New port up for tender despite sluggish demand

The Ministry of Transport last week approved a plan for leasing two berths of the Japan official development assistance (ODA)-funded Cai Mep-Thi Vai international container terminal in Ba Ria-Vung Tau province. The selection of port operator will be put up for tender.

The Cai Mep container berth which can accommodate vessels up to 100,000 dead weight tonnage would be leased out for a minimum fee of $219.5 million, while the Thi Vai berth which can accommodate vessels up to 50,000 dead weight tonnage would cost at least $130.5 million.

“This is the first time a state-invested infrastructure project has been put up for a 30-year lease,” said Le Tuan Anh, head of international cooperation at the Vietnam Marine Administration.

“This is a solution to help the state to more quickly recoup its investment capital. Operators that offer the highest price and have the best business plans will win the tender,” said Nguyen Nhat, director of the administration.

The container terminal was inaugurated in January and is scheduled to start commercial operations in the second half of this year after contractors finish the final installation of equipment. The $625 million terminal is among the largest terminals in the Cai Mep-Thi Vai port complex in the southern province of Ba Ria-Vung Tau.

Despite the optimism over the new terminal, Cai Mep-Thi Vai’s other ports are in a perilous state as they have suffered losses since last year because of cargo shortages, despite government plans to make the complex the main gateway for maritime trade in the south of Vietnam.

The situation is so bad that the SP-SSA International Container Terminal, a port joint venture between the US’ SSA Marine, Vietnam National Shipping Lines (Vinalines) and Saigon port, planned to temporarily close its 38-hectare terminal at the same complex.