2062 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 717,137,556 0 0 281,809,626 998,947,182 0 1,280,952,844 47,324,455,464 999,143,218 31.274 63,890,808 31,942,270 31,948,538 1,297,035,876

2063 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 717,137,556 0 0 281,809,626 998,947,182 0 1,280,952,844 48,605,408,308 999,143,218 33.650 59,378,074 29,686,124 29,691,950 1,326,727,826

2064 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 717,137,556 0 0 281,809,626 998,947,182 0 1,280,952,844 49,886,361,152 999,143,218 36.208 55,184,084 27,589,335 27,594,749 1,354,322,575

2065 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 717,137,556 0 0 281,809,626 998,947,182 0 1,280,952,844 51,167,313,996 999,143,218 38.960 51,286,323 25,640,646 25,645,678 1,379,968,253

total 14,226,429 34,190 9,607,671,403 66,690,723,263 10,081,372,829 14,443,190,244 100,822,957,740 10,749,459,454 15,558,808,726 32,862,327,801 2,284,894,943 9,607,671,403 11,324,490,250 82,387,652,577 4,900,749,596 51,195,818,221 18,435,305,163 26,141,327,865 24,761,359,612 1,379,968,253

1.40%

loan interest rate(Consulting service))

0.01%

expenditure

loan interest rate(Construction)

net incomecontainer

TEUaccumulated

profit before taxprofit before tax

disountrateyear container

Ship Call

incomeaccumulated loan depreciation

Internal Rate of Return(FIRR)11.01%

Present Value

121

Table 2-69 Sensitivity Analysis (10% Cost Increase Case) [Steel Pipe Pile Structure]

Sensitivity analysis (Case-1: Investment costs+10%) [Steel pipe pile str grace yearrepayment

yearcorporate tax

rateB/C

in JPY 10 30 22% 1.02






2015 0 0 203,684,315 203,684,315 203,684,315 257,211,696 0 0 0 0 0 257,211,696 0 0 -53,527,381 1.000 203,684,315 257,211,696 -53,527,381 -53,527,381

2016 0 0 232,370,356 232,370,356 436,054,671 269,319,363 0 0 0 0 0 269,319,363 0 0 -36,949,007 1.076 215,957,580 250,296,805 -34,339,226 -87,866,607

2017 0 0 2,780,911,174 2,780,911,174 3,216,965,844 3,106,766,010 0 0 0 0 0 3,106,766,010 28,504,225 -28,504,225 -325,854,836 1.158 2,401,942,322 2,683,391,269 -281,448,947 -369,315,554

2018 0 0 3,044,227,384 3,044,227,384 6,261,193,229 3,400,950,549 0 0 0 0 0 3,400,950,549 112,687,492 -112,687,492 -141,191,717 -356,723,165 1.246 2,443,657,155 2,730,005,382 -286,348,227 -655,663,781

2019 0 0 3,674,090,574 3,674,090,574 9,935,283,803 4,098,309,878 4,963,160,120 0 0 0 0 9,061,469,998 166,449,969 -166,449,969 -307,641,686 -5,387,379,424 1.340 2,740,947,853 6,760,044,760 -4,019,096,907 -4,674,760,688

2020 217,995 649 633,154,741 1,021,918,024 178,670,283 274,162,927 2,107,905,975 10,568,438,543 691,847,903 0 622,811,563 0 0 150,807,734 1,465,467,201 166,449,969 685,489,702 377,848,016 642,438,774 1.442 1,461,469,910 1,016,049,219 445,420,691 -4,229,339,997

2021 280,434 717 0 1,314,619,873 207,048,849 302,888,780 1,824,557,502 10,568,438,543 0 0 685,463,770 128,891,510 0 185,625,496 999,980,775 166,449,969 843,752,254 1,221,600,270 824,576,727 1.552 1,175,665,914 644,344,347 531,321,567 -3,698,018,430

2022 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 10,568,438,543 0 0 717,137,556 128,891,510 0 216,834,500 1,062,863,566 166,449,969 985,611,366 2,207,211,636 935,226,834 1.670 1,196,545,544 636,490,053 560,055,491 -3,137,962,938

2023 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 10,568,438,543 0 0 717,137,556 128,891,510 0 216,834,500 1,062,863,566 166,449,969 985,611,366 3,192,823,001 935,226,834 1.797 1,112,031,175 591,533,506 520,497,669 -2,617,465,269

2024 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 10,568,438,543 0 0 717,137,556 128,891,510 0 216,834,500 1,062,863,566 166,449,969 985,611,366 4,178,434,367 935,226,834 1.933 1,033,486,222 549,752,329 483,733,893 -2,133,731,377

2025 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 10,568,438,543 0 0 717,137,556 128,891,510 0 216,834,500 1,062,863,566 166,449,969 985,611,366 5,164,045,732 935,226,834 2.080 960,489,054 510,922,239 449,566,815 -1,684,164,562

2026 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 10,216,157,259 0 0 717,137,556 124,595,126 352,281,285 217,779,705 1,411,793,672 166,449,969 989,907,749 6,153,953,481 586,296,728 2.238 892,647,820 630,719,482 261,928,337 -1,422,236,224

2027 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 9,863,875,974 0 0 717,137,556 120,298,742 352,281,285 218,724,909 1,408,442,492 166,449,969 994,204,133 7,148,157,614 589,647,908 2.409 829,598,345 584,779,128 244,819,218 -1,177,417,007

2028 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 9,511,594,689 0 0 717,137,556 116,002,359 352,281,285 219,670,114 1,405,091,313 166,449,969 998,500,516 8,146,658,131 592,999,087 2.592 771,002,180 542,181,908 228,820,272 -948,596,735

2029 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 9,159,313,404 0 1,112,604,620 717,137,556 111,705,975 352,281,285 220,615,318 2,514,344,754 166,449,969 1,002,796,900 9,149,455,031 -516,254,354 2.789 716,544,777 901,681,225 -185,136,449 -1,133,733,183

2030 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 8,807,032,120 0 0 717,137,556 107,409,591 352,281,285 221,560,522 1,398,388,955 166,449,969 1,007,093,284 10,156,548,315 599,701,445 3.000 665,933,807 466,062,237 199,871,571 -933,861,613

2031 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 8,454,750,835 0 0 717,137,556 103,113,208 352,281,285 222,505,727 1,395,037,775 166,449,969 1,011,389,667 11,167,937,982 603,052,625 3.228 618,897,591 432,105,333 186,792,257 -747,069,355

2032 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 8,102,469,550 0 0 717,137,556 98,816,824 352,281,285 223,450,931 1,391,686,596 166,449,969 1,015,686,051 12,183,624,033 606,403,804 3.474 575,183,634 400,620,189 174,563,445 -572,505,910

2033 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 7,750,188,265 0 0 717,137,556 94,520,440 352,281,285 229,201,257 1,393,140,538 144,608,508 1,041,823,896 13,225,447,929 604,949,862 3.738 534,557,281 372,712,575 161,844,706 -410,661,204

2034 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 7,397,906,980 0 0 717,137,556 90,224,057 352,281,285 236,857,753 1,396,500,651 114,102,635 1,076,626,152 14,302,074,081 601,589,749 4.022 496,800,447 347,222,602 149,577,845 -261,083,359

2035 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 7,045,625,696 0 0 717,137,556 85,927,673 352,281,285 237,802,958 1,393,149,472 114,102,635 1,080,922,535 15,382,996,616 604,940,928 4.328 461,710,453 321,923,209 139,787,244 -121,296,115

2036 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 6,693,344,411 0 0 717,137,556 81,631,289 352,281,285 238,748,162 1,389,798,292 114,102,635 1,085,218,919 16,468,215,535 608,292,108 4.656 429,098,934 298,465,457 130,633,476 9,337,361

2037 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 6,341,063,126 0 0 717,137,556 77,334,906 352,281,285 239,693,367 1,386,447,113 114,102,635 1,089,515,303 17,557,730,838 611,643,287 5.010 398,790,831 276,715,406 122,075,425 131,412,786

2038 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 5,988,781,841 0 0 717,137,556 73,038,522 352,281,285 240,638,571 1,383,095,934 114,102,635 1,093,811,686 18,651,542,525 614,994,466 5.391 370,623,448 256,548,845 114,074,603 245,487,389

2039 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 5,636,500,556 0 4,963,160,120 717,137,556 68,742,138 352,281,285 241,583,775 6,342,904,874 114,102,635 1,098,108,070 19,749,650,595 -4,344,814,474 5.801 344,445,584 1,093,436,800 -748,991,216 -503,503,828

2040 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 5,284,219,272 0 0 717,137,556 64,445,755 352,281,285 242,528,980 1,376,393,575 114,102,635 1,102,404,454 20,852,055,048 621,696,825 6.242 320,116,714 220,513,841 99,602,873 -403,900,954

2041 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 4,931,937,987 0 0 717,137,556 60,149,371 352,281,285 243,474,184 1,373,042,396 114,102,635 1,106,700,837 21,958,755,886 625,048,004 6.716 297,506,240 204,439,539 93,066,701 -310,834,254

2042 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 4,579,656,702 0 0 717,137,556 55,852,987 352,281,285 244,419,389 1,369,691,217 114,102,635 1,110,997,221 23,069,753,107 628,399,183 7.227 276,492,788 189,535,840 86,956,947 -223,877,306

2043 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 4,227,375,417 0 0 717,137,556 51,556,604 352,281,285 245,364,593 1,366,340,038 114,102,635 1,115,293,605 24,185,046,711 631,750,362 7.776 256,963,557 175,717,573 81,245,984 -142,631,322

2044 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 3,875,094,133 0 0 717,137,556 47,260,220 352,281,285 246,309,797 1,362,988,858 114,102,635 1,119,589,988 25,304,636,700 635,101,542 8.367 238,813,715 162,905,759 75,907,956 -66,723,366

2045 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 3,522,812,848 0 0 717,137,556 42,963,837 352,281,285 247,255,002 1,359,637,679 114,102,635 1,123,886,372 26,428,523,072 638,452,721 9.003 221,945,832 151,027,159 70,918,673 4,195,307

2046 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 3,170,531,563 0 0 717,137,556 38,667,453 352,281,285 248,200,206 1,356,286,500 114,102,635 1,128,182,756 27,556,705,827 641,803,900 9.687 206,269,360 140,013,860 66,255,501 70,450,808

2047 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 2,818,250,278 0 0 717,137,556 34,371,069 352,281,285 251,940,375 1,355,730,285 101,398,253 1,145,183,522 28,701,889,349 642,360,115 10.423 191,700,149 130,071,041 61,629,108 132,079,916

2048 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 2,465,968,993 0 0 717,137,556 30,074,686 352,281,285 257,806,893 1,357,300,419 79,028,646 1,171,849,513 29,873,738,862 640,789,981 11.215 178,159,990 121,023,868 57,136,122 189,216,038

2049 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 2,113,687,709 0 1,112,604,620 717,137,556 25,778,302 352,281,285 260,904,267 2,468,706,030 69,246,053 1,185,928,489 31,059,667,351 -470,615,630 12.067 165,576,199 204,574,808 -38,998,609 150,217,428

2050 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 1,761,406,424 0 0 717,137,556 21,481,918 352,281,285 261,849,472 1,352,750,231 69,246,053 1,190,224,872 32,249,892,223 645,340,169 12.985 153,881,226 104,180,904 49,700,322 199,917,750

2051 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 1,409,125,139 0 0 717,137,556 17,185,535 352,281,285 262,794,676 1,349,399,052 69,246,053 1,194,521,256 33,444,413,479 648,691,348 13.971 143,012,291 96,582,542 46,429,749 246,347,500

2052 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 1,056,843,854 0 0 717,137,556 12,889,151 352,281,285 263,739,881 1,346,047,873 69,246,053 1,198,817,640 34,643,231,119 652,042,527 15.033 132,911,052 89,537,810 43,373,242 289,720,741

2053 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 704,562,570 0 0 717,137,556 8,592,767 352,281,285 264,685,085 1,342,696,693 69,246,053 1,203,114,023 35,846,345,142 655,393,707 16.176 123,523,282 83,006,406 40,516,876 330,237,618

2054 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 352,281,285 0 0 717,137,556 4,296,384 352,281,285 265,630,290 1,339,345,514 69,246,053 1,207,410,407 37,053,755,549 658,744,886 17.405 114,798,589 76,950,961 37,847,629 368,085,246

2055 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 0 717,137,556 -0 352,281,285 266,575,494 1,335,994,335 69,246,053 1,211,706,791 38,265,462,339 662,096,065 18.728 106,690,139 71,336,823 35,353,316 403,438,562

2056 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 0 717,137,556 -0 0 266,575,494 983,713,050 69,246,053 1,211,706,791 39,477,169,130 1,014,377,350 20.151 99,154,404 48,816,350 50,338,054 453,776,616

2057 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 0 717,137,556 -0 0 270,051,459 987,189,015 53,446,211 1,227,506,633 40,704,675,762 1,010,901,385 21.683 92,150,933 45,528,665 46,622,268 500,398,884

2058 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 0 717,137,556 -0 0 278,845,343 995,982,899 13,474,012 1,267,478,832 41,972,154,594 1,002,107,501 23.331 85,642,131 42,689,809 42,952,322 543,351,206

2059 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 4,963,160,120 717,137,556 -0 0 281,809,626 5,962,107,301 0 1,280,952,844 43,253,107,438 -3,964,016,901 25.104 79,593,059 237,497,941 -157,904,883 385,446,323

2060 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 44,534,060,282 999,143,218 27.012 73,971,244 36,981,993 36,989,251 422,435,574

2061 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 45,815,013,126 999,143,218 29.065 68,746,509 34,369,882 34,376,627 456,812,201

2062 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 47,095,965,970 999,143,218 31.274 63,890,808 31,942,270 31,948,538 488,760,739

2063 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 48,376,918,814 999,143,218 33.650 59,378,074 29,686,124 29,691,950 518,452,689

2064 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 49,657,871,658 999,143,218 36.208 55,184,084 27,589,335 27,594,749 546,047,438

2065 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 50,938,824,502 999,143,218 38.960 51,286,323 25,640,646 25,645,678 571,693,116

total 14,226,429 34,190 10,568,438,543 66,690,723,263 10,081,372,829 14,443,190,244 101,783,724,880 11,824,405,399 17,114,689,598 32,862,327,801 2,513,384,437 10,568,438,543 11,274,222,561 86,157,468,341 4,900,749,596 50,967,328,727 15,626,256,539 26,909,070,868 26,337,377,752 571,693,116



1.40% 0.01%

year containerTEU

containerShip Call

incomeaccumulated loan depreciation profit before tax

accumulatedprofit before tax

net incomeexpenditure

disountrate


Present Value

122

Table 2-70 Sensitivity Analysis (10% Container Volume Growth Rate Decrease Case) [Steel Pipe Pile Structure]

Sensitivity analysis (Case-2: Container Volume Growth Rate-10%) [St grace yearrepayment

yearcorporate tax

rateB/C

in JPY 10 30 22% 1.04






2015 0 0 185,167,559 185,167,559 185,167,559 233,828,815 0 0 0 0 0 233,828,815 0 0 -48,661,256 1.000 185,167,559 233,828,815 -48,661,256 -48,661,256

2016 0 0 211,245,778 211,245,778 396,413,337 244,835,784 0 0 0 0 0 244,835,784 0 0 -33,590,006 1.076 196,325,072 227,542,550 -31,217,478 -79,878,734

2017 0 0 2,528,101,067 2,528,101,067 2,924,514,404 2,824,332,736 0 0 0 0 0 2,824,332,736 28,504,225 -28,504,225 -296,231,669 1.158 2,183,583,929 2,439,446,608 -255,862,679 -335,741,413

2018 0 0 2,767,479,440 2,767,479,440 5,691,993,844 3,091,773,227 0 0 0 0 0 3,091,773,227 112,687,492 -112,687,492 -141,191,717 -324,293,786 1.246 2,221,506,504 2,481,823,075 -260,316,570 -596,057,983

2019 0 0 3,340,082,340 3,340,082,340 9,032,076,184 3,725,736,253 4,511,963,745 0 0 0 0 8,237,699,998 166,449,969 -166,449,969 -307,641,686 -4,897,617,658 1.340 2,491,770,775 6,145,495,236 -3,653,724,461 -4,249,782,444

2020 193,446 616 575,595,219 906,835,788 166,301,258 260,222,439 1,908,954,704 9,607,671,403 628,952,639 0 598,178,456 0 0 125,120,833 1,352,251,929 166,449,969 568,731,060 261,089,374 556,702,775 1.442 1,323,531,454 937,553,918 385,977,536 -3,863,804,908

2021 218,690 650 0 1,025,176,988 179,033,220 274,585,366 1,478,795,574 9,607,671,403 0 0 623,509,138 117,174,100 0 125,765,721 866,448,958 166,449,969 571,662,368 832,751,742 612,346,615 1.552 952,871,887 558,302,221 394,569,666 -3,469,235,242

2022 247,229 683 0 1,158,962,734 192,375,372 288,525,854 1,639,863,959 9,607,671,403 0 0 652,145,691 117,174,100 0 154,900,724 924,220,515 166,449,969 704,094,200 1,536,845,941 715,643,445 1.670 982,023,593 553,464,417 428,559,176 -3,040,676,066

2023 279,493 716 0 1,310,207,539 206,625,903 302,466,341 1,819,299,784 9,607,671,403 0 0 684,519,319 117,174,100 0 187,254,407 988,947,826 166,449,969 851,156,397 2,388,002,338 830,351,958 1.797 1,012,525,798 550,395,925 462,129,873 -2,578,546,193

2024 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 9,607,671,403 0 0 717,137,556 117,174,100 0 219,412,331 1,053,723,986 166,449,969 997,328,775 3,385,331,113 944,366,414 1.933 1,033,486,222 545,025,001 488,461,221 -2,090,084,972

2025 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 9,607,671,403 0 0 717,137,556 117,174,100 0 219,412,331 1,053,723,986 166,449,969 997,328,775 4,382,659,889 944,366,414 2.080 960,489,054 506,528,811 453,960,243 -1,636,124,729

2026 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 9,287,415,690 0 0 717,137,556 113,268,296 320,255,713 220,271,607 1,370,933,173 166,449,969 1,001,234,579 5,383,894,468 627,157,227 2.238 892,647,820 612,465,036 280,182,784 -1,355,941,945

2027 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 8,967,159,976 0 0 717,137,556 109,362,493 320,255,713 221,130,884 1,367,886,647 166,449,969 1,005,140,382 6,389,034,850 630,203,753 2.409 829,598,345 567,940,519 261,657,826 -1,094,284,118

2028 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 8,646,904,263 0 0 717,137,556 105,456,690 320,255,713 221,990,161 1,364,840,120 166,449,969 1,009,046,185 7,398,081,035 633,250,280 2.592 771,002,180 526,650,199 244,351,980 -849,932,138

2029 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 8,326,648,549 0 1,011,458,745 717,137,556 101,550,886 320,255,713 222,849,438 2,373,252,339 166,449,969 1,012,951,989 8,411,033,024 -375,161,939 2.789 716,544,777 851,083,398 -134,538,621 -984,470,759

2030 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 8,006,392,836 0 0 717,137,556 97,645,083 320,255,713 223,708,714 1,358,747,067 166,449,969 1,016,857,792 9,427,890,816 639,343,333 3.000 665,933,807 452,850,185 213,083,622 -771,387,137

2031 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 7,686,137,122 0 0 717,137,556 93,739,280 320,255,713 224,567,991 1,355,700,540 166,449,969 1,020,763,595 10,448,654,411 642,389,860 3.228 618,897,591 419,920,839 198,976,751 -572,410,385

2032 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 7,365,881,409 0 0 717,137,556 89,833,476 320,255,713 225,427,268 1,352,654,014 166,449,969 1,024,669,399 11,473,323,810 645,436,386 3.474 575,183,634 389,384,010 185,799,625 -386,610,761

2033 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 7,045,625,696 0 0 717,137,556 85,927,673 320,255,713 231,091,666 1,354,412,609 144,608,508 1,050,416,663 12,523,740,473 643,677,791 3.738 534,557,281 362,351,534 172,205,747 -214,405,014

2034 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 6,725,369,982 0 0 717,137,556 82,021,870 320,255,713 238,662,235 1,358,077,374 114,102,635 1,084,828,339 13,608,568,812 640,013,026 4.022 496,800,447 337,669,130 159,131,317 -55,273,696

2035 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 6,405,114,269 0 0 717,137,556 78,116,066 320,255,713 239,521,511 1,355,030,847 114,102,635 1,088,734,142 14,697,302,954 643,059,553 4.328 461,710,453 313,114,915 148,595,538 93,321,841

2036 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 6,084,858,555 0 0 717,137,556 74,210,263 320,255,713 240,380,788 1,351,984,321 114,102,635 1,092,639,945 15,789,942,900 646,106,079 4.656 429,098,934 290,344,736 138,754,197 232,076,039

2037 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 5,764,602,842 0 0 717,137,556 70,304,460 320,255,713 241,240,065 1,348,937,794 114,102,635 1,096,545,749 16,886,488,648 649,152,606 5.010 398,790,831 269,229,072 129,561,759 361,637,798

2038 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 5,444,347,128 0 0 717,137,556 66,398,656 320,255,713 242,099,341 1,345,891,267 114,102,635 1,100,451,552 17,986,940,201 652,199,133 5.391 370,623,448 249,647,795 120,975,653 482,613,451

2039 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 5,124,091,415 0 4,511,963,745 717,137,556 62,492,853 320,255,713 242,958,618 5,854,808,486 114,102,635 1,104,357,355 19,091,297,556 -3,856,718,086 5.801 344,445,584 1,009,295,139 -664,849,555 -182,236,104

2040 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 4,803,835,702 0 0 717,137,556 58,587,050 320,255,713 243,817,895 1,339,798,214 114,102,635 1,108,263,159 20,199,560,715 658,292,186 6.242 320,116,714 214,650,849 105,465,864 -76,770,240

2041 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 4,483,579,988 0 0 717,137,556 54,681,247 320,255,713 244,677,172 1,336,751,688 114,102,635 1,112,168,962 21,311,729,677 661,338,712 6.716 297,506,240 199,036,024 98,470,216 21,699,976

2042 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 4,163,324,275 0 0 717,137,556 50,775,443 320,255,713 245,536,448 1,333,705,161 114,102,635 1,116,074,765 22,427,804,442 664,385,239 7.227 276,492,788 184,556,143 91,936,645 113,636,621

2043 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 3,843,068,561 0 0 717,137,556 46,869,640 320,255,713 246,395,725 1,330,658,634 114,102,635 1,119,980,569 23,547,785,011 667,431,766 7.776 256,963,557 171,128,782 85,834,775 199,471,396

2044 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 3,522,812,848 0 0 717,137,556 42,963,837 320,255,713 247,255,002 1,327,612,108 114,102,635 1,123,886,372 24,671,671,383 670,478,292 8.367 238,813,715 158,677,495 80,136,220 279,607,616

2045 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 3,202,557,134 0 0 717,137,556 39,058,033 320,255,713 248,114,279 1,324,565,581 114,102,635 1,127,792,175 25,799,463,558 673,524,819 9.003 221,945,832 147,131,386 74,814,446 354,422,062

2046 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 2,882,301,421 0 0 717,137,556 35,152,230 320,255,713 248,973,555 1,321,519,055 114,102,635 1,131,697,979 26,931,161,537 676,571,345 9.687 206,269,360 136,424,703 69,844,657 424,266,719

2047 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 2,562,045,707 0 0 717,137,556 31,246,427 320,255,713 252,627,796 1,321,267,492 101,398,253 1,148,308,165 28,079,469,701 676,822,908 10.423 191,700,149 126,764,622 64,935,527 489,202,246

2048 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 2,241,789,994 0 0 717,137,556 27,340,623 320,255,713 258,408,387 1,323,142,279 79,028,646 1,174,583,575 29,254,053,276 674,948,121 11.215 178,159,990 117,978,153 60,181,837 549,384,082

2049 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 1,921,534,281 0 1,011,458,745 717,137,556 23,434,820 320,255,713 261,419,834 2,333,706,668 69,246,053 1,188,271,971 30,442,325,247 -335,616,268 12.067 165,576,199 193,387,786 -27,811,587 521,572,495

