With a capacity of 450,000 square meters, the Phu Xuan – Nha Be General Fuel Warehouse project covers 10 hectares by the Soai Rap River, a tributary of the Saigon River, in Ho Chi Minh City's Nha Be District.
The investor in the VND12 trillion (US$492.5 million) project is the Southern Aviation Petroleum Port JSC. Construction began in 2016, but work has stalled since 2020, when it was around 70% complete.
As approved by the government, the project falls under a national master plan to develop the nation's storage system for crude oil and petroleum products.
Once complete, the warehouse was to ensure reserves equivalent to 75 days of fuel consumption in HCMC and about 16 days in the southern region, said Tran Sy Huan, chairman and general director of the Southern Aviation Petroleum Port JSC. He said the impacts of Covid-19 and bad debts have sent the project to a "dead end."
In the middle of the project site are the foundations for three tanks with a total capacity of 230,000 cubic meters. If and when the tanks are put into use, they can store enough fuel for HCMC to consume in two months, or 6,000 cubic meters per day.
An excavator abandoned on the roof of a fuel tank base. At its busiest time, there were 200 people working at the construction site.
Tanks, containers, bulldozers and construction materials have been lying untouched by the Soai Rap River for two years now.
A pier on the Soai Rap River that is 70% complete. It is designed to receive vessels of up to 40,000 DWT.
Steel rods meant for building the pier gather rust.
Two guards have been assigned to look after materials and machinery at the project to prevent theft.
The warehouse to store materials and equipment for the project. Many of the materials and equipment were brand new but have suffered the wear and tear of two years of disuse.
An artist's impression of the fuel warehouse project.
The investor has said that if it gets funds soon to resume work, the project can be completed by June 2024.
The company has already written to Prime Minister Pham Minh Chinh and central bank governor Nguyen Thi Hong as well as related agencies to find a solution to get the project back on track.
