The Port of Tanjung Pelepas air, road and rail connectivity has seen a reverse ‘leakage’ of cargo from Singapore.
Johor has defined its own “axis of growth” with the Port of Tanjung Pelepas (PTP), Senai Airport and the Pasir Gudang Port as key components of the State’s plan to become the logistic hub of the region.
Since it’s opening in 2000, PTP has emerged as a pivotal player of this plan and is on its way to making this goal a reality.
Located at the confluence of major shipping routes, it also offers good air, road and rail connectivity for shippers, importers and exports to move cargo around the world at the shortest times possible.
Hauliers using PTP as a base can transport cargo to major distribution points in Malaysia via the North-South Highway. The new port is also 10km from Singapore via the 2nd Link.
This means Singapore manufacturers in the industrial estates of Tuas and Jurong can use PTP to export or import cargo.
To facilitate this, the Malaysian Government has allowed five Singapore-registered hauliers to operate trucks for movement of cargo from PTP via special “green” Customs lanes at the Second Link.
These trucks are also exempted from the usual Customs levy for trucks if transporting cargo from PTP.
PTP CEO Datuk Mohd Sidik Shaik Osman said: These haulage companies are moving average of between 2,000 and 3,000 containers from Singapore to PTP every month. This is a good sign.”
Another plus point is rail connectivity.
Cargo can be moved direct from the port at PTP via KTM’s rail network all the way to Penang or even to southern Thailand.
This means not only a faster alternative to sea, but also cost savings for shippers because there is only one terminal handling charge for cargo.
Senai Airport also features prominently in PTP’s multimodal transport links. Operated by Senai Airport Terminal Services Sdn Bhd (SATS), it is also developing its own cargo hub, complete with warehousing facilities.
Mohd Sidik said: “The synergy between PTP and Senai Airport means sea-air and air-sea cargo possibilities for shippers and manufacturers. Very few ports around the world offer such a combination.”
With SATS in negotiation with several air-freight companies, the prospect of airlines flying direct and on transit at Senai is a possibility in the near future.
With Customs, Immigration and Quarantine facilities on hand, Senai Aiport has what it takes to complement and supplement PTP in making Johor’s quest to become a logistics hub a reality.
However, there is more to this plan than just good connectivity.
Since 2000, PTP has also been opening land within a free trade zone (TPFZ) to promote entrepot trade and manufacturing industries involved in producing goods for export.
About 68ha were developed under Distripark Phase A, of which over 70 per cent of has been taken up or reserved by prospective investors.
Distripark Phase B with 72ha has also enjoyed a 50 per cent take up rate so far, while another 243ha will be developed this year.
“We have seven warehouses and one factory operating in TPFZ, involving a total capital outlay or more than RM100 million by the investors,” he said.
The players who have moved include international brand names like German automobile maker, BMW, which has set up its Asian spare parts distribution centre in PTP.
Others such as Schenker Logistics from Germany, Maersk Logistics from Denmark, Linfox Logistics and Nagai Nitto from Japan have also followed suit.
Local players include Tiong Nam, MIEL Logistics and USRA Distripark.
These companies are involved in the regional and global distribution of products, including auto parts, household goods apparel, electronic and electrical appliances, chemicals and many more.
The TPFZ is an attractive proposition for businesses involved in fast-moving consumer durable goods.
“PTP, by virtue of its multimodal connectivity, will enable these companies to operate regional of global hubs for the storage, processing and distribution of these goods to markets anywhere in the world.
“Every aspect of the supply chain can be covered from PTP. This means that they can strip the cargo, process and consolidate it before shipping them out to buyers worldwide,” he said.
A case in point is the Halal Distribution Hub being created at TPFZ. Spread over 16ha, it will centralize all infrastructure and physical facilities for manufacturing, storage, consolidation, procurement, distribution, export and trading of halal products.
It will also come with “one-stop-service” for accreditation and issuance of halal certificates in compliance with global standards. In addition, PTP also offers incentives for investors keen on investing in facilities for halal products at the TPFZ.
What all these means is that Malaysia has come of age to plug Malaysian cargo “leakage” through regional ports, especially Singapore.
Johor, in particular, has been a major source of the leakage with an estimated 350,000 20-foot equivalent units (TEUs) flowing into Singapore annually.
However, thanks to PTP, Malaysia is seeing a reverse leakage of cargo from Singapore.