2050 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 1,601,278,567 0 0 717,137,556 19,529,017 320,255,713 262,279,110 1,319,201,396 69,246,053 1,192,177,774 31,634,503,021 678,889,004 12.985 153,881,226 101,597,169 52,284,057 573,856,552

2051 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 1,281,022,854 0 0 717,137,556 15,623,213 320,255,713 263,138,387 1,316,154,870 69,246,053 1,196,083,577 32,830,586,598 681,935,530 13.971 143,012,291 94,203,107 48,809,184 622,665,736

2052 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 960,767,140 0 0 717,137,556 11,717,410 320,255,713 263,997,664 1,313,108,343 69,246,053 1,199,989,381 34,030,575,979 684,982,057 15.033 132,911,052 87,346,704 45,564,348 668,230,084

2053 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 640,511,427 0 0 717,137,556 7,811,607 320,255,713 264,856,940 1,310,061,817 69,246,053 1,203,895,184 35,234,471,163 688,028,583 16.176 123,523,282 80,988,896 42,534,386 710,764,470

2054 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 320,255,713 0 0 717,137,556 3,905,803 320,255,713 265,716,217 1,307,015,290 69,246,053 1,207,800,987 36,442,272,150 691,075,110 17.405 114,798,589 75,093,455 39,705,134 750,469,604

2055 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 0 717,137,556 0 320,255,713 266,575,494 1,303,968,763 69,246,053 1,211,706,791 37,653,978,940 694,121,637 18.728 106,690,139 69,626,784 37,063,355 787,532,959

2056 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 0 717,137,556 0 0 266,575,494 983,713,050 69,246,053 1,211,706,791 38,865,685,731 1,014,377,350 20.151 99,154,404 48,816,350 50,338,054 837,871,013

2057 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 0 717,137,556 0 0 270,051,459 987,189,015 53,446,211 1,227,506,633 40,093,192,364 1,010,901,385 21.683 92,150,933 45,528,665 46,622,268 884,493,281

2058 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 0 717,137,556 0 0 278,845,343 995,982,899 13,474,012 1,267,478,832 41,360,671,196 1,002,107,501 23.331 85,642,131 42,689,809 42,952,322 927,445,603

2059 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 4,511,963,745 717,137,556 0 0 281,809,626 5,510,910,927 0 1,280,952,844 42,641,624,039 -3,512,820,527 25.104 79,593,059 219,524,731 -139,931,672 787,513,931

2060 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 0 717,137,556 0 0 281,809,626 998,947,182 0 1,280,952,844 43,922,576,883 999,143,218 27.012 73,971,244 36,981,993 36,989,251 824,503,181

2061 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 0 717,137,556 0 0 281,809,626 998,947,182 0 1,280,952,844 45,203,529,727 999,143,218 29.065 68,746,509 34,369,882 34,376,627 858,879,809

2062 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 0 717,137,556 0 0 281,809,626 998,947,182 0 1,280,952,844 46,484,482,571 999,143,218 31.274 63,890,808 31,942,270 31,948,538 890,828,347

2063 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 0 717,137,556 0 0 281,809,626 998,947,182 0 1,280,952,844 47,765,435,415 999,143,218 33.650 59,378,074 29,686,124 29,691,950 920,520,297

2064 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 0 717,137,556 0 0 281,809,626 998,947,182 0 1,280,952,844 49,046,388,259 999,143,218 36.208 55,184,084 27,589,335 27,594,749 948,115,046

2065 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 0 0 0 717,137,556 0 0 281,809,626 998,947,182 0 1,280,952,844 50,327,341,103 999,143,218 38.960 51,286,323 25,640,646 25,645,678 973,760,724

total 14,042,858 33,997 9,607,671,403 65,830,178,171 9,999,277,919 14,361,659,512 99,798,787,005 10,749,459,454 15,558,808,726 32,678,129,960 2,284,894,943 9,607,671,403 11,139,696,214 82,018,660,699 4,900,749,596 50,355,845,328 17,780,126,306 25,506,475,672 24,532,714,949 973,760,724

1.40% 0.01%



disountrate

Present Value

Internal Rate of Return(FIRR)

depreciation profit before taxaccumulated

profit before taxnet income

expenditureyear container

TEUcontainerShip Call

incomeaccumulated loan

9.84%

123

Case of Concrete Bored Pipe Pile Structure (b)

Precondition a）

・Evaluation period: 50 years ・Operation start year: 2020 ・Social discount rate 7.6% ( assumed to be current rate of Vietnam State 10 years bond)

Result of Financial Analysis b）

The result of financial analysis is shown with efficiency index in Table 2-71. The result of the sensitivity analysis is shown in Table 2-72. The calculation process of these index is shown in Table 2-73~Table 2-75.

Since FIRR is calculated as 10.62% exceeding the 7.6% that is assumed as social discount rate at 10 years government bond, the project can be judged to be financially feasible. NPV calculated as JPY1,204 million and cost-benefit ratio as 1.05 also show the feasibility of the project.


Table 2-71 Result of Financial Analysis

No. Efficiency index Unit Result 1 Evaluation period Years 50 2 Total Investment JPY(million) 11,471 3 Loans (Construction) % 0.4% 4 Loans (Consultant Service) % 0.01% 5 Total Net Present Value (NPV) JPY(million) 1,204

6 Internal Rate of Return (FIRR) % 10.62%

7 Cost/ Benefit ratio (B/C) Times 1.05

8 Payback Period year 18





FIRR 10.62% 8.50% 9.57%

NPV (JPY(million)) 1,204 377 846

B/C 1.05 1.01 1.03

*-10% of the Demand growth rate

124

Table 2-73 Financial Analysis (Base Case) [Concrete Bored Pipe Pile Structure]

Financial analysis (Base case) [Concrete Bored pipe pile structure] grace yearrepayment

yearcorporate tax

rateB/C

in JPY 10 30 22% 1.05






2015 0 0 185,167,559 185,167,559 185,167,559 235,264,510 0 0 0 0 235,264,510 0 0 -50,096,951 1.000 185,167,559 235,264,510 -50,096,951 -50,096,951

2016 0 0 211,245,778 211,245,778 396,413,337 244,849,749 0 0 0 0 244,849,749 0 0 -33,603,971 1.076 196,325,072 227,555,529 -31,230,457 -81,327,407

2017 0 0 2,705,780,211 2,705,780,211 3,102,193,548 3,001,936,404 0 0 0 0 3,001,936,404 30,119,225 -30,119,225 -296,156,193 1.158 2,337,049,836 2,592,847,325 -255,797,489 -337,124,896

2018 0 0 2,973,663,537 2,973,663,537 6,075,857,084 3,300,307,605 0 0 0 0 3,300,307,605 119,147,493 -119,147,493 -149,266,717 -326,644,068 1.246 2,387,014,260 2,649,217,445 -262,203,184 -599,328,081

2019 0 0 3,615,294,973 3,615,294,973 9,691,152,057 4,006,699,279 4,511,963,745 0 0 0 0 8,518,663,024 174,524,969 -174,524,969 -323,791,686 -4,903,368,051 1.340 2,697,085,113 6,355,099,487 -3,658,014,374 -4,257,342,455

2020 217,995 649 628,245,794 1,021,918,024 178,670,283 274,162,927 2,102,997,028 10,319,397,850 682,881,732 622,811,563 0 0 149,031,234 1,454,724,530 174,524,969 677,414,702 353,623,016 648,272,497 1.442 1,458,066,400 1,008,601,026 449,465,375 -3,807,877,080

2021 280,434 717 0 1,314,619,873 207,048,849 302,888,780 1,824,557,502 10,319,397,850 0 685,463,770 127,138,270 0 184,234,709 996,836,748 174,524,969 837,430,494 1,191,053,510 827,720,754 1.552 1,175,665,914 642,318,472 533,347,442 -3,274,529,638

2022 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 10,319,397,850 0 717,137,556 127,138,270 0 215,443,713 1,059,719,539 174,524,969 979,289,605 2,170,343,115 938,370,861 1.670 1,196,545,544 634,607,269 561,938,275 -2,712,591,363

2023 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 10,319,397,850 0 717,137,556 127,138,270 0 215,443,713 1,059,719,539 174,524,969 979,289,605 3,149,632,720 938,370,861 1.797 1,112,031,175 589,783,708 522,247,467 -2,190,343,896

2024 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 10,319,397,850 0 717,137,556 127,138,270 0 215,443,713 1,059,719,539 174,524,969 979,289,605 4,128,922,325 938,370,861 1.933 1,033,486,222 548,126,122 485,360,100 -1,704,983,796

2025 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 10,319,397,850 0 717,137,556 127,138,270 0 215,443,713 1,059,719,539 174,524,969 979,289,605 5,108,211,930 938,370,861 2.080 960,489,054 509,410,894 451,078,160 -1,253,905,636

2026 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 9,975,417,922 0 717,137,556 122,900,328 343,979,928 216,376,060 1,400,393,872 174,524,969 983,527,547 6,091,739,478 597,696,528 2.238 892,647,820 625,626,617 267,021,203 -986,884,433

2027 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 9,631,437,994 0 717,137,556 118,662,385 343,979,928 217,308,408 1,397,088,277 174,524,969 987,765,490 7,079,504,968 601,002,123 2.409 829,598,345 580,064,908 249,533,438 -737,350,995

2028 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 9,287,458,065 0 717,137,556 114,424,443 343,979,928 218,240,755 1,393,782,682 174,524,969 992,003,432 8,071,508,400 604,307,718 2.592 771,002,180 537,818,252 233,183,928 -504,167,068

2029 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 8,943,478,137 0 1,011,458,745 717,137,556 110,186,501 343,979,928 219,173,102 2,401,935,833 174,524,969 996,241,374 9,067,749,774 -403,845,433 2.789 716,544,777 861,369,723 -144,824,947 -648,992,014

2030 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 8,599,498,209 0 717,137,556 105,948,558 343,979,928 220,105,450 1,387,171,492 174,524,969 1,000,479,317 10,068,229,091 610,918,908 3.000 665,933,807 462,323,623 203,610,184 -445,381,830

2031 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 8,255,518,280 0 717,137,556 101,710,616 343,979,928 221,037,797 1,383,865,897 174,524,969 1,004,717,259 11,072,946,350 614,224,503 3.228 618,897,591 428,644,905 190,252,686 -255,129,144

2032 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 7,911,538,352 0 717,137,556 97,472,674 343,979,928 221,970,144 1,380,560,302 174,524,969 1,008,955,201 12,081,901,552 617,530,098 3.474 575,183,634 397,417,300 177,766,334 -77,362,810

2033 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 7,567,558,423 0 717,137,556 93,234,731 343,979,928 227,707,613 1,382,059,829 152,683,508 1,035,034,605 13,116,936,157 616,030,571 3.738 534,557,281 369,748,108 164,809,173 87,446,363

2034 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 7,223,578,495 0 717,137,556 88,996,789 343,979,928 235,351,252 1,385,465,526 122,177,635 1,069,778,420 14,186,714,576 612,624,874 4.022 496,800,447 344,478,855 152,321,592 239,767,956

2035 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 6,879,598,567 0 717,137,556 84,758,847 343,979,928 236,283,600 1,382,159,931 122,177,635 1,074,016,362 15,260,730,938 615,930,469 4.328 461,710,453 319,383,791 142,326,661 382,094,617

2036 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 6,535,618,638 0 717,137,556 80,520,904 343,979,928 237,215,947 1,378,854,336 122,177,635 1,078,254,304 16,338,985,242 619,236,064 4.656 429,098,934 296,115,193 132,983,740 515,078,357

2037 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 6,191,638,710 0 717,137,556 76,282,962 343,979,928 238,148,294 1,375,548,741 122,177,635 1,082,492,247 17,421,477,489 622,541,659 5.010 398,790,831 274,540,243 124,250,587 639,328,944

2038 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 5,847,658,782 0 717,137,556 72,045,020 343,979,928 239,080,642 1,372,243,146 122,177,635 1,086,730,189 18,508,207,678 625,847,254 5.391 370,623,448 254,535,774 116,087,674 755,416,619

2039 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 5,503,678,853 0 4,511,963,745 717,137,556 67,807,077 343,979,928 240,012,989 5,880,901,296 122,177,635 1,090,968,131 19,599,175,809 -3,882,810,896 5.801 344,445,584 1,013,793,211 -669,347,626 86,068,992

2040 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 5,159,698,925 0 717,137,556 63,569,135 343,979,928 240,945,336 1,365,631,956 122,177,635 1,095,206,074 20,694,381,882 632,458,444 6.242 320,116,714 218,789,707 101,327,006 187,395,999

2041 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 4,815,718,997 0 717,137,556 59,331,193 343,979,928 241,877,683 1,362,326,361 122,177,635 1,099,444,016 21,793,825,898 635,764,039 6.716 297,506,240 202,843,972 94,662,268 282,058,267

2042 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 4,471,739,068 0 717,137,556 55,093,250 343,979,928 242,810,031 1,359,020,766 122,177,635 1,103,681,958 22,897,507,856 639,069,634 7.227 276,492,788 188,059,279 88,433,509 370,491,775

2043 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 4,127,759,140 0 717,137,556 50,855,308 343,979,928 243,742,378 1,355,715,171 122,177,635 1,107,919,901 24,005,427,757 642,375,229 7.776 256,963,557 174,351,167 82,612,390 453,104,166

2044 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 3,783,779,212 0 717,137,556 46,617,366 343,979,928 244,674,725 1,352,409,575 122,177,635 1,112,157,843 25,117,585,600 645,680,825 8.367 238,813,715 161,641,313 77,172,402 530,276,568

2045 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 3,439,799,283 0 717,137,556 42,379,423 343,979,928 245,607,073 1,349,103,980 122,177,635 1,116,395,785 26,233,981,385 648,986,420 9.003 221,945,832 149,857,086 72,088,746 602,365,314

2046 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 3,095,819,355 0 717,137,556 38,141,481 343,979,928 246,539,420 1,345,798,385 122,177,635 1,120,633,727 27,354,615,113 652,292,015 9.687 206,269,360 138,931,138 67,338,223 669,703,537

2047 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 2,751,839,427 0 717,137,556 33,903,539 343,979,928 250,266,732 1,345,287,755 109,473,253 1,137,576,053 28,492,191,165 652,802,645 10.423 191,700,149 129,069,167 62,630,982 732,334,519

2048 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 2,407,859,498 0 717,137,556 29,665,596 343,979,928 256,120,392 1,346,903,473 87,103,646 1,164,183,602 29,656,374,767 651,186,927 11.215 178,159,990 120,096,823 58,063,167 790,397,686

2049 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 2,063,879,570 0 1,011,458,745 717,137,556 25,427,654 343,979,928 259,204,910 2,357,208,794 77,321,053 1,178,204,137 30,834,578,904 -359,118,394 12.067 165,576,199 195,335,342 -29,759,143 760,638,542

2050 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 1,719,899,642 0 717,137,556 21,189,712 343,979,928 260,137,257 1,342,444,453 77,321,053 1,182,442,079 32,017,020,983 655,645,947 12.985 153,881,226 103,387,213 50,494,013 811,132,555

2051 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 1,375,919,713 0 717,137,556 16,951,769 343,979,928 261,069,605 1,339,138,858 77,321,053 1,186,680,021 33,203,701,004 658,951,542 13.971 143,012,291 95,848,174 47,164,117 858,296,672

2052 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 1,031,939,785 0 717,137,556 12,713,827 343,979,928 262,001,952 1,335,833,263 77,321,053 1,190,917,964 34,394,618,967 662,257,137 15.033 132,911,052 88,858,344 44,052,708 902,349,380

2053 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 687,959,857 0 717,137,556 8,475,885 343,979,928 262,934,299 1,332,527,668 77,321,053 1,195,155,906 35,589,774,873 665,562,732 16.176 123,523,282 82,377,750 41,145,532 943,494,912

2054 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 343,979,928 0 717,137,556 4,237,942 343,979,928 263,866,647 1,329,222,073 77,321,053 1,199,393,848 36,789,168,721 668,868,327 17.405 114,798,589 76,369,327 38,429,262 981,924,175

2055 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 717,137,556 -0 343,979,928 264,798,994 1,325,916,478 77,321,053 1,203,631,791 37,992,800,512 672,173,922 18.728 106,690,139 70,798,705 35,891,434 1,017,815,608

2056 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 717,137,556 -0 0 264,798,994 981,936,550 77,321,053 1,203,631,791 39,196,432,302 1,016,153,850 20.151 99,154,404 48,728,192 50,426,212 1,068,241,820

2057 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 717,137,556 -0 0 268,630,259 985,767,815 59,906,211 1,221,046,633 40,417,478,935 1,012,322,585 21.683 92,150,933 45,463,120 46,687,813 1,114,929,633

2058 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 717,137,556 -0 0 278,490,043 995,627,599 15,089,012 1,265,863,832 41,683,342,767 1,002,462,801 23.331 85,642,131 42,674,580 42,967,551 1,157,897,184

2059 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 4,511,963,745 717,137,556 -0 0 281,809,626 5,510,910,927 0 1,280,952,844 42,964,295,611 -3,512,820,527 25.104 79,593,059 219,524,731 -139,931,672 1,017,965,512

2060 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 44,245,248,455 999,143,218 27.012 73,971,244 36,981,993 36,989,251 1,054,954,763

2061 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 45,526,201,298 999,143,218 29.065 68,746,509 34,369,882 34,376,627 1,089,331,390

2062 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 46,807,154,142 999,143,218 31.274 63,890,808 31,942,270 31,948,538 1,121,279,928

2063 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 48,088,106,986 999,143,218 33.650 59,378,074 29,686,124 29,691,950 1,150,971,878

2064 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 49,369,059,830 999,143,218 36.208 55,184,084 27,589,335 27,594,749 1,178,566,627

2065 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 50,650,012,674 999,143,218 38.960 51,286,323 25,640,646 25,645,678 1,204,212,305

total 14,226,429 34,190 10,319,397,850 66,690,723,263 10,081,372,829 14,443,190,244 101,534,684,187 11,471,939,279 15,558,808,726 32,862,327,801 2,479,196,263 10,319,397,850 11,214,236,959 83,905,906,879 5,223,749,598 50,680,131,899 17,628,777,308 26,702,119,975 25,497,907,670 1,204,212,305


year containerTEU

containerShip Call

incomeaccumulated loan

expenditure



1.40% 0.01%

depreciation profit before taxaccumulated

profit before taxnet income

disountrate

Present Value

125

Table 2-74 Sensitivity Analysis (10% Cost Increase Case) [Concrete Bored Pipe Pile Structure]

Sensitivity analysis (Case-1: Investment costs+10%) [Concrete Bored grace yearrepayment

yearcorporate tax

rateB/C

in JPY 10 30 22% 1.01






2015 0 0 203,684,315 203,684,315 203,684,315 258,790,961 0 0 0 0 0 258,790,961 0 0 -55,106,646 1.000 203,684,315 258,790,961 -55,106,646 -55,106,646

2016 0 0 232,370,356 232,370,356 436,054,671 269,334,724 0 0 0 0 0 269,334,724 0 0 -36,964,369 1.076 215,957,580 250,311,082 -34,353,502 -89,460,148

2017 0 0 2,976,358,232 2,976,358,232 3,412,412,902 3,302,130,045 0 0 0 0 0 3,302,130,045 30,119,225 -30,119,225 -325,771,813 1.158 2,570,754,819 2,852,132,057 -281,377,238 -370,837,386

2018 0 0 3,271,029,890 3,271,029,890 6,683,442,793 3,630,338,365 0 0 0 0 0 3,630,338,365 119,147,493 -119,147,493 -149,266,717 -359,308,475 1.246 2,625,715,686 2,914,139,189 -288,423,503 -659,260,889

2019 0 0 3,976,824,470 3,976,824,470 10,660,267,262 4,407,369,207 4,963,160,120 0 0 0 0 9,370,529,326 174,524,969 -174,524,969 -323,791,686 -5,393,704,856 1.340 2,966,793,625 6,990,609,436 -4,023,815,811 -4,683,076,700

2020 217,995 649 691,070,373 1,021,918,024 178,670,283 274,162,927 2,165,821,607 11,351,337,635 751,169,906 0 622,811,563 0 0 149,031,234 1,523,012,704 174,524,969 677,414,702 353,623,016 642,808,903 1.442 1,501,624,431 1,055,947,118 445,677,313 -4,237,399,387

2021 280,434 717 0 1,314,619,873 207,048,849 302,888,780 1,824,557,502 11,351,337,635 0 0 685,463,770 139,852,097 0 181,437,667 1,006,753,533 174,524,969 824,716,667 1,178,339,683 817,803,969 1.552 1,175,665,914 648,708,419 526,957,495 -3,710,441,892

2022 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 11,351,337,635 0 0 717,137,556 139,852,097 0 212,646,671 1,069,636,324 174,524,969 966,575,778 2,144,915,461 928,454,076 1.670 1,196,545,544 640,545,882 555,999,662 -3,154,442,230

2023 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 11,351,337,635 0 0 717,137,556 139,852,097 0 212,646,671 1,069,636,324 174,524,969 966,575,778 3,111,491,239 928,454,076 1.797 1,112,031,175 595,302,864 516,728,311 -2,637,713,920

2024 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 11,351,337,635 0 0 717,137,556 139,852,097 0 212,646,671 1,069,636,324 174,524,969 966,575,778 4,078,067,017 928,454,076 1.933 1,033,486,222 553,255,450 480,230,772 -2,157,483,148

2025 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 11,351,337,635 0 0 717,137,556 139,852,097 0 212,646,671 1,069,636,324 174,524,969 966,575,778 5,044,642,795 928,454,076 2.080 960,489,054 514,177,928 446,311,126 -1,711,172,021

2026 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 10,972,959,714 0 0 717,137,556 135,190,360 378,377,921 213,672,253 1,444,378,091 174,524,969 971,237,515 6,015,880,310 553,712,309 2.238 892,647,820 645,276,587 247,371,233 -1,463,800,788

2027 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 10,594,581,793 0 0 717,137,556 130,528,624 378,377,921 214,697,835 1,440,741,936 174,524,969 975,899,251 6,991,779,561 557,348,464 2.409 829,598,345 598,189,715 231,408,631 -1,232,392,158

2028 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 10,216,203,872 0 0 717,137,556 125,866,887 378,377,921 215,723,417 1,437,105,782 174,524,969 980,560,988 7,972,340,549 560,984,618 2.592 771,002,180 554,535,316 216,466,864 -1,015,925,293

2029 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 9,837,825,951 0 1,112,604,620 717,137,556 121,205,151 378,377,921 216,748,999 2,546,074,247 174,524,969 985,222,724 8,957,563,274 -547,983,847 2.789 716,544,777 913,059,891 -196,515,114 -1,212,440,408

2030 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 9,459,448,029 0 0 717,137,556 116,543,414 378,377,921 217,774,581 1,429,833,473 174,524,969 989,884,461 9,947,447,735 568,256,927 3.000 665,933,807 476,542,227 189,391,581 -1,023,048,827

2031 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 9,081,070,108 0 0 717,137,556 111,881,678 378,377,921 218,800,163 1,426,197,318 174,524,969 994,546,198 10,941,993,932 571,893,082 3.228 618,897,591 441,756,831 177,140,759 -845,908,068

2032 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 8,702,692,187 0 0 717,137,556 107,219,941 378,377,921 219,825,746 1,422,561,164 174,524,969 999,207,934 11,941,201,866 575,529,236 3.474 575,183,634 409,507,948 165,675,686 -680,232,382

2033 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 8,324,314,266 0 0 717,137,556 102,558,204 378,377,921 225,656,449 1,423,730,131 152,683,508 1,025,711,132 12,966,912,998 574,360,269 3.738 534,557,281 380,896,334 153,660,947 -526,571,434

2034 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 7,945,936,345 0 0 717,137,556 97,896,468 378,377,921 233,393,323 1,426,805,268 122,177,635 1,060,878,741 14,027,791,739 571,285,132 4.022 496,800,447 354,757,470 142,042,977 -384,528,457

2035 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 7,567,558,423 0 0 717,137,556 93,234,731 378,377,921 234,418,905 1,423,169,114 122,177,635 1,065,540,477 15,093,332,216 574,921,286 4.328 461,710,453 328,860,023 132,850,429 -251,678,028

2036 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 7,189,180,502 0 0 717,137,556 88,572,995 378,377,921 235,444,487 1,419,532,959 122,177,635 1,070,202,214 16,163,534,430 578,557,441 4.656 429,098,934 304,851,111 124,247,822 -127,430,206

