Singapore's PSA International has won a licence to develop Saigon Port, a new container terminal serving the fast-growing traffic of Vietnam.

Saigon Port is the central port of serving Ho Chi Minh City and the southern Vietnam. SP-PSA International Port Co., a joint venture of Saigon Port and PSA Vietnam Pte Ltd, and a wholly-owned subsidiary of PSA International, received its licence earlier this month from Tran Minh Sanh, chairman of the People's Committee of Ba Ria-Vung Tau province.

"Saigon Port plays an important role in furthering the growth and development of Vietnam. We are happy to partner with PSA International and we are confident that we can make SP-PSA a great success," he said at a ceremony.

Kuah Boon Wee, CEO of Southeast Asia and Singapore Terminals, PSAI, added: "This is PSA's first port project in Vietnam. We are committed to developing the SP-PSA International Port into a world-class facility."

With its flagship operation in PSA Singapore Terminals and PSA HNN, PSA operates a global network of ports in Asia and Europe. In 2006, PSA handled 51.3 million TEU worldwide.

Near the mouth of the Cai Mep-Thi Vai River, Saigon Port-PSA will be equipped to handle large vessels at its deep water berths. The port will soon be connected to an extensive road and inland waterway network to southern Vietnam's burgeoning industrial hinterland.

The new terminal will be developed in two phases with the first becoming operational in 2009. When both phases come onstream, the terminal will have an annual capacity of 2 million TEU.