Expansion plans continue
The Star Maritime
Major ports in Malaysia are going ahead with planned facility and equipment expansion despite reports of a slowdown in throughput following the Sept 11 terrorist attacks in the United States.
Port Klang and Port of Tanjung Pelepas (PTP) view the current trying times positively as a period to find new markets as container volume in the region is expected to grow.
Drewry’s Shipping Consultant last week forecast that the US incident would slow container traffic growth to 3.9% this year from 7.4%.
It said it was revising its Annual Container Market Review and Forecast 2001 GDP growth levels and expects that between 1.6% and 2.6% would be knocked off short-term global GDP growth rates.
John Fossy, a consultant with Drewry’s, told internet newspaper ci-online that, even before the Sept 11 atrocity, there was evidence from economic date that the US economy was going into recession.
Owing to this, major ports in the world will have to review throughput and expansion plan.
Responding to Drewry’s projection, PTP Chief Executive Officer Mohd Sidik Shaik Osman said that PTP was in an excellent position to capture new cargo due to the recession.
“There is an agreed feeling that the recession will have a severe effect on most countries and sectors, including Malaysia, given Malaysia’s high export volumes to the United States and dependence on this sector.
“However, in any crisis, we must learn to a nalyse the positive aspects, Freight rates are depressed, insurance premiums are increasing and trade is down.
“All this means that the lines will be looking at saving costs,” said Sidik.
He said that PTP had 14 quay cranes and would take delivery of another 10 next year that would be the among the largest in the world.
All this translated into additional capacity for more customers, Sidik said.
“We have the space, ability, motivation and drive to get new business and will continue our aggressive marketing strategy in all sectors.
“Slowing it down and cutting down port capacity will only add to the negative forecasts.”
Sidik said that PTP was not reviewing its two million TEUs target for this year although local trade was generally down.
“Shipper and local industries familiar with PTP have increased in number and this has resulted in more local cargo. Our focus on warehousing and distribution has paid off with an increasing number of new players holding talks with us on leasing land.
“With PTP’s expanding feeder market, we are looking at new market to make up for shortfalls in other markets. Now is not the time to lie low. We must be more aggressive,” said Sidik.