Challenging times ahead for PTP
The Star Maritime
DUBBED as Southeast Asia's fastest growing hub, the Port of Tanjung Pelepas (PTP) is throwing strong challenges to major ports in the region, in particular Singapore, owing to its strategic location and geographical advantages through its deep waters, sheltered bay and wide access channel. PTP chief executive officer Datuk Mohd Sidik Shaik Osman spoke to NATHANIEL XAVIER on the port's performance and plans for the coming year.
Q: How did PTP perform this year? What were the volumes handled from January to October 2003?
A: During the period January to October 2003 we handled a total of 2.85 million TEUs in comparison to 2.13 million TEUs during the same period in 2002.
This represents a substantial annual increase of over 33%. Among the factors that contributed to this rise in throughput is because 2003 is the first full year of operations by Evergreen Marine Corp, volumes by regional carriers and rising volumes of local cargo moving through PTP.
Q: What were the effects of Severe Acute Respiratory Syndrome (SARS) and the Iraq war on your terminal's operations, revenue and liftings?
A: PTP was not affected by the SARS outbreak or the war in Iraq. Even at the peak of those two events, PTP's throughput maintained its positive up trend and did not falter.
For example, during the period of the Iraqi war, PTP's throughput registered a modest increase of 17% from the months prior to the start of hostilities.
Q: What are PTP's plans for next year in terms of throughput projection, growth areas, new services and others?
A: PTP is today recognised as the most efficient port in Southeast Asia in terms of average gross crane and vessel productivity.
Our competitiveness in terms of logistics and a total package to lines is well known.
Phase Two expansion of 720 metres berth and a total of 2.88 km reclamation will again open up the market at PTP to mainlines.
The emergence of Schenker Logistics and BMW and other logistics companies in PTP has also given our free zone a competitive edge.
With over 400ha for lease, there are aggressive plans ongoing to lease all the land.
This will create a new industrial and commercial area in southwest Johor providing a new impetus to lines.
Q: What are the investments in infrastructure and new equipment planned for next year?
A: Phase II which is now under construction will add another 2.88km of wharf to PTP's existing 2.16km. It can accommodate eight more berths, two of which are now under construction and should be ready by early 2004.
We are also widening our access channel to 420m from the current width of 250m.
Upon completion of the two new wharves PTP will have an annual handling capacity of six million TEUs.
Q: How do you see the developments in 2004 for the port industry and what are some of the anticipated trends, new markets, competition and challenges expected?
A: We see the emergence of new ports in Southeast Asia, in particular the new ports in Thailand and Indonesia. Ports in China are also developing rapidly as centres for direct loading. Competition is also intensifying as established ports adopt new strategies to become more competitive.
In 2004 PTP hopes to continue its policy of continuously improving its efficiency, products and cost competitiveness to remain as an attractive regional transhipment hub.
PTP's continued growth and attractiveness to customers is derived from strong incentives, global connectivity, competitive cost, and streamlined procedures linked to government agencies.
The port have adapted itself well to recent trends amongst international shipping lines and multi nationals, which are increasingly looking at integrated logistics and door-to-door services.
PTP is also making headway in extending this cooperation and integration with all sectors of the supply chain including hauliers, freight forwarders, shipping agencies and others.
In the coming years the PTP free zone will certainly be viewed by multinational companies as an attractive location able to add value in terms of efficiency and access to new markets.
Q: New security rules like the ISPS code will come into force in July 2004. What measures and steps is your terminal undertaking to ensure compliance and preparedness?
A: By the end of this year PTP is on target to becoming one of the first Malaysian ports to be container security initiative compliant.
We are also in the process of upgrading our security infrastructure with the installation of a new container scanner, which will enable us to X-ray the contents of suspect containers.
In addition we are also planning to install a closed circuit television (CCTV) surveillance system to further enhance security at PTP.
Once the above-mentioned systems become operational, we should be fully prepared for the new ISPS code come July 2004.