Monday, October 15, 2007

Vietnam's Saigon Port to construct international ports in Vung Tau

Saigon Port to construct two int'l ports in Ba Ria-Vung Tau

A SP-PSA representative (R) receives the investment license for the port from Ba Ria Vung Tau authorities in April
SP-PSA, a Vietnam-Singapore joint venture, broke ground Friday for an international container port in the southern Vietnamese province of Ba Ria-Vung Tau .

The launch of the project was attended by the Singapore Minister of State for Finance and Transport Lim Hwee Hua, Vietnamese Deputy Minister of Transport Tran Doan Tho, and Ba Ria-Vung Tau People’s Committee chairman Tran Minh Sanh.

The container port will be developed by SP-PSA International Port Co. Ltd, a joint venture between HCMC’s Saigon Port and PSA Vietnam, a wholly owned unit of the Singapore port operator.

The SP-PSA International Port, located near the mouth of the Cai Mep-Thi Vai River in Tan Thanh District, will be built in two phases, with the first requiring US$166 million and the second $133 million.

The first phase, which is due for completion in 2009, includes construction of a 600-meter wharf that can receive 75,000-ton vessels and 28 hectares of container grounds which can handle 1.1 million twenty-foot equivalent units (TEU’s) per year.

The second phase, scheduled for 2010-2011, will build an additional 600-meter wharf and raise the port’s annual throughput to 2.2 million TEUs, or 25 million tons of cargo.

It is PSA's first project in Vietnam and gives the Singaporean port operator, wholly owned by state-linked investment firm Temasek Holdings, a foothold in the fast growing Southeast Asian economy, which expanded more than eight percent in 2006.

PSA, one of the world’s top port operators, runs Singapore’s container terminals as well as ports in Italy, Portugal, Belgium, the Netherlands, Japan, South Korea, China, Hong Kong, India and Thailand.

Reported by Mai Vong