Maersk Seland has started operations at PTP while Evergreen will begin at the end of this month.

 

This adds nother feather to the cap of Malaysia’s youngest port, which has proven worthy of its original objectives: to serve as an alternative port to Singapore and to become a transhipment hub for South-East Asia.

 

Its role was also to help stop the”outflow” of Malaysian container traffic through Singapore.

 

Most industry observes would agree that what PTP did was bold, despite knowing that Singapore’s overriding superiority in port infrastructure, efficiency and, most importantly, vast shipping lines network gave the island-state the upper hand. But they also do not deny that PTP has everything going to compete with Singapore.

 

Location is one of them. The mouth of Sungai Pulai in Johor is at the confluence of the world’s busiest international shipping lanes-trans-Pacific, Asia-Europe, intra-Asia and South-East Asia-Australasia.

 

It has a comparative advantage in terms of proximity to major transport links such as the Malaysia-Singapore Second Link, the Senai International Airport and the Johor Port at Pasir Gudang.

 

The lower cost of operations also makes it more attractive to induce main line operators (MLOs) to consider PTP. Many shipping lines have said that cost their major consideration now due to the economic difficulties they are facing, and that they are looking at alternative, lower-cost ports.

 

At the same time, PTP chief executive officer Mohd Sidik Shaik Osman said that PTP’s fast growth can be attributed to its high productivity and the ability to offer shipping lines a dynamic hinterland and fast growing distribution park.

 

“PTP offers shippers and liners the opportunity to be part of a growing new transhipment hub and distribution center. The port’s excellent facilities and high efficiency guarantee new cargo opportunities for customers helping their business grow,” he told Business Times.

 

He said the port has progressed well since 1999 in a climate of increasing regional competition and challenging economic times.

 

From an international ranking of 108 in the year 2000, it has propelled to the position of 26 last years. And PTP is expected to become one of the top 15 world ports by 2003.

 

Undeniably, the entry of Danish global container line Maersk Sealand in late 2000 put the port on its strongest footing ever. This was reflected in the growth of PTP’s container throughput, from 418,218 TEUs (20-foot equivalent units) in 2000 to 2.05 million TEUs last year.

 

And it now has Evergreen behind it. PTP is forecast to achieve a higher container throughput of 2.4 million TEUs this year.

 

Talks are rife now that PTP plans to won Japanese shipper Kawasaki Kisen Kaisha (K Line) and South Korean container line Hanjin Shipping from Singapore. But as it is, services such as K-Line’s joint west Australia service, Safmarineon’s Safari service and Mediterranean Shipping Company are already calling at the port.

 

Situated on 806 hectares, PTP is in the midst of a RM3 billion expansions that will add eight berths and the purchase of more quay cranes to add to the current arsenal of 24.

 

Said Mohd Sidik: “This is essentially to ensure continued space of attract additional lines”.

 

It already has six berths along 2.16km of linear wharf length, backed by one of the largest container yards in the region with a storage capacity of 110,000 TEUs. Under present conditions, PTP is capable of handling about 4.5 million TEUs per year but so far utilizing only about half of its installed capacity.

 

However, Mohd Sidik said the port’s capacity six berths of 360m each in length is expected to last till 2005. PTP has a total berth space of 10km.

 

Although PTP has made headways in the shipping industry, it is aware that there is still a lot of catching up to do with Singapore, which handled 19 million TEUs in 2001. The road will not be easy.

 

For one thing, Singapore is not resting on its laurels. Following Evergreen’s relocation, the Singapore Government which owns PSA Corp through Temasek Holdings, has since announced new incentives for shipping companies to stay put at its port. And in June this year, PSA was reported to have slashed handling charges and offered more options to shipping lines in a bid to fend off cheaper rivals in the region.

 

Acknowledging this, Mohd Sidik said: “A line’s decision to consider a shift of its main hub or a part of its services from any port to another involves several factors. These include the line’s confidence and ability to continue to serve its existing customer markets and perhaps gain new markets, the efficiency at the terminal, the ability of the terminal to meet all the liner requirements whether operationally or in assisting the line’s supply chain management. Rates at the terminal play a part, but certainly are not the sole determining factor.

 

“PTP’s advantages have always been its agility, no legacies, ability to cater towards liner needs and a high rate of crane and vessel productivity. It is this overall efficiency that has determined our ability to compete, “said Mohd Sidik.