HO CHI MINH CITY, May 15 (GCTL) - Viet Nam National Shipping Lines (Vinalines) has scaled down a plan to expand its fleet, cutting the cost estimate by one-third to VND68 trillion (US$3.26 billion) amid criticism that the state shipping line is operating ineffectively, Thanhniennews.com reported.
According to the company, it originally planned to invest VND100 trillion to buy more vessels. But due to negative prospects for the shipping market, it has decided to revise the plan, and the state-owned company also said it will not seek funding from the government budget and finance its purchases with bank loans. The target is to increase the total load capacity of its fleet to 5.6 million by 2020.
Vinalines said its 154-ship fleet with a total load capacity of 3.4 million tons accounted for 45 percent of Vietnam’s shipping capacity at the end of last year. The original plan targeted a capacity of 15 million tons by 2015.
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