Vinalines to cut seaport stake

10:57 | 07/09/2017 Companies

The Vietnam National Shipping Lines (Vinalines) has proposed to reduce its stake in many strategic seaports.

Vinalines has proposed to reduce its stake in many strategic seaports - Photo: VNA

Accordingly, the country’s largest shipping company will reduce its stake in northern Hai Phong Port from the current 92.56 percent to 65 percent and in central Da Nang Port from 75 percent to 65 percent. Its stake of 80.9 percent and 99.05 percent at the Cam Ranh and Can Tho ports will also be cut to 51 percent each.

Vinalines expected the plan will succeed as the port business has been assessed to have potential thanks to the export and import growth.

As for other ports such as Khuyen Luong, Sai Gon, Nghe Tinh and Nam Can, Vinalines will continue to hold the current stake, which ranges between 49 percent and 65.45 percent.

Most of the ports in which Vinalines holds dominant stake are situated at strategic positions and have a significant impact on the nation’s security and defence, therefore direct co-ordination and management of the State is needed, Vinalines said.

Following the divestment from 11 port operation firms, Vinalines currently holds capital in eight port operators.

However, Vinalines admitted that although improvement in governance has been made after transferring to joint stock companies, the firms still need a breakthrough and better application of science and technology.

Vinalines is due to make an initial public offering (IPO) in December this year and make its debut as a joint stock company in April next year. At the time of the IPO, Vinalines’ charter capital is expected to be 12.3 trillion VND (542 million USD).

Currently, Vinalines owns a fleet of ships with capacity topping more than two million tonnes, accounting for 25 percent of the nation’s total capacity. It is also a provider of maritime and logistic services with warehousing and ICD systems in major cities and along major seaports in Vietnam.

As per the plan approved by the Government, from now until 2020, Vinalines will develop and operate seaports at strategic locations to play a vital role in the overall transportation network of the country.

Vinalines will prioritise investment in the development of deep-water ports and international transshipment ports that have the potential to become large seaports capable of competing with regional cargo transshipment hubs. One of the projects to be given priority is the Hai Phong international port with two container berths and total capacity of up to 8,000 TEUs, which will be implemented in 2017-20. Another project – Lien Chieu Port with two berths – is scheduled for execution in 2017-2024.

Theo VNA