Output simultaneously increased, many ports reported profits

Ships dock at Quy Nhon Port to handle cargo. Source: Internet.

Data from the General Statistics Office shows that the import and export situation of goods has improved positively in the first quarter of 2024 with total import and export turnover reaching 178.04 billion USD, an increase of 15.5% over the same period last year. Of which, exports reach 93.06 billion USD, growing by 17%; Imports reached nearly 85 billion USD, growing by 13.9%.

The return to growth in import-export activities has brought a vibrant atmosphere to seaports after many gloomy months. This helps significantly increase revenue and profits for port operators.

The financial report for the first quarter of 2024 of VIP Green Port Joint Stock Company (VGR) recorded revenue of more than 242 billion VND, an increase of 28% compared to the first quarter of 2023, while the cost price only increased by 7%, so gross profit increased sharply by 61%, reaching 119.5 billion VND.

According to VGR's explanation, container throughput increased by 22.65% in the first quarter of 2024, helping to increase revenue compared to the same period last year. In addition, depreciation costs decrease because fixed assets are no longer depreciated. These are factors that directly lead to profit after tax in the period nearly doubling compared to the first quarter of 2023, reaching 94.4 billion VND.

Seaport giant Gemadept also recorded an 11% increase in revenue in the first quarter of 2024, reaching VND 1,006 billion. In particular, financial activity revenue recorded up to 354 billion VND, a sudden increase compared to 21 billion VND in the first quarter of 2023, mainly thanks to Nam Hai port transfer profits. Profits from joint ventures and associates also skyrocketed 4.5 times compared to the same period last year, reaching nearly 98 billion VND. As a result, Gemadept recorded a pre-tax profit of VND 708 billion, an increase of 130% compared to the first quarter of 2023.

In a recent analysis report, HSC Securities Company said that Gemalink Port (Gemadept owns 65% of the shares) received and handled 232/000 TEUs of goods in the first 2 months of 2024, an increase of 121% . HSC estimates that the volume of goods through this port in the first quarter of 2024 will reach 352,000 TEUs, an increase of about 110%. This impressive growth is thanks to recovering demand and increased market share when Gemalink port receives new ships from other ports since the fourth quarter of 2023.

According to estimates by the Vietnam Seaport Association, Gemadept's ports in Hai Phong received and handled 179,000 TEUs in the first quarter of 2024, an increase of 27% compared to the first quarter of 2023 thanks to improved demand.

At Saigon Port Joint Stock Company, pre-tax profit in the first quarter of 2024 also reached 63 billion VND, an increase of 103% compared to the same period in 2023. It is known that during the period, the output of goods through ports of Saigon port reaching 2.5 million tons, up 22% over the same period last year; Imported iron and steel output through Tan Thuan port in the first quarter of 2024 reached more than 600,000 tons, a growth of 48%, domestic goods reached more than 290,000 tons, a growth of 19%...

Many other seaport enterprises also had impressive growth in the first quarter of 2024, such as Quy Nhon Port Joint Stock Company, which increased by 67%, reaching 40.5 billion VND in profit before tax; Dong Nai Port Joint Stock Company increased by 58%, reaching 104.5 billion VND...

Besides the objective factor from the recovery of cargo output, seaports have also been promoting investment to improve service quality and enhance competitiveness.

Specifically, Quy Nhon Port Joint Stock Company is implementing an investment project to build and upgrade wharf No. 1 - Quy Nhon Port; expanding Quy Nhon Port until 2030; Investing in loading and unloading equipment for wharf No. 1 - Quy Nhon Port. In 2024, Quy Nhon Port plans to spend VND 250,987 billion on investment activities. Of which, investment in infrastructure construction is 87.51 billion VND; investment in purchasing vehicles and equipment is 143,691 billion VND; information technology investment of 10.98 billion VND; Maintaining and repairing technical infrastructure over VND 8.8 billion.

VIP Green Port Company is also planning to prepare to invest in Can Gio deep-water port, and at the same time invest in purchasing mining equipment in Hiep Phuoc area. This enterprise also plans to extend the Tan Thuan 2 train, renovate and upgrade the Tan Thuan 2 area...

Similarly, Dong Nai Port Joint Stock Company has also been focusing on investing in infrastructure, yards and specialized loading and unloading equipment to handle container goods in a timely manner, reducing cargo congestion at the port to meet demand. Increased demand for output from customers as well as increased customer satisfaction when using services at the port.