PTP sees bright future, double-digit growth

SINGAPORE, July 31 (Bernama) -- Port of Tanjung Pelepas (PTP), Malaysia's largest container terminal, is confident of a brighter future and chalking up a double-digit growth next year despite a challenging economic environment.

Chief Executive Officer Glen Hilton said: "We are expanding under a three-year modernisation plan to be completed around May 2014".

PTP is investing RM1.4 billion over three-years in a modernisation plan designed to meet the docking requirements of mega-container vessels.

Hilton noted that PTP's overall capacity today, with the first 12 berths, amounted to 8.5 million twenty-foot equivalent units (TEUs).

"Last year, we did 7.7 million TEUs. The market fluctuates up and down, we know we can grow. We have the capacity. With the new berths coming on line next year, we are excited and expect to record double-digit growth, so the future is bright.

"Although we are in tough economic times, but we will continue to work well with customers like Maersk Line to attain continued growth," he told Bernama after welcoming the world's largest container vessel, the Triple-E 'Maersk Mc-Kinney Moller', on Sunday.

The newly built vessel called at PTP, which serves as Maersk Line's Southeast Asia Transhipment Hub, on its maiden voyage between Far East Asia and Europe.

Being in the transhipment market, Hilton said the majority of the business coming through was from other countries.

"We are in great position given PTP's location in the heart of Asean which is a growth market.

"We see some impact (of the economic downturn) from countries like Japan, Korea, but the growth is there," he explained.

In terms of the local market, Hilton said: "We are seeing a little bit of growth there. We are expecting the market to grow primarily on the back of great global shipping access. This is one of the benefits for the people in Johor and for companies that are importing and exporting goods into Malaysia.

"This is because they have access to bigger ships and the biggest network in the world right at their front door," he said, adding that it was also good for the local economy.

When asked on competition, Hilton said: "We have been in the transhipment market and face competition from Singapore, which is not so far away. We also have competition with Port Klang and another port which is literally beside us," he said.

However, he said competition was good as it keeps everybody on their toes.

Saying that every port had their own challenges and certainly PTP has its own, Hilton said: "We are committed to being the most efficient port in the region and that is our goal and we are very focused about it."

With good customers and partners like Maersk Line, among others, coupled with Malaysia's pro-active growth-oriented government, and good geographical location, Hilton said it was a great package for PTP.

On new shipping lines, he said: We always have shipping lines typically for the local market calling at PTP.

"We also have a new network that is being put together, and the Maersk Lines will be part of it.

"We are very encouraged of the developments in the near-term. So we are growing, not just for our existing customers but others also.

"The great benefits of PTP, unlike most ports around the world, is that we are able to grow and develop in conjunction with our customers and as the market demands," he said.

Hilton added that the world economy was not booming now but bigger vessels were, nevertheless, calling at the port.