Maritime sector to focus on private funding

Saturday, Jan 24, 2015 11:36

A road being constructed to serve for the Lach Huyen port, which will be the last infrastructure project in the maritime sector to enjoy State investment. Future infrastructure projects in the maritime industry will target private sector investment. — VNA/ VNS Photo Huy Hung
HA NOI (Biz Hub)  — The Ministry of Transport will further encourage investment from the private sector for infrastructure projects in the maritime industry as the State will fund only national defence and security projects.

The Minister of Transportation Dinh La Thang made this announcement on Wednesday at a meeting on directing the implementation of a plan to mobilise private investment for maritime infrastructure projects going forward.

Do Duc Tien, the deputy head of the Maritime Department, said in January, that the department will soon list maritime infrastructure projects that need investment from the private sector.

The list has 41 projects for the 2015 to 2020 period, with a total investment of VND43 trillion (US$2 billion), including 10 projects for developing shipping flows/routes, 19 projects for building seaports, three projects for developing an electronic maritime system and nine projects for constructing safe-anchorage sites for boats during storm season.

Many investors have committed to invest a total of VND7 trillion for some of these projects, he pointed out.

During 2015 to 2016, investors have so far registered to invest in the development of three other projects, including a project for building a flow for large ships to and from the Hau River, which will require a total capital of VND2.7 trillion, a project for building a Tho Quang flow for 10,000-DWT ships, with a total capital of VND126 billion and a project for upgrading the Nghi Son flow for 50,000-DWT ships with a total capital of VND300 billion.

Thang said private investors currently hold 75 to 80 per cent of the total investment capital in the maritime sector, while the remaining of 20 per cent comes from the State.

The Lach Huyen port will be the last infrastructure project in the maritime sector to have state investment, he added as maritime infrastructure projects from now on will involve private investment.

The State will only invest in maritime projects that do not need investment from private investors and which are aimed at ensuring national defence and security, Thang explained.

However, Thang said the managerial role of the State in all these projects is not clear yet.

The state offices must analyse investors' reasons for investing in the sector, the advantages and disadvantages of investment activities in the sector. The state office will also provide solutions for creating favourable conditions for investors to invest in the maritime sector because the sector needs considerable investment capital for development. — VNS

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