MOL, NYK, Itochu to build box terminal in Vietnam with Vinalines

Time:2010-08-17 Browse:39 Author:RISINGSUN

MITSUI OSK LINES LTD (MOL), Nippon Yusen KK (NYK) and Itochu Corporation plan to cooperate with a Vietnamese partner to build and operate a container terminal in northern Vietnam at an estimated cost of JPY30 billion (US$349.29 million).

According to the Japanese economic daily, Nikkei, the Japanese trio and the state-run Vietnam National Shipping Lines (Vinalines) are expected to agree soon on establishing a joint venture for building and operating the terminal.


Vinalines will take a 51 per cent stake, while the Japanese companies will likely divide the remaining equity equally. Construction costs will be covered by investments in the joint venture and loans, reports TradingMarkets.com.


It said the terminal is to be completed in 2015 and will be located in the Lach Huyen district of the northern city of Hai Phong. The terminal will be able to handle 855,000 TEU annually, almost half of northern Vietnam`s total volume.


The terminal will be able to accommodate 8,000-TEU containerships that are unable to dock at neighbouring ports, enabling direct exports to North America.


At present, cargo bound for North America is first moved in feeder vessels to Hong Kong, where they it is transferred to large containerships, hence a direct link would cut few days of transit times.