Vinalines to Buy 38 Seagoing Ships in 2006

The State-run Vietnam National Shipping Lines (Vinalines), the largest shipping line in Vietnam, has plans to buy 38 seagoing ships in 2006.

 

Vinalines will buy 22 ships from the Vietnam Shipbuilding Industry Corp. (Vinashin), the largest shipbuilder in Vietnam, and purchase 16 vessels in other countries, it said.

 

The 22 Vinashin-built cargo freighters are under a Government-backed contract between the two giants, a corporate official said.

 

However, no exact expenditures for the fleet expansion are available.

 

In 2005, Vinalines spent nearly $209 million to buy new ships, develop seaports and improve infrastructure.

 

With the expansion, Vinalines targets to convey 23.4 million tons of cargo and handling of 40 million tons via its ports, up 8 per cent and 6 per cent on year respectively.

 

Vinalines, the largest domestic shipping line in Vietnam, also aims to record total revenues of VND11.4 trillion ($721.5 million), up 8 per cent against 2005.

 

In 2005, Vinalines recorded total revenues of VND10.5 trillion ($694.5 million), up 17 per cent on-year, transported 21.7 million tons of cargo, up 6 per cent on-year, and served 37.5 million tons via its seaports, up 6 per cent.

 

The shipping firm bagged a profit of VND700 billion ($44.3 million) in the year.

 

As of 2005, Vinalines has a fleet of over 103 ships with a combined load of 1.2 million DWT. The firm will purchase 76 ships with combined load of 1.85 million tons from now until 2010, the company official added. Vinalines, set up in April 1995 with 40 subsidiaries, including 19 joint stock firms, eight joint venture companies and four seaports.