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Technical Report No. 8 PORT AND SHIPPING

Technical Report No. 8 PORT AND SHIPPING

Technical Report No. 8 PORT AND SHIPPING

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Table 3.2.7<br />

Ownership of Purchased Ships in 1996-1998<br />

Lines Type of Vessel<br />

VINALINES Container<br />

Roro<br />

VOSCO Bulk cargo ship<br />

General cargo<br />

I-3-14<br />

<strong>No</strong>. of<br />

Vessel<br />

5<br />

1<br />

4<br />

4<br />

Vietnam National Transport Strategy Study (VITRANSS)<br />

<strong>Technical</strong> <strong>Report</strong> <strong>No</strong>. 8<br />

Shipping and Ports<br />

DWT TEU<br />

50,500<br />

6,400<br />

83,858<br />

25,588<br />

VITRANSCHART General cargo 2 31,472<br />

FALCON Crude oil tanker<br />

Product oil tanker<br />

1<br />

2<br />

60,600<br />

11,240<br />

INLACO SAIGON Product oil tanker 1 1,924<br />

3,128<br />

290<br />

TOTAL 20 271,582 3,418<br />

Source: VINALINES<br />

According to the 1998 annual report of VINALINES in 1998, in 1996-1997 they<br />

invested US$ 82 million to expand their fleet to 220,000 DWT and US$8 million<br />

for 26,000 DWT.<br />

Newly purchased vessels by SOEs dealing mainly in foreign trade are secondhand<br />

vessels built between 1982 and 1989 (mainly in 1983/1985). Despite these<br />

acquisitions and expansion, the present technical condition and structure of the<br />

Vietnamese ocean-going fleet are still not competitive and suitable: Given the<br />

ship’s average life of about 21 years, the technical condition of these purchases<br />

would already be suffering. It is thus an urgent issue for the Vietnamese<br />

maritime subsector to replace and rehabilitate its ocean-going fleet.<br />

Domestic Shipbuilding Industry<br />

The shipbuilding industry in Vietnam is unable to comply with ship owners’<br />

requirement for bigger vessels, primarily due to the lack of expertise in designing<br />

and technical skills. Other specific problems are insufficient supply of steel plates<br />

and the lack of machinery, equipment and capacity to domestically produce the<br />

main engine.<br />

Recently, VINASHIN, a state-owned shipbuilding enterprise, established a joint<br />

venture with Hyundai, a South Korean company, to repair and maintain ships.<br />

This joint venture is also planning to build big-sized vessels in their shipyard in<br />

Khoan Hoa province. But due to the insufficient supply of iron steel plates, this<br />

may not be feasible in the near future. According to the Vietnam Steel<br />

Corporation, their current capacity in producing iron steel plates is at an average<br />

of 300,000 tons per annum. Almost all are for domestic construction and there<br />

seems to be no possibility to supply to shipbuilders.

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