13 Mar 2001

PTP clarifies Mitsui OSK Lines' possible withdrawal

Shipping Times

By EIRMALASARE BANI

PORT of Tanjung Pelepas (PTP) yesterday clarified that Japanese ocean carrier Mitsui OSK Lines (MOL)'s possible withdrawal from the port was not due to the port operator's lack of capacity or operational experience.

Containerisation International online daily has reported MOL's Liner Planning Department general manager Osami Suzuki as saying that PTP is incapable of providing a good enough service, particularly since Maersk Sealand moved its services to the Malaysian port from Singapore.

"MOL, which is targeting exports to Japan, probably views that the Singapore market will be easier to tap," PTP said in a statement. MOL's Straits Express service started calling at PTP last April on a weekly basis. It also calls at Port Klang and other ports in Japan, Singapore and Hong Kong.

Suzuki was also reportedly said: "After Maersk moved most of its services from Singapore to PTP, I think (PTP) got too big, too fast. I'm afraid it is not capable and experienced enough to handle such big volumes. "PTP meanwhile said the terminal, operated by Maersk Sealand jointly with PTP through a terminal management agreement, has excellent operating standards with sufficient equipment ratios and well-trained highly motivated staff.

The port operator said to ensure that service failures were brought to zero during and after the transition period, the port had made moves to further increase its equipment ratios, upgrade operational systems and implement new standard operating procedures to increase productivity. "Experienced workers from terminals in Europe, the US, Hong Kong, Salalah and other parts of the world were brought in to ensure an immediate pool of experienced labour," it said.

With all systems in place and the shift completed in January, PTP is now targeting to set new standards of operations. The terminal designed for such target now handles gross productivity of 23 moves per hour per crane.

"For this year, the target is to increase it to 30," PTP said. PTP said since the transition last August, the port has seen rising local export volumes to approximately 3,000 TEUs (20-foot equivalent units) monthly.

This is expected to surge as local freight forwarders, hauliers, warehousing and consolidation facilities have started to establish bases within and around PTP. The port is also confident that all these facilities will assist carriers in increasing their local base cargo.

With the fast growing hinterland and local exports at PTP, it said early players will be well-positioned to capture the new and existing markets that PTP has to offer on a long-term basis.