PTP sees 2-digit growth this year

(JOHOR BARU) Malaysia's Port of Tanjung Pelepas (PTP) is looking at double-digit growth again this year, according to its chief executive officer Harun Johari.

He said the port, the country's largest container terminal, had experienced a 10-fold increase in total annual throughput since it began operating in 2000.

'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.

Mr Harun also noted that PTP would benefit from the planned Iskandar Development Region (IDR) coming up in southern Johor, which 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 the IDR's growth. PTP will be the international gateway for the IDR, with 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.'

He said that last year, PTP handled 4.8 million TEUs (twenty-foot equivalent units), up nearly 15 per cent from the volume handled in 2005.

'PTP is primarily a transhipment port for South-east Asia. Most of the containers handled in 2006 were transhipment cargo. However, 2006 also saw PTP recording significant growth in local volume,' he said.

Steady growth by PTP's two existing main container line customers plus additional volumes brought about by liners' acquisition of businesses, additional vessel capacity, growth in vessel size as well as the increase in container volumes generated by the port's Freezone tenants contributed to its growth last year.

With the growing volume of containers handled by the port, two additional berths were completed last year, said Mr Harun.

'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, Mr Harun said, development work on Distripark was completed last year to cater 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,' he added.

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, Mr Harun said that PTP bought three quay cranes last year, 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.

Mr Harun said that among the challenges PTP faces was the sprouting of new transhipment hubs 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 South-east Asia.

'We have invested in the latest technology, human capital development and best practices, just to name a few.'

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

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