2037 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 6,810,802,581 0 0 717,137,556 83,911,258 378,377,921 236,470,069 1,415,896,804 122,177,635 1,074,863,950 17,238,398,380 582,193,596 5.010 398,790,831 282,593,151 116,197,679 -11,232,526

2038 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 6,432,424,660 0 0 717,137,556 79,249,522 378,377,921 237,495,651 1,412,260,650 122,177,635 1,079,525,687 18,317,924,067 585,829,750 5.391 370,623,448 261,958,574 108,664,874 97,432,348

2039 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 6,054,046,739 0 4,963,160,120 717,137,556 74,587,785 378,377,921 238,521,233 6,371,784,615 122,177,635 1,084,187,423 19,402,111,491 -4,373,694,215 5.801 344,445,584 1,098,415,304 -753,969,719 -656,537,372

2040 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 5,675,668,818 0 0 717,137,556 69,926,048 378,377,921 239,546,815 1,404,988,341 122,177,635 1,088,849,160 20,490,960,651 593,102,059 6.242 320,116,714 225,095,046 95,021,668 -561,515,704

2041 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 5,297,290,896 0 0 717,137,556 65,264,312 378,377,921 240,572,397 1,401,352,186 122,177,635 1,093,510,897 21,584,471,547 596,738,214 6.716 297,506,240 208,654,733 88,851,506 -472,664,198

2042 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 4,918,912,975 0 0 717,137,556 60,602,575 378,377,921 241,597,979 1,397,716,032 122,177,635 1,098,172,633 22,682,644,180 600,374,368 7.227 276,492,788 193,413,873 83,078,915 -389,585,282

2043 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 4,540,535,054 0 0 717,137,556 55,940,839 378,377,921 242,623,561 1,394,079,877 122,177,635 1,102,834,370 23,785,478,550 604,010,523 7.776 256,963,557 179,285,044 77,678,514 -311,906,769

2044 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 4,162,157,133 0 0 717,137,556 51,279,102 378,377,921 243,649,143 1,390,443,723 122,177,635 1,107,496,106 24,892,974,656 607,646,677 8.367 238,813,715 166,187,191 72,626,524 -239,280,245

2045 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 3,783,779,212 0 0 717,137,556 46,617,366 378,377,921 244,674,725 1,386,807,568 122,177,635 1,112,157,843 26,005,132,499 611,282,832 9.003 221,945,832 154,045,162 67,900,670 -171,379,575

2046 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 3,405,401,291 0 0 717,137,556 41,955,629 378,377,921 245,700,307 1,383,171,414 122,177,635 1,116,819,579 27,121,952,079 614,918,986 9.687 206,269,360 142,789,277 63,480,084 -107,899,491

2047 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 3,027,023,369 0 0 717,137,556 37,293,893 378,377,921 249,520,854 1,382,330,224 109,473,253 1,134,185,699 28,256,137,777 615,760,176 10.423 191,700,149 132,623,083 59,077,066 -48,822,425

2048 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 2,648,645,448 0 0 717,137,556 32,632,156 378,377,921 255,467,749 1,383,615,383 87,103,646 1,161,217,042 29,417,354,820 614,475,017 11.215 178,159,990 123,370,245 54,789,745 5,967,319

2049 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 2,270,267,527 0 1,112,604,620 717,137,556 27,970,419 378,377,921 258,645,502 2,494,736,018 77,321,053 1,175,661,371 30,593,016,191 -496,645,618 12.067 165,576,199 206,731,841 -41,155,642 -35,188,323

2050 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 1,891,889,606 0 0 717,137,556 23,308,683 378,377,921 259,671,084 1,378,495,244 77,321,053 1,180,323,108 31,773,339,299 619,595,156 12.985 153,881,226 106,163,634 47,717,592 12,529,269

2051 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 1,513,511,685 0 0 717,137,556 18,646,946 378,377,921 260,696,666 1,374,859,089 77,321,053 1,184,984,844 32,958,324,143 623,231,311 13.971 143,012,291 98,404,831 44,607,460 57,136,729

2052 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 1,135,133,764 0 0 717,137,556 13,985,210 378,377,921 261,722,248 1,371,222,935 77,321,053 1,189,646,581 34,147,970,724 626,867,465 15.033 132,911,052 91,212,431 41,698,621 98,835,350

2053 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 756,755,842 0 0 717,137,556 9,323,473 378,377,921 262,747,830 1,367,586,780 77,321,053 1,194,308,317 35,342,279,041 630,503,620 16.176 123,523,282 84,545,128 38,978,155 137,813,504

2054 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 378,377,921 0 0 717,137,556 4,661,737 378,377,921 263,773,412 1,363,950,626 77,321,053 1,198,970,054 36,541,249,095 634,139,774 17.405 114,798,589 78,364,626 36,433,963 174,247,467

2055 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 0 717,137,556 -0 378,377,921 264,798,994 1,360,314,471 77,321,053 1,203,631,791 37,744,880,885 637,775,929 18.728 106,690,139 72,635,422 34,054,717 208,302,184

2056 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 0 717,137,556 -0 0 264,798,994 981,936,550 77,321,053 1,203,631,791 38,948,512,676 1,016,153,850 20.151 99,154,404 48,728,192 50,426,212 258,728,396

2057 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 0 717,137,556 -0 0 268,630,259 985,767,815 59,906,211 1,221,046,633 40,169,559,308 1,012,322,585 21.683 92,150,933 45,463,120 46,687,813 305,416,208

2058 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 0 717,137,556 -0 0 278,490,043 995,627,599 15,089,012 1,265,863,832 41,435,423,140 1,002,462,801 23.331 85,642,131 42,674,580 42,967,551 348,383,759

2059 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 4,963,160,120 717,137,556 -0 0 281,809,626 5,962,107,301 0 1,280,952,844 42,716,375,984 -3,964,016,901 25.104 79,593,059 237,497,941 -157,904,883 190,478,877

2060 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 43,997,328,828 999,143,218 27.012 73,971,244 36,981,993 36,989,251 227,468,127

2061 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 45,278,281,672 999,143,218 29.065 68,746,509 34,369,882 34,376,627 261,844,755

2062 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 46,559,234,516 999,143,218 31.274 63,890,808 31,942,270 31,948,538 293,793,293

2063 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 47,840,187,360 999,143,218 33.650 59,378,074 29,686,124 29,691,950 323,485,243

2064 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 49,121,140,204 999,143,218 36.208 55,184,084 27,589,335 27,594,749 351,079,992

2065 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 50,402,093,048 999,143,218 38.960 51,286,323 25,640,646 25,645,678 376,725,670

total 14,226,429 34,190 11,351,337,635 66,690,723,263 10,081,372,829 14,443,190,244 102,566,623,972 12,619,133,207 17,114,689,598 32,862,327,801 2,727,115,889 11,351,337,635 11,159,694,641 87,834,298,773 5,223,749,598 50,432,212,273 14,732,325,199 27,525,942,189 27,149,216,520 376,725,670



1.40% 0.01%

expenditure

8.50%

Internal Rate of Return(FIRR)

year containerTEU

containerShip Call



net incomedisount

rate

Present Value

126

Table 2-75 Sensitivity Analysis (10% Container Volume Growth Rate Decrease Case) [Concrete Bored Pipe Pile Structure]

Sensitivity analysis (Case-2: Container Volume Growth Rate-10%) [Co grace yearrepayment

yearcorporate tax

rateB/C

in JPY 10 30 22% 1.03






2015 0 0 185,167,559 185,167,559 0 235,264,510 0 0 0 0 0 235,264,510 0 0 -50,096,951 1.000 185,167,559 235,264,510 -50,096,951 -50,096,951

2016 0 0 211,245,778 211,245,778 211,245,778 244,849,749 0 0 0 0 0 244,849,749 0 0 -33,603,971 1.076 196,325,072 227,555,529 -31,230,457 -81,327,407

2017 0 0 2,705,780,211 2,705,780,211 2,917,025,988 3,001,936,404 0 0 0 0 0 3,001,936,404 30,119,225 -30,119,225 -296,156,193 1.158 2,337,049,836 2,592,847,325 -255,797,489 -337,124,896

2018 0 0 2,973,663,537 2,973,663,537 5,890,689,525 3,300,307,605 0 0 0 0 0 3,300,307,605 119,147,493 -119,147,493 -149,266,717 -326,644,068 1.246 2,387,014,260 2,649,217,445 -262,203,184 -599,328,081

2019 0 0 3,615,294,973 3,615,294,973 9,505,984,498 4,006,699,279 4,511,963,745 0 0 0 0 8,518,663,024 174,524,969 -174,524,969 -323,791,686 -4,903,368,051 1.340 2,697,085,113 6,355,099,487 -3,658,014,374 -4,257,342,455

2020 193,446 616 628,245,794 906,835,788 166,301,258 260,222,439 1,961,605,279 10,134,230,291 682,881,732 0 598,178,456 0 0 123,344,333 1,404,404,522 174,524,969 560,656,060 236,864,374 557,200,757 1.442 1,360,035,564 973,712,763 386,322,801 -3,871,019,654

2021 218,690 650 0 1,025,176,988 179,033,220 274,585,366 1,478,795,574 10,134,230,291 0 0 623,509,138 124,545,924 0 122,367,419 870,422,481 174,524,969 556,215,543 793,079,917 608,373,092 1.552 952,871,887 560,862,588 392,009,299 -3,479,010,355

2022 247,229 683 0 1,158,962,734 192,375,372 288,525,854 1,639,863,959 10,134,230,291 0 0 652,145,691 124,545,924 0 151,502,423 928,194,038 174,524,969 688,647,375 1,481,727,292 711,669,921 1.670 982,023,593 555,843,940 426,179,653 -3,052,830,702

2023 279,493 716 0 1,310,207,539 206,625,903 302,466,341 1,819,299,784 10,134,230,291 0 0 684,519,319 124,545,924 0 183,856,106 992,921,349 174,524,969 835,709,572 2,317,436,864 826,378,435 1.797 1,012,525,798 552,607,377 459,918,421 -2,592,912,280

2024 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 10,134,230,291 0 0 717,137,556 124,545,924 0 216,014,029 1,057,697,509 174,524,969 981,881,951 3,299,318,815 940,392,891 1.933 1,033,486,222 547,080,254 486,405,968 -2,106,506,312

2025 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 10,134,230,291 0 0 717,137,556 124,545,924 0 216,014,029 1,057,697,509 174,524,969 981,881,951 4,281,200,766 940,392,891 2.080 960,489,054 508,438,898 452,050,156 -1,654,456,156

2026 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 9,796,422,615 0 0 717,137,556 120,394,393 337,807,676 216,927,366 1,392,266,992 174,524,969 986,033,482 5,267,234,248 605,823,408 2.238 892,647,820 621,995,929 270,651,891 -1,383,804,265

2027 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 9,458,614,938 0 0 717,137,556 116,242,862 337,807,676 217,840,703 1,389,028,798 174,524,969 990,185,013 6,257,419,261 609,061,602 2.409 829,598,345 576,718,647 252,879,698 -1,130,924,567

2028 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 9,120,807,262 0 0 717,137,556 112,091,332 337,807,676 218,754,040 1,385,790,604 174,524,969 994,336,543 7,251,755,804 612,299,796 2.592 771,002,180 534,734,352 236,267,827 -894,656,739

2029 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 8,782,999,586 0 1,011,458,745 717,137,556 107,939,801 337,807,676 219,667,376 2,394,011,155 174,524,969 998,488,074 8,250,243,878 -395,920,755 2.789 716,544,777 858,527,817 -141,983,040 -1,036,639,779

2030 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 8,445,191,909 0 0 717,137,556 103,788,270 337,807,676 220,580,713 1,379,314,216 174,524,969 1,002,639,605 9,252,883,483 618,776,184 3.000 665,933,807 459,704,910 206,228,898 -830,410,882

2031 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 8,107,384,233 0 0 717,137,556 99,636,739 337,807,676 221,494,050 1,376,076,022 174,524,969 1,006,791,136 10,259,674,619 622,014,378 3.228 618,897,591 426,232,033 192,665,557 -637,745,324

2032 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 7,769,576,556 0 0 717,137,556 95,485,208 337,807,676 222,407,387 1,372,837,828 174,524,969 1,010,942,667 11,270,617,286 625,252,572 3.474 575,183,634 395,194,257 179,989,377 -457,755,947

2033 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 7,431,768,880 0 0 717,137,556 91,333,678 337,807,676 228,125,845 1,374,404,755 152,683,508 1,036,935,659 12,307,552,944 623,685,645 3.738 534,557,281 367,700,114 166,857,167 -290,898,781

2034 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 7,093,961,204 0 0 717,137,556 87,182,147 337,807,676 235,750,474 1,377,877,853 122,177,635 1,071,593,062 13,379,146,006 620,212,547 4.022 496,800,447 342,592,274 154,208,173 -136,690,607

2035 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 6,756,153,527 0 0 717,137,556 83,030,616 337,807,676 236,663,810 1,374,639,659 122,177,635 1,075,744,592 14,454,890,598 623,450,741 4.328 461,710,453 317,646,038 144,064,415 7,373,807

2036 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 6,418,345,851 0 0 717,137,556 78,879,085 337,807,676 237,577,147 1,371,401,465 122,177,635 1,079,896,123 15,534,786,722 626,688,935 4.656 429,098,934 294,514,656 134,584,278 141,958,085

2037 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 6,080,538,175 0 0 717,137,556 74,727,554 337,807,676 238,490,484 1,368,163,271 122,177,635 1,084,047,654 16,618,834,376 629,927,129 5.010 398,790,831 273,066,207 125,724,623 267,682,709

2038 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 5,742,730,498 0 0 717,137,556 70,576,024 337,807,676 239,403,821 1,364,925,077 122,177,635 1,088,199,185 17,707,033,560 633,165,323 5.391 370,623,448 253,178,354 117,445,094 385,127,803

2039 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 5,404,922,822 0 4,511,963,745 717,137,556 66,424,493 337,807,676 240,317,157 5,873,650,628 122,177,635 1,092,350,716 18,799,384,276 -3,875,560,228 5.801 344,445,584 1,012,543,287 -668,097,703 -282,969,900

2040 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 5,067,115,146 0 0 717,137,556 62,272,962 337,807,676 241,230,494 1,358,448,689 122,177,635 1,096,502,246 19,895,886,523 639,641,711 6.242 320,116,714 217,638,867 102,477,847 -180,492,053

2041 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 4,729,307,469 0 0 717,137,556 58,121,431 337,807,676 242,143,831 1,355,210,495 122,177,635 1,100,653,777 20,996,540,300 642,879,905 6.716 297,506,240 201,784,453 95,721,787 -84,770,266

2042 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 4,391,499,793 0 0 717,137,556 53,969,900 337,807,676 243,057,168 1,351,972,301 122,177,635 1,104,805,308 22,101,345,608 646,118,099 7.227 276,492,788 187,083,923 89,408,865 4,638,599

2043 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 4,053,692,116 0 0 717,137,556 49,818,370 337,807,676 243,970,505 1,348,734,107 122,177,635 1,108,956,839 23,210,302,447 649,356,293 7.776 256,963,557 173,453,370 83,510,187 88,148,786

2044 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 3,715,884,440 0 0 717,137,556 45,666,839 337,807,676 244,883,841 1,345,495,913 122,177,635 1,113,108,370 24,323,410,816 652,594,487 8.367 238,813,715 160,814,985 77,998,730 166,147,516

2045 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 3,378,076,764 0 0 717,137,556 41,515,308 337,807,676 245,797,178 1,342,257,719 122,177,635 1,117,259,900 25,440,670,717 655,832,681 9.003 221,945,832 149,096,610 72,849,221 238,996,738

2046 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 3,040,269,087 0 0 717,137,556 37,363,777 337,807,676 246,710,515 1,339,019,525 122,177,635 1,121,411,431 26,562,082,148 659,070,875 9.687 206,269,360 138,231,334 68,038,027 307,034,764

2047 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 2,702,461,411 0 0 717,137,556 33,212,246 337,807,676 250,418,816 1,338,576,295 109,473,253 1,138,267,345 27,700,349,493 659,514,105 10.423 191,700,149 128,425,258 63,274,891 370,309,655

2048 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 2,364,653,735 0 0 717,137,556 29,060,716 337,807,676 256,253,466 1,340,259,414 87,103,646 1,164,788,483 28,865,137,976 657,830,986 11.215 178,159,990 119,504,405 58,655,585 428,965,241

2049 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 2,026,846,058 0 1,011,458,745 717,137,556 24,909,185 337,807,676 259,318,973 2,350,632,136 77,321,053 1,178,722,606 30,043,860,581 -352,541,736 12.067 165,576,199 194,790,353 -29,214,154 399,751,087

2050 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 1,689,038,382 0 0 717,137,556 20,757,654 337,807,676 260,232,310 1,335,935,197 77,321,053 1,182,874,136 31,226,734,718 662,155,203 12.985 153,881,226 102,885,908 50,995,317 450,746,404

2051 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 1,351,230,705 0 0 717,137,556 16,606,123 337,807,676 261,145,647 1,332,697,002 77,321,053 1,187,025,667 32,413,760,385 665,393,398 13.971 143,012,291 95,387,102 47,625,190 498,371,594

2052 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 1,013,423,029 0 0 717,137,556 12,454,592 337,807,676 262,058,984 1,329,458,808 77,321,053 1,191,177,198 33,604,937,583 668,631,592 15.033 132,911,052 88,434,321 44,476,730 542,848,324

2053 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 675,615,353 0 0 717,137,556 8,303,062 337,807,676 262,972,320 1,326,220,614 77,321,053 1,195,328,729 34,800,266,312 671,869,786 16.176 123,523,282 81,987,844 41,535,439 584,383,763

2054 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 337,807,676 0 0 717,137,556 4,151,531 337,807,676 263,885,657 1,322,982,420 77,321,053 1,199,480,260 35,999,746,572 675,107,980 17.405 114,798,589 76,010,833 38,787,756 623,171,519

2055 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 0 717,137,556 -0 337,807,676 264,798,994 1,319,744,226 77,321,053 1,203,631,791 37,203,378,362 678,346,174 18.728 106,690,139 70,469,131 36,221,008 659,392,527

2056 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 0 717,137,556 -0 0 264,798,994 981,936,550 77,321,053 1,203,631,791 38,407,010,153 1,016,153,850 20.151 99,154,404 48,728,192 50,426,212 709,818,738

2057 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 0 717,137,556 -0 0 268,630,259 985,767,815 59,906,211 1,221,046,633 39,628,056,785 1,012,322,585 21.683 92,150,933 45,463,120 46,687,813 756,506,551

2058 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 0 717,137,556 -0 0 278,490,043 995,627,599 15,089,012 1,265,863,832 40,893,920,617 1,002,462,801 23.331 85,642,131 42,674,580 42,967,551 799,474,102

2059 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 4,511,963,745 717,137,556 -0 0 281,809,626 5,510,910,927 0 1,280,952,844 42,174,873,461 -3,512,820,527 25.104 79,593,059 219,524,731 -139,931,672 659,542,430

2060 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 43,455,826,305 999,143,218 27.012 73,971,244 36,981,993 36,989,251 696,531,681

2061 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 44,736,779,149 999,143,218 29.065 68,746,509 34,369,882 34,376,627 730,908,308

2062 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 46,017,731,993 999,143,218 31.274 63,890,808 31,942,270 31,948,538 762,856,846

2063 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 47,298,684,837 999,143,218 33.650 59,378,074 29,686,124 29,691,950 792,548,796

2064 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 48,579,637,681 999,143,218 36.208 55,184,084 27,589,335 27,594,749 820,143,545

2065 312,000 746 0 1,462,595,122 220,355,766 315,139,512 1,998,090,400 -0 0 0 717,137,556 -0 0 281,809,626 998,947,182 0 1,280,952,844 49,860,590,524 999,143,218 38.960 51,286,323 25,640,646 25,645,678 845,789,223

total 14,042,858 33,997 10,319,397,850 65,830,178,171 9,999,277,919 14,361,659,512 100,510,513,452 11,471,939,279 15,558,808,726 32,678,129,960 2,428,645,519 10,134,230,291 11,040,564,086 83,312,317,862 5,223,749,598 49,890,709,749 17,198,195,591 26,067,267,782 25,221,478,559 845,789,223



1.40% 0.01%

expenditure


year containerTEU

containerShip Call



net incomedisount

rate

Present Value

127

Economic Analysis (3)

The socioeconomic benefits for all of Vietnam by the construction of the new terminal at Tien Sa Port are considered to be as follows;

-Decreased shipping cost and time (both land and maritime) by shifting of cargo from other ports (without case) to Tien Sa Port (with case)

-Increased port revenue by shifting of cargo from other ports (without case) to Tien Sa Port (with case)

The definition (i.e. the range of measurement object) of economic benefit is different depending on the geographical range of the economies to be calculated. Table 2-74 shows the items which should be included in the benefit calculation by range of economies to be considered. For example, when calculating the benefit for the entire Vietnamese economy, the increased amount of port revenue by shifting of (Vietnamese) cargo from other Vietnamese ports should not be included since it will be cancelled out by the decreased amount of revenue of other Vietnamese ports.

Table 2-76 Items Included in the Benefit Calculation

Item/cargo

Range of economies

1) decreasing shipping cost & time

2) Increasing port revenue

Cargo to/from Vietnam Cargo to/from Vietnam

Vietnam ○ ×

1）Calculation of the Decreased Shipping Cost and Time by Shifting of Cargo from Other Ports to Tien Sa Port

In the case that no new terminal is constructed at Tien Sa Port (hereafter referred to as the “without” case), cargo which would utilize the new terminal at Tien Sa Port in the case that the new terminal were constructed (hereafter reffered to as the with case) is assumed to utilize Quy Nhon Port instead which is nearest container port and ranked as class I regional gateway port in the MOT master plan. The port currently receives more than 10 international container shipping lines with 200m (-12m) berth.

The calculation of shipping time and cost for both cases follows the assumptions below.

- Based on the interview survey results and other sources, the shipping time is not significantly different between any cases in which any Vietnamese port is utilized as an import/export port. Therefore, the shipping time is not considered in the following calculation of economic benefit.

-The land shipping cost between Da Nang and Quy Nhon in the “without” case is calculated based on the trucking fee (0.66 USD/km/20feet container) obtained by interview survey to a logistics forwarder based at Da Nang. The road distance between Da Nang City and Quy Nhon Port is around 300 km. The

128

land shipping cost per TEU is assumed 198USD/TEU for Da Nang – Quy Nhon.The maritime shipping cost from Da Nang Port to hub ports such as SingPore or Kaoshun (with case) is approximately same as one from Quy Nyon Port to the hub pors (without case). Then in this study benefits (or disbenefits) caused by the shift of load/unload port due to with and without case are assumed to have no affects on the benefit calculation.

2）Result of Economic Analysis

The result of Economic analysis is shown with efficiency index inTable 2-77. The result of the sensitivity analysis is shown in Table 2-78. . The calculation process of these index is shown in Table 2-79~Table 2-81.

Since EIRR is calculated as 23.2% exceeding the 7.6% that is assumed as social discount rate at 10 years government bond, the project can be judged to be economically feasible. NPV calculated as JPY28,116 million and cost-benefit ratio as 2.64 also show the feasibility of the project.


