After seven years of delay due to economic difficulties, Gemalink Cai Mep Deep Water Port, which is developed by Terminal Link Cai Mep Terminal JSC, a joint venture between Gemadept Corporation and France-based container shipping giant CMA CGM, was resumed.
On February 20, Gemadept Corporation organised the ground-breaking ceremony for Gemalink Cai Mep port, Vietnam’s largest deep water port.
Accordingly, the port has a total investment capital of $520 million with the first phase of $330 million. The port spans an area of 72 hectares and has an annual capacity of 2.4 million twenty-foot equivalent units (TEU) in order to receive the world’s largest ships.
Do Van Minh, the company’s chairman, said that as soon as the project completes its first phase, Gemalink would double the container loading capacity at Gemadept’s seaports and complete its service chain nationwide.
Previously, Gemadept and CMA CGM established a joint venture with the charter capital of $120 million to develop the project with Gemadept holding 75 per cent. Construction started in 2010, however, it had to halt two years later due to economic difficulties.
In 2017, the corporation was restructured by selling shares in some member companies to prioritise restarting the project.
Founded in 1990, Gemadept was one of the first firms to be equitised and listed on the public market.
In the next few years, Gemadept has set out a list of ambitious goals for expansion in both Vietnam and overseas. Areas of focus include the development of Nam Dinh Vu port in the northern province of Haiphong.
Besides, Gemadept will continue expanding its port, logistics, warehouse, transportation, and air cargo services to create a complete 3PL logistics and port system.
Along with plans to develop new ports, in July 2018, Gemadept finalised the sale of its 51 per cent stake in the company to an undisclosed South Korean buyer. The transaction’s value was not disclosed, but it is estimated at over VND104 billion ($4.6 million).