Pelepas sees 9% rise in throughput

Increase partly due to recent deal with carrier CMA CGM

(KUALA LUMPUR) While most ports in the region are expecting to see a drop in their throughput this year, Malaysia's leading container terminal, the Port of Tanjung Pelepas (PTP), in Johor, is expecting quite the opposite. PTP is ranked among the top 20 busiest container terminals in the world.

Despite the gloomy global economy, PTP, which linked an agreement recently with French liner CMA CGM, expects to handle 6.1 million TEUs, up 9 per cent from the 5.6 million TEUs last year.

Under the agreement, PTP will provide container terminal services to CMA to handle some of its regional transshipment cargo. In fact, prior to the agreement, CMA's vessels had already been calling PTP as a result of a vessel sharing agreement (VSA) with Danish carrier Maersk Line.

PTP chairman Mohd Sidik Shaik Osman said: 'Due to strategic reasons, CMA decided to have two hubs in this region, which effectively means it would use both Westport and PTP.'

For now, he explained, the joint services under CMA and Maersk's VSA would contribute about half a million TEUs to PTP's total annual throughput.
'Naturally, we expect to see an increase in volume from these services as the economy recovers and world trade picks up again.

'We have sufficient terminal capacity and equipment to handle CMA vessels here at PTP, now and in the future. With our current terminal handling capacity of eight million TEUs, and the plan to increase this to 12 million TEUs within the next five years, not only can we accommodate the new volumes of CMA but also that of other shipping lines.'

A shipping analyst said that the agreement to provide container terminal services to CMA was timely and a step in the right direction for PTP.

Another analyst said: 'To support its transshipment operations at PTP, CMA's regional feeders will now need to call at the port. This is seen as a positive development for PTP's feeder connectivity. Operators expected to now call at PTP would further enhance its existing feeder operator network.'

As PTP is the main gateway for Iskandar Malaysia shippers, Mr Mohd Sidik said that the improved global connectivity would also further improve the attractiveness of the corridor as an investment destination - Bernama