Table 2-77 Result of Economic Analysis

No. Efficiency index Unit Result

1 Evaluation period Years 50

2 Total Investment JPY(million) 10,749

3 Total Net Present Value (NPV) JPY(million) 28,116

4 Internal Rate of Return (EIRR) % 23.2%

5 Cost/ Benefit ratio (B/C) Times 2.64 Note: Exchange rate at 2014 August is applied.





EIRR 23.2% 21.4% 22.6%

NPV (JPY(million)) 28,116 26,779 27,563

B/C 2.64 2.45 2.60

*10% decrease of the container demand growth rate

129

Table 2-79 Economic Analysis (Base Case)

economic analysis of new container terminal

in 000JPY 37.4% 42.5% 20.1% 7.6%

Export,Laden

Import,Laden

Empty export import Total(saved amount)

2015 233,829 233,829 -233,829 1.00 233,829 -233,8292016 244,836 244,836 -244,836 1.08 227,543 -227,5432017 2,824,333 2,824,333 -2,824,333 1.16 2,439,447 -2,439,4472018 3,091,773 3,091,773 -3,091,773 1.25 2,481,823 -2,481,8232019 3,725,736 4,511,964 8,237,700 -8,237,700 1.34 6,145,495 -6,145,4952020 217,995 81,530 92,648 43,817 1,614,297 1,834,428 3,448,724 628,953 404,072 1,033,025 2,415,700 1.44 2,391,097 716,225 1,674,8722021 280,434 104,882 119,184 56,367 2,076,670 2,359,852 4,436,522 404,072 404,072 4,032,450 1.55 2,858,703 260,367 2,598,3362022 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 1.67 2,955,838 241,976 2,713,8622023 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 1.80 2,747,062 224,885 2,522,1762024 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 1.93 2,553,031 209,001 2,344,0302025 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 2.08 2,372,706 194,239 2,178,4672026 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 2.24 2,205,117 180,519 2,024,5972027 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 2.41 2,049,365 167,769 1,881,5962028 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 2.59 1,904,614 155,919 1,748,6952029 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 1,011,459 404,072 1,415,531 3,520,371 2.79 1,770,088 507,630 1,262,4572030 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 3.00 1,645,063 134,671 1,510,3922031 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 3.23 1,528,869 125,159 1,403,7102032 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 3.47 1,420,882 116,319 1,304,5632033 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 3.74 1,320,522 108,103 1,212,4192034 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 4.02 1,227,251 100,468 1,126,7832035 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 4.33 1,140,568 93,371 1,047,1972036 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 4.66 1,060,007 86,776 973,2312037 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 5.01 985,137 80,647 904,4902038 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 5.39 915,555 74,951 840,6042039 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 4,511,964 404,072 4,916,036 19,866 5.80 850,887 847,463 3,4252040 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 6.24 790,787 64,737 726,0512041 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 6.72 734,933 60,164 674,7682042 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 7.23 683,023 55,915 627,1082043 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 7.78 634,780 51,966 582,8142044 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 8.37 589,944 48,295 541,6492045 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 9.00 548,275 44,884 503,3912046 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 9.69 509,549 41,714 467,8362047 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 10.42 473,559 38,767 434,7912048 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 11.22 440,110 36,029 404,0812049 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 1,011,459 404,072 1,415,531 3,520,371 12.07 409,025 117,301 291,7232050 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 12.98 380,134 31,119 349,0152051 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 13.97 353,285 28,921 324,3632052 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 15.03 328,331 26,878 301,4532053 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 16.18 305,141 24,980 280,1612054 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 17.41 283,588 23,216 260,3722055 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 18.73 263,558 21,576 241,9822056 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 20.15 244,942 20,052 224,8902057 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 21.68 227,641 18,636 209,0062058 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 23.33 211,563 17,319 194,2432059 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 4,511,964 404,072 4,916,036 19,866 25.10 196,620 195,828 7912060 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 27.01 182,732 14,959 167,7732061 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 29.06 169,825 13,903 155,9232062 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 31.27 157,830 12,921 144,9102063 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 33.65 146,682 12,008 134,6742064 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 36.21 136,322 11,160 125,162

total 13,914,429 5,203,996 5,913,632 2,796,800 103,039,130 117,089,920 220,129,050 10,749,459 15,558,809 18,183,249 44,491,517 175,637,533 45,304,539 17,187,843 28,116,695B/C 2.64

Economic IRR

23.2%

Benefits (000JPY/year)

additional land cost from/to altermnative port(Quy Nhon port)(without)

Present Value (000JPY/year)

benefit expenditurenet benefit

(NPV)

annual discount rate

operationcost

investment(equipment) total

Expenditure (000JPY/year)

net benefit(000JPY/year)

disountrateinvestment

(infrastructure)total

Original Da Nang Port Cargo

share

Container handled in Da Nang Port (TEU/year)

year

130

Table 2-80 Sensitivity Analysis (10% Cost Increase Case)


in 000JPY 37.4% 42.5% 20.1% 7.6%

Export,Laden

Import,Laden


2015 257,212 257,212 -257,212 1.00 257,212 -257,2122016 269,319 269,319 -269,319 1.08 250,297 -250,2972017 3,106,766 3,106,766 -3,106,766 1.16 2,683,391 -2,683,3912018 3,400,951 3,400,951 -3,400,951 1.25 2,730,005 -2,730,0052019 4,098,310 4,963,160 9,061,470 -9,061,470 1.34 6,760,045 -6,760,0452020 217,995 81,530 92,648 43,817 1,614,297 1,834,428 3,448,724 691,848 404,072 1,095,920 2,352,804 1.44 2,391,097 759,832 1,631,2652021 280,434 104,882 119,184 56,367 2,076,670 2,359,852 4,436,522 404,072 404,072 4,032,450 1.55 2,858,703 260,367 2,598,3362022 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 1.67 2,955,838 241,976 2,713,8622023 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 1.80 2,747,062 224,885 2,522,1762024 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 1.93 2,553,031 209,001 2,344,0302025 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 2.08 2,372,706 194,239 2,178,4672026 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 2.24 2,205,117 180,519 2,024,5972027 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 2.41 2,049,365 167,769 1,881,5962028 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 2.59 1,904,614 155,919 1,748,6952029 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 1,112,605 404,072 1,516,677 3,419,226 2.79 1,770,088 543,903 1,226,1852030 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 3.00 1,645,063 134,671 1,510,3922031 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 3.23 1,528,869 125,159 1,403,7102032 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 3.47 1,420,882 116,319 1,304,5632033 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 3.74 1,320,522 108,103 1,212,4192034 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 4.02 1,227,251 100,468 1,126,7832035 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 4.33 1,140,568 93,371 1,047,1972036 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 4.66 1,060,007 86,776 973,2312037 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 5.01 985,137 80,647 904,4902038 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 5.39 915,555 74,951 840,6042039 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 4,963,160 404,072 5,367,232 -431,330 5.80 850,887 925,243 -74,3562040 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 6.24 790,787 64,737 726,0512041 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 6.72 734,933 60,164 674,7682042 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 7.23 683,023 55,915 627,1082043 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 7.78 634,780 51,966 582,8142044 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 8.37 589,944 48,295 541,6492045 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 9.00 548,275 44,884 503,3912046 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 9.69 509,549 41,714 467,8362047 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 10.42 473,559 38,767 434,7912048 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 11.22 440,110 36,029 404,0812049 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 1,112,605 404,072 1,516,677 3,419,226 12.07 409,025 125,683 283,3422050 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 12.98 380,134 31,119 349,0152051 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 13.97 353,285 28,921 324,3632052 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 15.03 328,331 26,878 301,4532053 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 16.18 305,141 24,980 280,1612054 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 17.41 283,588 23,216 260,3722055 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 18.73 263,558 21,576 241,9822056 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 20.15 244,942 20,052 224,8902057 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 21.68 227,641 18,636 209,0062058 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 23.33 211,563 17,319 194,2432059 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 4,963,160 404,072 5,367,232 -431,330 25.10 196,620 213,801 -17,1822060 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 27.01 182,732 14,959 167,7732061 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 29.06 169,825 13,903 155,9232062 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 31.27 157,830 12,921 144,9102063 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 33.65 146,682 12,008 134,6742064 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 36.21 136,322 11,160 125,162

total 13,914,429 5,203,996 5,913,632 2,796,800 103,039,130 117,089,920 220,129,050 11,824,405 17,114,690 18,183,249 47,122,344 173,006,706 45,304,539 18,524,672 26,779,867B/C 2.45

Economic IRR

21.4%





(NPV)

annual discount rate

operationcost

investment(equipment) total






share


year

131

Table 2-81 Sensitivity Analysis (10% Container Volume Growth Rate Decrease Case)


in 000JPY 37.4% 42.5% 20.1% 7.6%

Export,Laden

Import,Laden


2015 233,829 233,829 -233,829 1.00 233,829 -233,8292016 244,836 244,836 -244,836 1.08 227,543 -227,5432017 2,824,333 2,824,333 -2,824,333 1.16 2,439,447 -2,439,4472018 3,091,773 3,091,773 -3,091,773 1.25 2,481,823 -2,481,8232019 3,725,736 4,511,964 8,237,700 -8,237,700 1.34 6,145,495 -6,145,4952020 217,995 81,530 92,648 43,817 1,614,297 1,834,428 3,448,724 628,953 404,072 1,033,025 2,415,700 1.44 2,391,097 716,225 1,674,8722021 280,434 104,882 119,184 56,367 2,076,670 2,359,852 4,436,522 404,072 404,072 4,032,450 1.55 2,858,703 260,367 2,598,3362022 265,087 99,143 112,662 53,282 1,963,022 2,230,707 4,193,729 404,072 404,072 3,789,657 1.67 2,511,392 241,976 2,269,4162023 299,681 112,081 127,364 60,236 2,219,198 2,521,816 4,741,013 404,072 404,072 4,336,941 1.80 2,638,597 224,885 2,413,7122024 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 1.93 2,553,031 209,001 2,344,0302025 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 2.08 2,372,706 194,239 2,178,4672026 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 2.24 2,205,117 180,519 2,024,5972027 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 2.41 2,049,365 167,769 1,881,5962028 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 2.59 1,904,614 155,919 1,748,6952029 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 1,011,459 404,072 1,415,531 3,520,371 2.79 1,770,088 507,630 1,262,4572030 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 3.00 1,645,063 134,671 1,510,3922031 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 3.23 1,528,869 125,159 1,403,7102032 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 3.47 1,420,882 116,319 1,304,5632033 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 3.74 1,320,522 108,103 1,212,4192034 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 4.02 1,227,251 100,468 1,126,7832035 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 4.33 1,140,568 93,371 1,047,1972036 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 4.66 1,060,007 86,776 973,2312037 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 5.01 985,137 80,647 904,4902038 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 5.39 915,555 74,951 840,6042039 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 4,511,964 404,072 4,916,036 19,866 5.80 850,887 847,463 3,4252040 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 6.24 790,787 64,737 726,0512041 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 6.72 734,933 60,164 674,7682042 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 7.23 683,023 55,915 627,1082043 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 7.78 634,780 51,966 582,8142044 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 8.37 589,944 48,295 541,6492045 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 9.00 548,275 44,884 503,3912046 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 9.69 509,549 41,714 467,8362047 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 10.42 473,559 38,767 434,7912048 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 11.22 440,110 36,029 404,0812049 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 1,011,459 404,072 1,415,531 3,520,371 12.07 409,025 117,301 291,7232050 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 12.98 380,134 31,119 349,0152051 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 13.97 353,285 28,921 324,3632052 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 15.03 328,331 26,878 301,4532053 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 16.18 305,141 24,980 280,1612054 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 17.41 283,588 23,216 260,3722055 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 18.73 263,558 21,576 241,9822056 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 20.15 244,942 20,052 224,8902057 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 21.68 227,641 18,636 209,0062058 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 23.33 211,563 17,319 194,2432059 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 4,511,964 404,072 4,916,036 19,866 25.10 196,620 195,828 7912060 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 27.01 182,732 14,959 167,7732061 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 29.06 169,825 13,903 155,9232062 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 31.27 157,830 12,921 144,9102063 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 33.65 146,682 12,008 134,6742064 312,000 116,688 132,600 62,712 2,310,422 2,625,480 4,935,902 404,072 404,072 4,531,830 36.21 136,322 11,160 125,162

total 13,855,197 5,181,844 5,888,459 2,784,895 102,600,505 116,591,483 219,191,988 10,749,459 15,558,809 18,183,249 44,491,517 174,700,471 44,751,627 17,187,843 27,563,784B/C 2.60

22.60%

Economic IRRannual discount rate

operation costinvestment

(equipment) total






share


year





(NPV)

132

2.12 Natural Conditions Study

The DFS Report provides sufficient information regarding natural conditions in and around the Project Site, including the latest results of topographic, bathymetric and sub-soil boring surveys carried out for the Project in 2013.

For the purpose of this study, major conditions can be summarized as follows.

Land and Seabed Elevations (1)

As shown in the elevation map presented in the front page of this report, land elevation in the Project Site (existing Tien Sa Terminal) varies from CDL+4.0 to +5.0m. The area of existing warehouse is kept higher than the container yard. Crown level of the existing berths vary from CDL+4.5 to +5.0m.

Seabed elevations in front of the existing berths and inside turning basin are kept at CDL-10 to -11m by maintenance dredging. Seabed elevations behind the existing breakwater are 1.0 to 1.5m higher than those surveyed before breakwater construction due to sedimentation in the calm water area created by the breakwater.

Sub-soil Conditions (2)

According to the results of sub-soil investigation presented in the DFS Report, two (2) layers of ② and ④ categorized into silt and clay are found in the Project Site as indicated with yellow color in Figure 2-75.

Weathered granite rock layer ⑦ having N value > 30 appears at CDL-19.8m on the end of breakwater side (BS1) and CDL-12.8m on the end of Pier No.1 side (BS4).

Source: DFS Report

Figure 2-75 Sub-soil Profile along Face Line of New Container Terminal (50,000 DWT)

CDL-14m

BS1 BS2 BS3

BS4

133

The results of laboratory test indicate that some samples tested in a laboratory were potentially disturbed during sampling and transport resulting in conservative evaluation of their mechanical strength.

Characteristics of the soft soil in the two (2) layers can be interpreted from those parameters as shown in Table 2-82.

Table 2-82 Sub-soil Characteristics along New Container Berth

Wind Conditions (3)

Based on the observation record at Son Tra Station for 27 years (1985-2012), wind condition in the Project Site is described in the DFS Report as follows:

- 41 % is calm condition - Prevailing wind directions are East (13.0%), North (12.5%), NW (9.3%)

- Wind speed of 2 to 4m/s occupy 45.4%

Wave (4)

Based on the visual observation record at Son Tra Station wave condition in the Project Site is described in the DFS Report as follows:

- In January, prevailing direction is North, approx. height is 1 to 1.5m and 39% is calm condition. - In April-July, prevailing direction is North, approx. height is 1 m and 45 to 60% is calm condition.

- In October, prevailing direction is Northwest, approx. height is 2 m and 44% is calm condition.

Water Level (5)

Design water Levels are determined in the DFS Report as below.

HWL = CDL+1.36m LWL = CD++0.41m

According to Vietnamese technical standard, storm surge in the Project Site is specified at 1.5 to 2.0m. Water level rising due to climate change in the Project site is specified by MONRE at 31 to 35cm in 2060.

Parameter Unit Layer② Layer④ Characteristics Saturation Degree (G) % 97.75 90.63 G small=>sample is potentially disturbed Unit Weight (γ) g/cm3 1.82 1.81 γ large=>sandy Void Ration (e) --- 1.015 0.964 e small=>less consolidation Plasticity Index (Ip) --- 21.9 13.7 Ip small=>less consolidation Cohesion (C) Kg/cm2 0.1 0.175 C small=>sandy Compression Index (Cc) --- 0.239 0.276 Cc small=>less consolidation Compression Coefficient (Cv) cm2/s 1.099x10-3 1.162x10-3 Cv large=>faster consolidation

134

Seismic Condition (6)

Vietnamese technical standard regulates a procedure how to calculate seismic force. According to the zoning map shown in Figure 2-76, seismic intensity level in central region is classified as level 6 to 7 which approximately corresponds to seismic coefficient of 0.05 to 0.10. In facility design of Phase 1 of the Project, seismic coefficient of 0.05 was considered. In Phase 2, however, coefficient of 0.1 or level 7 (ground acceleration 0.0918g) is recommendable in consideration of recent attention to possible earthquake and tsunami disasters in Vietnam by the government and academies.

Figure 2-76 Seismic Intensity in Vietnam

135

2.13 Environmental Considerations

In this section, Environmental Impact Assessment Report for Tien Sa Terminal – Da Nang Port Improvement Project, 2014 (Project EIA Report) prepared by PMU85 is reviewed based on the contents specified in “JICA Guidelines for Environmental and Social Considerations (April, 2010)”.

It is noted that the Project EIA Report was once submitted to MONRE in January 2014, however, now under modification by a local consultant due to modification of proposed dredged material disposal area from offshore to on-land site. The Study Team, therefore, reviewed the Project EIA Report before modification with available information relating to the on-land dredged materials disposal site. The Project EIA Report resubmitted to DONRE after modification will be reviewed in due course.

Overview of Project Components that gives Environmental and Social Impacts (1)

The Project will be implemented on the western-edge of Son Tra headland facing to Da Nang Bay, and northern-inside of existing Tien Sa Terminal of Da Nang Port (Project Site) as shown in Figure 2-77 and Figure 2-78.

Construction of the project components described below is expected to be completed in 2.5 years followed by one (1) year for defect liability period of the construction works.

Figure 2-77 Project Site in Da Nang City

Da Nang city

Project Site Son Tra district- To Quang ward

136

Figure 2-78 Project Site in Tien Sa Terminal of Da Nang Port

As shown in Figure 2-78, the Project consists of following three (3) major components.

C-1: Existing Yard Improvement

6.5 ha of the present general cargo yard will be altered to container yard and inner access road for international cruise ship passengers.

Major works of this component are construction of container stacking yard, container gate, maintenance shop, substation, pavement, drainage, and utilities.

C-2: New Container Yard Construction

6.9 ha of the land will be developed up to CDL+4.9m by reclamation with 0.7 Million m3 of sand taken from vicinal sources approved by Da Nang city.

Major works of this component are wharf, revetment, reclamation, container stacking yard, administration building, pavement, drainage and utilities.

C-3: New Channel and Basin Dredging

1.6 Million m3 of seabed materials will be dredged down to CDL-14m to secure safe operation of 50,000 DWT container vessels within 41.6 ha of approach channel and turning basin areas.

Major works of this component are dredging and disposal of dredged materials at a designated disposal site approved by MONRE.

Legend

Present Boundary of Tien Sa Terminal

Existing Yard Improvement (6.5 ha)

New Container Yard Construction (6.9ha)

New Channel and Basin Dredging (41.6ha)

137

Environmental characteristics of the above components can be briefly described as below:

Since construction work on land area will be completed inside the territory of DPC, no involuntray resettlement will be necessary.

Since reclamation area is located behind the existing breakwater, most of the bulky and dusty construction materials, such as sand, aggregate, etc. can be transported to the construction site from a seaside all year round. Therefore, no significant increase of dust, noise and vibration along the existing port access road due to construction works of the Project is expected.

Dredging work needs a large volume of dredged materials disposal. Although seabed materials to be dredged met permissible quality levels for offshore disposal recommended by WB and Vietnamese sediment quality standards, due consideration should be made in the negative environmental impacts caused by disposed dredged materials, in particular increased turbidity on the existing aquatic ecosystem and fishery activities in and around the disposal site. Location of the proposed on-land disposal site (to be approved by MONRE) is shown in Figure 2-79.

Figure 2-79 Location of Dredged Materials Disposal Locations

In operation phase of the Project, due to expansion of the existing port facilities, port related water and land traffics will be increased. On land area, number of trailers and trucks will be increased. However, no significant congestion outside port is expected, because capacity of the access road constructed in phase 1 of the Project is confirmed to be enough to accommodate increased traffic volume after completion of the Project. In water area, the size of vessels will become larger and the number of vessels will be increased. However, sufficient vessel maneuvering area and navigation aids are provided, risk of traffic accidents will be kept low.

On-land Disposal Site (5km from dredging area)

Channel & Basin Dredging Area

Offshore Disposal Site (12km from dredging area)

Note: As a result comparison of Offshore/On-land alternatives, On-land Disposal alternative is proposed in the Project EIA Report.

138

Regarding negative impacts on aquatic ecosystem due to ballast water discharge from arriving vessels, it will be minor. In general, a large amount of ballast water is discharged from large-size bulk vessels, such as oil, gas, coal, iron ore carriers, which fully fill their empty belly at destination ports. On the other hand, container vessels, major target vessels of the Project, will discharge a little amount of ballast water because the number/weight of loading and unloading containers is not largely unbalanced for efficient operation.

Background of Natural and Socioeconomic Environmental Conditions (2)

As shown in Figure 2-80, there are two (2) environmentally sensitive areas near the Project Site.

Live coral (red color in the left) and sea grass (light green color in the left figure) communities are found along the shoreline of Son Tra Headland, except for the western shoreline, where the Project Site is exists. Some communities are protected by Da Nang city but some others are opened to the tourists for observation, contributing local economy as shown in Figure 2-81.

Son Tra Peninsular National Conservation Park is designated by Da Nang city, protecting a diversified ecosystems, including fauna and flora typical of the North and South regions, diversified gene vegetation of 298 species under 271 groups, 90 families, 64 species of timbers, 107 valued medicinal plants. There are hundreds of fauna such as stags, deer, monkeys, gibbons, some of which are listed in Red-Book need to be protected as an endemic animal in Indochina and need to be protected. Recently, a thousand-year-old banyan tree in the park has been recognized as a national heritage tree by the Viet Nam Heritage Tree Council under Viet Nan Association for the Conservation of Natural and the Environment.

Distribution of Coral and Sea Plants Flora Distribution in Son Tra Peninsular National Conservation Park Source: Project EIA Report Source: Project EIA Report

Figure 2-80 Aquatic and Terrestrial Sensitive Eco-system near Project Site

Project Site

Live Coral

Dead Coral

Sea Glass

Sea Weed

Project Site

Ever Green Forest Plantation Forest

Grassland and Scrub

139

Figure 2-81 Live Corals in Mui Sung Beach on south Shore of Headland (captured by the Study Team)

As described in the Project EIA Report, those areas are protected by the local authorities, however, no specific endangered species are found in both areas also in the Project Site.

As Da Nang city has put high priority on tourism development policy for sustainable economic growth in the central regions, there are many facilities for tourists along the beach, such as sea bathing areas, restaurants, hotels, etc. One located most close to the Project Site is Tien Sa Eco-tourism Resort, which is located in about 3.5km distance from the Project site on northeast direction having an area of 7,500m2 constructed by a private company.

According to the Project EIA Report, major economic activities in Tho Quang ward in which the Project Site is located, are state employee (46%), service and trading (45%). Local residents open several kinds of tenants and markets along the access road which was constructed in Phase 1 of the Project. Fishery takes 7.3% of the total and most of them are from aquatic production and inshore fishing. In 2013, the catch of fish and aquatic production reached 3,131 tons or 105,459,000 VND. Area for farming takes a small rate (1.7%). The local people earn an average income of 4 million VND /person/month which is lower than average of Da Nang city in 2013 (about 4.6 million VND/person/month), and higher than average of south central coast area (about 1.12 million VND/person/month) in 2010.

Organization and Legislation for Environmental Considerations in Vietnam (3)

The state structure of Vietnam includes four levels: central, provincial, district and communal. As the environmental state agencies, there is Ministry of Natural and Resources and Environment (MONRE) in the central level and Department of Natural and Resources and Environment (DONRE) in the provincial level as shown in Figure 2-82.

Figure 2-82 Organizational Structure of Vietnamese Environmental Authorities

MONRE

Provincial Peoples Committee

District Peoples Committee

DONREs

Inspectorate VEPA

Environmental Management Departments

State Management Authority Environment Enforcement Authority

140

MONRE is the governmental agency responsible for the state management of natural resources, including land, water, minerals and environment, hydrometeorology, geographic measurement and topography.

DONRE is a functional agency that support peoples committee in managing state natural resources and the environment at the local level. DONRE is responsible for submitting to PC with any grants, extensions and revocations of environmental certificates. DONRE’s role includes conducting environmental compliance inspections, settling environmental-related disputes, compliance and violations within its provincial jurisdiction. In addition to its inspection role, DONRE evaluates EIAs submitted by regulated establishments and collects fees for environmental protection.

Primary role of Vietnamese Environmental Protection Agency (VEPA) is to support MONRE’s leadership in implementing the state management over environmental activities, including the environmental inspectorate, pollution prevention, environmental quality improvement, natural conservation, environmental technology promotion and public awareness enhancement.

The latest and primary environmental legislations are following Law, Decree and Circular:

- Environmental Protection Law adopted by the National Assembly of the Socialist Republic of Vietnam on 29 November 2005 and the President signed an order issued on 12 December 2005; - Decree No. 29/2011/ND-CP dated 18 April 2011 of the Government on strategic environmental assessment, environmental impact assessment, environmental protection commitment; - Circular No. 26/2011/TT-BTNMT dated 18 July 2011 of the Ministry of Natural Resources and Environment detailing a number of articles of Decree No. 29/2011/ND-CP of the Government on Strategic Environmental assessment, Environmental impact assessment, Environmental Protection Commitment.

