Port of Tanjung Pelepas (PTP) Chief Executive Officer Mohd Sidik Shaik Osman said as the industry moved towards the new millennium, ports were increasingly challenged to improve on solutions by developing new and advanced technologies and equipment for faster and more efficient movement within the terminal.

“This is perhaps to the industry’s benefit but we most keep in mind that for the new millennium, cargo owners the world over are still stressing on several basic key value cost and efficiency.

“These then are the same basic demands and challenges that face the industry today, particularly container terminals.

“With shipping lines building faster and larger vessels, ports are focused on developing current terminal infrastructure to ensure competitiveness.

“With information and communication technologies taking the new millennium by storm, port management has also to ensure that their terminal automation ranks among the best and most efficient,” said Sidik.

He said all these were being initiated and progress had been significant among the world’s busiest terminals.

“But these advancements have brought the industry back to the same problems. Shipping lines encounter inefficient port which cause delay in their daily business.”

In turn, Sidik said port encountered delays in local modes of transportation resulting in logistical bottlenecks at container yards.

He said all these have resulted in increasing demands for improved port services.

Volume growth has also been a contributory factor, which has been spurred by the rebound of the Asian economy from the recent economic crisis.

Sidik presented a paper on Global Trends In Enhancement of Port Sector at the three day conference and exhibition jointly organised by Baltic Conventions UK and Bombay Chamber of Commerce & Industry at the Taj Mahal Hotel in Mumbai.

According to Sidik, recent quarterly survey published by Drewry Shipping Consultants reported that the world container traffic exceeded 200mil TEUs in 1999 with the bulk of this increase recorded in Asia, handling 53.7% of this volume, an increase of some 3.4mil boxes from 1998’s 52%.

Another recent report by Ocean Shipping Consultant (OCS), World Container Port Market to 2012 also indicated the same where is was predicted that the port market would grow by about 25% in 2002.

Sidik said PSA with its reported new terminal expenditure programme was expected to accelerate port capacity to some 35mil TEUs a year by 2010 if the market dictates.

He said simultaneously, Maersk Sealand have shifted its business to its new strategic partner, PPT in Johor, guaranteeing an immediate two million TEUs annually.

Sidik said Hutchinson Whampoa, through Hutchinson International Terminals have also acquired 30% stake in West Port two months ago. P&O Port’s involvement in Tanjung Perak, Surabaya has seen the doubling of port capacity to at least one million TEUs per annum.

Sidik said the port industry had passed through a transition period in the last 10 to 15 years.

He said the industry had metamorphosed from a labour intensive, manually driven business to an efficient and highly sophisticated industry poised to face the challenge of the 21st century.

At the same time, he said time spent at wharf by vessel had been reduced drastically.