RECOMMENDATIONS TO IMPROVE SERVICE QUALITY FOR EXPORT CARGOES AT CONTAINER FREIGHT STATION OF THE TRANSPORT AND CHARTERING CORPORATION HAIPHONG BRANCH

MINISTRY OF TRANSPORTATION

MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME: TRAN THI HA MI

DISSERTATION
GLOBAL STUDIES AND MARITIME AFFAIRS

RECOMMENDATIONS TO IMPROVE SERVICE QUALITY FOR
EXPORT CARGOES AT CONTAINER FREIGHT STATION OF THE
TRANSPORT AND CHARTERING CORPORATION-HAIPHONG
BRANCH

HAI PHONG – 2015


PREFACE
The dissertation is a result of my three-month internship at Vietfracht
Transport and Chartering Corporation, Hai Phong branch. In this period, I had a
chance to observe and learn practical knowledge at Vietfracht CFS warehouse.
Thus, it helps me to bridge the gap between theory and reality and acquire useful
experience for my future career. Finally, I decided to do research on how to
improve CFS services for exported cargoes. During the period, the dissertation
would not have been completed if I did not received support of Vietfracht Transport
and Chartering Corporation, Hai Phong branch. Therefore, I would like to express
my grateful to them. Besides, I would like to sincerely thanks to Msc, Vu Thanh
Trung for his guidance and support when I wrote this dissertation.
My dissertation includes three main chapters:

Chapter 1: Literature Review
Chapter 2: Evaluation of current service quality for export cargoes at CFS of
The Transport and Chartering Corporation, Hai Phong branch and assessments
Chapter 3: Recommendations to improve service quality for export cargoes
at CFS of The Transport and Chartering Corporation, Hai Phong branch.
I declare that this report is my own unaided work. It has not been submitted
before. If violated, I am solely responsible for and bear the punishments of the
Institution and University.
Student name and signature

Trần Thị Hà Mi


TABLE OF CONTENTS
INTRODUCTION ...................................................................................................1
CHAPTER 1: LITERATURE REVIEW ..................................................................3
1.1.

Container freight station .............................................................................3

1.1.1.

Definition .............................................................................................3

1.1.2.

The importance of container freight station ..........................................3

1.1.3.

CFS main activities ..............................................................................3

1.1.4.

Types of store cargoes ..........................................................................4

1.1.5.

Conditions to CFS establishment..........................................................5

1.1.6.

CFS functions ......................................................................................5

1.1.7.

Customs supervision ............................................................................6

1.2.

Service ........................................................................................................6

1.2.1.

Definition .............................................................................................6

1.2.2.

Service quality .....................................................................................6

1.2.3.

Models to measure service for export cargoes in CFS ..........................7

1.3.

Research method ...................................................................................... 10

1.3.1.

Research objectives ............................................................................ 10

1.3.2.

Methods of data collection .................................................................10

1.3.3.

Sampling ............................................................................................ 11

1.3.4.

Methods of data analysis .................................................................... 11

CHAPTER 2: THE EVALUATION OF SERVICE QUALITY FOR EXPORT
CARGOES AT CFS OF VIETFRACHT HAI PHONG ......................................... 12
2.1.

Introduction of the Transport and Chartering Corporation (Vietfracht) ..... 12

2.1.1.

General information ........................................................................... 12

2.1.2.

The history of foundation and development ....................................... 12

2.1.3.

Main services ..................................................................................... 13

2.1.4.

Organization structure of Transport and Chartering Corporation ........ 14

2.2.

Introduction of Vietfracht Hai Phong ....................................................... 15

2.2.1.

General information ........................................................................... 15

2.2.2.

Organization Structure of Vietfracht Hai Phong .................................15

2.2.3.

CFS of Hai Phong branch ................................................................... 16

2.2.4.

CFS facilities ..................................................................................... 16

2.2.5.

CFS output ......................................................................................... 19


2.3. The current services for export cargoes at CFS of The Transportation and
Chartering Corporation –Hai Phong Branch ....................................................... 20
2.4. The evaluation of current service quality for export cargoes of CFS at The
Transportation and Chartering Corporation-Hai Phong Branch ........................... 26
2.5.

