LOGISTICS GROUPS BRANCH OUT FOR GAINS

Driving by growth results in the first half of 2024, Vietnamese logistics companies are transforming their business reach to maintain momentum.

The leadership of PVT Logistics is planning to expand and develop logistics services such as chemical warehouses, bulk cargo and crew supply services, maritime human resources, and more amid stiffening competition in the market.

Deputy director Tran Hong Kien said, “In the next five years, our revenue and profit are expected to grow continuously on an annual basis at an average rate of about 11 and 23 per cent, respectively. Return on equity is expected to reach about 14 per cent a year on average. This is a good performance compared to other companies in the same industry.”

The company will gradually improve efficiency and standardise investor relations activities, prepare good conditions for expanding charter capital, develop the fleet, and list shares on the Ho Chi Minh Stock Exchange as well as increase the foreign ownership ratio from zero to 49 per cent.

Accordingly, by the end of 2025, PVT Logistics aims to develop the fleet of 14 ships, of which 60 per cent will be chemical tankers of 13,000-25,000DWT and 40 per cent will be bulk carriers of 28,000-65,000DWT. It also plans to increase the charter capital to $27.5 million in 2024 and higher in the following years.

Focusing on the core business of oil/chemical tanker operations, PVT Logistics is currently operating in international markets such as Europe and North America, meeting the requirements of large chartering associations such as Womar Pool and major oil groups such as Shell, ExxonMobil, and Petronas.

To improve operational efficiency, the company has shifted from transporting finished petroleum products to chemicals in the international market to tap into the global energy transition trend. The company is also expanding its operations into the field of bulk cargo transportation of grain and iron ore.

Driven by the transformation, in the first six months of 2024, PVT Logistics continued to record a positive business picture with estimated revenues of $28.66 million, up 18 per cent on-year. Its pre-tax profit reached $2.83 million, up 62 per cent. It is expected that for the whole of 2024, revenue and profit are estimated to hit $54.58 million and $5.83 million, up 18 and 85 per cent on-year.

Similarly, Gemadept prioritises investment and improving the capacity of the port and logistics ecosystem. In the northern market, South Dinh Vu Port aims to reach maximum capacity in 2024, creating a favourable premise for further implementation of phase 3 of the project.

In 2024, Gemadept will continue to implement key projects to expand scale to facilitate its long-term growth plans. They include the expansion of South Dinh Vu Port, the Gemalink deepwater port project, and a project to dredge the depth of Ha Nam canal channel. The company also has ambitions to venture further into new projects, strengthen cooperation, and seek mergers and acquisitions to expand its port-logistics ecosystem.

Germadept recorded net revenue of $49.16 million, up 29 per cent on-year during the period. Of the sum, port and logistics activities reached $41.04 million and $8.16 million, respectively. Revenue growth was attributed to the container handling segment, especially in the southern region, with a leap in both output and handling fees.

Elsewhere, Vietnam Maritime Corporation’s (VIMC) is focusing on developing a new fleet and new business activities, including acting as a goods sales agent, instead of focusing only on shipping as in the past.

VIMC has actively implemented solutions to market development to grow market share. Specifically, its seaport system continues to develop new container service routes at Danang, Quy Nhon, CMIT, and SSIT ports.

Deputy director Le Quang Trung said, “New activities were promoted and brought in positive revenue, contributing positively to total revenue. For example, in the first six months of 2024, subsidiary Vosco recorded $73.75 million from coal trading activities.”

He added that the business activities of the entire corporation during the period achieved many positive results. VIMC’s shipping output reached 9.5 million tonnes, or 60 per cent of the 2024 plan. VIMC’s total revenue reached $536.25 million and total profit reached $117.08 million.

Other domestic logistics companies also witnessed improvements in the January-June span. Revenues of Vietnam Container Corporation in the second quarter reached $29.91 million, up 20 per cent on-year. Profit after tax of the parent company reached $2.83 million, about 2.4 times higher than the same period, mainly coming from financial revenue.

According to Viet Dragon Securities, the export-import value of sea container goods reached $103 billion and $68 billion, up 10 and 8 per cent on-year, respectively.

Source: VIR