PSA International, the world's second largest container port operator, and Saigon Port are set to build a container port project in Vietnam's southern province of Vung Tau as a joint venture.
The license was given to SP-PSA International Port Co. Ltd. (SP-PSA), Saigon Port and PSA Vietnam Pte Ltd.
This is PSA's first project in Vietnam and gives the Singapore port operator a foothold in the fast-growing Southeast Asian economy.
A statement from the joint venture partners gave no figures for the size of the investment, but unidentified sources were reported saying it would cost nearly 0 million over two phases.
PSA International's chief executive for Southeast Asia and Singapore terminals, Kuah Boon Wee said: "We are committed to developing the SP-PSA International Port into a world-class service facility to cater to the needs of the shipping lines and shippers in the region."
The container terminal will be built in two phases, with the first phase scheduled to come into operation in 2009.
When both phases are accomplished, the terminal will have a handling capacity of 2 million twenty-foot equivalent units(TEUs ) annually.
PSA, which is wholly owned by state-linked investment firm Temasek Holdings, runs Singapore's container terminals as well as ports in Belgium, China, Hong Kong, India, Italy, Japan, the Netherlands, Portugal, South Korea and Thailand.
