SATEC offers Vietnam service

Though Nguyen Xuan Ky is quite young, about 30 years old, he is vice-president of SATEC, a Vietnamese carrier. He visited South Korea to monitor the maiden voyage of the "M/V Traun" that called at the Port of Pusan on September 16. In an interview with the Korea Shipping Gazette, he explained this new service from Vladivostok to Hochiminh city.

Korea Shipping Gazette (KSG): What is the purpose for your visit to South Korea?

Nguyen Xuan Ky (Mr. Ky): Well, I visited South Korea to check on the "M/V Traun" that is operating between Vladivostok and Hochiminh city. It made its maiden voyage to the Port of Pusan. I also came to South Korea to do some Korean market research last July. We gave six months for market surveys and research to prepare for an additional calling in Pusan. I am pretty sure that we gave our best shot at it.

KSG: You appointed the Sungwoo Agency as your Korean agency for SATEC line. I am wondering if there is some special reason?

Mr. Ky: We've kept in touch with the Sungwoo Agency for a long time. Especially, in some parts we have worked as an agency in each country for the same principals, such as NPSC in the US and IINO in Japan. So, we knew each other and contracted on July 28.
I know that the Sungwoo Agency has been around for about 20 years. During that time, China Shipping Line and Dalmas Korea grew from here. And it worked as an agency for an African liner, Fuhai line, too.

KSG: What made this Pusan calling possible?

Mr. Ky: We usually transport around 400-500 TEU of cargo in the Vladivostok and Hochiminh city trade on a weekly basis. However, as it was, inbound cargoes and outbound ones were terribly imbalanced. On the whole, vessels from Hochiminh city entered Vladivostok fully loaded. However, vessels out of Vladivostok sailed to Vietnam half loaded. Half the capacity of the vessel was useless, empty. We would like to fill this half empty space in the vessel with Korean cargoes bound for Vietnam. We are now calling in Pusan for that reason.

KSG: I'd like to ask you to explain about this service more detail.

Mr.Ky: To help you understand better, I'll explain about SATEC Line first. SATEC International is a subsidiary company of the Vietnamese Masan group. It was established in May 1997, in the form of a joint venture between the sole national Vietnamese shipping company and the Russian shipping company, Mivitran. SATEC offered its services as a forwarder before it turned into a shipping company at the end of 1999. At that time, SATEC launched this Vladivostok and Hochiminh city service. We deployed a 500 TEU full container vessel, the "M/V Traun", and semi-container vessels, the "Pacific Wind" and the "Pacific Breeze", in the service, calling at Hochiminh city - Vladivostok - Haiphong - Hochiminh city. In the mean time, Pusan has been added in the southbound route. We expect that transit time between Pusan and Vietnam will take only 5 or 6 days. We can now also offer the option to transport cargoes to America, Japan, China and the ports in Southeast Asia through transit services in Pusan.

KSG: What is the greatest strength of SATEC line?

Mr. Ky: We boast excellent services bound for Russia and other CIS countries, relying on the firm bonds we've developed with former Soviet countries. Handled by the local offices, your cargoes are safe in Russian ports that are notorious for cargo losses and difficult custom clearances. In the view of Korean shippers, we, as a Vietnamese carrier, are a master of Vietnamese markets and ports. This point can work for Korea exporters compared to other shipping companies.

KSG: In 2000, Pusan ranks fourth amongst worldwide container ports. Can you give us some suggestions or thoughts that occurred while you were in Pusan.

Mr. Ky: I was so jealous of the port facilities in Pusan, which are continuing to receive further investment now. Vietnam also has to be equipped with this SOC (Social Overhead Capital) as soon as possible, I thought. Especially the geological location of Pusan is so important to the shipping industry in Northeast Asia.

KSG: Would you mind telling us about SATEC's future plans?

Mr. Ky: Well, though it still remains an internal issue, we are going to expand our service trades. As a beginning step, we started this Korea/Vietnam service and are considering starting a Pusan/Vladivostok service. Also, we are studying the North American market and considering whether to deploy vessels or to attend as NVOCC in the route.

KSG: Thanks for your time.