The move and investment were announced Friday by the Malaysian port of Tanjung Pelepas and confirmed by Maersk Sealand. The company said it will operate a terminal at the port, located at the southwest tip of Malaysia, about 25 kilometres west of Singapore's main port.

The Malaysian port owner, Pelabuhan Tanjung Pelepas Sdn. Bhd. described the announcement as a "dramatic move that changes the face of the entire transshipment business" in Southeast Asia. The shift means Malaysia "Will finally move to the forefront" in regional transshipping "after having had to play second fiddle to Singapore for the last three decades," PTP said. Neither the shipper nor the port company disclosed the price Maersk Sealand paid for its stake in the port.

In a statement, Maersk Sealand said the shift will make Tanjung Pelepas one of its biggest global hubs for the business of transferring cargoes from one ship to another. Dow Jones quoted Flemming Ipsen, Asia Chief Executive for Maersk Sealand, as saying, "We can be the master of our destiny at PTP as we will be part owner and terminal manager." The shipping company's costs will be lower at the Malaysian port, he added.

Maersk Sealand said it will continue to use Singapore for transshipment services for vessels serving New Zealand and Western Australia. The company also will keep its regional headquarters in Singapore.

The move of the transshipment hub is a blow to the Port of Singapore Authority Corp., operator of one of the world's busiest and most efficient port. PSA, which is expected to get a stock exchange listing by next year, was quoted in Singapore newspapers Saturday as saying that the shift may slow its growth rates "by a couple of percentage points or so, but will not significantly impact PSA's profitability." PSA, which says it is the world's largest transshipment hub, asserted that it "enjoys an unrivaled customer base" of 124 container shipping lines with connection to 509 port