MMC raises capacity

 

PETALING JAYA: MMC Corp Bhd is ramping up capacity at its flagship Port of Tanjung Pelepas (PTP).

The move is to cater to the growing demand from shippers and to counter the threat from Singapore’s mega-port in the making at Tuas. MMC group managing director Datuk Seri Che Khalib Mohamad Noh told StarBiz that it was in the midst of a 2½-year upgrading programme that would see the port increase its capacity from 10.5 million 20-foot equivalent units (TEUs) to 13.5 million.MMC has set aside RM1bil for the upgrading programme that involves the acquisition of new equipment.

Che Khalib said the effort to increase the capacity at PTP is immediate as it is at almost 80% of its full capacity.He said MMC is investing close to RM1bil starting from 2016 to the middle of 2018 to buy new and bigger quay cranes, as well as upgrading some old ones.“We recently awarded the contract for new cranes for about RM400mil, purchased 29 new rubber-tyred gantries that cost about RM300mil and acquired some new prime movers for RM100mil.

“This will see PTP increase its capacity by three million TEUs without building a new berth, which is more costly. The upgrading of the machines will see PTP’s turnaround time increase by 2.5 times,” he said.

Che Khalib added that each of the new quay cranes could handle 220,000 TEUs per year compared to the old ones that could only handle 100,000 TEUs.“By doing this, we do not have to expand the berth, which is more costly. This will cater to PTP’s needs until 2020,” he said.

To build a new berth, inclusive of the facilities, will cost about RM1bil that will see an additional capacity of one million TEUs.Che Khalib said the second step in the expansion programme is the dredging and widening of the channel costing RM600mil to facilitate the construction of a new wharf.

He said with the new berthing space, the company planned plan to add 3.5 million TEUs by 2020.

“We are already doing the basic groundwork, as we cannot wait until 2020 to start expanding. Now our draft is about 16m to 17m deep and we are going to increase it to 18m deep, as ships are getting bigger and wider.“Design is ongoing but we are going to start with the dredging and widening of the channel in April.

“In the past, capital dredging was done by the government but we don’t have that privilege anymore. Nevertheless, we are discussing with the government to provide us other forms of assistance such as loans,” he said.Another reason MMC is making PTP’s expansion its top priority is because of the development of Tuas Port in Singapore, which is a stone’s throw away from PTP.

“PTP’s expansion is a priority and we have to do it immediately. Singapore is consolidating all its ports to Tuas, which is very near to PTP, and they have started works,” said Che Khalib. It was reported that the Tuas facility – earmarked as the centrepiece of Singapore’s next-generation port vision – can handle 65 million TEUs a year, up from 40 million TEUs now. PTP handled about 8.3 million TEUs last year from nine million TEUs in 2015.MMC’s port division also owns Northport in Port Klang, Penang Port, Malacca Port in Tanjung Bruas and Johor Port in Pasir Gudang.