ASEAN Ports Association Malaysia (MAPA)

SINGAPORE: Port of Tanjung Pelepas (PTP), Malaysia’s largest container terminal, is confident of double-digit growth next year despite a challenging economic environment.

“We are expanding under a three-year modernisation plan, which will be completed around May next year,” said chief executive officer Glen Hilton.

PTP is investing RM1.4 billion over three years in a modernisation plan designed to meet the docking requirements of mega-container vessels.

Hilton noted that PTP’s overall capacity, with the first 12 berths, amounted to 8.5 million twenty-foot equivalent units (TEUs).

“Last year, we did 7.7 million TEUs. The market fluctuates up and down but we know we can grow. We have the capacity. With the new berths next year, we expect to record double-digit growth. The future is bright,” he said after welcoming the world’s largest container vessel, the Tripple-E “Maersk Mc-Kinney Moller”, on Sunday.

“Although we are in tough economic times, we will continue to work well with our customers like Maersk Line to attain continued growth.”

The newly built vessel called at PTP, which serves as Maersk Line’s Southeast Asia Transhipment Hub, on its maiden voyage between Far East Asia and Europe.

Being in the transshipment market, Hilton said the majority of the business was from other countries.

“We are in a great position, given PTP’s location in the heart of Asean, which is a growth market.

“We see some impact (of the economic downturn) from countries like Japan and South Korea, but the growth is there,” he explained.

In terms of the local market, Hilton said: “We are seeing a little bit of growth here. We are expecting the market to grow primarily on the back of great global shipping access. This is one of the benefits for the people in Johor and for companies that are importing and exporting goods into Malaysia.

“This is because they have access to bigger ships and the biggest network in the world, right at their front door,” he said, adding that it was also good for the local economy.

When asked on competition, Hilton said: “We have been in the transhipment market and face competition from Singapore.

“We also have competition with Port Klang and another port, which is literally beside us,” he said.

However, he said competition is good.

Saying that each port has its own challenges, including PTP, Hilton said: “We are committed to being the most efficient port in the region and that is our goal and we are very focused on it.”

On new shipping lines, he said: “We always have shipping lines typically for the local market calling at PTP.” Bernama

Maersk Mc-Kinney Moller, the world’s largest container ship and the first Triple-E class vessel, made its maiden call today at the Port of Tanjung Pelepas (PTP) here.

The vessel was one of 20 ordered by Maersk Line from South Korea’s Daewoo Shipbuilding & Marine Engineering following the signing of the US$1.9 billion contract in February 2011.

The Triple-E (EEE — economies of scale, energy efficient and environmentally-improved vessel) has a capacity of 18,000 twenty-foot equivalent units (TEUs).

The ship, costing US$190 million, is 400 metres long, 59 metres wide and 73 metres high (in terms of draft). It is deployed on Maersk Line’s AE-10 (Asia-Europe) service.

Maersk Line’s Country Manager for Malaysia, Singapore and Brunei, Bjarne Foldager, said the company was excited to witness the maiden call of the vessel.

He said an additional four Triple-E vessels will be delivered this year and the remaining ships will be delivered in 2014 and 2015.

“Besides providing economies of scale due to its size, the Triple E vessel is also the most energy efficient ship in the world,” he told a media briefing here Sunday.

He said the ship’s innovative design and technological features will help reduce its carbon dioxide emissions by more than 50 per cent for every container it moved, compared to the industry average on the Asia-Europe trade.

PTP Chief Executive Officer, Glen Hilton, said the call by Maersk Mc-Kinney Moller was good news for the port.

“PTP is equipped to handle the Triple E vessels and is investing in new infrastructure and equipment specifically designed for the new generation of container vessels of 18,000 TEU and beyond,” he said.

On its maiden call at the Port of Tanjung Pelepas, Maersk Mc-Kinney Moller loaded 4,800 TEU.

The vessel will will leave PTP at noon time tomorrow for Northern Europe via the Suez Canal, with Rotterdam being the first European port that it calls at. BERNAMA

Hamburg SUd, the 12th largest container carrier in the world, is the latest shipping line making Westports its home at Port Klang. Its vessel “Cap San Marco” (9,600 TEU), one of 12 units between 8,500 and 9,600 TEU deployed in the South America Service (ASIA 2), called at Westports Malaysia for the first time on 20th July

Hamburg SUd, the 12th largest container carrier in the world, is the latest shipping line to make Westports Malaysia in Port Klang its home.