Challenges ................................................................................................ 32

2.5.1.

External factors .................................................................................. 32

2.5.2.

Internal factors ................................................................................... 33

CHAPTER 3: RECOMMENDATIONS TO IMPROVE SERVICE QUALITY FOR
EXPORT CARGOES AT CFS OF VIETFRACHT HAI PHONG ......................... 34
3.1.

Recommendations to improve service quality for export cargoes at CFS ..34

3.1.1.

Updating facility and equipment ........................................................ 34

3.1.2.

Calculating productivity and allocating work ..................................... 34

3.1.3.

Focusing on recruiting and training activities ..................................... 35

3.1.4.

Regularly receiving feedbacks and updating services ......................... 36

3.1.5.

Urging vendors/ factories to delivery cargoes on time ........................ 36

3.1.6.

Establishing the List of Documents in use .......................................... 37

3.1.7.

Establishing and practicing emergency plan ....................................... 37

3.1.8.

Preparing to deal with customs declaration......................................... 37

CONCLUSION ..................................................................................................... 38
REFERENCES ...................................................................................................... 39
APPENDICES ....................................................................................................... 40


LIST OF ABBREVIATIONS
CFS

Container Freight Station

VF

Vietfracht (The Transportation and Chartering Corporation)

LCL

Less Than Container Load

PO

Purchasing Order

EIR

Equipment Interchange Receipt

CY

Container Yard

ETD

Estimated Time of Departure

SERVQUAL

Service and quality

SERVPER

Service and performance

SD

Standard Deviation


LIST OF FIGURES
Figure 2.1: Organization structure of Transport and Chartering Corporation ........ 14
Figure 2.2: Organization Structure of Vietfracht Hai Phong ..................................... 15
Figure 2.3: Forklift truck ...................................................................................................17
Figure 2.4: Reach Stacker .................................................................................................17
Figure 2.5: Hand pallet truck ............................................................................................ 18
Figure 2.6: Container truck ............................................................................................... 18
Figure 2.7: Vietfracht CFS output from 2012 to 2015 ................................................ 19

Figure 2.8: The flow of export cargoes .......................................................................... 20
Figure 2.10: Shipping Declaration on ECCUS 5-VNACCS system ........................ 24


LIST OF TABLES
Table 1.1: The model of measuring service quality at CFS. ........................................9
Table 2.1: Basic standard for stuffing each type of container .................................... 25
Table 2.2: The ratings of customers to recent performance for export cargoes at
VF CFS .................................................................................................................................27
Table 2.3: The ratings of customers toward importance of each factors in the
measuring model ................................................................................................................. 31


Recommendations to improve service quality for export cargoes at CFS of The Transport and Chartering
Corporation – Hai phong branch

INTRODUCTION
Necessitation
In our date and time, trading between regions by sea continues growing
vigorously which leads to the increasingly important role of ports. Vietnam is
fortunately granted with a long coastline containing more than 200 ports. With the
development of port in Vietnam, container freight station has become much more
important because container freight station is considers as a facility that facilitate
port activities. Undoubtedly, container freight station helps to the flow of export and
import goods through ports. Thus, improving services and efficient of CFS is
increasingly necessary which helps to lower the cost of all involved parties and
contributes to the development of port as well as economy. In my dissertation, I
have researched the model to measuring the service quality at Vietfracht CFS
specifically to export cargoes which uses the knowledge I studied at university and
practical experience I learned at Vietfracht CFS. Hence, I hope that my research

topics “Recommendations to improve service quality of export cargoes at Vietfracht
CFS” can contribute for the development of Vietfracht CFS as individual and
container freight station as a whole.
Research Purpose
The purpose of my research is taking a closer look at How VF CFS provide
services for export cargoes. After gaining the insight in this, some recommendations
to improve the quality service for export cargoes will be suggested. During the
research period, I strive to look for appropriate model to measure the service quality
that VF CFS has provided for customers. Especially I focus on studying to improve
service quality for exporting cargoes in order to more feasible recommendations.
Some hidden weaknesses may be revealed by under sending the survey to CFS
customers. Through this research, I have a valuable opportunity to not only acquire
practical knowledge but also skills about how to conduct a research.
Research Scope
The internship took place in Vietfracht CFS for export cargoes. During this
internship, I have chance to learn about services that CFS provides for their

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customers. The dissertation focuses on evaluation of services quality with strengths
and weaknesses of services for export cargoes.
The dissertation was carried out from August, 2015 to October, 2015. The
work was done in three-month period including with taking an internship, choosing
topic of dissertation, collecting information and statistics and writing.

