[03 April 2014]
**”Since the vessels stopped operating, the company has had to borrow money to pay repair costs, staff have become unemployed and the enterprise has lost its business reputation…” – hydrofoil operators have just sent a “cry for help” to the Ministry of Transport.
Risk of bankruptcy, bank debt, workers losing jobs…**
Related to the suspension of hydrofoil operations in Ho Chi Minh City and Ba Ria – Vung Tau (following the fire on hydrofoil Vina Express 01 on the Sai Gon River on 20 January).
Quang Hung Petro Express Transport Co., Ltd. and Vina High-Speed Boat Joint Stock Company have simultaneously sent petitions to the competent authorities “crying for help” and requesting permission for hydrofoils to resume operations.
The hydrofoil was burnt out and almost completely sank in the Sai Gon River in the incident on 20 January
In the petition sent to the Ministry of Transport, Ho Chi Minh City People’s Committee, Ba Ria – Vung Tau Provincial People’s Committee, Ho Chi Minh City Department of Transport and Ba Ria – Vung Tau Department of Transport, the representative of Quang Hung Company stated that the suspension has lasted for nearly three months but the relevant authorities have not yet agreed to allow operations to resume. As the only source of revenue is passenger transport, the company is facing great difficulties.
Since the vessels stopped operating, the company has had to borrow money to pay for repair costs, docking and dry docking, upgrades as required by the inspection team, as well as office, terminal and berth expenses and salaries of officers and staff.
“We have also remedied the shortcomings and continued to invest in upgrades to ensure safety and regain customer confidence, in the hope of being allowed to operate again,” the representative of Quang Hung Company added.
Meanwhile, regarding Vina Express High-Speed Boat Joint Stock Company, Mr. Nguyễn Duy Việt – the Company’s Director – said that the suspension of all vessels has caused significant damage to the company.
The company is currently in an extremely difficult situation: there is no other source of revenue but it still has to pay salaries, social insurance and other benefits for staff, as well as management, premises, electricity and water costs.
According to this Director, the suspension of services has also had a very negative impact on workers’ morale, as their incomes have fallen and they are facing the risk of unemployment. Furthermore, the prolonged suspension of operations has seriously damaged the business reputation of the company in particular and of hydrofoil operators in general.
In addition, many related services at both terminals have been disrupted, the city budget has lost tax revenue and regular hydrofoil passengers have been significantly affected.
Enterprises Still Have to Wait…
A source from a member of the Ministry of Transport’s inspection team (who requested anonymity) said that after the Ministry’s inspection team conducted inspections, it discovered a series of technical shortcomings on hydrofoils.
The inspection team also analysed, assessed and determined who was responsible for the shortcomings related to hydrofoils and recommended remedial measures for the near future.
"The orientation of the inspection team is to recommend that hydrofoils be allowed to resume operations; however, the shortcomings must be rectified and additional safety conditions implemented as recommended. How quickly services can resume depends on how quickly enterprises remedy the shortcomings pointed out by the inspection team," this person said.
This person added that hydrofoils are inland waterway vessels and therefore fall under local management.
The order to suspend operations and ban vessels from operating was issued by the Ho Chi Minh City People’s Committee. The first inspection only covered technical and fire prevention and fighting issues, so afterwards Ho Chi Minh City asked the Ministry of Transport to conduct a further inspection.
After the inspection team delivers a comprehensive assessment and proposes a handling plan, the Ministry of Transport will give its opinion to the Ho Chi Minh City People’s Committee, which will then decide on the operation of the hydrofoils.
