The construction of PTP in Johor was to have followed the steady development of the proposed Nusa Jaya township nearby, as a natural progression from the completion of the second link to Singapore.

As it turned out, the economic slowdown has steered Nusa Jaya temporarily off-course - development has barely begun - yet onsite activities show there is no let-up on the development PTP.

PTP is boldly targeting 2 million TEUs (20-foot containers) in five years and will begin operations by year-end.

Executive director Mohd Sidik Shaik Othman tells The Edge: "Five years from now, once we have built up speed and a certain amount of credibility, it will be open competition."

In a reflective mood, he says: "We have picked up from others" experience and learnt from their mistakes. It has shortened our learning curve a great deal. We want to get it right the first time round."

Interestingly, one of the keenest visitors is the port's nearest competitor. Sidik reveals: "Port of Singapore Authority (PSA) officials have made several trips here this year alone."

He says that like a good businessman, PTP is simply capitalising on opportunities afforded by passing vessels, but it is realistic in its ambition.

Says Sidik: "We are right next to the world's No 1 port. It will take a lot of effort, but obviously there are opportunities for us to share in a bigger pie."

He draws a parallel with the largely positive influence of Singapore on Johor in the manufacturing, retailing and warehousing sectors.

He admits that while PTP has its strength in some areas, it is still weak in others. For an intermediate period at least, he says, some of the services like bunker and spare parts will be procured from Singapore. Hence, the island state will benefit from an increase in business activity in the area.

There have been encouraging enquiries from across the causeway, from both industrial concerns and shipping lines.

Says Sidik: " Thanks to the second link, some want to relocate their industrial premises here, given the price-competitiveness and our strategic location."

PTP's strengths are in highly attractive land costs and more space.

"Eventually, there will be an equilibrium. It is a question of time and management," he adds.

Since Singapore now handles 15.1 million TEUs, he figures there is a limit to the discounts which Singapore can offer without adversely affecting its own revenue.

Even so, Sidik says a successful PTP will transact only between 15 and 20 per cent of Singapore Port's existing business or a smaller fraction of its future trade in the context of a growing containerisation trade.

While PTP shares similarities with Port Klang's Westport, Sidik stresses that unlike Westport, which comprises two ports and shares many things including access channel, PTP is built on a greenfield site in southwestern Johor.

PTP's sister port, Pasir Gudang (Johor Port), started in the mid 1970s in southeastern Johor to cater primarily for palm oil. It went on to enjoy rapid double-digit growth in the 1990s. When Johor Port was privatised, it was then suggested that a new port be built on a new and greenfield site.

PTP will be developed over five phases. In the first phase, berths 1 and 2 are about 70 per cent completed.

Phase One of PTP will cost almost RM3.8 billion, with Pelabuhan Tanjung Pelepas Sdn Bhd putting in RM2.8 billion and the government chipping in the rest. So far, about RM900 million has been spent.

The funds for PTP's Phase One, secured before the downturn, came from syndicated loans (RM1.2 billion), loans from the EPF (RM800 million). The government has allocated almost RM1 billion for the road and rail links. The main access road will be ready in a month or so while the 30km rail link to Kempas and the national railway network are expected to be ready by 2002.

Sidik does not expect to capture cargo from Port Klang's immediate hinterland. He says: "We are going for anyhting south of Melaka right until Sabah and Sarawak.

Seaport Terminal Sdn Bhd is the common shareholder of both PTP and Johor Port. Seaport owns 60 per cent of PTP while Khazanah Nasional Bhd owns the rest of the company."

Sidik expects some form of cargo rationalisation soon. He expects that container vessels will go to PTP while Johor Port will focus on non-container cargo like liquid, general and bulk cargo. PTP will redirect non-container cargo to Johor Port, which handles about 470,000 TEUs.

PTP is unperturbed by the economic crisis, which set in after the port started on its dredging and reclamation stage. Says Sidik: "The time to build is during a downturn. When the economy takes an upswing, we will reap the benefits."

Further, the economic downturn has enabled PTP to save about RM500 million. Says Sidik: "Most contractors are hungry for jobs and we received competitive bids. PTP will be able to cater to large vessels when they call at the port."

PTP is supported by an adequate land mass: 2,000 acres of free-trade zone, 5,000 acres of hinterland and a 10,000 acre township (Nusa Jaya) - a strategic integration for a strategic sector. Will market dynamics appreciate the symphony?