Malaysian port nabs Evergreen from Singapore
Channelnewsasia
Malaysia's southern port of Tanjung Pelepas has completed its second big coup in two years, with Taiwan's Evergreen Marine confirming it will be defecting from Singapore to the fledging Johor port in the third quarter of this year.
After 20 years in Singapore, Evergreen signed a binding agreement with PTP this week after negotiations to renew its contract with PSA broke down. This is second major shipping firm to transfer its business across the border, where handling rates are reportedly 50 percent lower.
PTP wrested the world largest shipping line, Maersk Sealand, away from Singapore in 2000 by offering the Danish company a 30 percent ownership stake in the port. No details of its deal with Evergreen have been given.
However, an Evergreen spokeswoman says the move will save it up to S$10 million a year.
Singapore's Ministry of Transport has issued a statement saying it regrets an agreement could not be reached between PSA and Evergreen, "despite intense commercial negotiations".
However, it points out that PSA remains the world's number one container transhipment port.And it says the Singapore government remains committed to helping all shipping lines operating out of Singapore to enhance their competitiveness by investing heavily in infrastructure, human resources and technology.PSA has also expressed its regrets.
"PSA assures all shippers that they will continue to enjoy the unrivalled connectivity and frequency of sailings when they use the services of shipping lines that hub in Singapore," it said in a statement.It pointed to Singapore's 250 shipping lines connecting to 600 ports in 123 countries worldwide.
Earlier, this week PSA chief Yeo Ning Hong said the Singapore port would not been drawn into a price war with its Malaysian competitor.PSA says Evergreen's departure is not expected to have a significant impact on its financial performance thanks to its diversified customer base and growing global interests, with 13 overseas port projects in eight countries.
Just this week PSA completed its acquisition of Belgian port management and operations company Hesse-Noord Natie.