BY JOSE BARROCKS

 

THE Government is going to assist the Port of Tanjung Pelepas (PTP) in its pursuit of Taiwanese shipping giant Evergreen Marine Corp.

 

Transport Minister Datuk Seri Dr Ling Liong Sik said that the local government "will do everything possible to assist PTP".

 

Recent reports stated that the Taiwanese shipping line, after announcing a shift to PTP from the Port of Singapore Authority (PSA), were still being pursued by PSA.

 

Dr Ling told reporters at a Terminal Operators press conference that the price issue is not the sole reason for many shipping lines being interested in Malaysian ports.

 

"Cost is not the main factor but an important one.
There are also elements of capacity, productivity and efficiency (to contend with)."

 

"The charges (freight rates) are competitive. We must be aware of what our competition is doing and this is normal," the minister said.

 

Evergreen was reported to have made an announcement stating that the move would save them some US$5.72 million (US$1 = RM3.80) in freight charges.

 

After the loss of its largest customer, Maersk Sealand to PTP a couple of years ago, a recurrence of the yesteryear events will be avoided by PSA at all cost.

 

The loss of 2 million TEUs (20-foot equivalent units) containers from Maersk and a possible 1.2 million TEUs from Evergreen does not look good for the island ports business.

 

"The ripple effect of the moves by both Maersk and Evergreen will be enough to open the flood gates for PTP," an official from Port Klang said.

 

Dr Ling said Malaysian ports are now more efficient partly due to the presence of Maersk Sealand, which holds a 30 per cent stake in PTP, reportedly purchased at RM800 million and the Hong Kong based Hutchison International Terminal's 30 per cent stake in Westport.