NOL to open own Vietnam subsidiary
Singapore’s Neptune Orient Lines has received approval from Vietnam’s Ministry of Planning and Investment to establish a wholly-owned company to provide container transportation and logistics services in the country.
APL-NOL (Vietnam) Ltd. will replace the existing joint venture with Vietfracht on Jan. 1. The new company will have more than 140 staff across the country, with offices in Ho Chi Minh City, Hanoi, Haiphong and Danang.
Liner carrier APL offers five weekly sailings from Vietnam while APL Logistics operates more than 30,000 square meters of warehouse space to customers in the country. NOL is also an investor in Vietnam’s first privately-owned, purpose-built container port — Vietnam International Container Terminal '– which is expected to have handled approximately 440,000 TEUs this year.
“Over the coming years, we will further enhance our liner and container terminal capabilities as well as improving the logistics services we offer. 'This will enable NOL to keep pace with the fast-changing global business environment and provide our customers with the best-possible services as they place an increasing amount of their sourcing and manufacturing in Vietnam,” said Thomas Held, NOL’s president and chief executive officer, in a statement.
Vietnam’s GDP growth averaged 7.4 percent between 2000 and 2005 with 8.2 percent expected in 2006. Over the same period, Vietnam’s container throughput grew by 19 percent per year. The country’s growth is expected to continue with GDP expansion of up to 8.5 percent for 2007, and container traffic is likely to rise by around 20 percent, NOL said.
“Vietnam is already among the world’s fastest-growing sourcing locations and its economic reforms and accession to the World Trade Organization have greatly increased its importance to the global economy,” said Jim McAdam, NOL’s Asia-Middle East president. “Over the next five years, we aim to add capacity in key trade lanes, further develop our container terminal interests and expand our logistics capabilities.”