Vinalines wastes money on three struggling ports in Cai Mep - Thi Vai area
2012 05 28
- Details
VIETNAM National Shipping Lines, Vinalines, has wasted billions of dollars with foreign partners on running three ineffective ports, namely the Cai Mep Port (CMIT), SP-SSA Port (SSIT) and the Saigon Container International Port (SP-PSA), in the Cai Mep - Thi Vai area.
SP-PSA is the joint venture among Vinalines, the Saigon Port Company and Singaporean PSA International, while CMIT is the joint venture between Vinalines and Danish APM Terminals.
In the period 2007-2010, the three ports suffered a huge total loss of VND252 billion (US$0.01 billion) from an initial investment of VND1,807.82 billion. In 2011, SP-PSA and CMIT reported a loss as high as VND460 billion.
Despite the ports' ability to receive ships of tonnage up to 100,000 DWT and the slashing of fees, the volumes have not materialised. Ships over 50,000 DWT at international transit ports in Vietnam enjoy a maritime security charge discount of 40 per cent and a pilotage fee slashed by half. Container handling fee is at an all-time low of $49 per TEU lower than the regional average of $40 per TEU.
Regardless of the size of vessels docking, the ship owners can only get some hundreds of TEUs rather than full capacity of a 51,000 DWT at 4,500 TEU due to the low volumes in both exports and imports, said Hanjin Shipping Vietnam general director Park Hoon.
CMIT deputy general director Nguyen Xuan Ky said the unexpected drop in volume against the money invested into the ports has investors "worried stiff". The ports will be in the red for at least 12-13 years, according to analysts, cited a report from VietnamNetBridge.
The projects were made under the leadership of former chairman Duong Chi Dung, now under arrest warrant for his mismanagement of Vinalines.
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