01 Jul 2000

SE Asia's premier transhipment hub

International Container Review

The Port of Tanjung Pelepas (PTP) began operations in October 1999 and has since commanded close attention concerning its establishment as the region's premier transhipment hub. Currently, PTP is focussed on establishing a regional feeder network to key Intra Asia routes and from there will work at establishing direct calls to worldwide destinations.

The project masterplan for the Port of Tanjung Pelepas (PTP) contains five phases, extending to the year 2020. The total development will embrace a full range of facilities from container to liquid, dry bulk and conventional cargo.

Phase One Development
Completion of Phase One, which began in 1995, is scheduled for mid 2001. It's cost is about M$2.8 billion (US$737 million). The main feature is the development of six berths of 2.16 km in a linear wharf. These berths, of 360 metres length each, are designed to cater for super-post Panamax container vessels. The first two berths are currently in operation. Berths 3 and 4 will be operational by mid 2001. With these key facilities, PTP will be able to handle an annual throughput of 3.8 million TEUs.

The complete range of developments in Phase One includes:
i) 6 linear berths totalling 2.16 km in length
ii) A total area of 1.2 million m2 reserved for container handling and storage activities
iii) Port Administration building and government agencies complex
iv) IT network system purpose-designed with dual redundancy approach
v) 18 super-post & post Panamax quay cranes, 58 rubber-tyred gantry (RTG) cranes and a full complement of prime movers and trailers.
vi) Access Road of 5.4 km, now completed, links PTP to the Second Link expressway
vii) Rail link measuring 31.5 km to the National Rail grid, scheduled for January 2002

These final two developments are brought about by the vital need for a transhipment port to have connectivity. PTP's 5.4 km access road is linked to the Malaysia-Singapore Second Link expressway and thereby to the North-South highway; offering shippers excellent highway connections. A rail network has also been planned and a 31.5 km rail link will be built from PTP to the national rail grid at Kempas. This will be completed in January 2002.

These road and rail links are financed from the Government's infrastructure budget, thus demonstrating the administration's strong commitment to the project.

Meeting Users' Expectation
PTP fares very will in meeting users' requirements. The draft of 15 along the approach channel and alongside, together with a 600 metre-wide turning basin, enables the largest of containerships to navigate with ease at PTP.

The port area has a spacious 1,935 acres for port-related industries. Of this, 1,036 acres has been earmarked for commercial and industrial activities, including a 423 acre distripark for warehousing and distribution. The remaining 613 acres are set aside and Industrial Park area is designated as a Free Zone enabling manufacturing, warehousing and logistics companies to benefit.

The efficiency of the port is supported by the extensive application of IT. The Integrated Terminal and Port Management Information System (ITPMIS) supports all operational and administrative requirements at the port. PTP's ITPMIS integrates all facilities and equipment for faster turnaround and maximum productivity.

External port users are linked to the ITPMIS either via dial-up or leased lines. Port users key in data about the vessel, containers and trucks. This information is used by the operating personnel to plan for the vessel's berthing, container loading and discharging, yard space allocation, manpower allocation, etc. The other port users such as Customs and Free Zone Authority are linked to the system to grant clearance or holding of containers for import, export and transhipment.

Demand Patterns
The demand for port services in the region will mirror the growth in trade. Apart from growth in cargo volume, the changing pattern of trade and shipping is expected to offer opportunities for new ports like PTP; a port which is well poised to serve as an economic alternative meeting regional as well as national trade requirements.

However, the demanding pace of change dictating the development of the liner industry means that only a select few will make it onto the shopping list of carriers. Port must therefore be able to meet the principals' expectations.

They must have the flexibility to meet the operational requirement of the carriers. PTP has all the ingredients needed to become southeast Asia's premier transhipment hub and is confident it is able to achieve this.

Development of Pelabuhan Tanjung Pelepas
The development of PTP resulted from a privatisation agreement with the Malaysian Government, concluded on March 24 1995. The agreement confers the right on the port operator to plan, design, construct, operate and manage a new port at Tanjung Pelepas. The concession period for the BOT project is 60 years (from the date of the privatisation agreement). A further 30 years may be granted to the company upon its application.

PTP is located on the southwestern tip of Peninsular Malaysia, at the mouth of the Pulai River. This is one of the few areas in the region that draws natural deep draft for international shipping. The site chosen for the port is adjacent to the Second Link, connecting Malaysia and Singapore across the Johor Straits. PTP's strategic location at the confluence of the world's busiest international shipping lanes, the Trans-Pacific, Far East-Europe, Intra Asia, and Southeast Asia - Australasia is a distinct advantage. Diversion times from these main trade lanes is about 45 minutes.