In relation to the Project, Decree No. 29/2011/ND-CP requires the following projects to prepare EIA and being appraised by DONRE:

- Construction of river ports or sea ports for ships of 1,000 DWT or more. - Project associated with exploiting sand or dredging river/sea beds for leveling materials or

construction materials with output capacities of 50,000 m3 or more materials per year.

If the port accommodate ships of 50,000 DWT or larger, EIA of the project shall be appraised and approved by MONRE. Therefore, the EIA Report of the Project which constructs the port for 50,000 DWT container ships with 700,000 m3 of sand for reclamation, is now under appraisal by MONRE.

Assessment of Alternatives (4)

In order to verify appropriateness of the Project, three (3) alternatives, including without project case, are compared in Table 2-83. As a result of the comparison, it is revealed that Option-1, expansion and improvement of existing facilities in Tien Sa Terminal is appropriate.

141

Table 2-83 Comparison of Project Site

Opt

.

Zero-Option Option-1 (Tien Sa) Option-2 (Lien Chieu)

Loca

tion

Land

Util

izat

ion N.A. East side of Da Nang Bay

Expansion/improvement of existing facilities (Tien Sa Terminal)

Adjacent to naval area and industrialized water front

West side of Da Nang Bay Currently water area, no

existing facility Close to inland industrial park

and ecotourism area

Tech

nica

l Asp

ect

N.A. Sob-soil condition is good Breakwater is available Access road is available Future large-scale expansion is

difficult due to limited space around port

Sub-soil condition is good New breakwater is required New access road is required Sand groin may be required to

keep stability of vicinal natural shoreline

Construction cost is higher than Option -1 due to construction of above new facilities

Future large-scale expansion is possible

Envi

ronm

enta

l & S

ocia

l C

onsi

dera

tions

Asp

ect

No port construction will result in further traffic congestion in Tien Sa terminal which may cause environmental degradation, such as ship collision, oil spill, etc.

Contribution to socioeconomic growth in Da Nang City is not achieved

Land acquisition and involuntary resettlement are not required

Ameliorate congestion and lower risk of ship collision, oil spill, etc. in Tien Sa Terminal

Land acquisition and resettlement are required for new access road construction

Ameliorate congestion and lower risk of collision, oil ship spill, etc. in Tien Sa Terminal

Rec

omm

enda

tion Not recommendable Recommendable because of less

alteration of natural land, lower construction cost and land acquisition and involountary resettlement are not required.

Not recommendable

Scoping and TOR for Environmental Surveys (5)

Since environmental consideration in this Study is carried out reviewing the Project EIA Report, which was prepared conducting several environmental surveys and simulations, and now under evaluation by the responsible authorities, scoping and TOR for further environmental surveys are not prepared.

Da Nang Bay Son Tra Hedland

Da Nang City

142

Results of Environmental Surveys and Simulations presented in the Project EIA Report (6)

1）Environmental Survey Results

Table 2-84 shows results of natural environment conditions surveys presented in the Project EIA Report. As shown in the Table, some parameters failed to meet permissible levels in Vietnamese Environmental Standards, but not significant as described in the Project EIA Report below:

Content level of Fe in a seawater sample (0.399 mg/l) exceeds permissible level (0.3 mg/l) at only one (1) location at deeply inside port area.

Noise level at only one (1) location on cargo handling pier (72.2 dBA) exceeds permissible level (70 dBA) due to immediate horn of cargo handling equipment. The nearest residential house is found 600m far from the cargo handling pier.

Permissible levels specified in the relevant environmental standards are indicated in Table 2-97 Proposed Monitoring Forms.

As for a reference information, the testing results of sediment quality also met limit value for offshore disposal specified by WB in “World Bank Technical Paper No. 126”.

Table 2-84 Results of Natural Environmental Conditions Survey

Survey Item Contents Summary of Results

Air Quality TSP, PM10, CO, NO2, SO2 were measured at one (1) location, Tien Sa Ecotourism Resort near construction site.

All results met QCVN 05:2009/BTNMT.

Water Quality

Temp, pH, Turbidity, Conductivity, DO, BOD5, COD, TSS, As, Pb, Cd, Hg, Cu, Zn, Fe, Cr6+, NN+4, CN-, Grease, Coliform, E-coliform were tested at 28 locations in and around construction site.

Only Fe at the locations near existing berth facilities in the port failed to meet QCVN 10:2008/BTNM.

Noise & Vibration

Noise and Vibration levels were measures at eight (8) locations in and around construction site.

Only noise level at existing berth facilities slightly exceeds QCVN26:2010/BTNMT due to cargo handling activities.

Sediment Quality Cu, Pb, Zn, Cd, As were tested at five (5) locations to be dredged and disposed.

All results met QCVN 43:2012/BTNMT.

Source: Project EIA Report

Since it seems that not much attention is drawn to the local fishery activity in the Project EIA Report, the Study Team visited Agricultural and Rural Development (DARD) of Da Nang city to obtain more information about fishery activity along Son Tra headland near the dredged materials disposal location.

Figure 2-83 Small Fishing Boats

143

According to the person responsible for fishery and aquaculture products, currently 937 small boats shown in Figure 2-83 are operating along a shoreline of the headland around the year. High-season of fishery activity is December to August. Varieties of fishing methods are being used, such as trawling net, gill net, steel cage, hooking, diving, etc. Major catch are many kinds of small fish, crab, shrimp, squid, etc., but the catch volume of each boat is not much. Number of small fishing boat is now decreasing year by year because fishermen using small boats are encouraged to transfer deep-sea fishery in line with the government’s policy.

It is said that disposal location of the dredged materials for the Project is better to be decided by DONRE keeping distance of six (6) nautical miles (about 10km) from the shoreline of Son Tra headland. Also said that no problem has occurred, even though DPC has disposed their maintenance dredging materials at presently licensed dumping area located about 2km from northern shoreline of Son Tra headland indicated as DT00 in the Figure below.

2）Simulation Results of Offshore Dredged Materials Disposal

In the Project EIA Report, Two (2) alternative areas in offshore and on-land, for dredged materials disposal are compared in view of potential environmental impacts taking simulation results of “Turbid Water Dispersion at Offshore Dredged Material Disposal Area” into account.

In this simulation, four (4) alternatives of offshore disposal sites are evaluated in terms of degree of negative environmental impact (increase of SS: Suspended Solid concentration) at 22 locations (KQ1-KQ22) including environmentally sensitive areas as shown in Figure 2-84. As a result of simulation, the most distant area from Son Tra headland (DT02) is recommended among four (4) sites to avoid SS concentration higher than 50mg/l at the evaluation points located on the northern shore of Son Tra headland. Allowable SS concentration level of 50mg/l is specified in QCVN10:2008.BTMNT as maximum concentration in fishing/aquaculture and swimming/diving areas.

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Figure 2-84 Location of Simulation (Turbid Water Dispersion at Dredged Material Disposal Area)

In consideration of the information above, it can be said that dredged materials disposal at the area of DT02 shown in Figure 2-84 will not cause serious environmental impact on the local aquatic ecosystem and fishery activity.

3）Proposed On-land Dredged Martials Disposal Area (to be approved by MONRE)

Available information on the proposed on-land dredged material disposal site given by PMU85 is as follows:

- Project owner willing to receive the dredged materials of the Project is a local-foreign joint stock resort developer, who constructed approximately 70ha of reclaimed land as phase 1 at west-side of Han River mouth.

- Capacity of reclamation area for receiving the dredged materials is about six (6) million m3 in approximately 55ha of reclamation area planed as phase 2, much larger than the estimated dredging volume in the Project of 1.6 million m3.

- Further discussion and agreement about disposal conditions, such as requirement on characteristics of disposable soil, disposal method, share of disposal cost, adjustment of implementation schedule, etc. is necessary.

Dredging Area

Offshore Disposal Area Alternatives

Recommended Area (6.7km from offshore)

Transport and Disposal Approx. 12km

Son Tra Headland

DT01 DT02

DT03

DT00

Bathymetry (m)

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Construction photos in phase 1 and reclamation areas in phase 1 and 2 are shown in Figure 2-85. As shown in a photo, reclamation materials is pumped into reclamation area through a discharge hose pipe.

Source: PMU85

Figure 2-85 Construction Photos in Phase 1 and Location of Potential On-land Disposal Area

In case of on-land disposal, although detail information and data will be evaluated in the modified Project EIA Report, it can be said that negative impacts on local aquatic environment along Son Tra headland would be less than those of offshore disposal alternatives, because the dredged materials are disposed into containment reclamation area enclosed by embankment. On the other hand, the risk of water traffic accidents during construction period will be raised because dredged materials will be transported crossing Han River mouth which locates fishing ports and small passenger ports inside.

In addition, responsibility of environmental management and monitoring in and around the on-land dredged materials disposal site must be agreed between PMU85 and project owner who receive the dredged materials, and clearly mentioned in the Project EIA Report.

Potential environmental impacts in and around the on-land disposal site will be seawater quality degradation by turbidity. Although seawater near the on-land disposal site (near Han River mouth) frequently becomes turbid due to natural river discharge, turbid excessive water discharge from the disposal site must be treated at the settlement ponds constructed in the disposal area before being discharged to the sea. SS concentration level in the water area near water discharge point must be kept less than 50mg/l installing silt protection curtain, if necessary. Image of on-land disposal site are shown in Figure 2-86 below.

Potential On-land Disposal Area

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Figure 2-86 Image of On-land Dredged Material Disposal Site

As of the end of September 2014, final decision on dredged material disposal location, offshore or on-lad, has not made yet. Therfore, based on the approved location in the Project EIA Report, togather with final layout, structure and construction method of the port facilities, environemtal management and monitoring plans should be reviewed by detailed design and construction supervision consultant when they prepare construction bidding documents.

Impact Assessment (7)

Reviewing the Project EIA Report and additional information obtained from relevant local authorities and parties, etc., potential environmental impact assessment of the Project is carried out as shown in Table 2-85.

Table 2-85 Impact Assessment

Category Environmental Item

Impact Assessment

Base of Evaluation Construction

Phase

Operation

Phase

Pollution

Control

1 Air Quality B- B- C: Emission from construction equipment.

O: Emission from increased port related traffics.

2 Water Quality B- B-

C: Dredging/disposal and reclamation works.

O: Periodical maintenance dredging/disposal and

discharge from increased port related traffics.

3 Wastes B- B-

C: Dredged materials and construction solid

waste disposal.

O: Not much but continuous general solid and

oily waste disposal.

4 Soil Contamination D D No handling of pollution source.

5 Noise and Vibration B- B- C: Emission from construction equipment on

Reclamation Area/Disposal Site

Trailing Suction Hopper Dredger/Barge

Dredged

Materials

Pump-in with Water

Enclosing Embankment

Settlement Pond

Excessive Water

Silt Protection Curtain (if necessary)

Water Discharge to sea

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land.

O: Emission from increased port related traffics.

6 Subsidence D D No use of large quantity of ground water.

7 Odor D D No handling of odor source.

8 Sediment D D

No handling of pollution source. However,

sediment quality monitoring should be conducted

to study casual relation when negative impact is

found at dredged materials disposal site.

Natural

Environment

9 Protected Area B- B-

C: Dredging/disposal and reclamation works and

immigrant construction workers.

O: Periodical maintenance dredging/disposal and

discharge from increased port related traffics.

10 Ecosystem B- B- Same as above.

11 Hydrology D D No large scale installation in current hydrology.

12 Topography and

Geology D D

No large scale installation in current topography.

Social

Environment

13 Resettlement D D No involuntary resettlement is required.

14 Poverty Group D D Not exist in and around project site.

15 Ethnic Minorities and

Indigenous Peoples D D

Not exist in and around project site.

16 Regional Economy,

Living and Livelihood B+ B+

C: Employment of local people for construction

and business with contractors.

O: Contribution to local economy and tourism by

improving transport capacity and safety.

17 Use of Land and

Regional Resource B- D

C: Large volume of sand exploitation for

reclamation works.

O: Areal urbanization around port.

18 Use of Water D D No use of large amount of water is expected.

19

Existing Social

Infrastructure and

Service

D D

C: Transport of construction materials from

seaside.

O: Existing access road has enough traffic

capacity.

20

Social Stock and

Organization of

Regional Policymaking

Body

D D

Primary project decisions have been made by

central and regional governments

21 Eccentrically-located

Risk and Benefit B- B-

C: Impact on fishery activities due to

dredging/disposal and reclamation works.

O: Impact on fishery activity due to periodical

maintenance dredging/disposal and increased port

related traffics.

22 Conflict in Stakeholders D D Not expected in held public consultation meeting.

23 Heritage D D No heritage exists in and around project site.

24 Landscape D D Project site is limited inside existing port area.

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25 Gender D D Not involved.

26 Children’s Rights D D Not involved.

27 HIV/AIDS Infection B- D

C: Potential prevalent of inflectional disease by

temporal immigrant construction workers.

O: No immigrant worker.

28 Working Conditions D B+

C: No negative condition is expected.

O: Working conditions of port workers will

become better by improvement of port facilities.

Others

29 Accidents B- B+/B-

C: Accident between local traffic and

construction related traffic.

O: Inside port - Safe port operation, especially

safe handling of cruise ship passengers, is secured

by improving port terminal facilities.

O: Outside port – Accident between local traffic

and increased port related traffics.

30 Migration and Climate

Change D D

Not expected in consideration of scale of project.

A+/-: Significant positive/negative impact is expected. B+/-: Positive/negative impact is expected to some extent C+/-: Extent of positive/negative impact is unknown (a further examination is needed, and the impact could be clarified as the

study progress) D: No impact is expected.

Impact Mitigation Measures and Cost (8)

Mitigation measures against potential negative impacts marked “B-” in Table 2-85 are proposed in Table 2-86.

Table 2-86 Environamtal Management Plan: EMP

No. Impacts Proposed Mitigation Measure Implementing

Agency Responsible

Agency Cost (VND)

Construction Phase

1

Air quality degradation due to emission from construction equipment.

Periodical maintenance of construction equipment and use of low emission equipment and qualified fuel. Counter measures for dust pollution along construction materials transport route on land, such as water sprinkling, cover of truck deck, etc.

Contractors PMU85 To be included in construction cost.

2

Seawater quality degradation due to dredging/disposal and reclamation works.

Reduce daily reclamation and dredging/disposal volume and/or install silt curtain, if water quality monitoring record

Contractors PMU85 ditto

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continuously exceed permissible level.

3 Noise and vibration due to emission from construction equipment on land.

Periodical maintenance of construction equipment and strict over speed control.

Contractors PMU85 Local Police

ditto

4

Waste pollution due to dredged materials disposal and construction solid waste disposal.

Reduce daily dredging/disposal volume if water quality monitoring record continuously exceeds permissible level. Strict control of construction waste management plan of contractors.


ditto

5

Disturbance on ecosystem in protected areas on land and in water areas, due to immigrant construction workers and dredging/disposal and reclamation works, respectively.

Implementation of awareness program for immigrant workers. Reduce daily reclamation and dredging/disposal volume and/or install silt curtain, if water quality monitoring record continuously exceed permissible level.


ditto

6

Remote environmental impact at sand borrow pit due to large volume sand exploitation for reclamation works.

Procurement of sand from appropriate owners having enough supply capacity and environmental license.


7

Disturbance on aquaculture/fishery conditions due to water quality degradation caused by dredging/disposal and reclamation works.

Reduce daily reclamation and dredging/disposal volume and/or install silt curtain, if water quality monitoring record continuously exceed permissible level. Periodical information disclosure to fishermen on reclamation, dredging/disposal activity schedule.


8 Infectious disease prevalence due to immigrant construction workers.

Implementation of awareness program for immigrant workers.

Contractors PMU85 DOH

ditto

9

Increase of accident risk between local and construction related traffics due to proximity of existing port facilities and construction site.

Implementation of awareness program for drivers and equipment operators. Installation of traffic lights and buoys. Strict over speed control.

Contractors PMU85 Port Operator Local Police VMS

ditto

Operation Phase

1 Air quality degradation due to emission from increased port related traffics.

Periodical maintenance and use of low emission vessels, vehicles and equipment and

Port Operator DONRE To be borne by port operator.

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qualified fuel.

2

Seawater quality degradation due to periodical maintenance dredging/disposal and discharge from increased port related traffics.

Reduce daily maintenance dredging/disposal volume if water quality monitoring record continuously exceeds permissible level. Periodical maintenance of vessels, vehicles and equipment.

Port Operator DONRE ditto

3

Noise and vibration due to emission from increased port related traffics.

Periodical maintenance and use of low emission vessels, vehicles and equipment and strict operation speed control.

Port Operator DONRE

Local Police

ditto

4 Waste pollution due to not much but continuous general solid and oily waste disposal.

Strict control of waste management plan of operator.


5

Disturbance on ecosystem in protected areas on land and in water areas, due to periodical maintenance dredging/disposal and discharge from increased port related traffics.

Reduce daily maintenance dredging/disposal volume if water quality monitoring record continuously exceeds permissible level. Periodical maintenance of vessels, vehicles and equipment.


6

Disturbance on aquaculture/fishery conditions due to water quality degradation caused by periodical maintenance dredging/disposal and discharge from increased port related traffics.

Reduce daily maintenance dredging/disposal volume, if water quality monitoring record continuously exceeds permissible level. Periodical information disclosure to fishermen on maintenance dredging/disposal activity schedule. Periodical maintenance of vessels, vehicles and equipment.


7

Increase of accident risk between local and increased port related traffics.

Implementation of awareness program for drivers and equipment operators. Installation of traffic lights and buoys. Strict over speed control,

Port Operator VINAMARINE

Local Police

VMS

ditto

Monitoring Program (9)

Appropriate organization structure of the environmental management is proposed in the Project EIA Report as shown in Figure 2-87.

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Figure 2-87 Organization Chart for Environmental Management Program

Monitoring program in three (3) project phases, i.e. Pre-construction, Construction and Operation phases to be carried out by the Environmental Supervisor: ES and Indipendent Environmental Monitoing Consultant: IEMC is proposed in the Project EIA Report as shown in Figure 2-87.

Monitoring points are located as shown in Figure 2-88, and monitoring parameters and frequencies are tabulated in Table 2-87 to Table 2-95.

Necessary cost for the monitoring program above, which will be included in the project management cost of PMU85, are summarized in Table 2-96. It is noted that monitoring items of waste, areal impacts, traffic safety and infectious disease are additionally proposed in this report. Therefore, necessary cost for these proposed monitoring items should be added on the total cost in Table 2-96 in the Project EIA Report to be resubmitted to MONRE.

On the other hand, necessary cost for environmental management and monitoring to be carried out by the contractors during construction period will be included in their contract prices.

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Figure 2-88 Location of Monitoring Points

Table 2-87 Air Quality Monitoring

No. Monitoring Item Pre-construction Phase Construction Phase Operation Phase 1 Implemetation Agency IEMC/ES IEMC/ES Port Operator 2 Responcible Agency PMU85 PMU85 DONRE 3 Parameter TSP, PM10 4 Frequency 1 day prior to construction 1 day in every 3 months 1 day in every 6 months 5 Number of Sample 3 locations x 8 times/day

x 1 time 3 locations x 8 times/day x 4 times for 2.5 years

3 locations x 8 times/day x 2 times for 2 years

6 Standard to be Applied QCVN 05:2009/BTNMT Source: Project EIA Report

Nm7,Tt7

In case Offshore Disposal

In case On-land Disposal

Traffic Safety Monitoring will be conducted at 4 locations, port basin, cargo terminal, gate and access road.

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Table 2-88 Coastal Water Quality Monitoring

No. Monitoring Item Pre-construction Phase Construction Phase Operation Phase 1 Implemetation Agency IEMC/ES IEMC/ES Port Operator 2 Responcible Agency PMU85 PMU85 DONRE 3 Parameter Temperature, pH, Turbidity, Salinity, DO, COD, BOD5, TSS, Oil, E. Col,

Coliform 4 Frequency 1 day prior to construction Points 1-5

1 day in every 3 months Points 6-7 1 day in every month

1 day in every 6 months

5 Number of Sample 7 locations x 1 layer x 2 times/day x 1 time

Points 1-5 5 locations x 1 layer x 2 times/day x 4 times for 2.5 years

Points 6-7 2 locations x 1 layer x 2 times/day x 12 times for 2.5 years

7 locations x 1 layer x 2 times/day x 2 times for 2 years


Table 2-89 Waste Monitoring

No. Monitoring Item Pre-construction Phase Construction Phase Operation Phase 1 Implemetation

Agency IEMC/ES IEMC/ES Port Operator

2 Responcible Agency PMU85 PMU85 DONRE 3 Parameter Compliance with Standards 4 Frequency 1 day prior to construction 1 day in every 3 months 1 day in every 6 months 5 Number of Sample Site observation/

hearing/record chck within port area x 1 time

Site observation/hearing/record check within construction site for 2.5 years

Site observation/ hearing/recor check within port area for 2 years

6 Standard to be Applied

Decree 59:2007/ND-CP on solid waste management Circular 12/2011/TT-BNTMT on oily waste management Circular 50/2012/TT-BGTVT on management of reception and treatment of oily liquid waste from seagoing ships at ports


Table 2-90 Noise Monitoring

No. Monitoring Item Pre-construction Phase Construction Phase Operation Phase 1 Implemetation Agency IEMC/ES IEMC/ES Port Operator 2 Responcible Agency PMU85 PMU85 DONRE 3 Parameter Leq 4 Frequency 1 day prior to construction 1 day in every 3 months 1 day in every 6 months 5 Number of Sample 3 locations x 16

times/day x 3 measurements x 1 time

3 locations x 16 times/day x 3 measurements x 4 times for 2.5 years

3 locations x 16 times/day x 3 measurements x 2 times x 2 years


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Table 2-91 Vibration Monitoring

No. Monitoring Item Pre-construction Phase Construction Phase Operation Phase 1 Implemetation Agency IEMC/ES IEMC/ES Port Operator 2 Responcible Agency PMU85 PMU85 DONRE 3 Parameter Laeq 4 Frequency 1 day prior to construction 1 day in every 3 months 1 day in every 6 months 5 Number of Sample 3 locations x 16

times/day x 3 measurements x 1 time

3 locations x 16 times/day x 3 measurements x 4 times for 2.5 years

3 locations x 16 times/day x 3 measurements x 2 times x 2 years


Table 2-92 Sediment Quality Monitoring

No. Monitoring Item Pre-construction Phase Construction Phase Operation Phase 1 Implemetation Agency IEMC/ES IEMC/ES Port Operator 2 Responcible Agency PMU85 PMU85 DONRE 3 Parameter Cu, Pb, Zn, Cd, As 4 Frequency 1 day prior to construction 1 day in every 3 months 1 day in every 6 months 5 Number of Sample 7 locations x 1 time 7 locations x 4 times for

2.5 years 7 locations x 2 times for 2 years


Table 2-93 Areal Impacts Monitoring

No. Monitoring Item Pre-construction Phase Construction Phase Operation Phase 1 Implemetation Agency IEMC/ES IEMC/ES Port Operator 2 Responcible Agency PMU85 PMU85/Local Police DONRE/Local Police 3 Parameter Occurrence of environmental impacts in selected areas, such as environmental

protected areas, remote construction material sources, etc. Potential environmental impacts to be visually observed in the selected areas will be change in quality and coverage of animals, plants, corals, etc., extent of human activity intrusion, bathymetric and terrestrial forms, surface and ground water level and quality, air quality, etc. by conducting: - in pre-construction phase: confirmation of current environmental conditions, and - in construction/operation phases: detection of change in environmental conditions and evaluation of causal relation with project implementation.

