Technical Report No. 8 PORT AND SHIPPING
Technical Report No. 8 PORT AND SHIPPING
Technical Report No. 8 PORT AND SHIPPING
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
I-3-24<br />
Vietnam National Transport Strategy Study (VITRANSS)<br />
<strong>Technical</strong> <strong>Report</strong> <strong>No</strong>. 8<br />
Shipping and Ports<br />
55 days from the operation of their 20 vessels. This is mainly due to the waiting<br />
time for high tide and their turn for cargo operation.<br />
The VICT in Saigon, which offers a more efficient container operation, is<br />
regularly serving four feeder service companies only, all of which are its<br />
investment partners. Given the legal restrictions to container haulage operation in<br />
the urban area, other shipping lines do not utilize this more efficient port for cargo<br />
operation despite its proximity to the Saigon city zone.<br />
Management Efficiency<br />
One state-owned shipping company, the FALCON, specializes in the transport of<br />
liquid cargoes such as crude oil and other oil products. In 1998, this company<br />
has acquired a large oil tanker built in 1986 with a capacity of 60,600 DWT,<br />
aiming to transport 60,000 tons of crude oil from Vietnam to Japan. However,<br />
due to a depression in the market price of crude oil, the Japanese contractor<br />
insisted on an increase in capacity to 80,000 tons. FALCON lost its original<br />
consignment and had to seek for another contract.<br />
Specialized cargo vessels, such as oil tankers and bulk carriers, are used to carry<br />
out serve a long-term contract between cargo supplier/shipper and trader/buyer.<br />
Generally in this case, basic trade terms, such as freight on board (FOB) term and<br />
a nomination right to shipping line, are fully handled by the trader/buyer. Since<br />
there are only occasional offers for chartering vessels to transport specific<br />
consignments, it would be cost-effective to first conduct a study on the feasibility of<br />
investing on this operation prior to the acquisition of vessels. It may be more<br />
appropriate to charter vessels given the present unstable conditions in the market.<br />
Financial Viability<br />
Investments in shipping fleet expansion by state-owned companies under<br />
VINALINES are shouldered by each company without government subsidy.<br />
Shipping companies usually apply for bank loans from the Investment<br />
Development Bank.<br />
Although VINALINES is authorized to administer the finances of its subsidiary<br />
companies, financial arrangements are generally attended to by each individual<br />
company, except in cases of large acquisition such as the case of FALCON.<br />
VINAMARINE, on the other hand, has its own investments for expansion, thus, it<br />
cannot anymore extend assistance to its subsidiaries.