UK ports and ferries group P&O said on Tuesday December 6 it had agreed to develop and operate a US$224 million container terminal in Vietnam. P&O, which agreed to a 3.3 billion pound (US$5.72 billion) takeover by state-backed Dubai Ports World last week, said it would own 80% of the joint venture terminal with state-owned Tan Thuan Industrial Promotion Co (IPC).
The estimated cost of developing the terminal in HCM City at was US$224 million, P&O said.
P&O, which has 28 container terminals and logistics operations in 18 countries, hopes the new port will absorb cargo from existing ports on the Saigon River which are scheduled to be closed over the next 10 to 15 years.
The port’s total capacity is expected to reach 1.5 million TEUs (20 foot equivalent unit—the standard size of a shipping container). The deal will add to P&O’s stable of terminals in Asia where fast-growing freight volumes have made them attractive assets for Dubai Ports World.
Singapore government investment agency Temasek Holdings Pte. Ltd [TEM.UL] said on Monday December 5 it had bought a 4.1% stake in P&O and issued a statement refusing to rule out a counter bid for the group.