OCTOBER, 2009

Vũng Áng

Sơn DươngHòn Sơn Dương

Mũi Ròn Mẹ

Mũi DungMũi Ròn Con

DEVELOPMENT PLANNING FOR SON DUONG - VUNG ANG PORT AND PORT PROJECT FOR FORMOSA INTEGRATED STEEL MILL - HA TINH

CÔNG TY CỔ PHẦN TƯ VẤN THIẾT KẾ CẢNG - KỸ THUẬT BIỂNPORTCOAST CONSULTANT CORPORATION

Project Director : PHAM ANH TUAN

A.1 CONSTRUCTION SITE AND NATURAL CONDITIONS

Construction site• In Vung Ang economic area, Ky Anh district, Ha Tinh province.• ≈ 60km from Ha Tinh city and Thach Khe iron mine; ≈ 109km from Vinh airport.• Adjacent to National North – South roadway.• Connecting to Laos and North East Thailand by National Highway 8 (via Cau Treo border

gate) and National Highway 12 (via Cha Lo border gate).

Natural conditions• Topological conditions:

- Natural conditions are favourable for the construction and development of large-scaled deepwater port. - Average depth of sea bed near shore is about 7 ÷ 8m, and in area of being 2 ÷ 3 km away from shore is 12 ÷ 15m, and in area over 6 km from shore is 20 ÷ 30m. - The Bay is hardly influenced by sediments due to river and sea; bottom layer is mainly of fine sand used for backfilling upon dredging channel and water area. - Ron Cape plays the role as wave screen for Vung Ang in the East and Son Duong in the North. - Son Duong Cape prevents wave from North East to Son Duong basin.

• Soil conditions: - Fairly favourable, uncomplicated with high bearing capacity.- Bottom layer is mainly of fine sand used for backfilling.

A. OVERVIEW AND DEVELOPMENT PLANNING FOR SON DUONG - VUNG ANG PORT

TRAFFIC RELATION WITH ECONOMIC CORRIDOR IN MEKONG DELTA

MAP OF CONSTRUCTION SITE AND LOCAL RELATION

TOPOGRAPHIC MAP OF SON DUONG - VUNG ANG AREA

A.2 MASTER PLAN FOR VUNG ANG ECONOMIC AREA

Formed in April, 2006 with a total area of 22,781ha inclusive of 9 communes in Ky Anh district - Ha Tinh province. Master Plan for Vung Ang economic area to 2025 approved by the Prime Minister on 20 August 2007; being updated. As the general economic area, in which Vung Ang industrial area associated with Son Duong - Vung Ang Port plays crucial role.Has economically independent area including tariff and non-tariff sub-areas. Main functional areas: industries, seaport, trading and services, new urban area and labour training center. Over 60 projects have been granted investment certificates and many other projects approved in term of investment policy. Some large industrial projects: FORMOSA integrated steel mill - Ha Tinh (15mil.ton/year), TATA integrated steel mill (4.5 mil.ton/year), Thach Khe steel (4.5 mi.ton/year), Power center (4x1200MW), LPG petro general Warehouse (1.3mil.ton/year), Integrated refinery petrochemical complex (15.2 mil.ton/year).

A.3 MASTER PLAN FOR THE PORT DEVELOPMENT

Functions: • National port ranks as class I in Vietnam seaport system. • Dedicated hub port directly serving concentrated industrial premises (steel, thermo-electricity,

petrochemical refinery, …)• Regional transshipment hub port to Laos and North East Thailand.

2 main port areas: • Son Duong:

- Mainly serve as Dedicated port.- Accommodate vessels of 200,000 ÷ 300,000 DWT (coal and ore); 300,000 ÷ 400,000 DWT (crude oil);

30,000 ÷5 0,000 DWT (oil products, steel and others,...).- Study to establish transshipment port for imported coal serving regional thermo-electric plants.

• Vung Ang:- A general container port for accommodating vessels of 30,000 ÷ 50,000 DWT.- Dedicated port for thermo-electric plant (in West) and LPG (in East).

DETAILED PLAN FOR SON DUONG - VUNG ANG PORT(GROUP 2)

A.4 DETAILED PLAN FOR THE PORT DEVELOPMENT (PRELIMINARY)

Estimated cargo throughputs:Unit: mil.ton/year

Overall layout plan of the port complex includes the following 3 alternatives:Alternative 1: Average (port areas in Son Duong)

- Dedicated terminal for Formosa Integrated Steel Mill – Ha Tinh.- Dedicated terminal for Formosa Integrated Petrochemical Refinery.- Dedicated terminal for TaTa Integrated Steel Complex and Thach Khe Steel Mill.- General and Container terminals.

