Nam Song Hau to develop $90 million bonded petroleum warehouse

September 08, 2020 | 09:21

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Nam Song Hau Petroleum Investment and Trading JSC proposed investing in building a bonded petroleum warehouse in Van Phong Economic Zone with the total investment capital of VND2 trillion ($87 million).

nam song hau to develop 90 million bonded petroleum warehouse in van phong ez

Nha Trang Nam Song Hau to develop bond $87 million bonded petroleum warehouse in Van Phong EZ

Covering an area of 100 hectares, the project combines a bonded petroleum warehouse with the capacity of 150,000 cubic metres and a general goods warehouse with the capacity of one million tonnes a year that can receive ships of up to 150,000 tonnes.

Nam Song Hau Petroleum Trading and Bonded Warehouse, which is a member company of Nam Song Hau Trading Investing Petroleum JSC, sent a proposal to Khanh Hoa People’s Committee, and Van Phong Economic Zone (EZ) Management Authority to implement the project.

Immediately after receiving approsal from local authorities, the company will survey the topography, geology, and make a report to submit the government an additional planning for bonded petroleum depots while completing procedures for land lease and investment licensing.

Previously, Van Phong Terminal invested more than $122 million in building the Van Phong petroleum bonded warehouse, which was expected to become “golden egg laying goose” for the central province, a dream that has not come true yet.

The Van Phong petroleum bonded warehouse began operations in June 2012 with the total investment capital of $125 million and total capacity of 505,000cu.m.

However, according to Petrolimex, in 2012 alone, Van Phong Petroleum Bonded JSC suffered a loss of VND170 billion ($7.39 million). Since it was a new warehouse, occupancy fell far short of its designed capacity, with leased area reaching 20 per cent in 2013 and 43 per cent in the first half of 2014.

The warehouse has accumulated losses of about VND120-130 billion ($5.21-5.65 million) in 2017, when it achieved a net profit. There are no results available for 2018-2019.

By Ha Vy

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