MOIT VIETNAM | Vietnam and Laos Sign Agreement to Build Cross-Border Coal Conveyor

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Vietnam and Laos Sign Agreement to Build Cross-Border Coal Conveyor

8th April 2024 post by MOIT Vietnam

Phonesack Group (PKG) is the investor of the project. PKG seeks to collaborate with a contractor possessing adequate capability and experience to execute the EPC (Engineering, Procurement, and Construction) contract for the project. Initially, PKG will implement the coal storage system and a 6.3 km conveyor belt crossing the Vietnam-Laos border. In collaboration with PKG on the project, Vietnam has established a consortium of contractors, including the National Research Institute of Mechanical Engineering (NARIME) and GP Holdings. NARIME, under the Ministry of Industry and Trade, is a leading state research institute in science and technology in the fields of mechanics and automation. GP Holdings is a multi-industry conglomerate involved in industry, investment, trade, and services. The two parties will cooperate to implement the "Construction of Warehouses and Conveyor System Connecting Two Warehouses for Coal Transport Between Laos and Vietnam via the La Lay International Border Gate Pair (Quang Tri) – La Lay (Salavan)" project, with PKG as the investor.

The consortium has extensive experience and sufficient resources to execute numerous EPC packages in the industrial sector for both domestic and international investors. In the field of conveyor transportation, the consortium has successfully implemented several high-capacity and long-distance conveyor systems operating under harsh conditions, such as: the coal transportation system for Song Hau 1 Thermal Power Plant; two conveyor lines (each 5 km long) for the Tan Rai and Nhan Co Bauxite Plants in Vietnam; and the coal, gypsum, and clay conveyor system for Nghi Son Cement Plant (Japanese investor).nThe entire cross-border conveyor line between Vietnam and Laos is approximately 160 km long, stretching from the XPPL mine in Laos to My Thuy port in Quang Tri, Vietnam. Of this, 85 km of the conveyor line is on Laotian territory, 6.3 km crosses the Vietnam-Laos border, and 70 km is on Vietnamese territory. The first phase of the project will involve the construction of the coal storage system and the 6.3 km cross-border conveyor belt. The consortium of the Institute of Mechanical Research and GP Holdings will collaborate with PKG to survey and conduct feasibility studies for the remaining sections of the conveyor system, approximately 85 km in Laos and 70 km in Vietnam.