Japanese firms get nod for venture to build northern port

Three Japanese companies have been given the green light to join forces with Vietnam National Shipping Lines (Vinalines) to set up a joint venture to build the first two container terminals of Lach Huyen port in Hai Phong City.

Under a statement issued by the government Office, deputy PM Hoang Trung Hai agreed in principle for the joint venture to begin construction on two container terminals of the deep water port project in the northern city. The three Japanese partners are Mitsui O.S.K. Lines (MOL), Nippon Yussen Kaisha, and Itochu.

These three private companies have been recommended by the Japanese government for participating in the port project, which will be funded by Japan’s ODA loans and developed under the public-private partnership (PPP) form.

A source from the Ministry of Transport told the Daily that the two governments would sign as soon as possible an agreement on the preferential credits that Japan will offer to Vietnam to realise the project.

As planned, the developers will invest $165 million in the project’s Component B to develop the two container terminals. Construction on the two terminals was initially scheduled for this year, but due to difficulties in arranging funds, the works may be delayed until next year.

Lach Huyen International Port, with Vinalines as the project owner appointed by the Ministry of Transport, includes two components, A and B.

Component A consists of infrastructure works outside the port, with total capital of $260 million sourced from ODA loans provided by the Japan International Cooperation Agency (Jica) and counter capital from Vietnam.

Once the first phase is completed in 2015, the port will be capable of handling six million tonnes of goods per year. By 2020, after all components are finished, Lach Huyen will be the largest transshipment port in northern Vietnam, with four container terminals, two bulk cargo terminals and five grocery terminals, capable of handling 35 million tonnes of goods per year.

Besides Lach Huyen Port, Vinalines is calling on Japanese investors for building or participating in operating Van Phong international transshipment port in the central coastal province Khanh Hoa.

Nguyen Ngoc Hue, deputy head of Vietnam Maritime Administration, said that in order to handle an estimated volume of 1,580 million TEUs of goods via seaports by 2030, Vietnam needs at least $56 billion for building seaports and upgrading passageways. – Saigon Times

Tags: Lach Huyen Port