Need a floor price for port services
-   +   A-   A+     30/07/2012
As lack of resources for competition, some seaports lowered prices of handling drastically; it not only brings profits but also losses. To ensure the sustainable development system for Cai Mep - Thi Vai port system, port investors reckoned that it is neccesary to applay floor prices under the State regulation.

As lack of resources for competition, some seaports lowered prices of handling drastically; it not only brings profits but also losses. To ensure the sustainable development system for Cai Mep - Thi Vai port system, port investors reckoned that it is neccesary to applay floor prices under the State regulation.

KNOCKDOWN

According to Mr. Nguyen Xuan Ky, Deputy General Director of Cai Mep International Port, when making decision in the port investment, investors gave business assumptions based on loading rates which offered about USD55-60 / TEU; however, at Cai Mep area, loading and unloading freight was only under USD40/TEU. With this price, most of ports are suffering losses.

If compared to sea ports which have the same container handling capacity in the area, rates in services at Cai Mep - Thi Vai area is 2-3 times lower. Specifically, Singapore port charges USD117 per 20-feet container and more than USD160 per 40-feet container, Hong Kong port charges USD269 per 20-feet container and USD450 per 40-feet container. The knockdown of port services are making the ports in Cai Mep-Thi Vai area get prolonged losses

While price of Vietnam"s seaport services, compared to other ports in the region, the port investment is very large (hundreds of millions of dollars for a standard port), along with the pressure of bank loan interest, which make many investors worry about the ability to repay loans and how to operate profitably. Some ports have to change their use, even thinking of hanging cranes

REASSESSMENT OF FLOOR PRICE TO HOLD RIGHTS OF MANAGEMENT

Currently, service rates at ports are assessed by the ports themselves on the basis of balancing loses – profits; therefore, when sources of goods are scarce, ports must reduce prices to create attractiveness. Meanwhile, the Government cannot intervene into service prices because of the price provisions of the World Trade Organization (WTO).

To avoid unfair competition among ports in Cai Mep-Thi Vai port area, the Vietnam Seaport Association, Maritime Corporation and Saigon Port had a written report to the Prime Minister, Ministry of Transport, Ministry of Finance in late June and early July 2011 on the proposal for issuance of regulations regarding the floor price applied to deep water ports with big investment in BR-VT area. At the same time, Vietnam Seaport Association also petitioned the Prime Minister in late March 2012 on applying container handling services at deep water ports in Cai Mep - Thi Vai into the list of price stabilization and the Vietnam Maritime Department had a written proposal to the Ministry of Transport on promulgating the floor prices for loading and unloading services at Cai Mep - Thi Vai. According to recommendations, for shipping, it needs to take measures to limit the ability of market domination, imposing prices and charges. Step by step to build itinerary and measures to ventilate markets, stabilize and unify port service prices for transportation services domestically and internationally and limit ability of market manipulation.

For general professionals and consistency among ports including issue of port services prices, Dr. Vo Dai Luoc believed that it should establish a "port authority" responsible for development planning and general direction of port system, including unifying prices of services.


Read count: 3691 Previous page Back to top
Other news