Spearheading the project is Pelabuhan Tanjung Pelepas Sdn Bhd (PTP) executive director Mohd Sidik Shaik Osman who recently spoke with Business Times in Kuala Lumpur on the company's preparations before this year's opening of Tanjung Pelepas Port.

"For starters, we will spend 1999 trying to raise our profile even higher. This means pouring big money into marketing efforts over the next few months," he said.

He said in the past, PTP has been focusing more on building the new container port and as a result, Tanjung Pelepas Port is still relatively unknown among potential customers.

PTP's biggest challenge may be to capture the region's attention. This is in line with the Government's plan to turn Tanjung Pelepas Port into a regional commercial nexus for southern Asia.

"We are pushing to develop Tanjung Pelepas Port as a regional hub for cargo between Malaysia and southern Asia and we hope to do so by exploiting the new container port's strategic location at the crossroads of Asia", Mohd Sidik said.

Situated on 800ha on the outskirts of Johor Bahru in Gelang Patah, Tanjung Pelepas Port has a comparative advantage in terms of proximity to major transport links such as the Malaysia-Singapore Second Link, the Senai International Airport and the Johor Port in Pasir Gudang.

"Apart from this, Tanjung Pelepas Port offers a huge land bank, lower labour costs and experienced staff," Mohd Sidik said, adding that the low cost of doing business in Johor is a big incentive in attracting shippers to anchor at the new container port, particularly when compared with the high costs at Singapore.

Mohd Sidik also gave an assurance that the new container port will be operated by experienced staff. " Because we a re affiliated with Johor Port, we can recruit experienced workers from the port thus shortening the learning curve of handling cargo."

He added that PTP is even prepared to employ international terminal operators to operate the new container port in a bid to meet the future main line operators' (MLOs) requirements and give confidence to them.

Tanjung Pelepas Port is being developed in five phases.

Phase One alone is estimated to cost RM2.8 billion and will provide six berths along 2.16km of linear container berth with a capacity to handle a cargo throughput of 3.8 million TEUs (20-foot equivalent units).

"The first two berths are scheduled to open in late 1999 and the next two the following year, with the entire Phase one project due for completion by June 2001'" Mohd Sidik said.

When fully completed, the workforce at the new container port is expected to swell to around 600.

Mohd Sidik said, the new container port's capacity at six berths is expected to last until 2005. However, aware of potential growth construction of Tanjung Pelepas Port's new berth will begin full capacity is reached with the existing six.

He said Tanjung Pelepas Port has a total berth space of 10km, but only 2.16km will be developed initially in Phase One project.

"Under Tanjung Pelepas Port's master plan up to 2020, the new pot will not only comprise container berths but also berths for liquid bulk and dry bulk operations", he added.

Mohd Sidik also said PTP plans to handle a cargo throughput of 2 million TEUs in the first five years of operations.

"To achieve this, we only need to capture 10 per cent of total cargo throughput currently handled by Singapore, which equals some 1.5 million TEUs. The remaining 500,000 TEUs can be redirected from the existing market in Johor Port", he added.

PTP is also targeting to capture transhipment cargo from countries in the region such as Indonesia, Thailand and Vietnam.

"We hope to attract at least two MLOs to call at Tanjung Pelepas port in the first year of operations in order to become a transhipment hub," Mohd Sidik said.

On the tariffs to be imposed on shipping lines by PTP, Mohd Sidik said, "Our tariff will not be similar to Port Klang's. It will be higher due to our location, the size of our berths and our facilities which are superior".

"But we can assure you that our tariffs will be competitive and will provide savings to shipping lines," he said, adding the Government however has yet to approve the company's proposed tariffs.

Asked whether the opening of Tanjung Pelepas Port would mean that Johor Port will become redundant, Mohd Sidik said, " There could be some form of rationalisation in the near future, although it doesn't mean that the container facilities in Johor Port will cease to exist.

Naturally, this might come true as Tanjung Pelepas Port focuses solely on container cargo and Johor Port on liquid bulk cargo, which makes up more than half of the latter's cargo traffic today", he said.

However, the ever-cautious Mohd Sidik added the rationalisation of operations would come on its own when the volume of containerised cargo Johor Port handles declines.

Well-aware that Tanjung Pelepas is likely to face stiff competition from its neighbours, Mohd Sidik said companies' decision to move their businesses to the new container port will be based purely on the ease of doing business here, its infrastructure and relative costs rather than on any political reasons.

"When all's said and done, the choice of where to put your company often bolls down to one last factor : location. Here's where Tanjung Pelepas Port has the upper hand," he added.

Tanjung Pelepas Port is also looking to technology to give it an edge. The new container port recently spent RM37.8 million on an in-house computer system.

"We are now talking with several local information technology companies for a second package to link our in-house system with that of our customers'. We are weighing the cost of doing so," he said.

Tanjung Pelepas Port is managed by PTP, a company owned by Seaport Terminal (Johor) Sdn Bhd (60% percent) and Khazanah Nasional Bhd (40% percent). Seaport also currently controls Johor Port Bhd, the operator of Johor Port at Pasir Gudang.