Research Methodology
Method of data collection: the dissertation is using the combination of
qualitative and quantitative research. The qualitative approach is undertaken by
interviewing, discussing ideas with staff to gain more perception about the current
services of CFS. From that, I can report authentically about the current services that
CFS provides for export cargoes. Quantitative research is applied in assessment of
CFS services through sending questionnaires to customers. The questionnaire used
the most common measurement technique-rating. The customers will be asked to
rate quality of current services in 5-point scale starting from 1 as “strongly
disagree” to 5 as “strongly agree”.
Methods of data analysis: because the questionnaires are designed in form of
5-point scale, descriptive statistics can be easily used to analyze the data. All steps
of data analysis including editing, coding, data entry and data analysis are carried
out by using Excel.
Research Result
The dissertation presents the current services for export cargoes that VF CFS
provides in Chap 2. In addition, the most appropriate measuring model to assess
CFS quality service for export cargoes is set up. In order to measure service quality,
I ask customers to judge the current service quality base on these on the proposing
model by sending surveys to them. Data is collected and analyzed by using
descriptive statistics, and then some hidden issues were unclosed. As a result, I have
come up with some recommendations as remedies for each issue. Overall, I believe
that, my dissertation has provides useful knowledge which contributes to the
development of CFS.

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CHAPTER 1: LITERATURE REVIEW
1.1. Container freight station
1.1.1. Definition
According to business dictionary, container freight station can be simply
defined as “port facility for loading and unloading containerized cargoes from or to
ship” (Dictionary)
Another definition is that “Container Freight Station (CFS) means the
location designed by the Carrier or his authorized agent for the receiving of goods
to be stuffed into containers or for the delivery of goods stripped from containers by
the Carrier or his authorized agent” (OOCL)
CFS locates in the locations where import/ export cargoes can be easily
loaded/unloaded, consolidation and deconsolidation for transportation to
destinations. In order to establish this warehouse, firm need to granted licenses to
operation because CFS warehouse is under the strict control and supervision by
custom authorities.
1.1.2. The importance of container freight station
We have lived in global village where trading between countries and regions
grow exponentially. A great volume of goods transported to ports have caused bad
congestion in ports. Another justification is a long waiting time for customs
clearance. This delay time will add up the cost of sea transportation.
Container freight station is established as convenient location to
consolidation and deconsolidation, temporary storage, customs inspections…hence
CFS helps to accelerate the flow of containers and cargoes, facilitate the port
operation, increase productivity and reduce port congestion.
1.1.3. CFS main activities
Main activities in CFS are receiving, put away, storage, picking, packing and
shipping.

Receiving is the first step in CFS processing. Cargoes are unloaded from
vendor‟s trucks; counting and identifying the received cargoes were undertaken
simultaneously. CFS employees also record any overage, shortage or damaged of
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cargoes after cargoes are accepted which is quality control. The receipt was issued
and cargoes are marked traditionally or with bar code. Cargo information is
registered into warehouse management system (if any) after being put away.
Put away is implemented when cargoes are categorized and palletized after
moving to storage locations. Normally, CFS determines storage locations in
advance and after putting away, locations are recorded properly in a preparation for
subsequent steps.
Storing not only includes proper preservation of cargoes but also other
activities like cycle counting, replenishment, stock rotation and space planning.
Cycle counting is audit-practice which specific portions of goods are physically
counted and checked on schedule. Replenishments and stock rotation refer to refill
and switch cargo location in rational way. Storage space also is planned to utilize
resource and increase productivity
Picking is a process based on customer‟s orders; cargoes are picked manually
or automatically from storage locations.
Packing is considered as value-added service and is provided in some CFS.
According the demand of customers, cargoes are packing carefully to avoid damage
or losses in transportation.
Shipping is considered as final process in CFS which includes shipping

