NX Vietnam Introduces Consolidation Service via Vietnam’s North-South Railway
Nippon Express (Vietnam) Co., Ltd. (hereafter referred to as “NX Vietnam”), a subsidiary of NIPPON EXPRESS HOLDINGS, INC., is significantly enhancing its rail freight services in Vietnam by launching a new consolidation service on the North-South Railway connecting Hanoi and Ho Chi Minh City. This move aims to address the increasing demand for an efficient and sustainable logistics network in response to Vietnam’s rapid economic growth.
As industries continue to expand across the country, logistics needs are evolving, requiring more sophisticated and diversified solutions. The North-South railway serves as a critical route linking key manufacturing hubs with consumption centers, making it an essential part of Vietnam’s logistics infrastructure. In line with this demand, NX Vietnam initially introduced a rail freight service in June 2024, reducing transit time between Hanoi and Ho Chi Minh City (approximately 1,700 kilometers apart) to around 48 hours (*1).
This service has been widely appreciated by customers due to its reliability, high quality, and environmentally friendly approach, which helps to significantly reduce the carbon footprint of logistics operations. Building upon this success, NX Vietnam is now expanding its services by launching a Less than Container Load (LCL) consolidation option, complementing its existing Full Container Load (FCL) service.
Enhancing Efficiency with LCL Service
The introduction of the LCL service is a strategic move to accommodate businesses that require transportation of smaller cargo loads that do not fill an entire container. By utilizing its own warehouses as Container Freight Stations (CFSs) for both incoming and outgoing shipments, NX Vietnam ensures efficient and high-quality service through in-house handling of loading and unloading operations.
This initiative provides a more flexible and cost-effective logistics solution, enabling businesses of various sizes to optimize their supply chains. With the new LCL service, NX Vietnam enhances its ability to cater to a broader customer base, including small and medium-sized enterprises (SMEs) that need reliable freight solutions without the burden of renting an entire container.
Key Features of the Rail Container Consolidation (LCL) Service
The LCL service offers several advantages to businesses looking for efficient logistics solutions:
- Small-Lot Cargo Handling: The service is ideal for businesses that need to transport smaller cargo loads that do not fill a full container. This makes it a cost-effective solution for companies with varying shipment sizes.
- High-Quality Service: By handling containerized cargo in-house, NX Vietnam maintains strict quality control, ensuring that shipments are processed with high standards of efficiency and safety.
- Stable Lead Times: Rail transport is generally less affected by road congestion, ensuring more predictable delivery schedules and greater stability in supply chains.
- Environmental Sustainability: Rail freight produces approximately one-fifth of the CO2 emissions compared to truck transport (*2), making it a more sustainable option for businesses looking to reduce their environmental impact.
- Cost Efficiency: The LCL service is a budget-friendly alternative for small-lot cargo shipments, helping businesses save on logistics costs compared to other transportation methods.
- Wide Range of Transportable Items: The service can accommodate heavy cargo, providing greater flexibility for different industries.
- Door-to-Door Delivery: NX Vietnam offers a reliable and comprehensive service, managing cargo from pickup to final delivery.
Service Overview
Transport Route and Frequency
- Route: Between Hanoi CFS and Ho Chi Minh City CFS
- Transport Frequency: Twice a week
- Departures from Hanoi: Wednesday and Friday
- Departures from Ho Chi Minh City: Tuesday and Saturday
- Transport Time: Approximately 58 hours (between Quang Minh Logistic Center’s CFS and Song Than Logistic Center’s CFS)
- CO2 Emissions: Around one-fifth of truck transport emissions
CFS Locations
- Hanoi: Quang Minh Logistics Center (Located in Quang Minh Industrial Park, Me Linh District, Hanoi City)
- Ho Chi Minh City: Song Than Logistics Center (Located in Song Than 2 Industrial Park, Di An Ward, Di An City, Binh Duong Province)
The Growing Importance of Rail Freight in Vietnam
Vietnam’s logistics industry is undergoing a transformation, driven by increasing trade, industrial expansion, and a growing e-commerce sector. As a result, businesses are seeking logistics solutions that provide speed, reliability, and cost savings. Rail freight is emerging as a crucial component of the country’s logistics framework due to its efficiency, environmental benefits, and resilience against road congestion.
The Vietnamese government is also actively promoting the development of railway infrastructure as part of its long-term economic growth strategy. Investments in railway modernization and expansion are expected to further enhance rail freight services, making them even more competitive with road and air transport.
For businesses operating in Vietnam, leveraging rail freight offers multiple advantages, including lower transportation costs, reduced transit times, and minimized environmental impact. NX Vietnam’s expansion of its rail freight services aligns with this trend, providing businesses with innovative logistics solutions that meet their evolving needs.
NX Vietnam’s Commitment to Sustainable Logistics
As part of the global NX Group, NX Vietnam is dedicated to providing high-quality logistics services while prioritizing sustainability. The launch of the LCL rail consolidation service is a testament to the company’s commitment to reducing CO2 emissions and promoting environmentally friendly transportation methods.
By shifting more cargo to rail transport, NX Vietnam is actively contributing to the reduction of greenhouse gas emissions, aligning with international efforts to combat climate change. The company continues to explore new ways to improve logistics efficiency while minimizing the environmental impact of its operations.
Future Prospects and Industry Impact
The expansion of rail freight services by NX Vietnam is expected to have a significant impact on the logistics industry in Vietnam. As businesses increasingly prioritize sustainability and efficiency, demand for rail transport solutions is set to grow.
NX Vietnam’s investment in LCL services will provide greater accessibility for businesses of all sizes, ensuring that logistics remains a driving force behind Vietnam’s economic growth. The company’s ability to offer stable, cost-effective, and eco-friendly transportation options positions it as a leader in the evolving logistics landscape.
Moving forward, NX Vietnam will continue to explore new opportunities for service enhancement, including the expansion of rail routes, adoption of advanced logistics technologies, and implementation of smart supply chain solutions. These initiatives will further strengthen Vietnam’s logistics infrastructure and support the country’s ambitions of becoming a regional trade and manufacturing hub.