Shipping harbours profit from money-making year

Saigon Port, the biggest in the country, saw its revenue and profit increase 15 and 39 per cent on-year to some VND1.2 trillion ($54.54 million) and VND118.73 billion ($5.39 million), respectively last year. Its cargo handling is estimated at 8.9 million tonnes, according to VIR sources.

The port, which is a subsidiary of Vietnam National Shipping Lines (Vinalines), also participates in joint venture ports like SSIT (with 34 per cent ownership), SP-PSA (36 per cent ownership), and CMIT (15 per cent ownership).

2016 was also a successful year for Haiphong Port, which is the biggest port in the northern region and the second largest in the country. Its profit and revenue ascended 38 and 34 per cent from 2015, to about VND620 billion ($28.2 million) and VND2.41 trillion ($109.5 million), respectively.

The port received 26.08 million tonnes of cargo during the year, said Phung Xuan Ha, chairman of Haiphong Port Board of Directors.

“We plan to invest in two new container piers at the Lach Huyen area from now to 2020 to retain our local market share and to keep our big customers,” he added.

Danang Port, the most modern and largest port in the central region, handled 7.25 million tonnes of cargo last year, up 12 per cent from 2015, of which container throughput rose 24 per cent on-year to 320,000 twenty-foot equivalent units.

“The port made an estimated revenue of VND550 billion ($25 million) last year, while its profit was estimated at VND154 billion ($7 million), rising 14 and 4 per cent on-year, respectively,” added CEO Nguyen Huu Sia.

These results were very impressive amid extreme difficulties in the global shipping market last year, when a number of the world’s shipping lines suffered losses, including Maersk Lines, Nippon Yusen Kabushiki Kaisha, Hapag-Lloyd, Zim Integrated Shipping Services, CMA CGM S.A., Mitsui OSK Lines, and Kawasaki Kisen Kaisha.

Together with aviation, ports are attractive fields in the transport sector for foreign investment.

The State General Reserve Fund of Oman is very interested in acquiring stake in Haiphong Port. At a meeting with Deputy Transport Minister Nguyen Van Cong last month, a mission of the Republic of Oman, including Oman Ambassador to Vietnam Sultan Saif Hilal Al Mahruqi, sought the ministry’s support for stake acquisition in Haiphong Port.

Besides, other investors have already registered to buy a 49 per cent stake in Haiphong Port, and a 90 per cent stake in Danang Port.

Like the Oman fund, other foreign investors have been waiting for government approval of Vinalines’ equitisation plan for years, in which the state-controlled stake in its subsidiaries, including Haiphong, Danang, and Saigon ports, as well as foreign ownership limits would be announced.

According to a prime ministerial decision released by the Government Office in late December 2016, Vinalines can reduce its ownership in Danang, Haiphong, and Saigon ports, to 65 per cent or lower, from the current 75, 92.56, and 65.45 per cent, respectively.