Thailand
Laos expects to assume management of Vung Ang seaport in July
Laos is expected to assume management of the Vung Ang seaport in Vietnam’s central Ha Tinh province in July, a Lao investor involved in the project has said.
The news comes after the Vietnamese government agreed to increase Laos’ share in the project from 20 percent to 60 percent at Laos’ request, making it the major shareholder.
The Lao government has partnered with Petroleum Trading Lao Public Company (PetroTrade) – a subsidiary company of PTL Holding Company Limited – to partner with the Vietnamese government to develop the Lao Logistics Link (LLL) project, which includes the port.
Chairman of the Board of Directors of PetroTrade, Mr Chanthone Sitthixay, told the President of the National Assembly Dr Xaysomphone Phomvihane last week that his team is working with the Vietnamese side on payment for the extra shares before taking over the management of the port.
“If things go as planned, we expect to assume management [of the port] in July,” Mr Chanthone told Dr Xaysomphone.
Dr Xaysomphone and his entourage were briefed about the project during a working tour to the Thanaleng Dry Port and Vientiane Logistics Park in Vientiane, which is also part of the LLL that Mr Chanthone’s company is also developing.
The Lao government and PetroTrade formed a joint venture company called the Lao-Vietnam Vung Ang Port State Enterprise, in which the government holds a 51 percent stake and PetroTrade holds 49 percent, to join Vietnam to develop and operate the port to meet the growing need for freight transport.
A marketing study conducted by the consulting firm Royal HaskoningDHV and other entities showed that the volume of dry bulk cargo handled by the Vung Ang port reached 2.9 million tonnes in 2014.
It is estimated that this amount will rise to 20.2 million tonnes by 2030, according to the Lao investor.
To capture the potential growth, the Lao investor in cooperation with the governments of Laos and Vietnam plans to invest up to US$300 million to upgrade facilities, machinery and equipment in berths 1 and 2 and construction of the planned berth 3 at the port.
The port is currently in operation and handles containers and cargo consisting of woodchips, potassium, gypsum, iron ore and coal.
Located 145 km from the Napao-Chalo border crossing between Laos’s Khammuan province and Vietnam, the port is well positioned to serve as a gateway between central Vietnam, central Laos and northeastern Thailand.
Given that a railway (a part of the LLL) linking Vientiane through Khammuan to the port is planned, the shipping of cargo through the Vung Ang Port including from Thailand’s Issan region to larger Asian markets such as China, Republic of Korea, Japan and Hong Kong is a cost-effective option.
Meanwhile, incoming cargo destined for Southeast Asian markets will also enjoy more efficient handling, according to the Lao investor.
The LLL project also includes logistics parks in Khammuan and Vientiane to establish a regional logistics link system that will also enable freight shipped by Southeast Asian countries to reach European markets via the Laos-China Railway interconnected rail system.
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https://www.vientianetimes.org.la/freeContent/FreeConten_Laosexpects48.php