ANSWERING the Budget 2002 call for ports in Johor to seize opportunities because of their proximity to Singapore, the Port of Tanjung Pelepas (PTP) is expected to pull another big container line from the republic’s port to Johor next month.

 

It is understood that Evergreen Lines of Taiwan will make PTP its transhipment hub. The line is reported to have served a termination notice on PSA Corporation.

 

The move will see PTP gaining a guaranteed annual volume of 1.2 million TEUs and further changing the face of the transhipment business in South-East Asia.

 

The low cost and high efficiency of PTP is said to be the main cause of Evergreen’s move.

 

For Singapore, it will be the second blow after the world’s largest container line Maersk Sealand made PTP its transhipment hub in Dec 2001 adding two million TEUs to PTP’s volume.

 

PTP chief executive officer Mohd Sidik Shaik Osman declined to deny or confirm the planned move.

 

“We completed the first stage of attracting major shipping lines last year and this will be enhanced in the second stage,” he said.

 

Prime Minister Datuk Seri Dr Mahathir Mohamed, in his Budget speech on Friday, said that ports in Johor must seize opportunities afforded by their strategic locations and proximity to Singapore to provide world-class port services.

 

He said that Senai airport should become the air cargo hub of the region. Given its growth potential, Dr Mahathir said that an integrated transportation system must be developed immediately to link air, land and marine transportation in the south of Peninsular Malaysia.

 

Sidik said the Prime Minister saw great potential in integrated air and sea linkages in Johor as a catalyst for growth.

 

“I believe his vision is to see the southern region becoming a hub for sea and air cargo distribution. This is possible because goods like automobile spare parts can arrive by sea and be distributed by air.

 

“The air-sea cargo distribution network is underdeveloped and this is where we need to synergise our strengths with relevant agencies to develop a logistics hub,” he said. 
Sidik said that Johor had excellent infrastructure and expertise and the time was right to find new markets despite the slowdown.