At the meeting with the Ministry of Transport, ITOCHU Corporation of Japan proposes to construct a wharf to transport cereals at Lach Huyen port in northern Hai Phong City. — Photo giaothongvantai.com.vn

HA NOI (Biz Hub) — Japan's ITOCHU Corporation has proposed to construct a wharf to transport cereals at Lach Huyen port in northern Hai Phong City on a public private partnership (PPP) model at a recent meeting with Viet Nam's Ministry of Transport.

This project is expected to cover an area of 18 hectares with a total investment of approximately US$150 million, which includes the construction of basic infrastructure worth around $40 million taken from official development assistance loan and the construction and operation worth $110 million with 30 per cent taken from investors, and the remaining as a loan from Japan International Cooperation Agency (JICA). The capacity of the wharf is estimated to reach three million tonnes per year.

Explaining to Biz Hub why Lach Huyen was chosen, the corporation said, "It is the only deep sea port in northern Viet Nam, and can be used to transport cereals on huge ships from South America and Australia. We will consider the time of the construction based on the progress of the Lach Huyen port project." 

Attending the recent meeting, Deputy Minister Nguyen Van Cong stated that the proposal of ITOCHU Corporation was basically appropriate for the policies of the government and the ministry on boosting investment on a PPP model. The proposal was also in line with the planning orientation of the government and the ministry, he added.

At the moment, the ministry is checking and adjusting specific plan in the area of Lach Huyen port. The ministry is also investigating an appropriate management model to exploit Vietnamese ports effectively on the foundation of learning experience from other countries such as Japan, South Korea and Thailand. The model is expected to be applied in Lach Huyen port.

"The ministry will call upon investment and issue criteria to select investors with financial capability and experience who follow the progress of planning, and are suitable for regulations and policies to invest in and develop the port," the deputy minister noted.

ITOCHU Corporation, established in 1858, is engaged in domestic trading, import/export and overseas trading of various products such as textile, machinery, metals and minerals. The other products include energy, chemicals, logistics services and construction, as well as business investment in Japan and overseas. — VNS