Amid geopolitical instability, tariff tensions, and global economic volatility, Vietnam continues to demonstrate its strong appeal within regional supply chains. The wave of manufacturing shifts under the “China + 1” strategy is driving demand for logistics connectivity. In 2025, total import-export turnover surpassed USD 930 billion, with exports reaching USD 475 billion, a 17% increase; container throughput across seaports reached approximately 34.3 million TEUs, up 12%.

The growing influx of cargo places hinterland logistics systems behind seaports under increasing demand for connectivity and operational optimization. Positioned between manufacturing hubs and coastal seaports, Inland Container Depots (ICDs) play an increasingly vital role in organizing container flows, alleviating pressure on seaports, and enhancing flexibility for enterprises regarding time, cost, and transport modes.

However, capabilities across ICDs still vary in terms of infrastructure, technology, and operating procedures. Some facilities still primarily serve basic warehousing functions, whereas market demands are shifting toward a more integrated approach, one where an ICD must operate as a proactive link in the chain.

So, what are the core criteria for an ICD to truly serve as an “extended arm” of seaports and deliver distinctive value to clients?

Let’s hear practical insights from Mr. Nguyen Van Ha – Director of SOWATCO Long Binh Port, a member of Southern Waterborne Transport Corporation (SOWATCO) under SOTRANS Group.

Click here to watch the full interview with English subtitles.

ICDs – The extended arm of seaports

Interviewer: ICDs are often referred to as an “extended arm” of seaports. From an operational perspective, could you elaborate on the role of ICDs in the logistics chain?

Mr. Nguyen Van Ha: ICDs, or inland container depots, are typically located deep inland. They function as receipt and customs clearance points, as well as consolidation, storage, and handling hubs for cargo before it is moved to seaports and vice versa.

Additionally, ICDs provide services such as container stuffing and stripping, maintenance and repair (M&R), and other regulatory services. Serving as a link between enterprises, factories, and seaports, ICDs help reorganize cargo flows, reduce pressure on seaport systems, and enhance overall logistics efficiency for businesses.

Interviewer: In daily operations, what do you see as the common bottlenecks facing ICD operations in Vietnam?

Mr. Nguyen Van Ha: From my perspective, there are three primary bottlenecks. First, infrastructure, equipment, operating procedures, and technology at certain ICDs remain limited. Second, localized empty container shortages occur at specific times of the year. Third, prolonged truck dwell times at ports negatively impact turnaround times and transport efficiency.

Interviewer: In your opinion, what criteria do clients usually use to evaluate an ICD?

Mr. Nguyen Van Ha: For shipping lines, prior to partnership, they conduct thorough multi-stage audits evaluating facility scale, operating procedures, KPI compliance, safety, and environmental standards. Service tariffs are also taken into account. During the ongoing partnership, these metrics continue to be monitored, evaluated, and reported on monthly, quarterly, or annual cycles.

For trucking companies, a baseline requirement is a stable supply of empty containers. Alongside this is fast turnaround time; for instance, SOWATCO Long Binh Port currently maintains a truck turn time KPI of approximately 30 minutes. Safety for personnel and vehicles is also a key priority.

Furthermore, an ICD must possess the capacity to accept early container gate-ins for major clients, as well as handle late gate-ins past cut-off times when operational contingencies arise.

On the service front, we offer digital solutions that allow clients to register online and track vehicle and cargo movements in real time. Dual-transaction services enable trucks to drop off and pick up cargo within a single gate entry. When operational bottlenecks arise, customer support channels help resolve real-world issues more rapidly.

Infrastructure, fleet, and technology in ICD operations

Interviewer: Given those requirements, how is SOWATCO structuring its infrastructure, transport assets, and technology to support its ICD network?

Mr. Nguyen Van Ha: SOWATCO currently owns and operates three ICD ports with a combined handling capacity of approximately 1,300,000 TEUs of containerized cargo and roughly one million tons of bulk cargo annually. This serves as our operational foundation to meet the demand for cargo flow between inland areas and coastal seaports.

