Vietnam Biggest Shipping Firm to Quit Japan-funded Port Project: Official

Vietnam National Shipping Lines (Vinalines) will quit Lach Huyen international port in the northern port city of Haiphong under its restructuring plan, a representative told the Dau Tu newspaper.  Accordingly, Vinalines will not join hands with Japan’s MOLNYKIT to build two container wharves. Saigon Newport Corp. under the Ministry of National Defense will work with the Japanese firm to carry out the project. Previously, Deputy Prime Minister Hoang Trung Hai asked the ministry to propose a firm which can replace Vinalines and carry out the project under the public-private partnership (PPP) format with the Japanese partner. The project has two components with the first component worth nearly $900 million using Japan’s official development assistance (ODA) loans and the second component worth $321 million invested by Vinalines and Japanese partners. Vinalines signed a deal with Japan’s Itochu, MOL and NYK to set up a $30 million joint venture to develop the port in November, 2011. However, the project has yet to start. Under the seaport system development plan until 2020, Lach Huyen international port will be the center for sea transport of goods between the northern provinces of Vietnam and countries in the region. (Dau Tu – Investment Mar 6 p3)