Becalmed Van Phong seaport project is looking to put the wind in its sails

News - Central Khanh Hoa province is hunting for foreign investors to develop the becalmed Van Phong seaport project.

The government in 2007 assigned state-run Vinalines in collaboration with Vietnam Maritime Administration to plan the international transshipment port. However, Vinalines now faces stormy financial seas.

“Vinalines has done little for the project. We are now looking for investors to develop the project, particularly foreign ones because domestic investors are not strong enough to build such a large project,” said Hoang Dinh Phi, vice head of Van Phong Economic Zone Authority (VEZA).

Earlier, Vinalines signed a declaration of intent with Port of Rotterdam Authority, the developer and operator of the European Union’s largest port, to build the project. Nevertheless, the declaration of intent has not come into reality until now.

“The cooperation between the two parties stands still now,” Phi said. Vinalines announced a loss of VND660 billion ($31.7 million) in the first half of 2011. This was the first time after 15 years of operation the state-run corporation had reported a loss.  
Van Phong international transit seaport will cover 750 hectares and include 37 berths.
Vinalines gained an investment certificate for building the first two berths of the seaport with total investment of $183 million.

In 2007, Japan’s Sumitomo Corporation expressed interest in cooperating with Vinalines for investing into this project. However, this joint venture has never been established.