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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I-5-7<br />
Vietnam National Transport Strategy Study (VITRANSS)<br />
<strong>Technical</strong> <strong>Report</strong> <strong>No</strong>. 8<br />
Shipping and Ports<br />
certificate and freight (CF) or certificate of insurance and freight (CIF) terms.<br />
Therefore, factors such as clients, destination, trade term, and duration of<br />
shipment should be considered in planning fleet expansion (i.e., number and<br />
type of vessels needed).<br />
VINALINES’ investment plan is to acquire a total of five oil tankers of 65,000<br />
DWT and three of 90,000 DWT in the short to medium term (2000-2010).<br />
Presumably, this expansion plan was made to increase its trade share in<br />
anticipation of the development of the Dung Quat oil refinery project. It is,<br />
however, advisable that the acquisition of bigger crude oil tanker (80,000 to<br />
159,999 DWT) be considered instead.<br />
The cargo forecast provided by the VITRANSS indicates a considerable<br />
volume of liquid cargo for export and import. As a source of crude oil,<br />
Vietnam would likely capture a reasonable share in the transport of this<br />
precious commodity. The country’s shipping industry should thus have a<br />
supply of well-trained and competent seafarers. VINALINES should also<br />
establish a financial arrangement, such as letter of credit (LC), to enable ship<br />
owners to enjoy an advantageous trade term, an important factor in this kind<br />
of trade.<br />
Thus, in the expansion plan for oil tankers, the acquisition of three to five oil<br />
tankers with load capacity of at least 90,000 DWT each vessel should be<br />
considered until 2010. Further expansion in the long term (2011-2020) should<br />
depend on market and charter trends and should already be focused on<br />
contracting larger volumes and transporting by large vessels.<br />
3) Tanker for Petroleum Products<br />
There is potential as well in expanding the trade share of transporting<br />
imported oil product in Vietnam. VINALINES has plans of increasing its lifting<br />
share from the present 14% to 40% by 2010. In 1998, Vietnam imported<br />
approximately 8 million tons of petroleum products. Thus, it is recommended<br />
that the planned expansion of tankers carrying these items be implemented<br />
with the acquisition of a total of 7-8 medium-size (25,000 DWT) and large<br />
(30,000 DWT) oil tankers until 2020.<br />
4) Bulk Carriers/General Dry-cargo Vessels<br />
At present, VINALINES has very old bulk carriers it plans to replace with 10-<br />
14 bulk carriers of 24,000-35,000 DWT. This will allow the company to<br />
increase its shipping share to 20% by 2010. A continuing investment until<br />
2020 is recommended to carry out fleet expansion.<br />
Domestic Shipping Fleet<br />
The JICA M/P Study on Coastal Shipping (19997) prepared a fleet development