The Saigon Gateway International Transit Port Project – a super seaport project better known as Can Gio Port – is facing a great opportunity to complete the most important legal procedures.
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| Perspective of the "super project" Can Gio port |
Sufficient political and legal basis
The Ministry of Planning and Investment has just sent Appraisal Report No. 5590/BC-BKHĐT to the Prime Minister on the Dossier requesting approval of the investment policy for the Saigon Gateway International Transit Port Project.
This is a project proposed by Saigon Port Joint Stock Company (a member unit of Vietnam National Shipping Lines - VIMC) and Terminal Investment Limited Holding SA-TIL (a member unit of the world's largest shipping line, Mediterranean Shipping Company - MSC).
The application for approval of the investment policy of the Project was sent by the Saigon Port - TIL consortium to the Ministry of Planning and Investment for appraisal according to the provisions of the Investment Law in early April 2023. Due to the special nature and scale of the Project, this appraisal process was extremely careful, with the participation of 10 ministries, branches and the People's Committee of Ho Chi Minh City. The Ministry of Planning and Investment received documents of participation from 11/11 agencies (the Ministry of Public Security is the document of the Department of Economic Security, the Ministry of Natural Resources and Environment is the document of the Department of Planning and Land Resources Development).
The Saigon Gateway International Transit Port Project is on the List of priority industries and occupations to attract strategic investors according to Resolution No. 98/2023/QH15 on piloting a number of specific mechanisms and policies for the development of Ho Chi Minh City; it is not subject to the provisions of Clause 4, Article 29 of the Investment Law, so it is not subject to investment policy approval, and at the same time, investors are approved without auctioning land use rights or bidding to select investors.
“Therefore, the Ministry of Planning and Investment appraises and reports to the Prime Minister for consideration of approving the investment policy of the project (without any investors) in accordance with the provisions of the law on investment. After the investment policy is approved, the selection of a strategic investor or an investor to implement the project shall be carried out in accordance with the provisions of Resolution No. 98/2023/QH15 and the law on bidding,” Appraisal Report No. 5590/BC-BKHĐT of the Ministry of Planning and Investment stated.
The most prominent highlight in Appraisal Report No. 5590/BC-BKHĐT is that the Ministry of Planning and Investment affirmed that there is sufficient political and legal basis to consider deciding on the investment policy for the Project. Resolution No. 98/2023/QH15 has included the Project in the group of projects implementing the selection of strategic investors as a basis for promoting the economy and driving development for Ho Chi Minh City in particular and the Southeast region in general.
The Ministry of Planning and Investment emphasized that the Saigon Gateway International Transit Port Project, when successfully implemented, will supplement the potential of the existing seaport system; support and best exploit the potential of seaport cluster No. 4 to become an international transit center; affirm the position and national positioning of Vietnam on the international maritime map as a major transport and logistics transit center of the region and the world.
“The project also helps Vietnam become an important link in the global supply chain, enhance its foreign position, enhance national competitiveness and has important nature and significance in terms of national defense, security and marine economy,” the Ministry of Planning and Investment assessed.
To ensure the success and improve the efficiency of the Project, in addition to investing in technical infrastructure systems and synchronous traffic connection systems, selecting a strategic investor with sufficient experience, capacity, port operation technology, international logistics network, and international transit goods sources is a decisive factor.
The Saigon Gateway International Transit Port Project is located in the buffer zone of the Can Gio Biosphere Reserve with a system of regenerating mangrove forests recognized by UNESCO, so environmental issues and technology used in construction and operation of the port are important factors to minimize negative impacts on the Biosphere Reserve area. Therefore, the agency appraising the Project Investment Proposal Approval Documents recommends that the Ministry of Natural Resources and Environment clearly state its views on the Project's environment.
Along with that, the Ministry of Transport (MOT) - the agency assigned by the Prime Minister to appraise the Project on Research and Construction of Can Gio International Transit Port in Ho Chi Minh City - has given opinions on issues related to technology and traffic connection to ensure the effectiveness of the project when it is implemented; and coordinate the goods sources of the ports in group 4 of seaports.
“After receiving opinions from the Ministry of Natural Resources and Environment and the Ministry of Transport on the above contents, the Ministry of Planning and Investment recommends that the Prime Minister consider approving the conditional investment policy for the Project,” Appraisal Report No. 5590/BC-BKHĐT stated.
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Minimum capital size
The main contents of the Saigon Gateway International Transit Port Project proposed by the Ministry of Planning and Investment for approval by the Prime Minister include: minimum investment capital of VND 50,000 billion; investor's equity capital guaranteed to be not less than 15% of the total project investment capital; operation period not exceeding 50 years; investors must disburse investment capital within 5 years from the date of being granted the investment certificate; the form of investor selection is implemented by the Ho Chi Minh City People's Committee according to the provisions of Clause 7, Article 7, Resolution No. 98/2023/QH15...
