Lack of cash slows port moves

Representatives of Saigon River ports and the Bason Shipyard said that their relocations might not meet planned deadlines because of a lack of capital.

The comments were made during a meeting to review progress on moving ports and the Bason Shipyard out of inner HCM City before 2010. Those at the meeting included representatives of the ports, Bason Shipyard and Tran Doan Tho, deputy minister of the Ministry of Transport and deputy head of the Leading Committee for Planning and Relocating Ports on the Saigon River and the Bason Shipyard.

So far, only New Port has moved to its new site in District 2’s Cat Lai.

The Bason Shipyard and the Sai Gon, Tan Thuan Dong and Rau Qua ports are all facing difficulties in raising the required capital for their relocation.

It’s so big

Saigon Port said that about VND6,700 billion (US$395 million) would be needed to build the new Sai Gon Port Container Terminal in Nha Be District’s Hiep Phuoc area.

However, the port and its partners from Singapore, Denmark and the United States had failed to find a financial institution willing to provide such a big loan.

The Bason Shipyard, which has been in the same location for more than 130 years, also said that it needed more capital to build its relocation site at Phu My II industrial zone in Ba Ria-Vung Tau Province’s Tan Thanh District.

Even New Port, which is the nation’s largest container port, said that it badly needed capital to invest in equipment for its new project in Cai Mep Thuong.

According to Pham Anh Tuan of Port Coast Company, a consultant for the relocation project, the ports and Bason Shipyard want to rezone their existing industrial property for residential and commercial use to raise money for relocation.

The ports recommended that the Government ask a bank to advance money on the rezoning project so they could complete the moves on schedule.

However, because the city’s Department of Planning and Architecture has not yet completed detailed plans for the property, banks are reluctant to lend any money.

The city asked the department to hasten the completion of its redevelopment plans to facilitate the mobilisation of capital for the Bason Shipyard and the ports.

Viet Nam News

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