Its vessel “Cap San Marco”, with capacity of 9,600 twenty-foot equivalent units (TEUs) and one of 12 units between 8,500 TEUs and 9,600 TEUs deployed in the South America Service (ASIA 2), called at Westports for the first time on Saturday.

The ASIA 2 service will see Westports further expanding its services coverage between South America and the Far East, improving the delivery time and connectivity for cargo shipped via the port.

Officiating the maiden call event at Westports Malaysia was Joint General Manager of Hamburg SUd for Region Asia Pacific Region, Stefan Kirschner.

“We are optimistic about the continued growth of Asia particularly Southeast Asia. The ASIA 2 service calling at Westports Malaysia will enable us to provide our customers with the best possible transit time to the key markets in South America and the Far East,” Kirschner said in a statement today.

Meanwhile, Westports Malaysia Chief Executive Officer, Ruben Emir Gnanalingam said the maiden call of Cap San Marco was another historical moment for Westports as this marked the beginning of its long-term partnership with Hamburg SUd.

“We are determined to provide Hamburg SUd with our continuous support and work hand-in-hand with them to expand their presence here,” he said.

In line with the terminal expansion of Westports and its volume growth, the government has given its commitment in deepening the South Channel and widening the current access roads in order to ensure that the port can continue to enhance its services to the shipping community and port users.

Westports is on an expansion mode in anticipation of the volume growth and progress on its Container Terminal 7 (CT7), measuring 600 metre in quay length.

Upon completion, it will increase Westports’ overall handling capacity from 9.5 million TEUs to 11 million TEUs.

This new berth is specifically designed and capable of handling the 18,000-TEU vessels which are currently the world’s largest container vessels in the order book. BERNAMA

NCB Holdings Bhd expects the construction of Wharf 8A in Port Klang by its subsidiary Northport (Malaysia) Bhd to be operational in September this year.

NCB Holdings chairman Tun Ahmad Sarji Abdul Hamid said Northport would be able to gradually handle close to 5.6 million twenty-foot equivalent units (TEUs) of containers once the wharf is completed.

“Wharf 8A, which will inject an additional container handling capacity of 600,000 TEUs, is important for Northport to retain its customers.

“The wharf will contribute to the efforts in strengthening the institutional capacity at Northport,” he told a media briefing on the progress of Wharf 8A at Northport here today.

Wharf 8A, which forms part of Container Terminal 4 at Northport involving an investment of nearly RM350 million, will be able to berth vessels with deeper draft of up to 17 metres which in turn will improve connectivity.

The wharf, together with the planned re-development of container wharves eight, nine and 10, will eventually offer seamless container wharf configuration to support ultra large vessels (14,000 TEUs and above) which are being deployed by main line operators currently.

Ahmad Sarji said the contractors of the wharf took three mitigation plans to ensure the smooth progress of the wharf including increasing the number of workers, extending the working hours and having additional team to work from southern end of the wharf.

He said he was confident in the integrity part of the wharf structure based on the proven track record shown by the contractor.

Ahmad Sarji said Northport aimed to handle about 3.4 million TEUs of containers this year compared with 3.09 million TEUs last year. BERNAMA

Port Klang will have the capacity to handle almost 20 million twenty-foot equivalent units (TEUs) of containers by 2016 as both Northport Malaysia Bhd and Westports Malaysia Sdn Bhd are undergoing expansion plans.

Port Klang Authority Chairman Datuk Dr Teh Kim Poo said the authority was also in the midst of obtaining relevant approval to deepen the existing channels to 18 meters.

“This will make Port Klang competitive and a preferred choice to our customers,” he said at a logistics forum and exhibition here Monday.

Earlier, he said Northport would be able to handle 5.6 million TEUs this year after the conversion of Wharf 8A.

Northport was also in the process of expanding its break bulk and dry bulk handling facilities towards the North of Wharf 25.

Meanwhile, Wesport can handle 14 million TEUs after container terminal (CT) six is completed this year.