4 Frequency 7 days prior to construction 7 days every 3 months 7 days every 6 months 5 Number of Sample Site observation/hearing

in selected areas and DONRE x 1 time

Site observation/hearing in selected areas and DONRE for 2.5 years

Site observation/hearing in selected areas and DONRE for 2 years

6 Standard to be Applied N.A.

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Table 2-94 Traffic Safety Monitoring

No. Monitoring Item Pre-construction Phase Construction Phase Operation Phase 1 Implemetation Agency IEMC/ES IEMC/ES Port Operator 2 Responcible Agency PMU85 PMU85/Local Police VINAMARINE/VMS/Local

Police 3 Parameter Accident and safety management records in and around port 4 Frequency 1 day prior to

construction 1 day every 3 months 1 day every 6 months

5 Number of Sample Site observation/hearing at 4 locations in and around port area and local police x 1 time

Site observation/hearing at 4 locations in and around construction site and local police for 2.5 years

Site observation/hearing at 4 locations in and around port area and local police for 2 years


Table 2-95 Infectious Disease Monitoring

No. Monitoring Item Pre-construction Phase Construction Phase 1 Implemetation Agency IEMC/ES IEMC/ES 2 Responcible Agency PMU85/DOH PMU85/DOH 3 Parameter Prevalence records in and around port 4 Frequency 1 day prior to construction 1 day every 3 months 5 Number of Sample Site observation/hearing

in and around port area and DONRE x 1 time

Site observation/hearing in and around construction site and DONRE for 2.5 years


Table 2-96 Cost for Environmental Management and Monitoring by ES and IEMC (to be confirmed by PMU85)

No. Item Cost (VND) 1 Monitoring supervision by ES 926,900,000 2 Monitoring implementation by IEMC 2,384,265,000

Sub-total 3,311,165,000 4 Contingency (10%) 331,16,500 Total 3,642,281,500


Public Consultations (10)

Decree No. 29/2011/ND-CP (Articles 14 and 15) specifies that when making an Environmental Impact Assessment report, the project owner shall consult PC of commune level and representatives of communities and organizations directly affected by the project and results of the meeting shall be attached as an annex to the environmental impact assessment report.

According to the Project EIA Report, public consultations were made following the procedure specified in the Degree No. 29/2011/ND-CP. Results of the public consultations done in writings, meetings and

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interviews are briefly described bellow.

Opinions of Commune Level PC (Tho Quang ward locating the Project Site) (in writing) - Construction works generally does not impact to the residential areas. - During construction, full contents of mitigation measures mentioned in the provided summary

documents must be carried out. - Construction materials must be transported abiding related laws without negative impact, such as

dust pollution in the residential areas. (in meeting) - Contractors must collect garbage, waste, rejected materials, etc. and do not dispose into sea. - Construction worker’s health conditions must be carefully checked before taking them into the

Project to avoid prevalence of infectious disease. - Temporary residents as construction workers must be registered to avoid social disorder. - The Project must be completed in time to develop local economy.

Opinions of Representatives of Communities (in writing) - Negative impacts described in the provided summary documents are agreeable. - Mitigation measures summarized in the provided summary documents are agreeable. - Local communities must be fully informed of construction schedule to prepare and limit impacts on

living activities and health of communities. - Construction materials transport on land must be strictly controlled to ensure traffic safety. (in interviews) - Interviewees know general information of the Project of which 84.8% is positive and 15.2% has no

opinion. - Worry about dust pollution along street nearby port gate and waste discharge from construction site. - Need to know more precise construction schedule.

Opinions of Representatives of Organizations (Son Tra –Ngu Hanh Son Forestry Sector, managing organization of Son Tra Peninsular National Conservation Park)

(in writing) - The Project is implemented outside the conservation park. However, certain negative impacts to the

conservation park due to immigrant construction workers are expected, such as wild animal hunting, forest tree cutting, forest fire, waste dumping, etc.

- Education and awareness promotion of forest protection and fire prevention for construction staff and workers are necessary.

- Immigrant of workers into the forest must be strictly prohibited. - Waste discharge of construction refuses into the conservation park must be strictly prohibited.

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- PMU85 must sign on the commitment of forest protection and fire fitting and implement it throughout the construction progress.

Response of PMU85 - Mitigation measures against potential negative impacts discussed in the consultation process will be

appropriately incorporated into Chapter 4 of the Project EIA Report. - With regard to the sanitation and waste management issues, construction contractors must have

business contracts with Da Nang Urban Environment Company for proper waste management. - PMU85 will disclose latest project activities, adverse impacts and mitigation measures coordinate to

the localities. - PMU85 will work with local authorities to make sure temporally registration of project-related

residents. - PMU 85 will work with local authorities to make sure traffic safety during the construction stage. - PMU85 will conduct awareness promotion on importance of ecosystem in the conservation park to

the construction workers, prepare regulations to prevent such behavior of the construction workers mentioned above and commits to maintain coordination with Son Tra-Ngu Hanh Son Forestry Sector regarding the activities of forest protection and forest fire fighting.

Necessity of Resettlement (11)

Since entire construction works on land in the Project will be executed and completed within the present port territory of DPC, no involuntary resettlement will be required.

However, there are two (2) private chip factories, CODONA and VIJACHIP Da Nang, operating in the north-side of the existing terminal as shown in Figure 2-89 based on the lease contracts no. 50/HDKT-N2005, no. 141/HDKT, no. 98/HDKT-N2014, and the Decision no. 694/TTg dated on 26/10/1995. The outlines of the lease contracts and the current status regarding the land-leases are as follows;

<The land-lease to CODONA>

Based on the contract no. 50/HDKT-N2005 between DPC and CODONA, the area of DPC rent by CODONA is 19,389m2, and the leasing period is from 26/10/1995 to 27/05/2015.

<The land-lease to VIJACHIP Da Nang>

Based on the Decision no. 694/TTg dated on 26/10/1995 issued by the Prime Minister, a land lease agreement was made between VIJACHIP Da Nang and Da Nang PC on an area of 4,000 m2. The current land lease agreement will be terminated at the end of 2014.

VIJACHIP Da Nang is now constructing chipping factory in Hoa Nhon commune, which is outside of Tien Sa Terminal for relocation. However, according to an interview to VIJACHIP Da

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Nang conducted by the Study team, the company wishes to keep stock yard inside Tien Sa terminal for efficient shipping operation.

Another land lease contract was made between DPC and VIJACHIP Da Nang for more than 20,000 m2. The leasing period was from 15/08/1993 to 15/08/2013, and extended until 31/12/2014.

On expiration of the lease contracts, no compensation for relocation is granted in the contracts.

According to an interview to VIJACHIP Da Nang conducted by the Study team, Da Nang PC is currently trying to find alternative site for the stock yard near Tien Sa terminal in collaboration with Da Nang PC before expiration of the extended lease contracts.

The detailed design of the Project is expected to start in December 2015, and the areas above are expected to be developed as a container yard in the Project. Therefore, the areas for woodchip need to be relocated before detailed design start, so there will be no compensation and support for lessees.

Source: DFS Report

Figure 2-89 Existing Chip Factories in Tien Sa Terminal

Monitoring Form (proposed) (12)

MOT is responsible to submit the results of environmental monitoring to JICA as a part of Quarterly Progress Report throughout the construction phase, and on biannual basis for the first two years in the operation phase.

Proposed monitoring forms are shown in Table 2-97.

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Table 2-97 Proposed Monitoring Forms

Environmental Monitoring Form -1 (Proposed)

Pre-Construction / Construction / Operation Phase

1. Response/Actions to Comments from Government and Public

Monitoring Item Monitoring Results during Report Period

Number and contents of formal comments made by the public

Number and contents of responses from Government agencies

2. Pollution (1) Air Quality

Item Unit Measured Value Standard QCVN05:2009/BTNMT

Measurement Point Frequency

TSP μg/m3 200 KK1, O1 Once/Monthly/Quarterly/Biannual KK2, O2 KK3, O3 PM10 μg/m3 150 KK1, O1 Once/Monthly/Quarterly/Biannual KK2, O2 KK3, O3 (2) Noise

Item Unit Measured Value) Standard QCVN26:2010/BTNMT


Leq dBA 70 KK1, O1 Once/Monthly/Quarterly/Biannual KK2, O2 KK3, O3 (3) Vibration



Laeq dB 70 KK1, O1 Once/Monthly/Quarterly/Biannual KK2, O2 KK3, O3 (4) Coastal Water Quality



Temperature C - Nm1, Tt1 Once/Monthly/Quarterly/Biannual Nm2, Tt2 Nm3, Tt3 Nm4, Tt4 Nm5, Tt5 Nm6, Tt6 Nm7, Tt7 pH - 6-8.5 Nm1, Tt1 Once/Monthly/Quarterly/Biannual Nm2, Tt2 Nm3, Tt3 Nm4, Tt4 Nm5, Tt5 Nm6, Tt6 Nm7, Tt7 Turbidity mg/l - Nm1, Tt1 Once/Monthly/Quarterly/Biannual Nm2, Tt2 Nm3, Tt3 Nm4, Tt4 Nm5, Tt5 Nm6, Tt6 Nm7, Tt7 Salinity ‰ - Nm1, Tt1 Once/Monthly/Quarterly/Biannual Nm2, Tt2 Nm3, Tt3

160

Nm4, Tt4 Nm5, Tt5 Nm6, Tt6 Nm7, Tt7 DO mg/l >5 Nm1, Tt1 Once/Monthly/Quarterly/Biannual Nm2, Tt2 Nm3, Tt3 Nm4, Tt4 Nm5, Tt5 Nm6, Tt6 Nm7, Tt7 COD mg/l 3 Nm1, Tt1 Once/Monthly/Quarterly/Biannual Nm2, Tt2 Nm3, Tt3 Nm4, Tt4 Nm5, Tt5 Nm6, Tt6 Nm7, Tt7 BOD5 mg/l - Nm1, Tt1 Once/Monthly/Quarterly/Biannual Nm2, Tt2 Nm3, Tt3 Nm4, Tt4 Nm5, Tt5 Nm6, Tt6 Nm7, Tt7 TSS mg/l 50 Nm1, Tt1 Once/Monthly/Quarterly/Biannual Nm2, Tt2 Nm3, Tt3 Nm4, Tt4 Nm5, Tt5 Nm6, Tt6 Nm7, Tt7 Oil mg/l 0.1 Nm1, Tt1 Once/Monthly/Quarterly/Biannual Nm2, Tt2 Nm3, Tt3 Nm4, Tt4 Nm5, Tt5 Nm6, Tt6 Nm7, Tt7 E. Col MPN/100ml - Nm1, Tt1 Once/Monthly/Quarterly/Biannual Nm2, Tt2 Nm3, Tt3 Nm4, Tt4 Nm5, Tt5 Nm6, Tt6 Nm7, Tt7 Coliform MPN/100ml 1,000 Nm1, Tt1 Once/Monthly/Quarterly/Biannual Nm2, Tt2 Nm3, Tt3 Nm4, Tt4 Nm5, Tt5 Nm6, Tt6 Nm7, Tt7 (5) Sediment



Cu mg/kg 108 Nm1, Tt1 Once/Monthly/Quarterly/Biannual Nm2, Tt2 Nm3, Tt3 Nm4, Tt4 Nm5, Tt5 Nm6, Tt6 Nm7, Tt7 Pb mg/kg 112 Nm1, Tt1 Once/Monthly/Quarterly/Biannual

161

Nm2, Tt2 Nm3, Tt3 Nm4, Tt4 Nm5, Tt5 Nm6, Tt6 Nm7, Tt7 Zn mg/kg 271 Nm1, Tt1 Once/Monthly/Quarterly/Biannual Nm2, Tt2 Nm3, Tt3 Nm4, Tt4 Nm5, Tt5 Nm6, Tt6 Cd mg/kg 4.2 Nm1, Tt1 Once/Monthly/Quarterly/Biannual Nm2, Tt2 Nm3, Tt3 Nm4, Tt4 Nm5, Tt5 Nm6, Tt6 Nm7, Tt7 As mg/kg 41.6 Nm1, Tt1 Once/Monthly/Quarterly/Biannual Nm2, Tt2 Nm3, Tt3 Nm4, Tt4 Nm5, Tt5 Nm6, Tt6 Nm7, Tt7 (6) Waste (Once/Monthly/Quarterly/Biannual)

Item Monitoring Results during Report Period Measure to be Talen

Site Observation

Hearing

Record Check

Environmental Monitoring Form -2 (Proposed)

Construction / Operation Phase

1. Response/Actions to Comments from Government and Public

Monitoring Item Monitoring Results during Report Period

Number and contents of formal comments made by the public

Number and contents of responses from Government agencies

2. Natural / Social Environment (1) Areal Impacts( Once/Monthly/Quarterly/Biannual) 1-Fishing & Coral Area

Item Monitoring Results during Report Period Measure to be Taken

Site Observation

Hearing

2-SonTra National Conseravation Park Area Item Monitoring Results during Report Period Measure to be Taken

Site Obseravtion

Hearong

162

3-Remote Construction Material Source Area Item Monitoring Results during Report Period Measure to be Taken

Site Obseravtion

Hearong

(2) Traffic Safety (Once/Monthly/Quarterly/Biannual) 1-Port Basin

Item Monitoring Results during Report Period Measure to be Taken

Site Observation

Hearing

2-Cargo Terminal Item Monitoring Results during Report Period Measure to be Taken

Site Observation

Hearing

3-Gate Item Monitoring Results during Report Period Measure to be Taken

Site Observation

Hearing

4-Access Road Item Monitoring Results during Report Period Measure to be Taken

Site Observation

Hearing

(3) Infectious Disease (Once/Monthly/Quarterly/Biannual) Item Monitoring Results during Report Period Measure to be Taken

Site Observation

Hearing

Environmental Check List (13)

As a result of environmental survey conducted in the Study, tentative environmental checklist is prepared by

the Study Team as presented in ATTACHMENT3.4.

Content of the environmental check list needs to be updated based on the Project EIA Report finally approved

by MONRE.

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Environmental Regulation on Industrial Zones by Da Nang City (14)

There are five (5) major industrial zones in Da Nang city in which many foreign firms are in operation. Expansion of the industrial zones resulting from reinforcement of cargo handling capacity in Tien Sa terminal under the Project may raise negative environmental impacts in and around the existing industrial zones and vicinal access roads. Therefore, current environmental conditions and potential impacts in and around the industrial zones were surveyed.

Based on the information obtained from tenants in the industrial zones by direct interviews, current environmental conditions and potential impacts as a result of the Project can be understood as follows.

Since the industrial zones are presently not yet fully occupied, traffic congestion, air pollution, noise, vibration caused by the industrial zones related traffics and/or factory operations are not yet observed. Therefore, rapid environmental problems in and around the industrial zones caused by implementation of the Project are hardly expected.

On the other hand, however, current issue in the most of industrial zones is waste water discharge. Due to inappropriate operation or even no operation of waste water treatment plant by industrial zone management companies, waste water exceeding maximum water quality requirement is being discharged outside the industrial zones. This case may be directly worsened if tenants in the industrial zones increase their production as a result of reinforcement of cargo handling capacity in Tien Sa terminal.

According to DONRE in Da Nang city, the above unfavorable situation is obvious. Therefore, DONRE is now enforcing discharged water quality inspections in the industrial zones and giving more strict instruction and penalties to the violators than ever.

Post-resettlement Conditions Survey (15)

Since it has been reported in the project evaluation report of phase 1 of the Project, 2009 that some residents who were dependent on farming are still in difficulty of living restoration after resettlement, a quick post-resettlement conditions survey was conducted by the Study Team and a local surveyor by interviews. Summary of the interviews made to an execution agency and two (2) project affected households are as follows.

According to chairman of An Hai Bac ward PC office and director of Bach Dang Dong PMU, in charge of the resettlement work in phase 1 of the Project:

In general, phase 1 of the Project has contributed significantly to improving the living conditions of the people in Son Tra district and also improving the image of the district. Before, the infrastructure in the district was in very poor conditions.

Due to the importance of the project, the PC of Da Nang city had better policy to compensate and

164

support for the affected households in the project than other projects in the same districts. Since some affected households were farmer, PMU had to disburse a huge fund to support these households to stabilize their lives after being resettled like cash support and vocational training so that they can learn new skills to start their new lives. Some of these households have found a new jobs like doing small businesses at home, opening a coffee shops, small food shops, etc. or they can also plant vegetables on the vacant land available (the land that has no structures on it) maybe belong to themselves or belong to others, and they sell the vegetables to earn an income.

Some of the farmers in this area have lived here for a long time. So they do not want to move to another place where farmland is not available for them to continue the farming work. Some farmers did not want to learn new skills at the vocational training school because they were old and it is difficult for them to learn new things. Only the young people of these households can adapt to the new conditions and are willing to learn new things, and to work as workers in the industrial zones.

Some farmer households originally owned thousands of square meters of farmland and to compensate for the land lost, they were compensated with more than one lot of land and some of them sold one or more than one lots that they were allocated to build the houses depending on their life plans after resettlement. Some sold their remaining land lots and spent all the money without starting the new business. These persons complain about their lives after resettlement because they were incapable of adapting the new living conditions, they spent all the money from the compensations and supports, and did not try to start a new business or a new job. Generally most of the affected households were happy to receive the compensation and support at the time, and some of them have sucsessfully expanded their small business, such as restaurant, lunch catering, motorbike repair shop, entertainment, etc. in the city center. On the otherhand, only a few people complain when they have spent all the money they received from the compensation without successfully starting a new business or a new job even though they were actively supporting resettlement plan at the time.

In the end of interview , chairman of An Hai Bac ward PC confirmed their permanent policy that even though few complaint is raised now, they are still ready for further consultation for the affected households if necessary.

PAP Household-1 (Introduced by and interviewed with the above chairmen and director)

This man had about 1,000m2 of land, including residential land, garden land and farm land. After his land was evaluated and acquired, he was allocated with two (2) lots of residential land, each of 110m2

are located along a road, he is now living in one lot and he sold another land lot and used that money for building the current house and some space for business. He and his wife is running a noodle shop for breakfast in the morning and in the afternoon, he works in a restaurant as a cook. His children are now workers in the industrial zone. He said that his current life is fine and he is satisfied with the result of resettlement.

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PAP Household-2 (Introduced by and interviewed with the above chairmen and director)

This couple had 2,000m2, including residential land, garden land and farm land. After their land was evaluated and acquired, they were allocated with four (4) lots of residential land, they are now living in one lot located along a road and they sold the other lots and use that money for building the current house to live with their children. The couple are at the age of 60 and they are living on their children, who work in the industrial zone. The couple run a small coffee shop but the income was just enough for them to buy daily food for the family. She seems fine but he seems not very satisfied with the results of resettlement, since he still regrets the farming work. He once tried to rent the farmland at another place in Da Nang city to continue his farming job, i.e. to plant vegetables, but the land that he rented was also acquired for resettlement again 2 years ago and he could not continue his farming works.

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3． ATTACHMENT

3.1 Construction Cost

Case A1: Bored Concrete Pile Type Wharf (35.00m/block)

Foreign (Yen) Local (VND) Total Foreign (Yen) Local (VND) Total1 D1300 Bored Pile

Underwater soil drilling 36piles, Av.27.00m m 972.00 45,119 2,310,916 43,856,101 2,246,210,049Manufacture & place Casing L=12.5m/hole, t=9mm ton 128.25 140,000 17,955,000Pilehead treatment 1.3m m3 62.09 1,450,000 90,026,469Installtion of ultrasound tube D60mm, 207.3m/pile m 7,462.80 178,000 1,328,378,400Fabricate & install Re-bar ton 129.35 24,098,417 3,117,082,091Supplu & place concrete M400 class m3 1,418.45 8,127 2,303,771 11,528,073 3,267,793,653

2 WharfSteel Formwork m2 2,695.00 869,820 2,344,164,900Scaffolding m 1,225.00 354,795 434,623,875Fabricate & install Re-bar ton 210.00 24,098,417 5,060,667,650Supply & place concrete M400 class m3 1,050.00 1,698,930 1,783,876,387

3 Retaining Wall 　

Supply & place foundation rubble stone 30～200kg/pc m3 6,153.00 369,972 2,276,436,947Levelling stone ±5cm m2 91.10 10,596 527,585 965,279 48,062,984Rough levelling (underwater) m2 1,227.00 237,926 291,934,773Supply & place Geotextile sheet m2 635.00 1,032 19,018 655,472 12,076,154Steel Formwork m2 213.00 869,820 185,271,660Scaffolding m3 70.00 354,795 24,835,650Supply, fabricate & place Reinforcement bar SD345　100kg/m3 kg 6,600.00 24,098 159,049,555Supply & place concrete m3 132.00 1,698,930 224,258,746

4 Armour stoneSupply & place Armour stone 250kg/pc m3 803.00 369,972 297,087,416Underwater levelling m2 1,383.00 237,926 329,051,175Onshore levelling m2 237.30 21,092 5,005,103

5 AccessoriesRubber ladder Nos. 0.35 1,105,800 3,291,278 387,030 1,151,947Rubber fender Nos. 2.00 12,204,000 5,351,146 24,408,000 10,702,292Bollard 150t class Nos. 2.00 1,431,206 1,209,603 2,862,413 2,419,206Crane rail m 70.00 116,283 278,247 8,139,810 19,477,301

6 MobilizationCrane Barge + Tug boat 4 set set 0.35 500,000,000 176,767,677

Total m 35.00 110,757,178 23,736,412,061

Unit Price per Meter 3,164,491 678,183,202 6,487,588

Unit Price AmountNo. SpecificationDescription Unit Quantity

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Case A2 : Concrete Caisson Type Wharf (L17.1m x B18.8m x H17.0m) per 17.1m

Foreign (Yen) Local (VND) Total Foreign (Yen) Local (VND) Total1 Foundation

Supply & place foundation stone 30～200kg/piece m3 840.00 369,972 310,776,375Levelling ±5cm m2 332.00 10,596 527,585 3,517,813 175,158,187Rough levelling ±30cm m2 158.00 237,926 37,592,253Supply & place Armour stone 250kg/pc m3 97.00 369,972 35,887,272Underwater levelling m2 114.00 237,926 27,123,524

2 Caisson FabricationPlace roofing sheet m2 321.50 69,300 22,279,950Supply & place Asphalt mat m2 321.50 2,520,000 810,180,000Outer Scafforlding m2 1,095.00 354,795 388,500,525Inner Scafforlding m2 1,379.00 354,795 489,262,305Supply, Fabricate & place Re-bar 100kg/m3 kg 103,500 24,098 2,494,186,199Install & remove formworks m2 5,581.00 869,820 4,854,465,420Supply & place concrete 240-8-20 m3 1,035.00 2,258,930 2,337,992,439Launch & install Caisson W=2536t No. 1.00 265,749,515 265,749,515Install caisson No. 1.00Supply & place infill sand m3 3,717.00 977,162 3,632,112,957Levelling sand m2 237.00 21,092 4,998,776Cap concrete m3 166.00 2,258,930 374,982,362Japanese supervisor 2 person MM 1.33 1,000,000 1,333,333

3 BackfillingSupply & place foundation stone m3 3,009.00 369,972 1,113,245,372Underwater Levelling m2 329.00 237,926 78,277,539Onshore levelling m2 47.40 21,092 999,755Supply & place Geotextile sheet m2 397.60 1,032 19,018 410,419 7,561,384Supply & place Sand protection mat m2 20.00 6,199 49,799 123,977 995,980

4 Coping ConcreteSupply & place concrete 180-8-20 m3 231.00 1,698,930 392,452,805Formwork m2 133.00 869,820 115,686,060Form support m 17.10 354,795 6,066,995

5 PavementConcrete Pavement t=20cm m2 1,698,176

6 AccessoriesBollard (supply & install) 150t type,bend type, ctc 17.1m No. 1.00 1,431,206 1,209,603 1,431,206 1,209,603Rubber Fender (supply & install) π1600H X 2,000 @17.1m No. 1.00 12,204,000 5,351,146 12,204,000 5,351,146Supply &install Crane rail m 254.20 116,283 278,247 29,559,139 70,730,426Rubber Ladder 200H x 3000L +2.1m ladder No. 0.17 1,105,800 3,291,278 189,092 562,808

7 Crane FoundationSteel Pipe Pile (6.025t/pc) D900, L=25.00m, t=11mm No. 3.00 851,490 2,554,470Supply & Drive Steel Pipe Pile D900, L=25.00m, t=11mm No. 3.00 969,000 2,907,000Supply, Fabricate & place Re-bar 150kg/m3 kg 7,080.00 24,098 170,616,795Install & remove formworks 20x(2x2+1.5) m2 94.40 869,820 82,111,008Supply & place concrete 240-8-20, 20x2x1.5 m3 47.20 1,698,930 80,189,491

8 Floating Dock (Caisson 23 Nos basis)Preparation, Inspection before Mobilizasharing 1/23 Ls. 1 266,087 266,087Transportation to port of departure sharing 1/23 L.s 1 532,174 532,174Mobilization by Lift Barge Japan - Vietnincl FD charge 1 month time 0.09 245,514,000 21,349,043

