28 May 2001

PTP bid to change its one-user reputation

Lloyd's List

THE Port of Tanjung Pelepas stunned the container shipping industry last year by winning Maersk Sealand over from the Port of Singapore in just a few months of opening.

Luring the world’s largest shipping line to take a 30% stake in the port and shift its 2m teu a year transhipment hub out of Singapore, took PTP from relative obscurity to one of the most talked about ports in the world overnight.

Now the dust has settled on the deal, and the last of Maersk’s services moved there recently, the question remaining is, has PTP managed to successfully pull off the biggest single port switch in history, and where does it go from here?
 
After some early operational difficulties the port appears to be running smoothly and recently passed the landmark 1m teu figure. “Yes, there were missing boxes in the early days that was during the early part of the transition, particularly when you are having transhipment going in and coming out again. But it was a learning curve, I am pleased to say it has been ironed out,” Mohd Sidik Shaik Osman, PTP chief executive officer, told Lloyd’s List.
 
Users of the port are also satisfied with its operations. “Now it’s a reasonably efficient operation although it is still lacking in some administrative aspects,” comments one feeder operator using the port.
 
While Maersk has provided the port with a massive overnight boost in volumes and instant credibility, the Danish carrier’s 30% stake does have its potential downside. As a shipping line, the presence of Maersk creates a market impression that the port is dedicated to the global giant.
 
Any other line looking to use the port may well fear that it will take second place to Maersk in terms of service quality and berthing priority.
 
Aware of this situation, PTP has launched a major global marketing drive emphasising that it is a multi-user port. “Of course we are concerned at being labelled a Maersk port and we are talking to other lines,” said chairman Dato Taufik Abdullah.
 
The drive to promote PTP as a multi-user port suffered a blow this year when both APL and MOL dropped their weekly calls at the port leaving Maersk as the port’s sole mainline operator.
 
With Maersk having taken up much of the existing capacity at the port PTP is now looking to attract smaller to medium-sized lines to fill up the unused capacity.
 
“We are trying to get shipping lines to come, but at the same time it cannot be a big player because there are not sufficient machines and people to handle large volumes,” said Mohd Sidik.
 
These would be regional operators with volumes in the region of 100,000 teu but “not very specific about windows”.
 
While not naming potential candidates the profile would seem to fit the likes of Uniglory and Wan Hai which call at Johor Port.
 
It is also hoped that lines will be attracted by the Kenwood Logistics global distribution centre which will begin operations at the port next month. “Kenwood starts in June and a few lines are looking to come just to carry their cargo,” said Dato Taufik.
 
A further six berths in 2003/04 will provide a much bigger challenge – attracting more mainline operators. Mohd Sidik reports interest from MLO’s but declines to give any details. Market talk points to Evergreen, partly as it is one of the few independents who is not tied to alliance arrangements making such a move much more difficult. Officials from the Taiwanese line are also reported to have visited the port on a number of occasions.
 
Still at least two years off this will be the real test of PTP’s claim to be a “multi-user” port.