confirmation, invoicing, sealing, staging and loading. Cargoes are gathered
together, checking, invoicing, and loaded to customers‟ vehicles by using handling
equipments.
1.1.4. Types of store cargoes
According to Article 61 in 2014 Customs Law, there are two main types of
cargoes which are allowed to store in CFS (Container Freight Station). Firstly, it is
imported cargoes which have not yet finished customs clearance. Secondly, it is
exported cargoes which have completed customs clearance or registered custom
declaration but have not been under custom inspection.
However, Container Freight Station often refers as a place dealing with LCL
cargoes which stands for Less Than Container Load. LCL cargoes are cargoes
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which are not enough to full a container so it can be joined with other LCL cargoes
in order to save transportation cost.
1.1.5. Conditions to CFS establishment
According to Article 62 in 2014 Customs Law (Government, 2015), bonded
warehouse or cargo consolidation locations are constructed in following area:
- Seaports, international airport, domestic port for exporting and importing
cargoes, gate road, international railway station
- Industrial zones, High-Tech zones, the non-tariff zones and other areas as
prescribed by law.
According to the Decree 08/2015/NĐ-CP, government regulates about CFS
establishment

- Warehouse proposing the establishment must be within the area defined in
Article 62 of the Customs Law.
- Enterprises with registered do business in freight forwarding,
transportation, warehouse business.
- Consolidation location has a minimum area of 1,000 m2 and not including
auxiliary facilities
- Ensure that the facilities for customs authorities as office, location for
cargoes inspection and installation of customs equipment …
- Warehouse must have fences surrounding area, equipped with surveillance
systems like cameras which meet the standards of the customs authorities
- Cargoes in warehouse are managed by computer systems and are connected
to the monitoring system of the customs authorities.
1.1.6. CFS functions
CFS primarily carries out some following functions:
- Receipt and delivery of cargo.

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- Stuffing and unstuffing of containers.
- Transit operations to and from serving ports.
- Customs clearance.
- Consolidation and break-bulk of LCL cargo.
- Temporary storage of cargo and containers.
- Maintenance and repair of container units.

1.1.7. Customs supervision
In the Circular 38/2015/TT-BTC (Government, 2015), there is regulation
about the supervision of customs in CFS
In term of exported cargoes, customs employees in CFS will check and
compare the ion in Customs systems with cargoes brought into CFS. In term of
imported cargoes, customs employees in CFS will supervise imported cargoes in
accordant to transportation declaration and bill of lading of cargoes. Services
performed in CFS must be subject to supervision by the customs authorities. CFS
operators have to inform customs the current status of cargoes and the business of
CFS every 3 months.
1.2. Service
1.2.1. Definition
First of all, it should be noted that there are many different ideas and
definitions about services. General, service is often referred as intangibility.
According to (Kotler, 2003), service can be defined as any behavior or act in a
contact between two parties: the provider and the receiver. Walfried (Walfried M.
Lasser, 2000) saw service as a set of characteristics that meet the clients' needs,
reinforce the links between the organization and them, and improve the clients'
value as well.
1.2.2. Service quality
Measuring service quality has been one of the most heated topics to many
scholars over decades due to the prevalence and developments of service in a wide
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range of businesses. According to (Parasuraman, 1985), service quality is a gap
between customer„s expectation and the perception of current services that are
provided. Gronroos (Gronross, 1984) argued that service quality can be measured
by the comparison between value that customers expect before using service and
value that customers receive after using service.
1.2.3. Models to measure service for export cargoes in CFS
Gronroos also proposed a model including three dimensions (technical,
functional and image) to measure service quality. Technical quality referred to what
are services and value customers received while functional quality related to how
services are provided. Image which is quite important to company is mainly build
up based on technical quality and functional quality. However, the model widely
used to measure service quality is the model that was proposed by Parasuraman
(Parasuraman, 1985). This model also is considered as foundation to measure
service quality in many service fields like banks, insurance, education…In this
model, Parasuraman indicate ten criteria to assess the quality of every service
including reliability, responsiveness, competence, accessibility, courtesy,
communication, credibility, security, understanding the customer, tangibility. In
1988, this model was named as SERVQUAL which the merger of two words
service and quality. Ten criteria were integrated into 5 criteria as following:
-