“Today, Port Klang handles almost 50 per cent of Malaysia’s sea-borne container trade,” Teh said, adding that, ports in the country handled about 20 million TEUs last year.

Port Klang has trade connections with over 120 countries worldwide and dealings with more than 500 ports throughout the globe, Teh added. BERNAMA

Port Klang, which is projected to handle 10.4 million twenty-foot equivalent units (TEUs) this year, may have a third port in the next five to six years to help meet the growing demand, Deputy Minister of Transport Datuk Abdul Aziz Kaprawi said.

Currently the existing port operators, Northport and Westports, are still able to meet the demand and cater to the needs of shipping lines, he said.

“The third port is part of the Port Klang Development Master Plan to strengthen the world’s 12th busiest port in the future,” he said at a press conference on the sidelines of the ‘Asia – Engine for Growth’ logistics forum and exhibition here today.

Asked if there any plans to increase Port Klang’s tariff structure to be on par with neighbours’, Abdul Aziz said there is no tariff revision at the moment.

“We are trying to offer competitive rates to encourage more vessels to Malaysia,” he said.

The current handling charges for a 20-foot and a 40-foot container are RM230 and RM345 respectively, while transshipment costs RM140 for a 20-foot box and RM210 for a 40-foot box.

The deputy minister said the government is committed to continuing to develop and expand ports in the country including to deepen and widen the entrance to the Kuantan Port, which faces the South China Sea.

“We are going to provide an integrated multi-modal transport system, this can be seen in the efficient highway system we have in place and the double-tracking rail network that is currently being undertaken by the government,” he said.

Abdul Aziz said the government will continue to give strong support to realise Port Klang’s vision to remain the national load centre and be the region’s most preferred logistics hub.

“Both terminals at Port Klang have purchased hybrid equipment in line with the government’s green technology initiative to enhance productivity and efficiency as well as to promote a green environment,” he said.

Port Klang, the premier container port in Malaysia, handled over 10 million TEUs last year.BERNAMA

PORT KLANG: Container volume moving through Westports Malaysia Sdn Bhd rose by 15 per cent or 6.4 million twenty foot equivalent units (TEUs) last year, compared with 5.6 million TEUs in 2010.

In a statement, Westports said the better-than-expected container volume throughput comes from both transhipment and indigenous boxes, registering positive increases of 22 per cent and 13 per cent respectively.

The robust performance in 2011 has made Westports one of the fastest growing ports in the world.

“The port has been well-known to the shipping industry as one of world’s best productivity terminal operator in container handling.

“Barring unforeseen circumstances, we expect to see a strong growth trend in volumes moving forward albeit uncertainty in eurozone, we have set a target of seven million TEUs in 2012,” Westports chief executive officer Ruben Emir Gnanalingam said.

Ruben said expansion plan to further improve the port’s capacity is underway with the current development of expanding the existing 3,700m container terminal to 4,600m, making Westports Malaysia a 10-million-TEU handling capacity port within the next two years.

The new terminal is designed to handle 18,000-TEU capacity vessel, which will be the largest container vessel in the world come 2013.

He said the company’s investment in expansion works is to accommodate the needs of its customers as well as meeting the increasing demands of domestic and international trade.

by: Business Times

The CMA-CGM Group expects to grow its container volume in Port Klang between 12 per cent and 13 per cent again this year, if everything goes reasonably well.

“It’s very difficult to predict. We don’t want to be too optimistic and tempt fate, because there is still a lot of uncertainties in the European and US economy but we think with the good recovery last year we can continue,” CMA-CGM & ANL Malaysia managing director Simon Whitelaw told reporters during an appreciation lunch to mark CMA-CGM’s for breaching 2 million twenty-foot equivalent units (TEUs) in Port Klang.

CMA-CGM registered between 12 and 13 per cent growth in container volume in Port Klang in 2010, due to good growth in transshipment as well as local cargo.

Last year the company contributed about 26 per cent to Port Klang’s overall throughput volume.

Local cargo makes up about 10 – 12 per cent of the cargo CMA-CGM handles while the remainder is from transfer of containers and transshipment.

Whitelaw said however that the fourth quarter of 2010 saw some softening in cargo movement, as China’s consumer demand eased off.

