APM Terminals and its long-standing local partner Hateco Group are set for a 50-year concession to develop the $1.8 billion Lieu Chieu container terminal in the central Vietnam port city of Da Nang.

The duo was approved by the People’s Committee of Da Nang on Tuesday — the local government — as the preferred bidder for a terminal with an annual capacity of 5.7 million TEUs. Work is due to start later this year, with the first two berths due to open in 2028 and full completion is expected by 2035.

Container lines, supported by record profits from disruption, are investing more in marine terminals to gain better control of landside operations and mitigate port congestion. Maersk’s stakes and investment in marine terminals, such as Tanjung Pelepas in Malaysia, enable the Gemini Cooperation’s hub-and-spoke network with partner Hapag-Lloyd.

US tariffs on China have made Vietnam a more attractive origin of US imports, with the latter’s share of laden inbound shipments rising to 12% last year from 9.9% in 2024, according to PIERS, a sister company of the Journal of Commerce.

APM Terminals, Hateco Group and Hateco Port Company will build, operate and manage the terminal, which will have eight container berths with a total quay of 9,022 feet capable of handling 18,000-TEU container ships. There will also be a barge berth for vessels up to 5,000 metric tons to support local cargo consolidation and distribution, easing pressure on the regional road network, and reducing transport costs.

The facility, midway between the major ports of Haiphong in the north near Hanoi and Ho Chi Minh in the south, is expected to become a key hub for cargo in Vietnam’s central provinces and neighboring Laos as well as transshipment traffic.

The facility is the second to be jointly developed by APM Terminals division and Hateco after the two firms won a concession to build and operate the Hateco Haiphong International Container Terminal that opened last July. The two-berth terminal at Haiphong’s Lach Huyen port in northern Vietnam can handle 18,000-TEU-sized ships.

Da Nang will be APM Terminals’ third facility in Vietnam — the firm operates the two-berth 2.1-million-TEU capacity Cai Mep International Terminal 31 miles southeast of Ho Chin Minh City.