Tangibility: Physical facilities, equipment, and the physical appearance of
employees
Reliability: The ability to provide the exact required service dependably and
accurately.
Responsiveness: Willingness of the employees to serve clients promptly and
properly.
Assurance: The ability conveys trust and confidence. This reflects the
employees' knowledge and experience
Empathy: knowing the customers' personal needs, taking care of customers

individually and showing sympathy and affection.

Based on SERVQUAL model, Cronin and Taylor (J.J. Cronin, 1992)
proposed new model SERVPER (Service performance) to simplify the
measurement of service quality. Cronin and Taylor claim that service quality can be
measured by the actual performance of service instead of the gap in customer
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expectation of customers and level of current service in Servqual. Cronin argued
that Servqual model of Parasuaraman easily misleads between satisfaction and
attitude of customers. It is undeniable that SERVPER is easier to implement ranging
from collecting to analyzing data. SERVPER is also suitable for research which
limits in time and cost. SERVPER uses exact 5 criteria of SERVQUAL which is
listed above.
However, due to the distinct features and characteristics, each type of
business or industry will require different measuring model. Chowdhary and
Saraswat (Chowdhary, 2003) also said that different dimension or criteria should be
applied based on characteristics and purposes of services. Therefore, when
measuring the quality of CFS, I have to take an account of characteristics of CFS
warehouse.

As a critical part in logistics system, CFS warehouse has unique

features of logistics providers.

According to textbook about Multimodal transportation and logistics
(Department, 2015), time is one of the most important criteria to judge the
competiveness of logistics service providers. With the development of modern life,
the accuracy of time is increasingly gaining its importance. Punctuality can directly
affect the productivity and competitiveness of any industries. Punctuality is more
ever important and considered as key criteria to the success of logistics services. In
today fierce competition, warehouse should set out strict timetable to each step in
warehouse operation due to of its time-sensitive activities like consolidation,
shipping…Just in time represents in following activities: receiving and shipping on
time, declare customs clearance on time, finish stuffing and unstuffing on time,
finish documents and send to related parties on time. Accuracy is another criterion
to judge operation of warehouse. Every step ranging from receiving, putting away,
picking, packing and shipping should be ensured the accuracy of product, quantity,
time and place…Mistakes will result in the serve damage for all involved parties
like exporters or importers and can adversely affects warehouse‟s reliability and
productivity. Therefore, mistakes are unacceptable and should be reduced at the
minimum levels. By using SERVPER model, time and accuracy of CFS service can
be presented as reliability dimension.
In addition, equipments and facility reflects the CFS capacity to handle
cargoes and have implication on judging CFS services. These factors are merged
into intangibility dimension of SERVPER model. As aforementioned analysis,
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using 5 criteria in SERVPER model is quite appropriate to assess the services

quality of CFS warehouse. Furthermore, two criteria, time and cost will be added in
order to adequately judge all service aspects that CFS provided. After revising, new
conceptual model for this study is shown in table 1.1
Table 1.1: The model of measuring service quality at CFS.
Factors

Items

Code

Tangibility

CFS‟s facilities are adequate to provide good services
for export cargoes (including warehouse, depot,
office..,)

TAN 1

Equipment of CFS is adequate and up-to-date
(handling equipment, container trucks...)

