15 Apr 2007

PTP Expects Double Digit Growth Again This Year

www.bernama.com

JOHOR BAHARU, April 15 (Bernama) -- The country's largest container port in terms of volume, Port of Tanjung Pelepas (PTP), is looking at double digit growth again this year.

PTP Chief Executive Officer Harun Johari pointed out that the port had experienced a 10-fold increase in total annual throughput since it began operating in 2000 and said:

"We also recorded double digit growth all these years. Although our growth in 2007 may not be as robust as in previous years, it will definitely be commendable and on par with the growth of the industry. We expect to record double digit growth again this year."

He told Bernama recently that last year, PTP handled 4.8 million TEUs (twenty-foot equivalent unit containers), up nearly 15 percent from the volume handled in 2005.

"PTP is primarily a transshipment port for Southeast Asia. Most of the containers handled in 2006 were transshipment cargo. However, 2006 also saw PTP recording significant growth in local volume," he said.

"The steady growth by our two existing main lines plus the additional volumes due to liners' acquisition of business, additional vessel capacity and growth in vessel size as well as the increase in container volumes generated by our Freezone tenants contributed to our growth last year."

Harun said that due to the growing volume of containers handled by the port two additional berths were completed last year.

"The extra berths on the terminal side have increased our annual handling capacity from six million TEUs to eight million TEUs. Our expansion plans are always done in tandem with demand and we always ensure excess capacity," he added.

On the Freezone side, Harun said, development work on Distripark B which began in late 2004 was completed last year. It is mainly for manufacturing and industrial activities.

"At the moment global brands such as electronic giant Flextronics and contact lens manufacturer Ciba Vision are already operating fully from their new facilities in Distripark B," he said.

"Another notable tenant, Cameroon International, a global leader in the manufacture of premium offshore subsea systems for the oil and gas industry, is due to begin operations at its newly completed facility this year."

Pelepas Freezone has also secured new tenants over the past few months. "The take up rate of our Freezone land is very good, and as more investors are showing interest in operating from there, we will expand the Freezone area this year."

To ease any possible congestion due to the increased traffic, PTP has built a six-lane gate at the Freezone.

On port operations, Harun said that last year PTP bought three quay cranes, with more to be delivered this year, as well as more rubber tyre gantry cranes and prime movers.

PTP also maintains a high productivity rate. "Our average is 33 moves an hour, which is one of the highest in the region and which surpasses the industry average of 25-28 moves an hour," he said.

"We will continue maintaining our high productivity through the use of the latest high technology port equipment and through the continuous development of our motivated and productive workforce."

Harun said that among the challenges PTP faces is the sprouting of new transshipment in the region. "As operational costs get higher, coupled with fluctuating fuel prices which could affect freight rates, customers are bound to select ports which can provide them with higher efficiency gains," he added.

"At PTP, we provide customers with a better overall value proposition, consistent with our aim to be the preferred port of choice in Southeast Asia.

"We have invested in the latest technology, human capital development and best practices, just to name a few. We will maintain our high productivity and operational excellence for that edge over our competitors."

PTP's overall plan sees the development about 810 hectares of land. "We can expand many times beyond our current 10 berths," said Harun.

Our partner, APM Terminals International B.V., is one of the largest terminal operators in the world with years of experience which can support our terminal operations."

On the Iskandar Development Region (IDR) coming up in southern Johor, Harun said it will generate a natural increase in cargo movement in and out of the region.

"PTP, being within the IDR, will be a catalyst and key driver in expediting IDR's growth. PTP will be the international gateway for the IDR, through its global sea connectivity," he said.

"IDR gives us the opportunity to increase our market share of local hinterland cargo as more manufacturers set up base here."