Logistics heavyweight Gemadept plans further port expansions

Gemadept, a leading port operator and logistics firm in Vietnam, will continue to expand two of its major ports in the country this year.

The upgrades will take place at Gemalink Port in Ba Ria-Vung Tau province in the south and Nam Dinh Vu Port in Hai Phong city in the north, as approved by the company’s annual general meeting of shareholders on Friday in Ho Chi Minh City.

The first expansion project is the second phase at Gemalink Port, which covers 39 hectares, to handle vessels of 250,000 tons deadweight tons (DWT). The first leg of the second phase is set for completion by 2025, followed by the second leg in 2027.

At Nam Dinh Vu Port, phase 3 includes more than 25 hectares to handle 48,000 DWT vessels. Work is set to begin in the fourth quarter of this year, and a completion date has been set for the end of 2025.

The HCMC-based corporation’s management board told shareholders that Gemadept will continue to divest from its real estate and rubber-growing projects in Cambodia, and seek potential partners to transfer stakes to focus on its core business – logistics and port operations. Gemadept did not give details of potential buyers.

In reply to a shareholder's question regading the firm's rubber cultivation activities in Cambodia, Gemadept CEO Nguyen Thanh Binh said the company is looking to divest this year, but the process could run into 2024. Gemadept has completed the relevant dossiers for potential investors to examine, he added.

Another shareholder asked if Gemadept would reduce port service fees in Hai Phong, but Binh replied it would not. Instead, it will continue to scale up its business, targeting lower production costs and higher competitiveness.

Responding to a question about accessing green finance sources, the CEO said Gemadept’s growth strategy is in line with Vietnam’s carbon-neutral target by 2050.

“Banks and lenders have approached us to offer green financing. We will release announcements in the time to come,” he said, adding that Gemadept had already curbed greenhouse gas emissions at the Gemalink and Nam Dinh Vu ports. It also plans to expand these efforts at other ports, he added.

The shareholders’ meeting approved a dividend payout ratio for 2022 at 20% in cash.

For this year, Gemadept targets revenue of VND3.92 trillion ($167 million), up 3% against last year’s plan, and profit before tax of VND1.14 trillion ($48.4 million), up 14% compared with last year’s plan.