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  March 16th, 2016 | Written by

Damco Expands Logistics Capacity in Vietnam

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  • Damco’s new container freight consolidation facility in Vietnam is equipped with the latest technologies.
  • Damco’s expansion in Vietnam comes in tandem with the AEC, TPP agreement, and the Vietnam-EU FTA.
  • Damco recently established a consolidation hub at Cai Mep in southern Vietnam.

Damco, a third-party logistics provider and freight forwarder, recently unveiled its expanded Southern Vietnam Logistics Center in Binh Duong Province.

Now covering 400,000 square feet, including 141 loading bays, and incorporating state-of-the-art facilities, this C-TPAT certified multi-purpose warehouse is an important pillar of a multi-year capacity expansion plan. Together with the recent development of the Haiphong warehouse in northern Vietnam to 124,000 square feet, Damco Vietnam’s warehouse capacity now stands at an impressive over 785,000 square feet across five sites.

Damco’s growing contract logistics operation has 270,000 square feet of space to serve customers in the industrial, retail, fashion and chemicals sectors. This unrivalled capacity offers a greater array of supply chain efficiencies which in turn optimize costs for customer’s logistics operations.

The new container freight consolidation facility is equipped with the latest technologies such as a High Jump container freight consolidation management system, radio-frequency scanning, and a digital CCTV system. It also incorporates a quality control room and an on-site customs office, supported by a dedicated country management team which works closely with other Damco teams in origin and destination countries.

The expanded facility will enable Damco to support Vietnam’s projected economic growth with greater efficiency. These developments are in tandem with the establishment of the ASEAN Economic Community (AEC) in December 2015, the Trans-Pacific Partnership (TPP) agreement, and the Free Trade Agreement (FTA) between Vietnam and the European Union. Also in Damco’s stable is the recent establishment of the consolidation hub at Cai Mep in southern Vietnam, from where a domestic ocean container can be transported serving the Haiphong port in the north.

“In preparation for the upcoming years of strong economic growth, Damco Vietnam has invested substantially to upgrade our capacity in both geographical areas of northern and southern Vietnam,” said Marco Civardi, area managing director for Damco in Vietnam and Cambodia. “Within our facilities we are now able to perform new value-added activities on behalf of our customers. Noteworthy is also the acquisition of our bonded license capability in Haiphong and the possibility to perform activities such as metal detection, Certificate of No Impediment, and inner carton checking within our Ho Chi Minh facility. These developments demonstrate Damco’s commitment to the Vietnamese market and our clear goal to be here for the long-haul.”

Damco’s Southern Vietnam Logistics Center has broadened and strengthened the range of logistics services for customers and investors alike, both foreign and domestic. The new facility will enable Damco Vietnam’s customers’ supply chains to become more competitive by optimizing their logistics costs while ensuring a tangible reduction of their environmental emissions.