Saigon New Port snags lease on Cai Mep berth

Vinamarine welcomed Saigon New Port’s bidPhoto: Le Toan

Vietnam Maritime Administration (Vinamarine) last week announced it had received Saigon New Port’s application to lease the Cai Mep container berth for 30 years. Although they were the only applicant, Vinamarine deputy director Bui Thien Thu said the tender was still transparent and legal.

“I learnt that eight port operators bought tender documents following the government’s announcement that the Cai Mep-Thi Vai International Terminal was up for lease this year. However, in the end, Saigon New Port was the only one to file the document,” said Nguyen Manh Ung, deputy general director of Portcoast Consultant Corporation, advisor on the tender.

“Because Saigon New Port is the only applicant, it will not be surprising if the port operator wins the leasing contract,” Ung added.

The Ministry of Transport last July approved a plan to lease two berths of the Japanese development assistance-funded Cai Mep-Thi Vai International terminal in the southern province of Ba Ria-Vung Tau, which was inaugurated in January this year.

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

According to the Ministry of Transport, leasing the berths will enable the state to more quickly recoup its investment capital.

The Cai Mep International Terminal is among five terminals that have been put into operation in the Cai Mep-Thi Vai port complex in Ba Ria-Vung Tau, including SP-PSA International Port and SP-SSA International Container Terminal, jointly invested by state-run Vinalines and Denmark’s APM Terminals BV, Singapore’s PSA International and US’ SSA Marines, respectively. The other terminals are Saigon New Port’s Tan Cang-Cai Mep Container Terminal and Hutchison Port Holdings’ Saigon International Terminals.

However, most port operators at the Cai Mep-Thi Vai port complex are in a very perilous condition as they have suffered losses since last year due to low cargo volume.