SSIT will be 49% owned by an indirect subsidiary of Carrix Inc., 34% owned by Saigon Port, and 17% owned by Vietnam National Shipping Lines Corporation (Vinalines). Carrix, Inc. is a privately held U.S. company and the parent company of SSA Marine, one of the world’s largest container terminal operators and cargo handling companies with operations throughout the world. Saigon Port is Vietnam’s leading port operator by tonnage and currently operates 4 mixed-use terminals in HCMC. Vinalines is Saigon Port’s parent company and Vietnam’s national shipping line.

The total project cost is estimated to be $285 million. The proposed IFC investment is a $215 million financing package consisting of both A loans for IFC’s own account and syndicated B loans.

70.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	70.0
Equity

* These investment figures are indicative

The Terminal is located on the Cai Mep estuary of the Thi Vai River in Ba Ria-Vung Tau province 85 km south of HCMC and 25 km from the Pacific Ocean.

The project will strengthen the Vietnamese port sector by helping develop a much-needed modern, efficient, deepwater container handling facility to serve the HCMC area. This will help address Vietnam’s shortage of port capacity and increase trade by helping ensure the efficient and timely export of containerized cargo. In addition, the project will help to reduce the cost of transportation by easing the current supply constraints and thereby benefit shippers, shipping lines, and consumers alike. Finally, the Terminal will create approximately 340 jobs upon completion and generate direct economic benefits for the Government of Vietnam through land lease payments.

IFC will be providing long-term financing at a maturity necessary for the project’s completion but unavailable in the commercial market. The financing will be structured to help the company better manage the startup risk inherent in a greenfield project. IFC’s involvement will also help raise additional financing through IFC B Loans. In addition, the project will have an important demonstration effect for the Vietnamese port privatization effort. As such, the project’s success will encourage foreign investments and further private sector participation in other ports and infrastructure sectors such as roads and airports.

This is a Category B project because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The Terminal is one of several container terminals being developed to serve the Ho Chi Minh City area, and is part of the Detailed Master Plan of Group No. 5 Seaports in the HCMC area approved by the Prime Minister of Vietnam in 2005. The site for the SSIT container terminal was selected for its minimal environmental and social impact, as well as its favorable economic costs and benefits. Specifically, a very small number (3) of local farmers were affected and subsequently compensated for their losses, and mangroves cleared from the site will be reforested nearby under a government-managed program. Because SSIT is located within an existing industrial development zone, there are no communities or indigenous peoples adversely affected by the terminal development, nor is this in an area where cultural heritage is expected to be found. Owing to existing road capacity, increase in truck traffic along local highways will not significantly increase traffic problems and accidents.