PTP chief executive officer Mohd Sidik Shaik Osman said the port’s main challenge and focus this year was to aggressively promote the opportunities available in PTP’s free zone status which includes a free zone area with 160ha of land reserved for distribution, logistics, and warehousing.

 

An additional 240ha has also been reserved for industrial activities.
Explaining the concept of its free zone and distripark, Mohd Sidik said PTP provided available land ready for potential users to develop warehousing, distribution and international procurement centres.

 

“The 160ha of distribution, warehousing and procurement activities are ideal for players looking at new markets, expansion and consolidation of their regional activities in one area.

 

“PTP’s strategic location, high frequency and connectivity to major world markets and fast growth are ideal for such players. Growth in the free zone area enables PTP to be able to offer its main line customers captive cargo.

 

“The growth emphasis on the free zone area in that sense will be a direct spin off to liners at the terminal. What differentiates PTP as a transhipment hub is its ability to offer a dynamic Johor hinterland and a growing free zone land area,” he said in an interview.

 

So far, Schenker Logistics began their operations in early April by taking up a 50,000 sq feet warehouse space for its third-party logistics (3PL) activities which is mainly providing just-in-time delivery of parts and spare parts to regional customers in the automative and high tech industries.

 

“As a renowned international 3PL, their presence will boost interest in the PTP Distripark,” said Mohd Sidik.
Talk has it that BMW would be the next in line.

 

Mohd Sidik said PTP had seen excellent growth over the last one year primarily through seeking new business. The hubbing of Maersk Sealand and Evergreen Marine Corp., the world’s two largest lines in PTP, would see significant spin-off both through feeders and the distribution park at PTP.

 

“To ensure continued growth and to stimulate demand, Phase Two also presents PTP with a continued ability to attract large main lines.”
Phase 2 of PTP involves construction of an additional two berths and deepening & widening of the access channel from 250m to 420m.

 

Construction of both berths is on schedule and should be completed by year-end.

 

Asked if PTP was still confident about achieving its projected 3.5mil TEU target in the light of the impact of the Iraq war and the Severe Acute Respiratory Syndrome (SARS) epidemic, Mohd Sidik said: “Our growth figures have been impressive. The external factors this year have been the recently-ended war and SARS.

 

A prolonged SARS situation will affect consumer spending and hence will have an effect on the supply chain.
“We are monitoring the effect on trade although this will be seen more in the next few months.”

 

The port handled 2.66mil boxes last year, surpassing its estimated 2.5mil TEUs. Come Aug, PTP would mark one year of Evergreen’s call.

 

Mohd Sidik said PTP’s proximity to major airports, including Senai Airport would put the port at an advantage for cargo being moved via sea and air.

 

“There is significant Johor cargo that currently moves by air. Shippers and consignees also see this as a value-added service, (and) PTP’s proximity to major airports gives us an advantage in this area.”

 

The port is now recognised as “air destination” by the International Air Transport Association under the sea-air programme being actively pursued by MASkargo.

 

A trial run on Apr 5 saw the movement of some 10 tonnes of cargo from Taiwan and Singapore to the Netherlands, France and Germany.

 

Asked what kind of impact new security measures such as the container security initiative (CSI) and US Customs Trade Partnership Against Terrorism had on PTP’s operations, Mohd Sidik said the government’s initiative in formalising the CSI had enabled Malaysian ports to ensure their already existing security measures were further increased.
“Since Malaysia’s participation in the CSI, the process of cargo flow has been smooth.”

 

Asked about the purported competition among local ports and perception on the respective role that each individual port played, Mohd Sidik said each port has its niche market and its own geographical hinterland both in terms of local base cargo and possibilities to handle regional traffic.

 

“Having major ports such as these ensures the competitiveness, efficiency and costs of Malaysian shippers and consignees,’’ he added.