Logistics groups expand operations to generate profits

Some ports are implementing scale-up initiatives and looking to the future, photo Le Toan

PVT Logistics plans to expand and develop logistics services such as chemical warehousing, bulk cargo and crew services, maritime human resources services and others amidst increasing competition in the market.

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

The company will gradually improve the efficiency and standardize its investor relations activities, create favorable conditions for increasing the registered capital, develop its fleet and list its shares on the Ho Chi Minh Stock Exchange, and increase the foreign ownership ratio from zero to 49 percent.

In this regard, by the end of 2025, PVT Logistics intends to develop a fleet of 14 vessels, of which 60% will be chemical tankers of 13,000-25,000 DWT and 40% bulk carriers of 28,000-65,000 DWT. It also plans to increase its share capital to USD 27.5 million in 2024 and more in subsequent years.

With a focus on its core business of crude oil and chemical tanker operations, PVT Logistics now operates in international markets including Europe and North America, meeting the requirements of major charter associations such as Womar Pool and major oil groups such as Shell, ExxonMobil and Petronas.

To increase operational efficiency, the company has shifted from the transportation of finished petroleum products to the transportation of chemicals in the international market to take advantage of the global energy transformation trend. The company is also expanding its business into the area of ​​bulk cargo transportation of grain and iron ore.

With the transformation, PVT Logistics continued to post a positive business picture in the first six months of 2024 with estimated revenue of $28.66 million, up 18% year-on-year. Pre-tax profit was $2.83 million, up 62%. For the full year 2024, revenue and profit are expected to be $54.58 million and $5.83 million, up 18% and 85% year-on-year, respectively.

Similarly, Gemadept prioritizes investment and improving the capacity of the port and logistics ecosystem. In the northern market, the South Dinh Vu port is set to reach its maximum capacity in 2024, which creates favorable conditions for the further implementation of Phase 3 of the project.

In 2024, Gemadept will continue to implement key projects to increase its scale to facilitate its long-term growth plans. These include the expansion of South Dinh Vu Port, the Gemalink deep-water port project and the Ha Nam canal dredging project. The company also has ambitions to further engage in new projects, strengthen cooperation and seek mergers and acquisitions to expand its port and logistics ecosystem.

Germadept posted net revenue of $49.16 million, up 29 percent year-on-year during the period. Of this total, port and logistics operations contributed $41.04 million and $8.16 million, respectively. The revenue growth was attributed to the container handling segment, particularly in the southern region, with a jump in both production and handling fees.

Elsewhere, Vietnam Maritime Corporation (VIMC) is focusing on developing a new fleet and new businesses, including providing freight agent services, rather than its current focus on maritime transport.

VIMC is actively implementing market development solutions to expand market share. In particular, its seaport system continues to develop new container handling routes in the ports of Danang, Quy Nhon, CMIT and SSIT.

Deputy Director Le Quang Trung said: “New businesses that have generated positive revenues have been promoted, contributing positively to total revenue. For example, in the first six months of 2024, the Vosco subsidiary recorded $73.75 million in coal trading business.”

He added that the business activities of the entire corporation during this period brought many positive results. VIMC’s transport production reached 9.5 million tons, or 60 percent of the 2024 plan. VIMC’s total revenue reached $536.25 million, and total profit reached $117.08 million.

Other domestic logistics companies also saw improvement in the January-June period. Vietnam Container Corporation’s second-quarter revenue reached $29.91 million, up 20 percent year-on-year. The parent company’s net profit reached $2.83 million, about 2.4 times more than in the same period, mainly from financial income.

According to Viet Dragon Securities, the export and import value of goods transported by sea containers amounted to $103 billion and $68 billion, an increase of 10 percent and 8 percent, respectively, compared with the previous year.

Asian giants maintain control over Vietnamese logistics sector M&A trends in the Vietnamese logistics industry are unlikely to change this year as domestic players remain sellers and Asian investors gain the upper hand.

Logistics prepared for the start of Euro While foreign investors continue to show interest in Vietnamese logistics, the country is being urged to take more drastic measures to address existing issues in order to absorb more investment, especially from Europe.

Vietnamese logistics companies are optimistic about the prospects for 2024 Vietnam’s economy is expected to rebound and achieve a growth target of 6 percent in 2024, so logistics companies are optimistic about the logistics industry in 2024.

Logistics Competition: A History of Globalization and Multilateralization In the trend of strong globalization, Vietnamese logistics companies are in strong competition with foreign rivals. Le Duy Hiep, former chairman of the Vietnam Logistics Business Association, discussed the history of these rivalries and future investment trends with Bich Thuy of VIR.