The two most popular freight roads—Highway 5, which links the industrial parks to Haiphong ports in the north, and Highway 51, which links Ho Chi Minh City to Cai Mep-Thi Vai in the south—are very congested and in poor shape. The maximum traffic speed barely exceeds 60 kilometers (or 37 miles) per hour and can easily go down to 20 kilometers (or 12 miles) per hour during rush hour. Consequently, 90 percent of containerized cargo going through Cai Mep-Thi Vai is loaded onto barges, which costs half as much as trucking on Highway 51.
Indeed, 55 barge calls are needed to support four mainline vessels each week. Barge operations, on the other hand, reduce the capacity of the new terminals by half because barges take berth space that should be occupied by mainline vessels.
Vietnam's capacity to profit from the port boom and realize its trade potential largely depends on how quickly it can upgrade its road network. Expanding Highway 51 to six lanes is a top priority because this highway facilitates the flow of goods from almost 50 major South Vietnam industrial parks to the new port.
The country's operational goal should be to reduce by half the transit time between Cai Mep-Thi Vai and inland industrial zones. This will bring down trucking costs to the current level of barge costs. What is the best way to reduce transit times? We have two ideas: First, building dedicated truck lanes for freight traffic to reduce congestion, improve safety, and offset the maintenance cost of general purpose lanes. Second, adopting an electronic payment system, charging drivers to drive on certain roads and for congestion at certain times; this will direct demand for road usage, especially in peak hours.
Both initiatives require strong commitment from the government in terms of legislation and enforcement. And the government will have to provide adequate alternatives for passengers—such as subway, intercity rail, and a bus system—and be transparent and equitable in managing these operations.