(Oct 20): AP Moller-Maersk A/S, the world’s No 2 container carrier, signed an agreement with Vietnamese conglomerate Hateco to develop a US$3.5 billion (RM14.3 billion) railway container terminal network in northern Vietnam during President To Lam’s official visit to Denmark.

APM Terminals, the port operating unit of AP Moller-Maersk, inked a memorandum of understanding with Hateco in Copenhagen on Tuesday to develop a plan for a rail freight terminal, including cargo handling centres, in the port city of Haiphong, according to a statement from Hateco. The proposed network, which will include three other rail freight facilities in northern provinces, “aims to connect industrial parks, logistics hubs and production zones with major transport hubs”, it said. 

The project comes as Vietnam ramps up infrastructure investment to support its multi-year double-digit economic growth target, seeking to boost spending to attract private capital and spur development. The Southeast Asian nation is pouring billions of dollars into upgrading its transport and logistics networks, with railways seen as a key priority.

Maersk has partnered with Hateco on a US$400 million container port project in Haiphong while the two companies are also working on an inland terminal in Hanoi with investment of about US$98 million, according to the Vietnamese company. The Danish shipping giant is also expanding its investment in some joint projects, including the US$2 billion Lien Chieu container terminal port in Danang. 

The planned rail freight facilities, which will use digital technology to enhance cargo handling and storage while connecting to seaports and rail infrastructure, are expected to ease road congestion and expand options for cross-border shipments, according to the statement.

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