Global port operators are bracing against rising losses at Vietnam’s Cai Mep container port, as terminals are operating below half of their capacity, reports the Journal of Commerce, quoting industry analyst Alphaliner.
Nine global terminal companies signed up to operate terminals in the port in 2006 upon government invitation in the belief that cargo increases would prevail over poor infrastructure and potential overcapacity.
The Journal, further quoting Alphaliner, said five of the nine planned terminals are currently operating—all way below capacity—at Cai Mep, located about 35 miles south of the capital Ho Chi Minh City.
The arrival of new entrants to the port in the next couple of years will lead to even greater competition, Alphaliner warned. A sixth terminal operated by SSA is set to open by end-2011, while the Japanese ODA facility and the Gemadept-CMA CGM terminal are slated to begin opertions in 2012 and 2013, respectively.
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