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GEMADEPT CORPORATION

GEMADEPT CORPORATION


Project Description

OVERVIEW

Gemadept Corporation (GMD), formerly known as General Forwarding and Agency Corporation, was established in 1990. The Company has its main business in port operation and logistics services. GMD has been put into operation under the model of a joint stock company since 1993. The Company owns a network of ports and logistics services from the North to the South of Vietnam and sketches its coverage to neighboring countries e.g Singapore, Hong Kong, China, Cambodia. GMD, is the one of the only a few Vietnamese logistics enterprises, which can provide one-stop logistic services when it owns a close services chain from seaports, warehouses and transport means located in the key economic positions of the North, Central and South of Vietnam. GMD has been listed on Hochiminh Stock Exchange (HOSE) since 2002.

MAIN BUSINESS

  • Port operation;
  • Container Liner Service;
  • Logistics;
  • Shipping and Forwarding agency;
  • Rubber plantation;
  • Real estate.

MARKET POSITION

  • Port operation: GMD manages and operates a network of ports in Hai Phong, Quang Ngai and Ho Chi Minh, including Phuoc Long ICD, Nam Hai ICD, Nam Hai Dinh Vu, Nam Hai, Dung Quat. Nam Dinh Vu Project is expected to come into operation in 2018. Besides, CMD and CMA-CGM is promoting the implementation of Germalink Cai Mep – Thi Vai project.
  • Logistics: GMD, is the one of the only a few Vietnamese logistics enterprises, which can provide one-stop logistic services when it owns a close services chain from seaports, warehouses and transport means located in the key economic positions of the North, Central and South of Vietnam.
  • Rubber: GMD has 10,000 hectares of rubber plantation in Cambodia.
  • Real estate: GMD owns Saigon Gem project in District 1 and Gemadept Complex in Vientiane, Laos. GMD sold 85% of Gemadept Tower in District 1 for CL group in December 2013. The Company is under process of transferrring 15% remain to CJ Group.

GROWTH STRATEGY

  • Focusing on port operation and logistics as core business;
  • Owning and operating network of seaports from the North to the South of Vietnam and in neighboring countries;
  • Closing and improving supply chain, and providing the most effective logistic solutions with competitive quality of services;
  • To maintain its No1 position in the core business in Vietnam;
  • To develop sea port network, logistics service and the network of maritime service along the coastal area of the country, in key economic zones over the country;
  • To expand its capacity by investing in Cuu Long Logistics Center.

PROSPECTIVES

  • Vietnam  is  situated  strategically  at  one  of the  world’s  most  dynamic  ocean  shipping centers. Also, the country  is more visible on  the global map now, especially as an outsourcing  and  factory- relocating destination.
  • Gemadept is the leading logistics service supplier in Vietnam with its own container terminal, warehouse, trucking lines for container and conventional cargo moving services all around Vietnam and intra-Asia. It provides complete facilities for all modes of cargo service.
  • Export and Import activity is gradually improving, thus the key growth drivers of GMD (shipping, port operating and logistics, agency) will benefit.
  • GMD has coordinated with Minh Phu Seafood Corporation (MPC) to establish this center with 30,000 square meters (sqm) of freight warehouse and 15,000 sqm of distribution center which will enpower the company further as the number 1 in the industry. The project has great location and with high demand.

RISK

  • Market conditions is likely to hamper the company’s divestment from rubber plantation and real estate as fast as posible with profit.
  • Seaport and logistics services are attractive to foreign investors. Currently, many leading logistics companies in the world such as Maersk Logistics, APL Logistics, NYK Logistics, MOL Logistics has entered market and raised its influence by establishing companies with 100% foreign capital, leading to tougher competition.
  • Insufficiency of infrastructure has always presented problems to Vietnam. Airport, road system and port are some major infrastructure problems which the government is scheduled to deal with. The real potential for Vietnam  to  benefit  from  its regional economic activity lies on the water, its ports, which are currently too small and too shallow.