Vietnam asked to delay opening of $660m port
The Vietnamese government should delay the launch of the Cai Mep-Thi Vai port complex in the southern region to tackle the capacity surplus at seaport group 5 covering Ho Chi Minh City and southern Ba Ria-Vung Tau province.
This proposal was made by Vietnam Business Forum 2012’s Infrastructure Working Group and representatives from some foreign-invested businesses providing port services, reported Vietnam News Brief Service.
The Cai Mep-Thi Vai project requires an investment capital of US$660 million, the majority of which came from ODA funds and up to 90 percent of construction is reportedly completed.
The Infrastructure Working Group’s Ports Sub-group suggested immediately ceasing the licensing of all container terminal building projects in HCM City’s inner parts.
“Southern container terminals will struggle financially hardships if there is no suitable remedy,” said Maersk Vietnam chief executive officer Peter Smidt Nielsen.
According to Vietnam Maritime Administration (VMA) Deputy Chief Bui Thien Thu, it would be a great waste if the launch of the Cai Mep-Thi Vai port was delayed until the market rebounded.
“The Ministry of Transport is still urging VMA to continue bidding procedures for port leasing slated for completion in June 2013,” Thu noted.
With annual capacity of around one million TEUs and two million tonnes of bulk cargo, the launch of the port in June would worsen the surplus situation in southern deep-water container ports, said the businessmen.
Scattered development of Vietnamese seaports is at an alarming level. Vietnam Seaports Association figures show that port group 5 has been operating under half of its combined capacity while construction of new ports is now underway.
Several port operators are on the brink of going bankrupt due to both global economic difficulties and capacity surplus caused by the lack of planning and cooperation among local governments.