Dubai investor ready to flex its muscles

Soai Rap channel in Ho Chi Minh City

The project is backed by Dubai-based DP World and Tan Thuan Industrial Promotion Company (IPC).

William Khoury, CEO and general director of the Saigon Premier Container Terminal (SPCT) joint venture project told VIR the firm was concerned that the dredging of Soai Rap channel in Ho Chi Minh City had been delayed for so many years and that this had negatively impacted investment in terminals and other projects in this area.

“I understand the people’s committee of Ho Chi Minh City is further evaluating other ways to make this project a reality, including legal, technical and financial concerns. However, every day that passes brings more uncertainty to the actual and future investors of the interested areas for development,” Khoury said. 

“Even though we understand we own a good project, and we studied it very carefully before deciding to invest in this project, with the current delay of the channel, we still are operating below capacity,” said the SPCT CEO, adding that SPCT was looking at other ways to expand its investment portfolio to hit its business targets.

Lack of investment capital was the main reason for the delay, according to Tran The Ky, deputy director of Ho Chi Minh City’s Transportation Department.

The dredging of Ho Chi Minh City’s Soai Rap channel was first mooted in the early 1990s when the city recognised the potential of dredging in terms of supporting trade and generating revenues. The city then mandated IPC to invest in the project and dredge the Soai Rap channel.

In January 2008, Vinamarine officially opened the Soai Rap channel for vessels up to 15,000 dead weight tonnage (dwt). In November 2008, the Ministry of Transport approved phase 2 dredging to 12 metres for 50,000 dwt vessels.

The terminal then was inaugurated and put into operation for smaller vessels in January 2010, along with a dredging plan.

But there has been no further progress. IPC recently withdrew from the dredging plan and it was transferred to the Ho Chi Minh City’s Transportation Department, which is now raising funds and reopening the dredging plan’s bidding process.

Ky confirmed that the city’s people’s committee was in discussions with the Ministry of Finance as it sought investment capital for dredging plan. One possible solution was the use of overseas development assistance for continuing implementation of this plan. The dredging of Soai Rap channel is a key project for Ho Chi Minh City in its bid to ensure that large ships can access Hiep Phuoc port. Soai Rap channel is the shortest and widest gateway between the East Sea and Ho Chi Minh’s ports.