Vinalines to expand to ship repair operations

HCMC – State-owned Vietnam National Shipping Lines (Vinalines), the nation’s leading shipping and seaport operating firm, will expand its operations to ship repair services.
Its subsidiary North Sea Transportation Company (Nosco) will develop a ship repair facility in the northern province of Quang Ninh.
Construction of the US$250 million Nosco-Vinalines ship repair plant started in Yen Hung District of Quang Ninh last Saturday, Vinalines said in a statement.
The facility will cover 100 hectares along the Chanh River. Vinalines experts said the location would enable the factory to receive large ships for repair.
The project will be developed in two phases, with the first requiring around US$150 million and being completed by 2011. After completing the first phase, Nosco-Vinalines can repair 120 to 150 ships up to 70,000 DWT a year.
The second phase is expected to be finished by 2013, by which the plant can repair 150 to 200 ships up to 100,000 DWT a year.
Vinalines is looking to obtain total turnover of VND1 trillion a year and generate 700-800 jobs when the plant is operational.
The Vietnam News Agency quoted Deputy Prime Minister Hoang Trung Hai, who attended the groundbreaking ceremony last Saturday, as requesting the plant’s investors pay due attention to environmental protection.
In February, Vinalines signed a deal with Vietnam Shipbuilding Industry Group (Vinashin) for 40 ships with delivery taking place from 2009 to 2013.
Last year, Vinashin started building four ships of 22,500 DWT and five ships of 12,500 DWT for Vinalines, as well as delivered three ships for the shipping company. These ships are part of a long term plan to add 32 new ships to Vinalines’ fleet.
Vinalines chairman Duong Chi Dung said that by the end of 2008, the corporation’s fleet had risen to 145 ships with a total holding capacity of 2.5 million tons. Vinalines now manages five key ports in the country – Saigon Port, Can Tho Port, Danang Port, Quang Ninh Port and Haiphong Port.