It will be more high-tech—and more Asian
Group, a Vietnamese conglomerate, to develop a $300m inland container depot in Vinh Phuc, in northern Vietnam. The project, known as Vietnam SuperPort, will begin operations in 2024, providing some welcome relief in a country where exports have risen far more rapidly than inland logistical investments.
All the dry-port development in Asia points to the second force reshaping the ports business: the shift of its centre of gravity eastwards. For decades Asian trade has tended to be one-way. Containers loaded with goods manufactured by the continent’s cheap labour sailed to advanced economies and came back largely empty. In the late 1990s more than 70% of Asian exports by value went to other parts of the world.
A boom in investment in warehouses for storage and hubs for distribution and fulfilment in the region is already under way. Last year, a Singaporean investment firm specialising in logistics real estate, announced a $1.1bn fund focusing on Vietnam and a $3.7bn one focused on Japan. Its sixth China fund, worth $1bn, closed in early November. India is likely to get a boost as global manufacturers look to diversify their production away from China.
When seaborne trade boomed last century, investments in logistics reflected shifts in the global patterns of production and consumption. They are doing so again. And this time the future looks leaner, smarter—and more eastern.
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