The growth has been attributed to the shift of Evergreen Marine Corp to PTP and the increase of PTP’s existing customers in terms of volumes, vessel service calls and local cargo.

“We are pleased with the growth levels which were positive despite challenges facing the world economy,” said PTP chief executive officer Datuk Mohd Sidik Shaik Osman.

 

“We will continue to focus on building up our land base through additional logistics customers and also the Phase Two terminal expansion.”

 

PTP’s emergence as a viable transhipment hub and alternative to Singapore has been a cause of concern for the republic’s port operator, Port of Singapore Authority (PSA) Corp.
Following the Johor-based terminal’s success in winning Evergreen over, PSA has re-looked its strategy and offered its customers a 50 per cent discount on the handling of empty boxes and a 10 per cent rebate on all marine charges for a one-year period.

 

Since starting operations in 2000, PTP has managed to secure two of the biggest mainline operators, the other being Maersk Sealand.

Recently, rumours surfaced that a third line, French giant CMA-CGM was planning to shift its hub to PTP but this was denied by CMA officials.

It has also been reported that the port managed to divert between 300,000 and 400,000 boxes, or approximately half the number of Malaysian boxes previously going via Singapore.

PTP, which is 50.1 per cent owned by Malaysia Mining Corp Bhd (MMC), is also expected to post a profit next year and to contribute to group earnings by 2005, its chairman Syed Abdul Jabbar Shahabudin was quoted as saying in the company’s annual report.

 

“PTP is a strategic acquisition for MMC rather than an immediate earnings contributor.

 

“While a loss was incurred as expected for the year ended Dec 31, 2002, due to the funding cost of its development, PTP registered a positive EBITDA in the same period and is expected to register a profit by 2004,” Syed Abdul Jabbar said, adding that the year 2005 would see PTP contributing positively to group earnings.

 

PTP plans to invest RM1.2bil for its Phase Two development that involves dredging and reclamation for an additional eight berths and the initial construction of an additional two berths of 360m each.

This would add 1.5mil TEUs of capacity to PTP’s current capacity of 4.5 to five million TEUs yearly.

Phase Two development, which commenced in August last year, is on target to be completed early next year.
The port expects to handle three million TEUs this year, up from 2.66mil boxes last year.

It currently has six berths of 360m each totalling 2.16km in length, backed by a container yard with a storage capacity of 110,000 TEUs.

Operational equipment includes 24 Super Post Panamax quay cranes, 10 of which have a 22-box outreach and are the largest in the region.

PTP is also on course to becoming a regional consolidation and distribution centre with a 160ha free zone area specially set aside for such activities.

 

The port is going all out to attract local and international firms to set up base there in an effort to provide a critical cargo mass for shipping lines and spur related services.

 

The free zone status 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.
So far, Schenker Logistics began third-party logistics operations by taking up a 4,600sq m warehouse in April and word has it that BMW is next in line.