Struggling giant submits plan to retain majority share at profit-making ports while divesting heavily from those making losses.
Vietnam National Shipping Lines (Vinalines) has finalized an overall plan for the development of its seaport network, for submission to the Ministry of Transport and then the Prime Minister for a decision.
It hopes to continue to hold 51 to 65 per cent of the charter capital at the key northern port of Hai Phong, where it currently holds 94.68 per cent. For the three key ports of Da Nang, Can Tho, and Vinalines Dinh Vu, it has proposed it holds 51 per cent of charter capital.
According to Mr. Le Anh Son, General Director of Vinalines, ports turning a good profit will be the mainstay of Vinalines in overcoming its ongoing difficulties stemming from losses of around VND382 billion ($17.7 million) in 2014. “It’s also necessary if Vinalines is to reach its goal of marine mining becoming its core business,” Mr. Son was quoted as saying.
Meanwhile, Mr. Vu Anh Minh, Deputy Director of the Enterprise Management Department under the Ministry of Transport, said that Vinalines need not hold the dominant share at the four ports. More important is for it to reduce its involvement in small ports and focus on large ports.
Hai Phong Port is indeed one of Vinalines’ key ports. Despite limited management activities, in 2014 it still recorded nearly VND2 trillion ($93 million) in revenue and VND443 billion ($20.6 million) in profit.