PTP To Spend Up To RM3 Bln In Capex Over Next Few Years

By Tengku Noor Shamsiah Tengku Abdullah

KUALA LUMPUR, July 8 (Bernama) -- The Port of Tanjung Pelepas (PTP), ranked 17th among the world's busiest container ports, will spend up to RM3 billion in capital expenditure on expansion over the next few years.But this is dependent on the prevailing economic situation.

"The expansion includes the construction of two new berths at a cost of RM360 million and work commenced earlier this year.

"The berths will increase PTP's annual terminal handling capacity to 10 million twenty-foot equivalent units (TEUs), from the present eight million, to cater to growth over the next 18 months," said chief executive officer, Harun Johari, in an interview with Bernama.

Harun also said that PTP had recorded a double-digit growth since starting operations in 2000.

Last year, it recorded a throughput of 5.5 million TEUs.

"We are ready to cater to the growth in existing customers and also new ones. This year, especially the past six months, has been good for PTP," he added.

According to earlier reports, PTP should be able to achieve a target of 6.5 million TEUs this year.

Harun also indicated that, depending on other potential customers using the port, a further RM800 million would be invested in two more berths for a total of 14.

This year, PTP is expected to take delivery of more than RM480 million worth of additional port equipment such as twin-lift quay cranes, double-hoist quay cranes and rubber-tyre gantry cranes.

"The completion of a RM40 million, 132-kilowatt electrical sub-station, in October will also ensure reliability of power supply and smooth port operations.

"Other expansion plans include the construction of additional container yards," Harun highlighted.

Harun said about RM3 billion has been spent to develop PTP.

A further RM90 million was spent as part of PTP's social responsibility commitment, to relocate the local community affected by its development, to a modern and permanent resettlement.

Harun also stated that PTP had always been focused in its efforts to attract more shipping lines to utilise it.

"The current initiatives, including the expansion plans are all geared towards this.

"But the process of signing up shipping lines is not easy and it does not happen overnight.

Among other things, we have to first gain their trust and build bankable relationships.

"It is not merely about making a deal. We want the shipping lines to grow together with PTP," Harun said.

Harun pointed out that PTP's existing customers like Maersk Line and Evergreen had grown organically and were doing well.

"Having MISC on board as a new customer this year will benefit the development of PTP," Harun noted.

In April, PTP signed a joint venture agreement with MISC to serve it and other shipping lines. The aim was also to make PTP the main transshipment hub in the region.

PTP's deal with MISC will benefit its customers, particularly the Johor area ship owners, and further enhance PTP's regional as well as worldwide shipping connectivity.

Harun said with the availability of MISC's shipping services at PTP, ship owners have additional options in terms of freighting their cargo into and out of Johor.

"We are excited about the future. The transshipment business in the region is expected to grow," Harun added.