Nearly two years after a groundbreaking, construction of Van Phong international transhipment port in the central province of Khanh Hoa has stalled due to slow construction progress, reported Vietnam News Brief Service.
Vietnam’s first international transhipment port project with four stages of construction was mainly financed by Vietnam National Shipping Lines (Vinalines) in Van Ninh District.
Under the plan, the US$3.6 billion project is slated for completion by 2020. With 42 wharfs, a 12.5 km in length and a site of 750 hectares, the port will have an annual capacity of 200 million tonnes of goods and receive container ships of up to 18,000 TEUs.
During the starting phase, the contractor, a joint venture of Korea-based SK Engineering & Construction Corp and Vietnam Waterway Construction Co, will invest US$287 million to develop basic infrastructures, including shipping channel, roadwork and storage covering 42 ha of land.
By the end of the first-phase, which is expected to complete in October this year, the port with a designed capacity of 710,000 TEUs per year could accommodate 9,000 TEU container ships.
However, at present just a few dozen steel stakes have been laid in the wharf building areas offshore, while a huge pile of hundreds of steel stakes are left rusting under ragged coverings.
Nguyen Ngoc Quy, director of the project management board, said the project was initially designed for 9,000 TEU ships, but to avoid becoming outdated due to the rapid growth of the maritime and shipping industries in the region, the port will be expanded to accommodate 12,000-15,000 TEU ships.
Difficulties also come from disagreement over the design of the storage area and the embankment protection system, because the designer asked for costly sand that is not available locally.
The biggest challenge, however, is capital shortage since the project is mostly funded by loans and the lending cost for such a big project is becoming more expensive for Vinalines these days, Quy said.
However, Hoang Dinh Phi, deputy manager of Van Phong Economic Zone, said geological complexity is the most thorny issue since Vinalines had pledged they would provide sufficient capital for the project.
The port project plays a key role in shaping and developing Van Phong Economic Zone. Since it has fallen behind schedule, investors have become more cautious in disbursing more money in the area, some analysts said.
Vietnam’s first international transhipment port project with four stages of construction was mainly financed by Vietnam National Shipping Lines (Vinalines) in Van Ninh District.
Under the plan, the US$3.6 billion project is slated for completion by 2020. With 42 wharfs, a 12.5 km in length and a site of 750 hectares, the port will have an annual capacity of 200 million tonnes of goods and receive container ships of up to 18,000 TEUs.
During the starting phase, the contractor, a joint venture of Korea-based SK Engineering & Construction Corp and Vietnam Waterway Construction Co, will invest US$287 million to develop basic infrastructures, including shipping channel, roadwork and storage covering 42 ha of land.
By the end of the first-phase, which is expected to complete in October this year, the port with a designed capacity of 710,000 TEUs per year could accommodate 9,000 TEU container ships.
However, at present just a few dozen steel stakes have been laid in the wharf building areas offshore, while a huge pile of hundreds of steel stakes are left rusting under ragged coverings.
Nguyen Ngoc Quy, director of the project management board, said the project was initially designed for 9,000 TEU ships, but to avoid becoming outdated due to the rapid growth of the maritime and shipping industries in the region, the port will be expanded to accommodate 12,000-15,000 TEU ships.
Difficulties also come from disagreement over the design of the storage area and the embankment protection system, because the designer asked for costly sand that is not available locally.
The biggest challenge, however, is capital shortage since the project is mostly funded by loans and the lending cost for such a big project is becoming more expensive for Vinalines these days, Quy said.
However, Hoang Dinh Phi, deputy manager of Van Phong Economic Zone, said geological complexity is the most thorny issue since Vinalines had pledged they would provide sufficient capital for the project.
The port project plays a key role in shaping and developing Van Phong Economic Zone. Since it has fallen behind schedule, investors have become more cautious in disbursing more money in the area, some analysts said.