Ba Ria-Vung Tau International Container Terminal

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In February 2007, SP-PSA International Port Co. was granted an investment license to develop an international container terminal in Ba Ria-Vung Tau province. This Build-Operate-Transfer project involved the development of a container port. This terminal would be equipped to handle large vessels at its deep-waterberths and would be connected by an extensive road and inland waterway network to Ho Chi Minh City. SP-PSA is a Joint Venture of Saigon Port, PSA Vietnam Pte Ltd., a wholly-owned subsidiary of PSA International Pte Ltd., and Vinalines, a Vietnam's national shipping company. The terminal would be developed in two phases, with the first one to be completed in 2009. Once both phases of the project were completed, the terminal would reach a throughput capacity of 2.2 million TEUs per year. Total project cost was estimated to be US$ 228 million. In May 2007, PSA International selected Calyon, Mizuho CB and OCBC for financing arrangers, who completed the loan as a club deal. In May, 2008, the US$142 million 12.75-year loan for SP-PSA International Port was signed. Then in June, the US$158 million loan, which is up from an initial US$142 million, was raised by PSA International (49%), Vinales (15%) and Saigon Port (36%). In August 2008, two more banks including KfW IPEX Bank joined the US$158 million debt financing. Only the phase one reached the financial closure and became operational in June 2009. Japanese firm Penta Ocean Construction Co. Ltd. has signed as contractor and began construction in October 2007. Under the first phase of the US$165 million project, Penta Ocean would constrcut a container berth, a 27 ha loading area, and support infrastructure.