Construction of the new Gemadept-Dung Quat International Port is being hailed as a key step in attracting private investment to the maritime industry.

The port, built by Gemadept-Dung Quat International Port Joint Stock Company the first private enterprise to build a seaport in Vietnam, is viewed by Vietnam Maritime Bureau officials as an important event in the implementation of liberal polices to attract investment.

The deep-water Gemadept Dung Quat International Port will be able to accommodate container ships and bulk carriers of up to 30,000dwt, and is subsequently the largest port in the central region. Backed by investment of VND575 billion ($36 million), work on the first phase of the project, costing VND404bn ($25.32m), began on July 15, 2006. Construction of the port is indicative of growing local transport requirements and the need for increased investment in port construction.

According to a Gemadept-Dung Quat International Port Company representative, the decision to invest in developing a seaport was based on the stable, high level potential for cargo throughput at Dung Quat Port. Investors believe that the Dung Quat general economic zone, with its wide range of industrial activities, including an oil refinery, a shipbuilding yard, a steel rolling mill and a cement factory, will be an abundant source of supply of goods for marine transport. Investors are also confident in the economic development of Vietnam in general, and have invested in the port in the expectation of prompt recouping capital.

Several other foreign invested firms have applied to invest in seaport projects. SSA, an international container port joint venture company, is seeking approval to invest $160m in a seaport project. Ministerial opinions on the proposal have been invited, prior to submission to the Prime Minister for final consideration.

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Posted by pichu at August 14, 2006 10:23 AM