New North Vietnam Deep Water Container Terminal, CICT, Secures Financing, Ready to Begin Construction
Hanoi, 8 November 2010
Cai Lan International Container Terminal (“CICT”) has entered into Loan Agreements with a lending consortium comprised of IFC, FMO, PROPARCO and the ICF Debt Pool securing $100,000,000 of financing. Securing this financing allows CICT to immediately move forward on the construction of its new state of the art deep water container terminal in Quang Ninh Province supporting Hanoi and the North Vietnam market.
“We are very pleased to work with our lending partners to conclude CICT’s financing. It has been a very efficient process. North Vietnam’s container volume is growing at over 20% per year and by 2011 container volume will outgrow terminal capacity. CICT is needed as quickly as we can build it just to keep pace,” stated Le Trieu Thanh, CICT’s Chairman.
The CICT container terminal will have -10m draft during low tide, 598 meters of berth, 18 hectares of container space, four seventeen-wide ship to shore container cranes and 12 RTG’s. Phase One capacity will be 510,000 TEU’s per annum with future build out capacity to 1,200,000 TEU’s per annum. CICT will start construction in November and will be operational in late 2011.
“Hai Phong Port is currently the primary port serving North Vietnam. However, Hai Phong Port is nearly full and has only -5.7 meters of draft so the largest ship the port can accommodate is a 600 TEU vessel. CICT’s -10 meters draft provides shipping lines a significant operational cost advantage as they can deploy 3,000-4,000 TEU ships,” acknowledged CICT’s Vice Chairman Bob Watters.
“Supporting economic growth with infrastructure projects is one of IFC’s priorities in Vietnam. The Cai Lan International Container Terminal project follows our financing for the Cai Mep port container terminal in 2009 and helps to build up the port infrastructure in North Vietnam, facilitating international trade, including potentially with South West China,” said Anita George, Director for Infrastructure in Asia at IFC, a member of the World Bank Group and the arranger of the debt package.
About the Project Sponsors
CICT is a joint venture between Cai Lan Port Investment Joint Stock Company (“CPI”) and Carrix, Inc.
About Cai Lan Port Investment Joint Stock Company
CPI is fully owned by Vietnamese investors, among others Vinalines, the Vietnam National Shipping Lines, Quang Ninh Port, a port operator in North Vietnam and Geleximco, a leading Vietnamese private conglomerate.
About Carrix and SSA Marine
SSA Marine, a subsidiary of Carrix, Inc., is the largest U.S. owned and the largest privately held container terminal operator and cargo handling company in the world, handling approximately 22 million container TEU’s per year. The 60 year old company serves more than 120 locations worldwide, including port operations throughout the U.S. as well as internationally in Panama, Mexico, Chile, Costa Rica and New Zealand.
About the Lenders
The Netherlands Development Finance Company (FMO) is the entrepreneurial development bank of the Netherlands. FMO invests risk capital in companies and financial institutions in developing countries. With an investment portfolio of € 4.6 billion, FMO is one of the largest bilateral private sector development banks worldwide. FMO’s mission: to create flourishing enterprises, which can serve as engines of sustainable growth in their countries. www.fmo.nl.
About ICF Debt Pool
The ICF DP is a €500 million fund of loans managed by Cordiant Capital Inc and funded by the German Government, through KfW Entwicklungsbank under a guarantee of the German Government, to address the continuing shortage of financing for infrastructure projects in emerging markets caused by the reduction in lending activity by major international financial institutions as a result of the global financial crisis. www.cordiantcap.com.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org.
PROPARCO is a Development Financial Institution jointly held by Agence Française de Développement (AFD) and public and private shareholders from the North and South. PROPARCO’s mission is to be a catalyst for private investment in developing countries which targets growth, sustainable development and reaching the Millennium Development Goals (MDGs). Its sectoral strategy is tailored to the level of a country’s development and focuses on the productive sector, financial systems, infrastructure and equity investment. PROPARCO invests in a geographical area ranging from major emerging countries to the poorest countries. PROPARCO has a wide range of financial instruments to meet the specific needs of private investors in developing countries (loans, equity, guarantees and financial engineering). PROPARCO has a team of 130 people, eleven regional offices and is supported by 50 AFD Group agencies worldwide. In 2009 PROPARCO granted €1,1 billion for over eighty projects in more than thirty countries.
Bob Watters, Vice President
SSA Marine, Seattle
Nicoline van Slingelandt
Communications Officer (PR)
T: +31 70 314 9790
M: +31 622 563 047
ICF Debt Pool / Cordiant Capital Inc.:
Bertrand Millot, Chief Investment Officer
T: +1 514 286 1142
Chu Thi Van Anh
Head of communication
M: +33 6 42 11 38 02