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Incentives for inland waterway transport investors

2015-05-07 22:51:34

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The Ministry of Transport has unveiled a slew of incentives for private enterprises committed to inland waterway transport projects, including a 50% loan interest subsidy and a 30% land rent reduction.
According to the ministry’s inland transport restructuring scheme until 2020, the Government is expected to cover half loan interest for investors of 600-DWT tow and pull vessels or bigger, 200-DWT cargo vessels and container ships of at least 16 TEUs.
The scheme also contains a 30% loan interest subsidy for firms taking out bank loans to buy passenger ships for plying domestic waterways and a 20% loan interest coverage for investors of cargo loading and unloading equipment.
The scheme includes a 30% land rent cut for enterprises investing in handling devices and new wharves for inland waterway services as well as a registration fee exemption for those building container ships.
The transport ministry will submit the incentives to the Government for approval to attract more investments in the inland waterway transport sector.  
As part of the scheme, the ministry will seek private investors to develop Phu Dong Port in Hanoi into a major inland container depot (ICD) for domestic container ships.  
The ministry plans to begin pilot schemes to dredge and upgrade the Cho Gao Canal in the Mekong Delta province of Tien Giang, Ham Luong River in Ben Tre Province and Saigon River under the public-private partnership (PPP) format in 2016. The upgrade of Vung Tau-Thi Vai-Saigon, My Tho-Can Tho and Dong Nai River routes will also be carried out.
The ministry is pinning high hopes that the development of inland waterway transport will help ease road traffic and lower transport charges.
Source: Vietnamnet