Floating Dock (11,000t) L65m x B35m 3 caisson - 2 month mth 0.67 21,114,000 14,076,000

Total m 17.10 90,453,754 18,387,305,225

Unit price per m 5,289,693 1,075,281,007 10,558,570

Unit Price AmountNo. Specification UnitDescription Quantity

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Case A3: Steel Sheet Pipe Pile + Tie Rod Type Wharf (per 20m)

Foreign (Yen) Local (VND) Total Foreign (Yen) Local (VND) Total1 Wharf Structure

Steel Sheet Pipe Pile SKK490, D1000xt20, L=30.5m, 14.732t/No. Nos. 16.00 3,036,420 48,582,720Supply & drive Steel Sheet Pipe Pile SKK490, D1000xt20, L=30.5m, 16Nos. Nos. 16.00 1,182,180 18,914,880Supply, install & remove Guide Frame time 4.00 38,971 30,027,751 155,884 120,111,003Steel Sheet Pipe Pile SKK400, D1000xt11, L=24.5m, 6.566t/No. ton 16.00 1,356,000 21,696,000Supply & drive Steel Sheet Pipe Pile SKK400, D1000xt11, L=24.5m, Nos. 16.00 949,620 15,193,920Fabricate & install wale Front, Rear m 40.00 17,526 1,379,996 701,035 55,199,826Temporary support for Tie rod m 20.00 24,840 1,712,838 496,800 34,256,766Supply and Install Tie rod 85mm dia, L=32m, ctc 2.5m set 8.00 638,000 6,065,196 5,104,000 48,521,565Steel Formwork m2 319.00 869,820 277,472,580Scaffolding m3 208.00 354,795 73,797,360Supply, fabricate & place Reinforcement bar SD345 200kg/m3 t 41.25 24,098,417 994,059,717Supply & place concrete m3 275.00 2,258,930 621,205,720Support Beam for Scaffolding m 40.00 3,547,950 141,918,000Supply & place Pile cap concrete under Beam (+2.9) L=1D m3 11.58 3,270,000 37,851,218

2 Slope ProtectionSupply & place rubble stone 5~25kg/pc m3 60.20 369,972 22,272,307Rough levelling of Rubble stone m2 128.00 237,926 30,454,483Supply & place Armour stone 250kg/pc m3 67.80 369,972 25,084,093Levelling & finishing of Armour stone m2 143.00 10,596 527,585 1,515,203 75,444,641

3 BackfillngSupply & place rubble stone 5~25kg/pc m3 1,721.00 369,972 636,721,597Onshore levelling m2 103.00 21,092 2,172,464Levelling of Rubble stone m2 246.00 237,926 58,529,710Supply & lay Geotextile sheet m2 388.00 1,032 19,018 400,509 7,378,816

4 FittingSupply & place Bollard 150t type, bent, ctc 20m No. 1.00 1,431,206 1,209,603 1,431,206 1,209,603Supply & Place Rubber Fender π1600H X 2,000 @20m No. 1.00 12,204,000 5,351,146 12,204,000 5,351,146Supply & place Cathodic Protection Anode for 50years, current 3.0A kg 4,065.20 648 15,607 2,633,232 63,444,789Anti corrosion Paint (Heavy duty) Uletane coverage type, L=3.28m m2 87.70 31,000 2,718,700Supply &install Crane rail m 40.00 116,283 278,247 4,651,320 11,129,886Rubber Ladder 200H x 3000L +2.1m ladder No. 0.02 1,075,200 2,861,981 21,498 57,222


Total m 20 136,420,906 3,394,149,562

Unit price per m 6,821,045 169,707,478 7,652,612


Case A4: Steel Pipe Pile Type Wharf (Jetty structure) (35m/block)


Steel Pipe Pile (incl Transportation & Handling) SKK490 D1,200, t=12, 352kg/m, L=29.00m No. 36.00 1,563,290 56,278,440Drive & place Steel Pipe Pile m 1,044.00 38,760 40,465,440Steel Formwork m2 2,695.00 869,820 2,344,164,900Scaffolding m 1,225.00 354,795 434,623,875Supply, fabricate & place Reinforcement bar SD345 200kg/m3 t 210.00 24,098,417 5,060,667,650Supply & place concrete m3 1,050.00 1,698,930 1,783,876,387Supply & place Pile cap concrete under Beam (+3.3) L=1D m3 46.90 3,270,000 153,361,307

2 Retaining Wall 　

Supply & place foundation rubble stone 30～200kg/pc m3 6,153.00 369,972 2,276,436,947Levelling stone ±5cm m2 91.10 10,596 527,585 965,279 48,062,984Rough levelling (underwater) m2 1,227.00 237,926 291,934,773Supply & place Geotextile sheet m2 635.00 1,032 19,018 655,472 12,076,154Steel Formwork m2 210.00 869,820 182,662,200Scaffolding m3 70.00 354,795 24,835,650Supply, fabricate & place Reinforcement bar SD345　100kg/m3 kg 6,600.00 24,098 159,049,555Supply & place concrete m3 132.00 1,698,930 224,258,746

3 Armour stoneSupply & place Armour stone 250kg/pc m3 803.00 369,972 297,087,416Underwater levelling m2 1,383.00 237,926 329,051,175Onshore levelling m2 237.30 21,092 5,005,103

4 FittingSupply & place Bollard 100t type, straight, ctc 18m No. 2.00 1,431,206 1,209,603 2,862,413 2,419,206Supply & Place Rubber Fender π1600H X 2,000 @12m No. 2.00 12,204,000 5,351,146 24,408,000 10,702,292Supply & place Cathodic Protection Anode for 50years, current 3.5A kg 9,236.40 648 15,607 5,982,883 144,150,907Supply &install Crane rail m 70.00 116,283 278,247 8,139,810 19,477,301Rubber Ladder 200H x 3000L +2.1m ladder No. 0.35 1,105,800 3,291,278 387,030 1,151,947Anti corrosion Paint (Heavy duty) Uletane coverage type, L=3.28m m2 445.00 31,000 13,795,000


Total m 35 153,939,768 13,893,440,313

Unit price per m 4,398,279 396,955,438 6,343,361


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Case A5: Steel Strut Type Wharf (per 30m)


Supply Steel Pipe Pile SKK490, D1500xt18, L=27.5m, ctc3.75m ton 144.76 162,348 23,501,480Drive & place Steel Pipe pile SKK490, D1500xt18, L=27.5m, ctc3.75m Nos. 8.00 1,065,900 8,527,200Supply, install & remove Guide Frame time 3.00 38,971 30,027,751 116,913 90,083,252Supply Steel for Strut Beam SKK490, D1700xt28 (24.93t) L=2.7m ton 176,989Supply Steel for Strud Beam SKK400 D800xt14 (36.38t) L=16.8m ton 134,011Supply H-shaped stee for Strut Beaml H300x300x10x15 (8.70t) ton 86,007Fabrication Strut Beam at Factory ton 70.01 500,000.00 35,005,000Installation Strut Beam ctc 3.75m set 8.00 8,926,723 71,413,784Steel Formwork m2 924.00 869,820 803,713,680Scaffolding m3 420.00 354,795 149,013,900Supply, fabricate & place Reinforcement bar SD345 200kg/m3 t 72.00 24,098,417 1,735,086,051Supply & place concrete m3 360.00 1,698,930 611,614,761Supply & place Pile cap concrete under Beam (+3.3) L=1D m3 20.19 3,270,000 66,020,804

2 Slope ProtectionSupply & place rubble stone 5~25kg/pc m3 284.00 369,972 105,072,013Rough levelling of Rubble stone m2 579.00 237,926 137,758,952Supply & place Armour stone 250kg/pc m3 293.00 369,972 108,401,759Levelling & finishing of Armour stone m2 602.00 10,596 527,585 6,378,686 317,606,110

3 Retaining WallHUT type Steel Sheet Pipe Pile @5.688t set 33.33 775,706 25,856,867Transportation cost of above ton 189.60Supply & drive HUT Steel Sheet Pipe Pile L=26m Nos. 33.33 1,007,760 33,592,000

2,967,985Supply, install & remove Guide Frame time 3.00 38,971 30,027,751 116,913 90,083,252Install & remove formworks m2 115.50 869,820 100,464,210Scaffolding m2 30.00 354,795 10,643,850Supply & place concrete m3 25.20 1,698,930 42,813,033

4 BackfillngSupply & place rubble stone 2.5bai m3 2,340.00 369,972 865,734,188Onshore levelling m2 122.60 21,092 2,585,865Levelling of Rubble stone m2 370.00 237,926 88,032,491Supply & lay Geotextile sheet m2 551.00 1,032 19,018 568,764 10,478,679

5 Crane FoundationSteel Pipe Pile D900, L=25.00m, t=11mm, ctc 6m No. 5.00 851,490 4,257,450Supply & Drive Steel Pipe Pile D900, L=25.00m, t=11mm, ctc 6m No. 5.00 969,000 4,845,000Supply, Fabricate & place Re-bar 150kg/m3 kg 13,275.00 24,098 319,906,491Install & remove formworks 20x(2x2+1.5) m2 165.00 869,820 143,520,300Supply & place concrete 240-8-20, 20x2x1.5 m3 88.50 1,698,930 150,355,295

4 FittingSupply & place Bollard 100t type, straight, ctc 18m No. 2.00 1,431,206 1,209,603 2,862,413 2,419,206Supply & Place Rubber Fender π1600H X 2,000 @12m No. 2.00 12,204,000 5,351,146 24,408,000 10,702,292Supply & place Cathodic Protection (SPP) Anode for 50years, current 3.0A kg 5,166.06 648 15,607 3,346,319 80,625,823Anti corrosion Paint (Heavy duty) Uletane coverage type, L=3.28m m2 189.60 31,000 5,877,600Supply &install Crane rail m 60.00 116,283 278,247 6,976,980 16,694,829Rubber Ladder 200H x 3000L +2.1m ladder No. 0.30 1,105,800 3,291,278 331,740 987,383


Total m 30 186,569,324 6,283,347,404

Unit price per m 6,218,977 209,444,913 7,245,258

AmountSpecificationNo. UnitDescription Quantity Unit Price

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Terms of Reference for Consulting Services on Detailed Design, Bid Assistance and Construction Supervision of

Tien Sa - Da Nang Port Improvement Project (Phase 2)

1. Background

The Government of Vietnam has applied to receive a loan from the Japan International Cooperation Agency (hereinafter referred to as "JICA") to finance the Tien Sa – Da Nang Port Improvement Project (Phase 2) which is to improve port facilities in Tien Sa Terminal belongs to Da Nang Port in order to promote socio-economic development of the central Vietnam through improving transportation efficiency in the area (hereinafter referred to as "Project").

The Project comprises the following components.

Construction of Container Terminal including: Reclamation, Revetment, Seawall, Wharf, Pavement, Buildings, Drainage, Water and Electricity Supply and other necessary Utilities.

Dredging including: Channel/Basin Dredging and Disposal, and Lightning Buoy and Beacon Installation.

The Government of Vietnam intends to use part of the proceeds of the loan for eligible payments for the consulting services for which this TOR is issued.

The Project is executed by Project Management Unit 85 (hereinafter referred to as "PMU85") under Ministry of Transport of Vietnam (hereinafter referred to as "MOT").

2. Objectives of Consulting Services

The consulting services shall be provided by a Consultant (hereinafter referred to as "the Consultant") selected through International Competition Bidding in compliance with Guidelines for the Employment of Consultants under Japanese ODA Loans, April 2012.The objective of the consulting services is to achieve the efficient and proper preparation and implementation of the Project through the following works.

(1) Surveys (2) Detailed Design (3) Bid Assistance (4) Construction Supervision (5) Facilitation of Environmental Management Plan (EMP) (6) Technical Transfer

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3. Scope of Consulting Services

The consulting services shall include following scope.

(1) Surveys

For the purpose of detailed design and environmental monitoring, following natural and environmental conditions surveys are carried out by the Consultant.

(a) Topographic Survey

Collect vertical and horizontal topography in the construction site in an appropriate scale for the detailed design.

(b) Bathymetric Survey

Collect vertical and horizontal bathymetry in the construction site in an appropriate scale for the detailed design.

(c) Geotechnical Survey

Collect subsoil characteristics in the construction site in an appropriate depth and spatial distance for the detailed design.

(d) Hydraulic Survey

Collect hydraulic characteristics including current and river discharge in and around the construction site for the numerical sedimentation simulation to be carried out in the detailed design.

(e) Environmental Baseline Survey

Collect present ambient environmental qualities as baseline data, including water and sediment qualities for environmental monitoring to be carried out during the construction stage.

(2) Detailed Design

Detailed design of components of the Project presented in 1. Background is carried out by the Consultant.

The Consultant shall:

(a) Review and verify all available primary and secondary data collected during the JICA’s preparatory survey as well as data available in the FS report for the Project.

(b) Prepare detailed work plan, progress reports and implementation schedule for the Project

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to ensure effective monitoring and timely project outputs, and regularly update the same.

(c) Prepare the detailed design of the Project in sufficient detail to ensure clarity and understanding by PMU85, contractors and other relevant stakeholders. All the design should be in conformity with the Vietnamese Standards (if available), or with the appropriate international standards.

(d) The detailed design will, as a minimum, include construction drawings, detailed cost estimates, necessary calculations to determine and justify the engineering details for the Project, associated contract documentation to include detailed specifications, bill of quantities (BOQ), implementation schedule for the Project. Such detailed specifications will contain those in relation to i) quality control of plant materials and workmanship, ii) safety, and iii) emvironmental and social considerations.

(e) The detailed design shall be prepared in close consultation with, and to meet the requirements of PMU85 and will be incorporated into the detailed design report to be submitted for approval of PMU85.

(f) In the detailed design, a numerical sedimentation simulation in and around the channel and basin areas shall be conducted by the Consultant to confirm possibility of sedimentation and estimate possible maintenance dredging volume in the areas.

(3) Bid Assistance

Bid assistance of components of the Project presented in Item 1. Background is carried out by the Consultant.

1) Assistance in Pre-Qualification (PQ)


(a) Define technical and financial requirements, capacity and/or experience for PQ criteria taking into consideration technical feature of the Project.

(b) Prepare PQ documents in accordance with the latest version of Standard Prequalification Documents under Japanese ODA Loans.

(c) Assist PMU85 in PQ announcement, addendum/corrigendum, and clarifications to the applicants’ queries.

(d) Evaluate PQ applications in accordance with the criteria set forth in PQ documents.

(e) Prepare a PQ evaluation report for approval of the PQ evaluation committee.

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2) Assistance in Bidding Procedures


(a) Prepare bidding documents in accordance with the latest version of Standard Bidding Documents under Japanese ODA Loans for Procurement of Works together with all relevant specifications, drawings and other documents.

(b) Prepare bidding documents which includes the clauses to have Contractor comply with the requirement of the Environmental Management Plan (EMP) and JICA Guidelines for environmental and social considerations (April 2010) (JICA Environmental Guidelines).

(c) Assist PMU85 in issuing bid invitation, conducting pre-bid conferences, issuing addendum/corrigendum, and clarifications to bidders’ queries.

(d) Evaluate bids in accordance with the criteria set forth in the bidding documents.

(e) Prepare a bid evaluation report for approval of the bid evaluation committee.

(f) Assist PMU85 in contract negotiation by preparing agenda and facilitating negotiations including preparation of minutes of negotiation meeting.

(g) Prepare a draft and final contract agreement.

(4) Construction Supervision

The Consultant shall perform his duties during the construction period in accordance with the contracts to be executed between PMU85 and contractors. FIDIC MDB Harmonized Edition (2010) complemented with the Specific Provisions as included in the Standard Bidding Documents under Japanese ODA Loans for Procurement of Works will be applied to the civil works of the Project.

In this context, the Consultant shall:

(a) Act as the Engineer to execute construction supervision and contract administration services in accordance with the power and authority to be delegated by PMU85.

(b) Provide assistance to PMU85 concerning variations and claims which are to be ordered/issued at the initiative of PMU85.

(c) Issue instructions, approvals and notices as appropriate.

(d) Issue the commencement order to contractors.

(e) Provide recommendation to PMU85 for acceptance of contractor’s performance security, advance payment Security and required insurances.

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(f) Review and approve the proposals submitted by contractors which include work program, method statements, material sources, manpower and equipment deployment.

(g) Explain and/or adjust ambiguities and/or discrepancies in the contract documents and issue any necessary clarifications or instructions.

(h) Review, verify and further detail the design of the works, approve contractor’s working drawings and, if necessary, issue further drawings and/or give instructions to contractors.

(i) Liaise with the appropriate authorities to ensure that all the affected utility services are promptly relocated.

(j) Carry out field inspections on contractor’s setting out to ensure that the works are carried out in accordance with drawings and other design details.

(k) Regularly monitor physical and financial progress against the milestones as per the contract so as to ensure completion of contract in time , and take appropriate action to expedite progress if necessary, so that the time for completion set forth in the contract will be duly respected by the Contractor;

(l) Organize, as necessary, management meetings with the Contractor to review the arrangements for future work. Prepare and deliver minutes of such meetings to the PMU85 and the Contractor;(m) Supervise the works so that all the contractual requirements will be met by contractors, including those in relation to i) quality of the works, ii) safety and iii) environmental social considerations. Confirm that an accident prevention officer proposed by the Contractor is duly assigned at the project site.

(n) Supervise field tests, sampling and laboratory test to be carried out by contractors.

(o) Inspect the construction method, equipment to be used, workmanship at the site, and attend shop inspection and manufacturing tests in accordance with the specifications.

(p) Survey and measure the work output performed by contractors and issue payment certificates such as interim payment certificates and final payment certificate as specified in the contract.

(q) Coordinate the works among different contractors employed for the Project.

(r) Modify the designs, technical specifications and drawings, relevant calculations and cost estimates as may be necessary in accordance with the actual site conditions, and issue variation orders (including necessary actions in relation to the works performed by other contractors working for other projects, if any).

(s) Carry out timely reporting to PMU85 for any inconsistency in executing the works and

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suggesting appropriate corrective measures to be applied.

(t) Inspect, verify and determine claims issued by the parties to the contract (i.e. PMU85 and contractors) in accordance with the civil works contract.

(u) Perform the inspection of the works and to issue certificates such as the Taking-Over Certificate, Performance Certificate as specified in the civil works contract.

(v) Supervise commissioning and carry out testing during commissioning.

(w) Provide periodic and/or continuous inspection services during defects liability period and if any defects are noted, instruct the contractor to rectify.

(x) Check and certify as-built drawings for the parts of the works designed by the contractors, if any.

(y) Prepare and submit an operation and maintenance manual for the facilities constructed in the Project.

(z) Prepare and submit reports to PMU85, which are detailed in Chapter 6 in relation to the implementation of the Project.

(5) Facilitation of EMP

In order to regulate negative environmental impacts within the allowable limits specified in the EIA, the Consultant shall:

(a) Update the EMP as appropriate, incorporate necessary technical specifications with design and contract documentation.

(b) During the preparation of bidding documents, clearly identify environmental responsibilities as explained in the EIA and EMP.

(c) Assist PMU85 to review the Construction Contractor’s environmental program to be prepared by the contractor in accordance with the EMP, relevant plans and JICA Environmental Guidelines and to make recommendations to PMU85 regarding any necessary amendments for its approval.

(d) Assist PMU85 to implement the measures identified in the EMP.

(e) Monitor the effectiveness of the EMP and negative impacts on environmental and social conditions caused by the construction works and provide technical advice, including a feasible solution, so that PMU85 can improve situation when necessary.

(f) Assist PMU85 in monitoring the compliance with conditions stated in the EIA and the

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requirements under the EMP and JICA Environmental Guidelines.

(g) Assist PMU85 in preparation of the answer to the request from JICA’s advisory committee for environmental and social considerations if necessary.

(h) Assist PMU85 in the capacity building of PMU85 staff on environmental management through on-the-job training on environmental assessment techniques, mitigation measure planning, supervision and monitoring, and reporting.

(6) HIV/AIDS Prevention Activities

The Consultant shall carry out, but not limited to, the followings during construction supervision period; -Prepare HIV/AIDS prevention program, including propaganda campaigns, and submit to PMU85/MOT for approval. -Conduct HIV/AIDS prevention program, including propaganda campaigns, for the Project

related personnel, and local commune people to join in.

-Instruct the Consultant’s employees to participate in the HIV/AIDS prevention activities

-Instruct the Contractor for his employees, and subcontractor’s labors to participate in the HIV/AIDS prevention activities.

-Prepare and submit the HIV/AIDS program activities monitoring report quarterly.

- Recommend additional program when necessary

(7) Technical Transfer

The Consultant shall carry out the technology transfer as an important aspect in design and supervision works. The Consultant shall provide the opportunity to PMU85 officers and staffs to be involved in the working team of the Consultant during the design, contract administration and supervision works for their capacity building wherever possible.

4. Expected Time Schedule

The total duration of the consulting services will be 64 months followed by 12 months of defects liability period.

5. Staffing

(1) Expatriate Expertise

The required expatriate expertise for the consulting services will be, but not limited, the personnel shown in Table 5-1and the total assignment man/month is estimated to be around 169 m/m.

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Table 5-1 Required Expatriate Expertise

No. Position E1 Project Manager E2 Port Engineer 1 (Planning) E3 Port Engineer 2 (Wharf) E4 Port Engineer 3 (Others) E5 Civil Engineer E6 Road/Structural Engineer E7 Utility Engineer 1 (Mechanical,Electrical) E8 Utility Engineer 2 (Water) E9 Geotechnical Engineer E10 Environmental and social considerations Specialist E11 Quantity Surveyor E12 Cost Estimate Expert E13 Numerical Simulation Specialist E14 Document Specialist

(2) Local Expertise

The required local expertise for the consulting services will be, but not limited, the personnel shown in Table 5-2 and the total assignment man/month is estimated to be around 226.5 m/m.

Table 5-2 Required Local Expertise

No. Position L1 Co-Project Manager L2 Port Engineer 1(planning) L3 Port Engineer 2(others) L4 Civil Engineer L5 Road/Structural Engineer L6 Building Engineer 1(Architect) L7 Building Engineer 2 (Structure) L8 Utility Engineer 1 (Mechanical) L9 Utility Engineer 2 (Electrical) L10 Utility Engineer 3 (Water) L11 Geotechnical Engineer L12 Environmental and social considerations Specialist L13 Quantity Surveyor L14 Cost Estimate Expert L15 Safety Specialist

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The Consultant may propose other experts and supporting staffs required to accomplish the tasks outlined in the TOR. It is the Consultant’s responsibility to select the optimum team and to propose the experts which he believes best meets the needs of PMU85.

6. Reporting

Within the scope of consulting services, the Consultant shall prepare and submit reports to PMU85 as shown in Table 6-1. The Consultant shall provide electronic copy of each of these reports.

Table 6-1 Required Report Submission to PMU85

No. Name of Report Timing of Submission Number of

Copy

1 Inception Report (in English & Vietnamese)

Within one (1) month after commencement of the services

10

2 Monthly Progress Report (in English & Vietnamese)

Within one (1) week next month. 10

3 Review and Basic Design Report (in English)

6 months after commencement of the services.

5

4 Detailed Design Report (in English)


5

5 Bid Documents (in English)


5

6 Prequalification Evaluation Report (in English & Vietnamese)

Within two (2) weeks after closing date.

5

7 Bid Evaluation Report (in English & Vietnamese)

Within one (1) month after closing date.

5

8 Environmental Monitoring Report (in English & Vietnamese)

Every three (3) months and within one (1) month after construction completion.

10

9 HIV/AIDS Monitoring Report (in English & Vietnamese)

Within one (1) week next month. 5

10 Technology Transfer Report (in English & Vietnamese)

Within one (1) month after construction completion.

10

11 Project Completion Report (in English)

Within two (2) months after construction completion.

5

12 Defect Liability Completion Report (in English & Vietnamese)

Within one (1) month after issuance of Defect Liability Certificate.