Alternative 2: Maximum (additional port areas in Son Duong)- Port area for importing coal for local thermo-electric plants.

Alternative 3: Minimum (Due to land limit and to be in compliance with the required investment scale, the planned area used for constructing either Formosa Integrated Petrochemical Refinery or TaTa Integrated Steel Mill).

No Type of cargo 2015 2020 2030

1 General, container 13.5 ÷ 18.5 16.2 ÷ 17.5 25 ÷ 282 Liquid 1.0 ÷ 1.5 14 ÷ 16.5 28 ÷ 32

3 Bulk (coal, iron ore) 37 ÷ 40 66.3 ÷ 70 70 ÷ 804 Total 51.5 ÷ 60 96.5 ÷ 10.4 123 ÷ 140

DETAILED PLAN FOR SON DUONG, VUNG ANG PORT - ALTERNATIVE 1

DETAILED PLAN FOR SON DUONG, VUNG ANG PORT - ALTERNATIVE 2

DETAILED PLAN FOR SON DUONG, VUNG ANG PORT - ALTERNATIVE 3

B. FEASIBILITY STUDY FOR FORMOSA INTEGRATED STEEL MILL - HA TINH

B.1 GENERAL OBJECTIVE OF THE PROJECT (Investment certificate dated 12 June 2008)Integrated steel mill 15mil.ton/year (Stage I: 7.5mil.ton/year) and a dedicated port.Total land area: 3035.67ha (including 1965.82ha onshore area, 1069.85ha offshore area).Operation time: 70 years.Total investment cost: ≈ 7.9 billion USD (100% mobilized and financed by the Project Owner). Project schedule: 48 months in Stage I (Mill, breakwater and port). Project Owner: Hung Nghiep Steel Co., Ltd Formosa Ha Tinh.

B.2 PORT SCALEa) Cargo throughputs: (Unit: mil.ton/year)

No Stage I.1 Stage I.2I Import cargo 24.99 49.981 Coal 7.77 15.542 Ore 13.02 26.043 Flux (limestone, dolomite, quartzy sand, etc…) 3.54 7.084 Scrap steel 0.66 1.32II Export cargo 9.8 19.611 Steel product 7.5 15.02 Stone slag and granulate slag 2.3 4.61II Total 34.79 69.59

B. FEASIBILITY STUDY FOR FORMOSA INTEGRATED STEEL MILL - HA TINH

b) Scope of main work items:Total construction quantity in both stages:

• 03 berths for 300,000DWT vessels with 1,455m long; 02 berths for 200,000DWT vessels with 840m long. • 06 berths for 50,000DWT vessels with 1,625m long; 02 berths for 30,000DWT vessels with 485m long.• 800m berth for tug boat and others. • 4,351m main breakwater (South, South East and East) and 800m sub-dike (North). • 74.2 mil. m3 of dredging volume of channel, turning basin and front water area.

Stage I.1:• 02 berths for 200,000 DWT vessels and 01 berth for 300,000 DWT vessels serving coal and ore import.• 04 berths for 50,000 DWT vessels and 01 berth for 30,000 DWT vessels serving scrap steel, fluxes import,

steel steel product and granulate slag export. • 800m berth for tug boat and others. • 4,351m breakwater of the South (1,543m), South East (1,808m), East (1,000m) and 800m - Northern

subdike. Investment cost:Total investment cost in both stages: 2,319.568 mil.USD

(StageI.1: 1,993.1 mil.USD, StageI.2: 326.5mil.USD).In which:

• Construction: 1,879.200 mil.USD. (Channel: 891.3mil.USD; berths: 492.9mil.USD; Breakwater:445.6 mil.USD; Auxiliary works: 49.16 mil.USD)

• Equipment: 172.830 mil.USD.• Others: 307.538 mil.USD.

Engineering construction alternative: The structure of caisson on rock bed is proposed for main berths and breakwater.

OVERAL LAYOUT OF STEEL PORT AREA - STAGE I.2

OVERAL LAYOUT OF STEEL PORT AREA - STAGE I.1

TYPICAL CROSS SECTION OF BREAKWATER - SOUTH AND SOUTH EAST

TYPICAL CROSS SECTION OF SOUTHERN BREAKWATER

TYPICAL CROSS SECTION OF SUB-DIKE

TYPICAL CROSS SECTION OF BERTH FOR VESSEL 300,000DWT

TYPICAL CROSS SECTION OF BERTH FOR 200,000DWT VESSELS

TYPICAL CROSS SECTION OF BERTH FOR 50,000DWT VESSELS

TYPICAL CROSS SECTION OF BERTH FOR 30,000DWT VESSELS