Vietnam's top forwarder Gemadept Corp will start building a $410 million deep-water container port next year to handle more transhipments in a fast-growing economy that joined the WTO earlier this year.
The government has identified Cai Mep container port as one of five ports to be built in the southern province of Ba Ria-Vung Tau by 2010 to serve a region handling 70 percent of Vietnam's containers traffic.
"So far, transhipments are carried out in Singapore, Taiwan or Hong Kong, but when we put the port into operation, ships from the United States could come directly to Cai Mep for transhipment to regional countries," Gemadept CEO Do Van Minh told reporters on Thursday.
Foreign investors say Vietnam, which joined the World Trade Organization in January, has to improve its infrastructure, mainly in the transport and energy sectors.
The five ports will be used when the government relocates Saigon Port and related facilities from Ho Chi Minh City, Vietnam's economic centre, over the next few years.
A foreign industry expert said transhipment could bring benefits to the government and port operators, but would not help the provincial economy much as it does not require intensive land services.
Minh did not say how much Gemadept would invest in the port which will have a depth of 16 meters. The company has been building two ports in the central region -- the $36 million Dung Quat and the $230 million Nhon Hoi. Its investment in both is 55 percent.
Construction of Dung Quat, in which state-run Vietindebank is investing 11 percent, began in July 2006. When operational in early 2008, it would serve the $2.5 billion oil refinery, Vietnam's first, in Quang Ngai province.
Ho Chi Minh City-based Gemadept operates ports, provides container transport and acts as an agent for several dozen foreign shipping lines.
It operates the country's biggest coffee storage warehouses, handling close to a third of the exports from the world's top robusta producer. It is also diversifying into property and financial investment.
Port operation and logistics would grow to account for 60 percent of total revenues by 2012, from about 50 percent now, Minh said. Property should account for 8 percent and financial investment 9 percent.
Gemadept has forecast its net profit should rise by up to 30 percent this year from 156 billion dong ($9.7 million) on a 15 percent increase in revenues from 1.21 trillion dong ($75 million).
Gemadept shares added 0.8 percent to VND126,000 ($7.8) on Thursday, valuing the company at $336 million.
The government has identified Cai Mep container port as one of five ports to be built in the southern province of Ba Ria-Vung Tau by 2010 to serve a region handling 70 percent of Vietnam's containers traffic.
"So far, transhipments are carried out in Singapore, Taiwan or Hong Kong, but when we put the port into operation, ships from the United States could come directly to Cai Mep for transhipment to regional countries," Gemadept CEO Do Van Minh told reporters on Thursday.
Foreign investors say Vietnam, which joined the World Trade Organization in January, has to improve its infrastructure, mainly in the transport and energy sectors.
The five ports will be used when the government relocates Saigon Port and related facilities from Ho Chi Minh City, Vietnam's economic centre, over the next few years.
A foreign industry expert said transhipment could bring benefits to the government and port operators, but would not help the provincial economy much as it does not require intensive land services.
Minh did not say how much Gemadept would invest in the port which will have a depth of 16 meters. The company has been building two ports in the central region -- the $36 million Dung Quat and the $230 million Nhon Hoi. Its investment in both is 55 percent.
Construction of Dung Quat, in which state-run Vietindebank is investing 11 percent, began in July 2006. When operational in early 2008, it would serve the $2.5 billion oil refinery, Vietnam's first, in Quang Ngai province.
Ho Chi Minh City-based Gemadept operates ports, provides container transport and acts as an agent for several dozen foreign shipping lines.
It operates the country's biggest coffee storage warehouses, handling close to a third of the exports from the world's top robusta producer. It is also diversifying into property and financial investment.
Port operation and logistics would grow to account for 60 percent of total revenues by 2012, from about 50 percent now, Minh said. Property should account for 8 percent and financial investment 9 percent.
Gemadept has forecast its net profit should rise by up to 30 percent this year from 156 billion dong ($9.7 million) on a 15 percent increase in revenues from 1.21 trillion dong ($75 million).
Gemadept shares added 0.8 percent to VND126,000 ($7.8) on Thursday, valuing the company at $336 million.