Vinalines sells old ships to restructure fleet

Vinalines says it will work with seaport enterprises and logistics to design integrated services to create an all-in service supply chain that brings economic benefits to customers. - Photo vinalines

The move is part of the corporation’s fleet restructuring efforts, said Acting General Director of Vinalines Nguyen Canh Tinh.

Since 2014, Tinh said Vinalines had implemented a strong restructuring of the transport fleet from 154 vessels to 81. The total tonnage of the corporation's fleet is currently more than 1.7 million DWT, with the average age of ships 16.7 years and the average tonnage 21,470 DWT per ship.

"The fleet restructuring plan has helped Vinalines resolve a number of old ships, which have large investment capital but exploited ineffectively. The shipping area has reduced losses by more than 70 per cent since then," Tinh said.

Amid an unstable shipping market, Tinh said Vinalines will continue to sell old ships to cut losses and improve business results.

In 2019-20, Vinalines expects to sell 23 vessels with total tonnage of about 500,000 tonnes.

"By 2020, Vinalines' fleet will have a total tonnage of about 1.1 million DWT, with the average age of ships about 14 years. Container ships will account for about 13 per cent of the fleet, liquid cargo ships about 9 per cent and dry cargo carriers and bulk cargo account for 78 per cent,” Tinh said.

Investment in a modern fleet

Along with selling old ships, Tinh said Vinalines will research and invest in a new fleet equipped with modern and fuel-efficient technologies.

It hopes to have four container cargos of 1,000 - 5,000 Teus size, three bulk carriers of 15,000 - 35,000 DWT, and one Supramax ship (50,000-60,000 DWT) joining the fleet, strengthening the corporation’s transport capacity and increasing competitiveness.

“With a modern fleet, Vinalines will carry out long-term COA (Contracts of Affreightment) with major partners to stabilise its shipping operation such as coal from Indonesia and Australia to Viet Nam, cement and clinker from Viet Nam to other countries,” Tinh said.

Vinalines will also work with seaport enterprises and logistics to design integrated services to create an all-in service supply chain that brings economic benefits to customers, he added.