In the Project Investment Policy Approval Document, the Saigon Port - TIL consortium proposed to implement the Project with a total investment (excluding interest during the construction period) of VND 113,531.7 billion, equivalent to USD 4.8 billion. Regarding this proposal, the Ministry of Planning and Investment found that the determination of the total investment capital depends on the scale of the Project in the Project for Research on the Construction of Can Gio International Transit Port that the Ho Chi Minh City People's Committee is submitting to the Prime Minister and the proposal of the investor registered when participating in the bidding process to select the investor.
However, in all cases, the total investment capital of the Project must be in accordance with Resolution No. 98/2023/QH15 (from VND 50,000 billion or more). The equity capital of the investor implementing the Project must also be guaranteed to be no less than 15% of the total investment capital of the Project.
In addition, the project implementation location is on an isolated island from neighboring areas. Current traffic connections are only by sea and waterway, and there are no other means of traffic connection.
Therefore, the Ministry of Planning and Investment recommends that the Ho Chi Minh City People's Committee coordinate with the Ministry of Transport to review and evaluate the ability to invest in technical infrastructure systems and traffic connections to serve the development of the project. At the same time, balance resources, including mobilizing other economic sectors to complete technical works connecting the Project with outside areas.
It is known that in the Project for Research on the Construction of Can Gio International Transit Port updated after appraisal, sent to the Ministry of Transport on July 30, 2024, the People's Committee of Ho Chi Minh City said that the road axis connecting to Can Gio district is the Ben Luc - Long Thanh expressway with a length of 58 km, which is being invested in construction, expected to be completed in 2025; in which, the section passing through Can Gio district in Binh Khanh commune is an elevated road.
In addition, the Ho Chi Minh City People's Committee is organizing the preparation of an investment proposal for the Can Gio Bridge Project to replace Binh Khanh Ferry and the route connecting the city center with Can Gio District, expected to start construction in 2025 and be completed and put into operation in 2028.
Regarding the capacity of foreign investors proposing the Project, Mr. Pham Anh Tuan, Deputy General Director of VIMC, said that MSC is the world's largest shipping company headquartered in Geneva, Switzerland. This shipping company has a fleet capacity of over 23 million TEUs/year, accounting for 18% of the total transport capacity of the world's fleet. MSC's service routes are connecting to more than 500 global seaports.
In Southeast Asia, MSC is conducting international transshipment at two ports: Pasir Panjang in Singapore (a joint venture between MSC and PSA Singapore) and Tanjung Pelepas port in Malaysia. In the context of the highly competitive transshipment port market in this region, MSC is interested in the Saigon Gateway International Transshipment Port Project, which is expected to participate in investment cooperation as part of the company's expansion strategy. MSC has clear motivations to increase investment in the region.
According to VIMC leaders, currently, goods from countries in the region such as Cambodia, Thailand, Brunei, Southern China and the Philippines are mainly transited in Singapore or Malaysia. In case goods from the above countries in the region are transited in Can Gio, the transportation distance is reduced by about 30-70% compared to when arriving in Singapore.
The proposed location for the construction of the Saigon Gateway International Transit Port clearly has many competitive advantages, attracting international goods from regional countries such as Cambodia, Thailand, Brunei, China and the Philippines.
In Vietnam, MSC currently has services to the container port system in Hai Phong, Da Nang, Cai Mep - Thi Vai... Every year, the MSC fleet transports more than 1 million TEUs of import and export goods from Vietnam connecting to major markets such as the US, Europe, China, Japan, Australia, Southeast Asia...
During meetings with government leaders, MSC said it is planning to develop an intra-Asian network, as well as create a transshipment hub that will consolidate cargo volumes being handled at different Asian locations.
In particular, MSC plans to relocate part of the shipping line's transit operations to Vietnam, build an international transit port, and form a transit center in Vietnam. The total volume of goods passing through the port that MSC is expected to invest in could reach about 4.8 million TEUs in 2030 and about 16.9 million TEUs in 2047, with the goal of exploiting mostly international transit goods distributed by the Company.
“After the Can Gio International Transit Port is built, it will supplement the potential of the existing Cai Mep - Thi Vai port system, support each other, not compete, and best exploit the potential of seaport cluster No. 4, contributing to making this area a world-class international transit center,” Mr. Pham Anh Tuan assessed.
Source: https://baodautu.vn/buoc-tien-dai-cho-sieu-du-an-cang-can-gio-d221623.html
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