VietNamNet Bridge - A lack of capital is slowing the relocation of over-burdened Ho Chi Minh City ports. A government team, after inspecting Ba Ria-Vung Tau, Dong Nai and Ho Chi Minh City ports,

reported a mix of confusing trends with the second city’s ports recording a 25-30 per cent per year growth rate, far higher than the other inspected provinces.

Saigon Port is still handling an impressive number of goods

The trend is putting pressure on the city’s ports system, as Hiep Phuoc and Thi Vai-Cai Mep ports which have been selected to take the pressure off the southern city’s ports, have reported sluggish growth and a lack of facilities.

To address the problem, the government inspection team and the Ho Chi Minh City People’s Committee have agreed to set up a steering body to accelerate the pace of relocating ports out of the Ho Chi Minh City’s inner-city areas.

On behalf of the inspection team, Deputy Minister for Communications and Transport Tran Doan Tho proposed that Ho Chi Minh City urgently approve the detailed planning of Saigon Port and the Ba Son shipyard so the firms could raise funds for the relocation process.

Capital is needed for a number of new roads, to dredge the Soai Rap River and develop Hiep Phuoc ports on the outskirts of Ho Chi Minh City.

Ho Chi Minh City People’s Committee deputy chairman Nguyen Huu Tin said the city would be ready to remove obstacles to the ports’ relocation process.

Tho said the localities needed to synchronise their planning for new roads, electricity grids and waterways for ships. In the near future it is necessary to have a further vision, at least to 2040, he said.

Representatives from Tan Cang (New Port), Ba Son Shipyard, Tan Thuan Dong Port and the Vegetables Port, selected to relocate before 2010, reported numerous difficulties. According to Saigon Port officials, the greatest difficulty was capital shortfalls for constructing new port facilities as $40 million in loans need to be repaid.

Saigon Port has asked to retain 10 hectares to serve as a port for passenger ships and to set up a maritime centre here with the aim of keeping the ‘Saigon Port Trademark’ in existence. The remaining 22ha will be given back to the city in exchange for money to invest in new port facilities.

Meanwhile, Tan Cang (New Port) which has already relocated to Cat Lai on the outskirts of Ho Chi Minh City, needs to widen provincial road No 25 in District 2 to allow goods to enter. Ba Son shipyard is in dire need of capital for relocating, while Tan Thuan Dong and the Vegetables Port have yet to find a new place to move to.

Tho said Ho Chi Minh City’s ports’ high growth rate was highly encouraging as most of goods passing through Port Group 5 went through Ho Chi Minh City. However, Ba Ria-Vung Tau province ports needed to share the burden.

Tho asked the ports to compile a list of the biggest problems they were facing, which would then be addressed by the relevant state agencies.

Many observers feel the volume of goods passing through Saigon Port makes it difficult to carry out the relocation plans on schedule.

A project to upgrade the port was implemented during 1997-2000 with total bank and foreign loans amounting to $40 million. In the same period, more than VND300 billion ($18.75 million) from the port’s equity was used to construct 400 metres of container piers at the port’s Tan Thuan stevedoring terminals 1 and 2 and a general port in Can Tho province.

The prime minister has approved four Saigon Port investment projects. They are Cai Mep International Port, a joint venture between Saigon Port and Denmark’s Maersk A/S with an investment capital of $187 million, Saigon-SSA International Port, a joint venture with Stevedoring Services America (US) with $160 million in capital, Thi Vai General Port, a joint venture with the Port of Singapore Authority (PSA) with a capital of $299 million in Ba Ria-Vung Tau, and Hiep Phuoc Port with an investment capital of VND2,300 billion ($143.7 million) on the outskirts of Ho Chi Minh City. Implementation of all of these projects is scheduled to be completed in 2010.

(Source: VIR)