TAN 2

CFS uses the up-to-date technology in management

TAN 3

Cargoes are stored in appropriate condition and do
not have any damage

REL 1

Documents are correct and error-free

REL 2

Tasks like receiving, picking, packing and shipping
are performed accurately, safely (which is right in
product, quantity, time, place)

REL 3

Procedures for export cargoes are finished on time
(before „cut-off‟ time)

REL 4

CFS finishes stuffing and shipping containers on time
( before „cut-off‟ time)

REL 5

Responsiveness

Employees are willing to help and answer questions
of customers

RES 1

Assurance

Employees have good knowledge and are skillful to
perform tasks

ASS 1

Employees have ability to solve occurred problems
and emergencies

ASS 2

Company regularly receives feedbacks and updates
services according to customer‟s demand

EMP 1

Reliability

Empathy

Furthermore, in order to gain more insight into CFS services, ImportancePerformance Analysis (James, 1977) should be applied. Importance-Performance
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Analysis (IPA) may ask customers about level of importance and performance of

each measuring criteria of service quality. Applying IPA with criteria derived from
above model is actually an effective tool to assess CFS services. Because, it helps to
recommend areas in which company can strategic redeploy resource to improve
service quality according to the suggestion of importance of customers. For
example, company can prioritize to develop dimensions which are more important
to customers. Company can allocate resource more effectively and create its
comparative advantages.
1.3. Research method
1.3.1. Research objectives
The research is aim to find out the real quality service at Vietfracht CFS by
using questionnaires. The questionnaires were designed by using SERVPERF
model with 5 dimensions (tangibility, reliability, responsiveness, assurance,
empathy). Furthermore, in order to enhance the reliability of research, I also use
Importance-Performance Analysis (IPA) which asks customers about the
importance of each factor in the measuring model. By rating the importance,
customers can help to point out the expectation to services that CFS provide.
However, I focus on study service quality at CFS for export cargoes only due to
some following reasons. Because of time shortage, I decided to study deeply about
CFS for export cargoes. Furthermore, CFS services for export and import cargoes
are quite different. If I want to study service quality for all, it means that I have to
deal with very large target population which I cannot define the exact quantity of
them. Therefore, it may cause the problem in choosing sampling proportion and
collect the adequate quantity of questionnaire to analyze. In addition, by only chose
the smaller part, I can provide more feasible solutions to improve the service
quality. After analyzing the collected data, I will have a general outlook about
service quality at Vietfracht CFS. From what I have been found, some
recommendation will be proposed to improve service quality at CFS.
1.3.2. Methods of data collection
The research mainly uses the quantitative method because in order to assess
quality service of CFS, questionnaires were sent to customers. However, to gain

more general ideas in advance, I also interview some employees who are seniors at
Vietfracht CFS. Therefore, they would demonstrate the deep knowledge and
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experience. After carry out the most importance step- sending questionnaires, I
have to define the target population for the research. Target population is
respondents who I can send questionnaires to. Due to the distinct characteristics of
CFS for export cargoes, customers are forwarders who work directly with CFS on
behalf of cargoes owners. Forwarders will take charges of consolidate LCL cargoes
and rent CFS to stuff these cargoes into containers. At Vietfracht CFS, it has only
20 forwarders, so I intend to send questionnaires to all of them. Furthermore, I
strive to send some questionnaires to some cargoes owners but I may require more
effort. In the questionnaire, I ask customers rating the current performance and
importance of each factor in the questionnaire in 5-point scale. With rating
performance, it starts from 1 as “strongly disagree” to 5 as “strongly agree”. With
rating importance, it starts from 1 as “not important” to 5 as “very importance”
with 3 as middle point. Method of sending question is sending directly to
forwarders supervising at CFS or sending through email.
1.3.3. Sampling
The population is defined as 20 forwarders/ companies who directly
working with CFS likes APL logistics, ASAP, Shipco, Dolphin logistics, one world
logistics… As the rule of thumb, with the population under 100, I should strive to
receive from 80 to 100 % of respondent rate.
1.3.4. Methods of data analysis

Excel is used to analyzing the collected data. More specifically, descriptive
statistic is properly suitable to analyzing data which has the form from 1 to 5. By
using descriptive statistic, excel will automatically implement some calculations
like calculating medium, mode, mean, standard deviation. Mean and standard
deviation is the most important indicators that I will use to assess performance and
importance of each factors in the measuring model.