For bulk cargo, we organize direct ship-to-truck or truck-to-barge transfers, thereby eliminating intermediate handling steps. For containerized cargo, operations are organized seamlessly from gate reception, storage, inspection, and empty container repair to seal checks, customs clearance, stuffing/stripping, and customs inspection for laden containers. Containers are then dispatched via gate or quay to continue their journey to seaports and vice versa.

Another critical capability is empty container supply and handling. SOWATCO is currently one of the leading operators in empty container throughput in the market. Specifically, SOWATCO Long Binh Port handled 250,000 TEUs in 2023 and 350,000 TEUs in 2024. Our empty container M&R capacity reaches 250-350 units per day, allowing us to proactively fulfill empty container demands when volumes surge.

Beyond port operations, transport connectivity is vital to ensuring uninterrupted cargo flows. SOWATCO operates an inland waterway fleet of 24 barges, including vessels with capacities up to 300 TEUs. This barge fleet supports cargo movement between inland hinterlands and seaports, while providing additional contingency options for shipments requiring late gate-ins after cut-off times.

While infrastructure and fleet build up operational capacity, technology brings transparency and convenience to clients. Since 2022, SOWATCO has deployed the iPort software platform, allowing clients to register services online and monitor real-time vehicle and cargo data. The system also integrates operational data with stakeholders, enhancing transparency and coordination during terminal operations.

In parallel with technology implementation, SOWATCO maintains two international management standards: ISO 45001 for occupational health and safety and ISO 14001 for environmental management. Applying these standards helps standardize health, safety, and environmental protocols while establishing a foundation for stable and sustainable operations.

Strategic directions for elevating ICD capabilities in the supply chain

Interviewer: With rising demands for speed, connectivity, and transparency across logistics chains, what development priorities is SOWATCO focusing on for its ICD segment?

Mr. Nguyen Van Ha: SOWATCO is directing its ICD network development toward expanding inter-regional connectivity and elevating service capabilities across the supply chain. The goal is not merely to increase handling capacity at individual ports, but to strengthen inter-node connectivity across the network so cargo flows can be organized more flexibly and efficiently.

To this end, SOWATCO is executing expansion projects such as ICD Can Tho and ICD Tri Phuong (Bac Ninh), systematically broadening its footprint in regions with high logistics demand. Furthermore, in 2025, SOWATCO is acquiring and redeveloping a major seaport facility in Ho Chi Minh City, extending cargo and vessel connectivity across our existing port and transport ecosystem.

At the operational level, the focus is on upgrading equipment fleet and technology toward lower environmental impact while pushing automation to shorten processing times and increase operational transparency. This forms the foundation for meeting escalating cargo volumes and client requirements.

Concurrently, SOWATCO is developing a centralized data center to consolidate information across all activities in the ecosystem. With connected and centralized data, the company can monitor real-time operations, identify bottlenecks, and support timely decision-making during execution.

From a service standpoint, SOWATCO actively seeks partnerships to develop end-to-end logistics chains, expanding our ability to offer seamless solutions rather than focusing solely on isolated operational steps. Simultaneously, we prioritize workforce training to foster proactive workplace and service improvements, as human capital remains the decisive factor in driving operational efficiency and adapting to dynamic market demands.

See more: Customer Trust – The Core Value Behind SOWATCO’s Competitive Edge

Interviewer: Through Mr. Nguyen Van Ha’s insights, it is clear that an ICD’s effectiveness is determined not only by static infrastructure capacity, but by its ability to integrate transport assets, technology, and operational execution.

As supply chains increasingly demand higher speed, reliability, and transparency, ICDs are evolving from traditional cargo transit hubs into proactive links optimizing logistics flows.

Thank you, Mr. Nguyen Van Ha, for joining us and sharing these practical perspectives on ICD and logistics operations.

————-

Produced and edited by SOTRANS Group.

(SOTRANS Group News)