JoC ONLINE

 

Evergreen Marine Corp. is reportedly planning to move operations from Singapore in favor of the nearby Port of Tanjung Pelepas in southern Malaysia.

 

Evergreen would be the second major carrier in as many years to shift its operations from Singapore, the second-busiest port in the world after Hong Kong. Maersk Sealand moved most of its services to Tanjung Pelepas from Singapore in 2000.

 

If Evergreen moves, it would take 1.2 million TEUs in annual volume to Tanjung Pelepas, one of the fastest-growing ports in Asia. Maersk Sealand shifted nearly 2 million TEUs from PSA Ltd.'s Singapore terminals, the bulk of whose business is transshipments, the same sector Pelepas is targeting.

 

Port officials and Evergreen executives had no immediate response. Evergreen affiliate Uniglory recently made a maiden call at the Bintulu International Container Terminal in Sarawak in eastern Malaysia.

 

Tanjung Pelepas, which is adding modern equipment in anticipation of more clients, offers lower costs than Singapore and permits dedicated terminals, which PSA doesn't.

 

Pelepas handled 560,000 TEUs from July through September of this year, up from 541,000 TEUs in the second quarter. For the first nine months, volume was 1.48 million TEUs, and officials have said they are aiming for 2 million TEUs for the full year.

 

Port management this month signed an agreement with Noell Crane Systems GmbH of Germany for five super post-Panamax quayside cranes and 15 rubber-tired gantries. The quayside cranes will be the largest in Southeast Asia, with reach of 60 meters (196 feet) and capacity to handle 22 boxes across a vessel.

 

Mohamad Sidik Shaik Osman, chief executive of Tanjung Pelepas, recently floated the idea of cooperating with Singapore to jointly take on increasing competition. "We are inviting them to ponder ways and means for Singapore and PTP to cooperate for mutual benefit. This will make both our countries stronger in facing increasing global challenges and new patterns in ports and shipping."