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CHAPTER 2: THE EVALUATION OF SERVICE QUALITY
FOR EXPORT CARGOES AT CFS OF VIETFRACHT HAI
PHONG
2.1. Introduction of the Transport and Chartering Corporation (Vietfracht)
2.1.1. General information
Name: The Transport and Chartering Corporation
Abbreviated name: VIETFRACHT
Head quarter: 74 Nguyen Du Street, Ha Ba Trung District, Ha Noi
Tel :( 84.4)38228915
Fax: (84.4)38228916
2.1.2. The history of foundation and development
Transport and Chartering Corporation was established on January 18th, 1963
and formerly named as Foreign Trade Transportation Corporation. At the
beginning, Vietfracht was a state owned company and transformed into a joint stock
company in 2006.

Vietfracht ís a member of a wide range of prestigious international
organizations like BIMCO (Baltic and International Maritime Council), FIATA
(International Federation of Freight Forwarder Associations), FONASBA (The
Federation of national associations of shipbrokers and agents), FASA (The
Federation of Asean Shipowners‟ Associations). Vietfracht is also one of founding
members of VSA( Vietnam Shipowners Association), VISABA (Vietnam Ship
Agents and Brokers Association),VIFFAS (Vietnam Freight Forwarder
Association), VCCI (Vietnam Chamber of Commerce and Industry)…With more
than 50 years of experience and growth, Vietfracht was known as one of the most
Vietnam maritime companies locally and internationally. As the acknowledgement
of Vietfracht‟s dedication, the state and government awarded the company with
honor titles like First Class Labour Medal, Third Class Independent Medal and
Labour Heroic Unit.
In 2005-2015 periods, Vietfracht defines its objective “to boost company to
higher level”. Vierfracht strives to expand its businesses, diversify of services, focus
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on human resource and upgrade the means of transportation, improve infrastructure
and information systems and participate in contributing capital for the establishment
of joint stock and subsidiary companies.
2.1.3. Main services
 Ship owning
Vietfracht has owned and exploited the dry cargo fleet with the capacity of
about 20000 DWT operating in Asian Pacific routes. Vietfracht has over 40 years of

experience in managing and operating the fleet, the company ensures to provide
high quality services with qualified staff and crew. In the future, the company will
continue to invest to develop the fleet in order to improve the capacity to above
50000 DWT, focus on training skilled seafarers to meet the increasing requirements
of customers.
 Chartering and shipbroking
Chartering and shipbrobing is one the traditional business of company. With
long experience and extensive relationship with other shipowners and charterers,
Vietfracht has succeeded in broking a number of shipments (dry cargo, refrigerated
cargo, liquid bulk). Besides, for customers who want to export or import cargoes,
company will introduce supplier or purchasers.
 Frieght forwarding and logistics
Forwarding is considered as strong points of Vietfracht. With a network of
offices across the country, warehouse systems and modern transportation means,
Vietfracht is willing to provide the following services:
 Freight forwarding and multimodal transport
- Documentation, insurance management and customs clearance
- Stevedoring and tallying
-

Hiring transport vehicles to move cargoes
Storage facilities (long-term and short-term)
Pre-inspection for reefer cargoes
Packing and marking

-

Freight forwarding of special cargoes like dangerous cargoes, oversized
cargoes, fragile and valuable cargoes

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Recommendations to improve service quality for export cargoes at CFS of The Transport and Chartering
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 Freight forwarding and assembling equipments for projects and factories
 Consolidation and distribution services
 Warehousing and trucking
Vietfracht has network of modern warehouses in the several cities of
Vietnam such as Hai Phong, Binh Duong province; Ho Chi Minh City…
Transportation fleet operates on time and safety which helps to move containers
from container yards to warehouses and vice verse.
 Shipping agency
Vietfracht is operating as ship agency for many shipping lines all over the
world. The company has dealt with many types of vessels such as bulkers, dry
carriers, reefers, tankers, ro-ro, cruide oil carrier and containerships. Vietfracht
provides a wide range of services including inward and outward procedures for
vessels, stevedoring, ship repair and maintenance, crewing, food and equipments
provider for ships. Company also offers package services in protecting agency, local
husbandry, cargo canvassing, information agency system, booking and marketing.
2.1.4. Organization structure of Transport and Chartering Corporation