5

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7. Obligations of PMU85 A certain range of arrangements and services will be provided by PMU85 to the Consultant for smooth implementation of the Consulting Services. In this context, PMU85 will: (1) Report and data Make available to the Consultant existing reports and data related to the Project; (1) Office space Provide an office space with necessary equipment, furniture and utility. However, the Consultant’s requirement for office space, including necessary equipment, furniture and utilities, should be clearly stated in the proposal with its rental cost for the case where PMU85 would be unable to provide such facilities; (2) Cooperation and counterpart staff Appoint counterpart officials, agent and representative as may be necessary for effective implementation of the Consulting Services; (3) Assistance and exemption Use its best efforts to ensure that the assistance and exemption, as described in the Standard Request for Proposal issued by JICA, will be provided to the Consultant, in relation to

- work permit and such other documents; - entry and exit visas, residence permits, exchange permits and such other documents - clearance through customs; - instructions and information to officials, agent and representatives of the Borrower’s

Government; - exemption from any requirement for registration to practice their profession;

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- privilege pursuant to the applicable law

in the Borrower’s C

ountry.

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3.3 Financial Plan

204.08

Foreign Local Total Foreign Local Total Foreign Local Total Foreign Local Total Foreign Local Total Foreign Local Total Foreign Local Total Foreign Local Total Foreign Local Total(Yen) (VND) (by Yen) (Yen) (VND) (by Yen) (Yen) (VND) (by Yen) (Yen) (VND) (by Yen) (Yen) (VND) (by Yen) (Yen) (VND) (by Yen) (Yen) (VND) (by Yen) (Yen) (VND) (by Yen) (Yen) (VND) (by Yen)

1 Construction Cost

1 Temporary Works L.s 1 13,463,228,980 65,969,822 13,463,228,979 65,969,821

2 Reclamation m3 700,000 111,435,352,041 546,033,225 56,832,029,540 278,476,944 54,603,322,500 267,556,280

3 Container Berth (Steel Pipe Pile) m 396 1,825,580,521 167,385,377,553 2,645,768,871 365,116,104 33,477,075,510 529,153,773 1,095,348,312 100,431,226,531 1,587,461,322 365,116,104 33,477,075,510 529,153,773

4 Revetment m 225 10,646,360 21,146,980,587 111,827,605 9,581,723 19,032,282,528 102,839,907 1,064,635 2,114,698,058 11,426,655

5 Seawall (raise Parapet) m 290 2,001,368,163 9,806,704 2,001,368,163 9,806,704

6 Breakwater (add. blocks) m 100 18,084,619 24,148,535,406 133,627,642 2,712,692 3,622,280,310 20,461,865 15,371,925 20,526,255,095 115,950,575

7 Dredging (incl. buoys) m3 1,600,000 53,000,000 285,643,673,469 1,452,654,000 42,846,551,020 209,948,099 53,000,000 242,797,122,448 1,242,705,899

8 Terminal Pavement/Drainage ha 13.4 149,733,554,694 733,694,418 7,486,677,734 36,684,720 82,353,455,081 403,531,929 59,893,421,877 293,477,767

9 Terminal Buildings L.s 1 55,256,811,020 270,758,374 24,865,564,959 121,841,268 30,391,246,061 148,917,105

10 Terminal Utilities & Facilities L.s 1 104,990,128,571 514,451,630 41,996,051,428 205,780,651 62,994,077,142 308,670,977

Sub-Total 1,907,311,500 935,205,010,485 6,484,592,291 374,697,827 173,137,845,311 1,223,073,264 1,099,125,639 309,986,598,867 2,618,059,970 433,488,029 452,080,566,296 2,648,682,800

2 Consulting Services

1 DD, BA and CS 616,899,166 57,775,680,511 900,000,000 50,585,731 4,737,605,801 73,799,999 164,712,077 15,426,106,696 240,299,999 70,943,404 6,644,203,258 103,499,999 178,283,858 16,697,171,667 260,099,999 148,672,698 13,923,939,003 216,899,999 3,701,394 346,654,083 5,399,999

Sub-Total 616,899,166 57,775,680,511 900,000,000 50,585,731 4,737,605,801 73,799,999 164,712,077 15,426,106,696 240,299,999 70,943,404 6,644,203,258 103,499,999 178,283,858 16,697,171,667 260,099,999 148,672,698 13,923,939,003 216,899,999 3,701,394 346,654,083 5,399,999

Total 2,524,210,665 992,980,690,996 7,384,592,291

Construction Cost Total 935,205,010,474

Consulting Services Total 57,775,680,508

204.08

Foreign Local Total Foreign Local Total Foreign Local Total Foreign Local Total Foreign Local Total Foreign Local Total Foreign Local Total Foreign Local Total Foreign Local Total(Yen) (VND) (by Yen) (Yen) (VND) (by Yen) (Yen) (VND) (by Yen) (Yen) (VND) (by Yen) (Yen) (VND) (by Yen) (Yen) (VND) (by Yen) (Yen) (VND) (by Yen) (Yen) (VND) (by Yen) (Yen) (VND) (by Yen)

1 Construction Cost

1 Temporary Works L.s 1 13,463,228,980 65,969,822 13,463,228,979 65,969,821

2 Reclamation m3 700,000 111,435,352,041 546,033,225 56,832,029,540 278,476,944 54,603,322,500 267,556,280

3 Container Berth (Bored Pile) m 396 605,871,198,163 2,968,768,871 121,174,239,632 593,753,774 363,522,718,897 1,781,261,322 121,174,239,632 593,753,774

4 Revetment m 225 10,646,360 21,146,980,587 111,827,605 9,581,723 19,032,282,528 102,839,907 1,064,635 2,114,698,058 11,426,655

5 Seawall (raise Parapet) m 290 2,001,368,163 9,806,704 2,001,368,163 9,806,704

6 Breakwater (add. blocks) m 100 18,084,619 24,148,535,406 133,627,642 2,712,692 3,622,280,310 20,461,865 15,371,925 20,526,255,095 115,950,575

7 Dredging (incl. buoys) m3 1,600,000 53,000,000 285,643,673,469 1,452,654,000 42,846,551,020 209,948,099 53,000,000 242,797,122,448 1,242,705,899

8 Terminal Pavement/Drainage ha 13.4 149,733,554,694 733,694,418 7,486,677,734 36,684,720 82,353,455,081 403,531,929 59,893,421,877 293,477,767

9 Terminal Buildings L.s 1 55,256,811,020 270,758,374 24,865,564,959 121,841,268 30,391,246,061 148,917,105

10 Terminal Utilities & Facilities L.s 1 104,990,128,571 514,451,630 41,996,051,428 205,780,651 62,994,077,142 308,670,977

Sub-Total 81,730,979 1,373,690,831,095 6,807,592,291 9,581,723 260,835,009,433 1,287,673,265 3,777,327 573,078,091,233 2,811,859,970 68,371,925 539,777,730,418 2,713,282,801

2 Consulting Services

1 DD, BA and CS 616,899,166 57,775,680,511 900,000,000 50,585,731 4,737,605,801 73,799,999 164,712,077 15,426,106,696 240,299,999 70,943,404 6,644,203,258 103,499,999 178,283,858 16,697,171,667 260,099,999 148,672,698 13,923,939,003 216,899,999 3,701,394 346,654,083 5,399,999

Sub-Total 616,899,166 57,775,680,511 900,000,000 50,585,731 4,737,605,801 73,799,999 164,712,077 15,426,106,696 240,299,999 70,943,404 6,644,203,258 103,499,999 178,283,858 16,697,171,667 260,099,999 148,672,698 13,923,939,003 216,899,999 3,701,394 346,654,083 5,399,999

Total 698,630,144 1,431,466,511,607 7,707,592,291

Construction Cost Total ##############

Consulting Services Total 57,775,680,508616,899,162 899,999,994

5th Year (2019) 6th Year (2020) 7th Year (2021)

81,730,975 6,812,816,036

2,014 1st Year (2015) 2nd Year (2016) 3rd Year (2017) 4th Year (2018)Cost Allocation to Project Schedule (Bored Pile) Exchange Rate J.Yen.1=VND

No. Description Unit QuantityAmount

1,907,311,495

616,899,162

6,489,816,034

899,999,994

No. Description Unit Quantity

Exchange Rate J.Yen.1=VNDCost Allocation to Project Schedule Amount 6th Year (2020) 7th Year (2021)2,014 1st Year (2015) 2nd Year (2016) 3rd Year (2017) 4th Year (2018) 5th Year (2019)

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3.4 Environmental Check List

Tentative Environmental Check List for Tien Sa – Da Nang Port Improvement Project (Phase 2), prepared by JICA Study Team

Category Environmental Item Main Check Items Yes: Y

No: N Confirmation of Environmental Considerations

(Reasons, Mitigation Measures)

1 Permits and

Explanation

(1) EIA and Environmental Permits

(a) Have EIA reports been already prepared in official process? (b) Have EIA reports been approved by authorities of the host country's government? (c) Have EIA reports been unconditionally approved? If conditions are imposed on the approval of EIA reports, are the conditions satisfied? (d) In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country's government?

(a)Y (b)N (c)N (d)N

(a) Once officially prepared by PMU85 (Project Owner) in January 2014. However, a new alternative site for dredged materials disposal (on-land) was added. Therfore, EIA report is now under modification by a local consultant. (b) EIA report is under modification. (c) EIA report is under modification. (d) No other approval is required.

(2) Explanation to the Local Stakeholders

(a) Have contents of the project and the potential impacts been adequately explained to the Local stakeholders based on appropriate procedures, including information disclosure? Is understanding obtained from the Local stakeholders? (b) Have the comment from the stakeholders (such as local residents) been reflected to the project design?

(a)Y (b)Y

(a) In accordance with Vietnamese Decree No. 29/2011/ND-CAP, project scope and summarized potential impacts are explained in writing to Tho Quang ward People's Committee (PC) office in which project site is located, Ngu Hanh Son Forestry Sector who manage Son Tar Peninsula National Conservation Park which is designated by Department of Natural Resource and Environment (DONRE) adjacent to the project site and representatives of communes in Tho Quang ward. Their opinions also sent back to PMU85 in writing. (b) In response to the above opinions, PMU85 stated possible countermeasures in EIA report as Feedback and Commitment.

(3) Examination of Alternatives

(a) Have alternative plans of the project been examined with social and environmental considerations?

(a)Y (a)Alternatives of project site, including without project case, are examined from land utilization, technical and environemtal and social considerations aspecs .

2 Pollution Control (1) Air Quality

(a) Do air pollutants, such as sulfur oxides (SOx), nitrogen oxides (NOx), and soot and dust emitted from ships, vehicles and project equipment comply with the country's emission standards? Are any mitigating measures taken?

(a)Y (a) In operation phase, increased port related traffics will increase emission of such air pollutants. However, efficient operation using enlarged vessels and equipment will reduce total gas emission. In order to minimize emission of air pollutants, maintenance of equipment and vehicles used for port operation will properly be conducted and be driven using qualified fuel.

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(2) Water Quality

(a) Do effluents from the project facilities comply with the country's effluent and environmental standards? (b) Do effluents from the ships and other project equipment comply with the country's effluent and environmental standards? (c) Does the project prepare any measures to prevent leakages of oils and toxicants? (d) Does the project cause any alterations in coastal lines and disappearance/appearance of surface water to change water temperature or quality by decrease of water exchange or changes in flow regimes? (e) Does the project prepare any measures to prevent polluting surface, sea or underground water by the penetration from reclaimed lands?

(a)Y (b)Y (c)Y (d)N (e)N

(a) In general, project facilities (container terminal) will not discharge large amount of and toxic effluent. Domestic discharges will be treated in individual septic tanks in the terminal to meet effluent quality standards before being discharged. (b) Oily efferent originated from equipment maintenance facilities will be separated from others and corrected by licensed waste management company contracted by port operator. (c) Potential source of oil and toxicants pollution, such as equipment maintenance shop, fuel station, etc. will be enclosed by correction ditch to prevent leakages. (d) Reclamation area is limited behind existing breakwater. Thus impacts on such conditions are expected to be minor. (e) Since natural sand exploited from vicinal source will be used for reclamation, no pollution by reclamation materials is expected.

(3) Wastes

(a) Are wastes generated from the ships and other project facilities properly treated and disposed of in accordance with the country's regulations? (b) Is offshore dumping of dredged soil properly disposed in accordance with the country's regulations? (c) Does the project prepare any measures to avoid dumping or discharge toxicants?

(a)Y (b)Y (c)N

(a) Wastes and gavages will be corrected and properly disposed by licensed waste management company contracted by construction contractors and port operators. (b) Dredged seabed materials will be disposed at designated on-land disposal area which is going to be approved in EIA report. Although dredged materials are not toxic comparing with Vietnamese and WB sediment quality standard, quality of overflow being discharged from disposal/reclamation area to sea will be carefully monitored. In the event that turbidity at designated monitoring points exceeds limit level of 50mg/l, countermeasures such as reducing disposal volume, installation of silt curtain enclosing overflow discharge outlet will be taken. In case Offshore Disposal: Dredged seabed materials will be disposed at designated offshore area which is going to be approved in EIA report. Dredged materials are not toxic comparing with Vietnamese and WB sediment quality standard. Results of turbid water dispersion simulation at dumping location is presented in EIA report explaining that no significant impact on vicinal aquatic sensitive areas, such as coral reef, fishing area, ecotourism area is expected comparing with Vietnamese coastal water quality

185

standards. However, In the event that turbidity at designated monitoring points continuously exceeds limit level of 50mg/l at monitoring points, countermeasures, such as reducing disposal volume will be taken. (c) The project will not handle toxic materials. However, oil spill response program is prepared in EIA report.

(4) Noise and Vibration

(a) Do noise and vibrations from the vehicle and train traffic comply with the country's standards?

(a)Y (a) Noise level at an existing berth facility slightly exceeds Vietnamese standards due to cargo handling operation. Since construction site on land area is limited within port area and 600m distant from the nearest residential house, no significant impact outside project area is expected.

(5) Subsidence (a) In the case of extraction of a large volume of groundwater, is there a possibility that the extraction of groundwater will cause subsidence?

(a)N (a) No large volume of ground water is extracted in the project.

(6) Odor (a) Are there any odor sources? Are adequate odor control measures taken?

(a)N (a) No odder source is expected in the project.

(7) Sediment (a) Are adequate measures taken to prevent contamination of sediments by discharges or dumping of hazardous materials from the ships and related facilities?

(a)Y (a) No discharge of hazardous materials is expected. However, oil spill response program is prepared in EIA report.

3 Natural Environment

(1) Protected Areas

(a) Is the project site located in protected areas designated by the country's laws or international treaties and conventions? Is there a possibility that the project will affect the protected areas?

(a)N (a) Project site is not located in protected area.

(2) Ecosystem

(a) Does the project site encompass primeval forests, tropical rain forests, ecologically valuable habitats (e.g., coral reefs, mangroves, or tidal flats)? (b) Does the project site encompass the protected habitats of endangered species designated by the country's laws or international treaties and conventions? (c) If significant ecological impacts are anticipated, are adequate protection measures taken to reduce the impacts on the ecosystem? (d) Is there a possibility that the project will adversely affect aquatic organisms? Are adequate measures taken to reduce negative impacts on aquatic organisms? (e) Is there a possibility that the project will adversely affect vegetation orwildlife of coastal zones? If any negative impacts are anticipated, are adequate measures taken to reduce the impacts on vegetation and wildlife?

(a)Y (b)N (c)N (d)N (e)N

(a) Two (2) areas adjacent to the project site are protected by local authority, DONRE. - Live Coral Reef There are live coral reefs protected by local government along Son Tra headland. However, no significant impact is expected because the coral reefs are found on the other side of headland from the project site. In case Offshore Disposal: According to the simulation results, dredged materials disposal will not cause significant impact to the coral reef. However, in the event that turbidity at designated monitoring points continuously exceeds limit level of 50mg/l, dredging and dumping operation will be slow down until the monitoring results meet the limit level. - Son Tar Peninsula National Conservation Park Potential impacts caused by the project will be illegal immigration, hunting, cutting tree and firing by

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construction workers. To avoid these impact factors, contractors will implement educational and awareness program to the workers. (b) No endangered species is found in the project site and the above protected areas. (c) No significant impacts are expected to the above areas. As for ecological impact due to ballast water discharge from ocean going vessels, no significant impact is expected because middle-size container vessels, which are main target vessels of the Project, will discharge little ballast water in the port because loading/unloading container weight at port are usually balanced. (not like large-size bulk vessels which full fill empty belly at destination port). (d) See above (a): Live Coral Reef and (c) (e) See above (a): Son Tar Peninsula National Conservation Park

(3) Hydrology (a) Do the project facilities affect adversely flow regimes, waves, tides, currents of rivers and etc. if the project facilities are constructed on/by the seas?

(a)N (a) Since reclamation area is limited within the area behind existing breakwater, no such adverse impact is expected.

(4) Topography and Geology

(a) Does the project require any large scale changes of topographic/geographic features or cause disappearance of the natural seashore?

(a)N (a) Since the project site is located within present port area already developed, no such large alteration is expected.

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4 Social Environment

(1) Resettlement

(a) Is involuntary resettlement caused by project implementation? If involuntary resettlement is caused, are efforts made to minimize the impacts caused by the resettlement? (b) Is adequate explanation on compensation and resettlement assistance given to affected people prior to resettlement? (c) Is the resettlement plan, including compensation with full replacement costs, restoration of livelihoods and living standards developed based on socioeconomic studies on resettlement? (d) Are the compensations going to be paid prior to the resettlement? (e) Are the compensation policies prepared in document? (f) Does the resettlement plan pay particular attention to vulnerable groups or people, including women, children, the elderly, people below the poverty line, ethnic minorities, and indigenous peoples? (g) Are agreements with the affected people obtained prior to resettlement? (h) Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the plan? (i) Are any plans developed to monitor the impacts of resettlement? (j) Is the grievance redress mechanism established?

(a) N (b) N.A. (c) N.A. (d) N.A. (e) N.A. (f) N.A. (g) N.A. (h) N.A. (i) N.A. (j) N.A.

(a) Noinvoluntaryresettlement is required because project site on land is located within present port area. (b) N.A. (c) N.A. (d) N.A. (e) N.A. (f) N.A. (g) N.A. (h) N.A. (i) N.A. (j) N.A.

(2) Living and Livelihood

(a) Is there a possibility that the project will adversely affect the living conditions of inhabitants? Are adequate measures considered to reduce the impacts, if necessary? (b) Is there a possibility that changes in water uses (including fisheries and recreational uses) in the surrounding areas due to project will adversely affect the livelihoods of inhabitants? (c) Is there a possibility that port and harbor facilities will adversely affect the existing water traffic and road traffic in the surrounding areas? (d) Is there a possibility that diseases, including infectious diseases, such as HIV will be brought due to immigration of workers associated with the project? Are considerations

(a)N (b)Y (c)Y (d)Y

(a) Since no resettlement is required in the project, no direct impact on living conditions of inhabitants is expected. On the other hand, expansion of port facilities may create positive impact as new employment opportunities and business chances in local communities. (b) During construction, local fishing boats will have temporally restriction on their operation route (not fishing ground) due to dredging/disposal works. To avoid traffic accidents, dredging/disposal activity schedule will be informed to fishermen in advance. In case Offshore Disposal: Dredged materials disposal may have temporal impacts on fishing and recreational activities. According to the simulation results, dredged

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given to public health, if necessary? materials disposal will not cause significant impact to the fishing activities. However, in the event that turbidity at designated monitoring points continuously exceeds limit level of 50mg/l, dredging and dumping operation will be slow down until the monitoring results meet the limit level. (c) On completion of the project, port related water and land traffic will be increased. However, access road to the port has been constructed in phase 1 of the project having enough traffic capacity. In water area, necessary navigation aids, such as lighting buoys and beacons are installed to prevent ship collision and interference to local traffics. (d) There is possibility of prevalence of infectious diseases brought by construction workers. To avoid this, contractors will provide education and awareness program to the workers.

4 Social Environment

(3) Heritage

(a) Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage? Are adequate measures considered to protect these sites in accordance with the country's laws?

(a)N (a) Since the project site is located within present port area already developed, no such heritages exist.

(4) Landscape (a) Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken?

(a)N (a) Since the project site is located within present port area already developed, it will not adversely affect local landscape.

(5) Ethnic Minorities and Indigenous Peoples

(a) Are considerations given to reduce impacts on the culture and lifestyle of ethnic minorities and indigenous peoples? (b) Are all of the rights of ethnic minorities and indigenous peoples in relation to land and resources respected?

(a) N (b) N

(a) No ethnic minorities and indigenous peoples are involved, (b) No ethnic minorities and indigenous peoples are involved,

(6) Working Conditions

(a) Is the project proponent not violating any laws and ordinances associated with the working conditions of the country which the project proponent should observe in the project? (b) Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? (c) Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public health) for workers etc.? (d) Are appropriate measures taken to ensure that security

(a)Y (b)Y (c)Y (d)Y

(a) Port facilities will be managed by operator to be selected in bidding process by Ministry of Transport (MOT). Such working and safety conditions abiding related laws and ordinances will be required to the port operator as requirement in bidding conditions. In construction stage, contractors are required as same above. (b) Same above. (c) Same above. (d) Same above.

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guards involved in the project not to violate safety of other individuals involved, or local residents?

5 Others

(1) Impacts during Construction

(a) Are adequate measures considered to reduce impacts during construction (e.g., noise, vibrations, turbid water, dust, exhaust gases, and wastes)? (b) If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? (c) If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts?

(a) Y (b) Y (c) Y

(a) In order to reduce such negative impacts to surrounding local communities, bulky construction materials, such as sand, stone, etc. will be transported to construction site from seaside. PMU85 will encourage contractors in bidding process to use low emission, noise and vibration equipment. (b) In order to avoid negative impacts to aquatic environment by dredged materials dumping, location of dumping will be designated keeping adequate distance from the sensitive areas. (c) Since construction site is limited within existing port area, no significant adverse impact due to construction activities is expected. However, if observed, adequate measures, such as slow down and suspension of construction activities, will be taken until unfavorable conditions are recovered.

(2) Monitoring

(a) Does the proponent develop and implement monitoring program for the environmental items that are considered to have potential impacts? (b) What are the items, methods and frequencies of the monitoring program? (c) Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? (d) Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities?

(a)Y (b)Y (c)Y (d)Y

(a) Proper environmental monitoring program is planned in EIA repot. (b) Item and frequency of monitoring program are specified in EIA report as follows.

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Air Quality Coastal Water Quality

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Waste Noise Level

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Vibration Level Sediment Quality

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Areal Impacts Traffic Safety

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Infectious Disease (c) Monitoring budget and organization and are established in EIA report as follows. Monitoring Budget (to be reviewed by PMU85)

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Monitoring Organization (D) In construction phase, quarterly monitoring reports will be submitted by PMU85 to DONRE. In addition, PMU85 is responsible to submit the results of monitoring works to JICA as a part of Quarterly Progress Report throughout the construction phase, and on biannual basis for the first two years in the operation phase.

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(a) Where necessary, impacts on groundwater hydrology (groundwater level drawdown and salinization) that may be caused by alteration of topography, such as land reclamation and canal excavation should be considered, and impacts, such as land subsidence that may be caused by groundwater uses should be considered. If significant impacts are anticipated, adequate mitigation measures should be taken. (b) If necessary, the impacts to transboundary or global issues should be confirmed, if necessary (e.g., the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, or global warming).

(a) N (b) N

(a) Hardly anticipated. (b) Hardly anticipated

6 Note Note on Using Environmental Checklist

(a) Where necessary, impacts on groundwater hydrology (groundwater level drawdown and salinization) that may be caused by alteration of topography, such as land reclamation and canal excavation should be considered, and impacts, such as land subsidence that may be caused by groundwater uses should be considered. If significant impacts are anticipated, adequate mitigation measures should be taken. (b) If necessary, the impacts to transboundary or global issues should be confirmed, if necessary (e.g., the project includes factors that may cause problems, such as transboundary waste treatment, acid rain, destruction of the ozone layer, or global warming).

(a) N (b) N

(a) Hardly anticipated. (b) Hardly anticipated

1) Regarding the term “Country's Standards” mentioned in the above table, in the event that environmental standards in the country where the project is located diverge significantly from international standards,

appropriate environmental considerations are required to be made. In cases where local environmental regulations are yet to be established in some areas, considerations should be made based on comparisons with appropriate standards of other countries

(including Japan's experience). 2) Environmental checklist provides general environmental items to be checked. It may be necessary to add or delete an item taking into account the characteristics of the project and the particular circumstances of the