Evergreen switch confirms that Tanjung Pelepas is force to be reckoned with
Fairplay Publications
THE port of Tanjung Pelepas has attracted more international attention than any other initiative in Malaysian shipping.
The port on the southwestern tip of Johor opened officially in March 2000 and has already captured the Southeast Asian transhipment hub business of both Maersk Sealand and Evergreen Marine.
With Evergreen due to move at the end of August, PTP is now well and truly on the map.
The move by Evergreen has helped to break the perception that Pelepas is a single user port dominated by its 30% shareholder AP MØller Terminals, the port operating arm of Maersk Sealand.
“Evergreen coming to us overnight changes that image,” says Mohd Sidik Shaik Osman, chief executive of PTP.
“It gives customers the message we are here for everybody and internally it will boost our morale because we are now looking forward to handling another major line.”
However, Pelepas is not stopping there and continues to seek new clients and expand its facilities. A total of M$1.2bn (US$315m) is being invested in the second phase of the port, due to start construction in June this year.
“We are reclaiming eight berths so we are on standby to handle any large customers interested in us,” Mohd Sidik says.
Of the total costs M$1bn for land reclaimation and dredging comes from the government while PTP pays the balance of around M$200m for berth construction and handling equipment for the first two berths.
The first two berths are expected to be on stream by the end of next year.
Possibly the only people not talking about who will be next at PTP are the port’s executives themselves.
While saying he is confident of getting more customers Mohd Sidik refuses to give even the slightest hint.
Among those the subject of market talk are K Line, Hanjin Shipping and Mediterranean Shipping Co. It is not just shipping lines that PTP hopes to attract but also regional distribution centres and logistics providers to the huge land area neighbouring the port.
“We are also looking seriously at the shipper side, trying to get people to relocate their distribution activities here,” says Mohd Sidik.
“One brand name we have done successfully is BMW, and maybe we will soon see good results.”
On the much talked about 50.1% stake being taken by Malaysian Mining Corporation, he denies it will make any difference. PTP chairman Dato’ Taufik Abdullah also claims to know nothing of plans talked about by the Malaysian transport minister to merge Pelepas with nearby Johor port, of which he is also chairman.
Pelepas is by no means the only port Malaysia is developing, and while the media has made a lot of the battle between Singapore and PTP it also calls into question whether Johor port is also affecting the country’s “load centre” Port Klang.
“We don’t compete,” Dato’ Taufik says firmly. “They have a very established hinterland.
“We are basically a transhipment port they are not — a different sector although they also have transhipment.”