Figure 2.1: Organization structure of Transport and Chartering Corporation

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Recommendations to improve service quality for export cargoes at CFS of The Transport and Chartering
Corporation – Hai phong branch

2.2. Introduction of Vietfracht Hai Phong
2.2.1. General information
Name: Vietfracht Hai Phong
Address: 35 Minh Khai Street, Hai Phong, Viet Nam
Tel: (84.31) 3745529
Fax: (84.31) 3842276
Email:
Vietfracht Hai Phong is a branch of Transport and Chartering Corporation
maritime in key areas-Hai Phong. Vietfracht Hai Phong is considered an important
member contributing greatly to the strong performance and efficiency of Transport
and Chartering Corporation.
2.2.2. Organization Structure of Vietfracht Hai Phong

Director

Vice Director

Vice Director

Forwarding
Department

Inbound and
outbound
warehousing

Ship Agent
Department

Depot

Human
Resource
Department

Trucking

Accounting
Department

Procedure Team

Figure 2.2: Organization Structure of Vietfracht Hai Phong
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Recommendations to improve service quality for export cargoes at CFS of The Transport and Chartering
Corporation – Hai phong branch

2.2.2.1.

CFS employees

a. Vice Director is the highest position in VF CFS who takes charges of
controlling entire activities at CFS. He will receive daily reports from all
departments and give direct guidance to each department. In addition, he will
make the importation decision related to development of CFS
b. Warehouse manager takes charge of managing all activities in CFS for
export and import cargoes like receiving; storing, stuffing, unstuffing,
shipping…He will receive direct guidance of Vice Director.
c. Depot Manager is responsible for activities in depot like lifting on/off
containers, storing empty containers…He will directly receive the commands
of Vice Director.
d. Trucking fleet is including 8 containers trucks and drivers. The trucking fleet
is responsible for shipping containers from other depots to VF CFS and vice
verse
e. Procedure team will in charge of dealing with all kinds of documents for
export and import cargoes at VF CFS. Hence, they keep the close
relationship with other parties like forwarders or shipping lines. They also
receive the direct commands of Vice Director
f. Storekeepers play their roles as supervisors and record some documents at
warehouse. They also dive instruction to worker, tallymen and forklift
drivers
g. Forklift drivers are workers who specialize in control forklift truckers. They
can work in depot or at warehouse
h. Tally men are workers who take charge of recording all cargoes information
in receiving and shipping operation by establishing Tally sheets
i. Workers work in the warehouse. They will take charge of handing cargoes
like unloading, loading, putting away, picking cargoes.
2.2.3. CFS of Hai Phong branch
 Position: located in No.5 national high way, near Chua Ve port
 Warehouse area: 5760 m2






Workshop area: 400 m2
Depot: 20000 m2 with capacity of more than 1000 containers
Camera system operating 24/24
Modern and synchronous handling equipments

2.2.4. CFS facilities
2.2.4.1. Handling equipment
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Recommendations to improve service quality for export cargoes at CFS of The Transport and Chartering
Corporation – Hai phong branch

a. Forklift truck
There are 4 forklift trucks which are used in warehouse with capacity being 4 T

Figure 2.3: Forklift truck
b. Reach stacker
There are 2 reach stackers in total which are mainly used in depot to lift
containers. Reach stackers have lifting capacity of 45 T

Figure 2.4: Reach Stacker
c. Hand pallet truck
Hand pallet trucks are main equipments to help workers move cargoes

were stacked in pallets. There are 35 hand pallet trucks but the majority of them
is poor condition and need to be replaced.

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Recommendations to improve service quality for export cargoes at CFS of The Transport and Chartering
Corporation – Hai phong branch

Figure 2.5: Hand pallet truck
d. Tractor and trailers
Vietfracht CFS has totally 8 tractors & trailers which are used to transport
containers from outside to warehouse and vice verse.

Figure 2.6: Container truck
2.2.4.2.

Other equipment

Security system includes 32 cameras equipped around corners of CFS. CFS
has 1 fire pump, 15 fire extinguishers and 1 electricity generator for emergency
cases.

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