VietNamNet Bridge – Shipping firms, which have been incurring losses in recent years, have said they oppose new port infrastructure fees that could be raised by 5-6 percent.

Nguyen Huu Sia, general director of the Da Nang Port, has proposed to raise the fees related to infrastructure use in order to increase the revenue.

Ngo Minh Thuan, deputy general director of Tan Cang Saigon, has proposed the watchdog agency to set up floor prices for the HCM City and Hai Phong ports in order to prevent port developers from lowering the fees to scramble for clients, which they have been doing for many years.

Thuan has also proposed new maritime fees and charges as well as new floor prices for the Cai Mep – Thi Vai ports. He suggested that the prices should be at least five percent higher than those for HCM City ports.

Sources said the port developers’ proposals are likely to get approval because they are supported by watchdog agencies.

Nguyen Nhat, head of the Vietnam Maritime Bureau (Vinamarine), confirmed that the revenue from fees and charges is not enough to cover necessary expenses.

It is estimated that the annual revenue from fees and charges is VND800-850 billion only, while the passage dredging alone costs VND650 billion. As a result, the State still has to pay for dredging, lighthouses and buoys and has to cover many other expenditures.

Nhat said in Thanh Nien that Vinamarine is going to submit to the government a draft document on fees and charge adjustments in October. He said the current fees, which have been applied since 2008, have become “out of date” because the prices of products and services have increased sharply since then.

“Port developers have proposed raising the port landing fee. The fees on passengers going through harbors are now believed to be too low. The pilotage fee also needs to be raised,” he said.

However, he tried to calm the fears of shipping agents by saying that some fees would be lowered, including the anchoring fee.

“The average fee increase would be 6.5 percent at maximum, which will not affect transportation activities,” he maintained.

Shipping agents ask for fee reductions

While port developers have insisted on raising maritime fees, transport firms have unanimously complained that they now have to provide services at below production costs. They have asked for a reduction in fees and charges.

Shipping firms want the Ministry of Transport to approve fee reductions, interest rate cuts, and loosening of technical requirements as well as a 5 per cent VAT.

Do Xuan Quynh, secretary general of the Vietnam Shipowners’ Association, said shipping firms are worried because freight had dropped by 75 percent in comparison with that in 2008.

Oversupply has forced shipowners to provide services at below production costs. If they have to pay higher maritime fees, they will not be able to pick themselves up and survive current difficulties.