“The fourth quarter was definitely softening a little bit partly because business tailed off, and China was not the big consumer demand everyone was expecting. Fourth quarter was a little bit softer from the third quarter,” Whitelaw said.

CMA-CGM started out in Port Klang in 1998, handling some 20,000 TEUs.

Meanwhile Port Klang Authority chairman Datuk Lee Hwa Beng said he is confident that the port would be able to at least maintain its world ranking of the previous year. Port Klang was ranked 13th in the world’s busiest container port in 2009.

“We improved by 21 per cent last year, we still don’t know the world ranking for 2010 but we expect to at least maintain it. I don’t think many ports in the world have seen such a large jump,” Lee said.

Port Klang, which comprises Westports and Northport, recorded a 21 per cent rise in container volume in 2010, to 8.9 million TEUs.

Malaysian ports handled 16.6 per cent more containers in the first 10 months of this year compared with the same period in 2009, reflecting a recovery in both domestic and transhipment cargo.

Container traffic at the 11 major ports rose to 15.3 million TEUs (20-foot equivalent units) from 13.1 million in the periods reviewed.

In a statement, Transport Minister Kong Cho Ha said transhipment traffic was up 17 per cent. Transhipment cargo is that which arrives in the country and is transferred to another ship before continuing to its final destination.

Export containers showed a 17.6 per cent increase, while import traffic rose 14.1 per cent.

Port Klang, comprising Northport and Westports, solidified its position as the busiest container port in the country, with nearly half or 48.5 per cent share of the total number of containers handled by all Malaysian ports.

Its container throughput rose 24.8 per cent in the January-October 2010 period compared with the same period in 2009.

It moved 7.43 million TEUs against 5.95 million TEUs before.

More than half or 61.7 per cent of Port Klang’s container volume was from Westports, which generated 4.58 million TEUs. Northport accounted for the remaining 38.3 per cent or 2.85 million 20-foot equivalent units.

The Port of Tanjung Pelepas in Johor continued to be the second largest container port, handling 35.2 per cent of the country’s total throughput in the period.

Its container throughput rose 8.8 per cent to 5.38 million TEUs against 4.95 million TEUs before.

Kong said since container throughput in every Malaysia’s port was growing, his ministry was confident that the total throughput will reach 18.4 million TEUs by year-end.

Earlier this year, the total container throughput of Malaysian ports was projected to be 17.7 million TEUs for 2010, but the figure was later revised upwards following the better-than-expected performance in the last few months.

The country’s ports handled 16 million TEUs in 2009.

The expected cost savings from the consolidation of Johor Port and Port of Tanjung Pelepas’ (PTP) operations can still be achieved without changing their corporate structure, says Kenanga Investment Bank research head Yeonzon Yeow.

“The deferment of the rationalisation plan of the two ports will have minimal impact on their parent company, MMC Corp Bhd. Whether they consolidate or not, both ports are still within the group,” he told StarBiz yesterday. MMC owns 100% of Johor Port and 70% of PTP.

MMC proposed to streamline operations at the two ports to reduce cargo leakages to Singapore, which has been going on for many years due to better connectivity offered by Singapore ports.

The consolidation would also see Johor Port’s container operations in Pasir Gudang moved to PTP in Gelang Patah, turning the former into a non-containerised port.

But the Government shot down the idea last week due to the distance between the two ports, which is about 90km, as shippers and manufacturers operating in Pasir Gudang, Tampoi and Tebrau complained that they would incur higher transportation cost going to PTP.

OSK Research Sdn Bhd research head Chris Eng said with the deferment, the listing of MMC’s port units was unlikely to materialise soon.

“Nonetheless, we believe there is still the possibility of MMC list ing its other units, Gas Malaysia Sdn Bhd and Malakoff Corp Bhd within the next two to three years,” he said in a recent note to clients.

Eng said the deferment of the consolidation exercise would also result in PTP’s excess capacity being underutilised for the time being.

He said the main reason for the rationalisation between the two biggest ports in Johor was because the container operations at Johor Port was congested with minimal room for further expansion.

“The consolidation would boost container volume at PTP, helping it reach the eight million twenty-foot equivalent units level, which would then help to attract new customers,” he said.

By SHARIDAN M. ALI