"By starting phase two, PTP also ensures that we continue to serve all main lines as South-east Asia's leading transhipment port," he said in a commentary in Malaysia's Business Times yesterday. PTP is set to complete the first phase to handle 3.8 million TEUs (20-foot equivalent units) by the end of this year. Under the masterplan, the remaining four phases would be built over the next 20 years, depending on demand for its services. However, the entry of Maersk -- the largest container shipping company -- has enabled PTP to move on a faster track with its guarantee of two million TEUs by next year. Maersk moved its transhipment hub from Singapore last month.

"Malaysia is now able to offer local shippers frequency of services, high efficiency and a terminal with unlimited possibilities," Mr Sidik said. "These two million TEUs are new business to the country and along with this volume, PTP expects additional volume from feeder operators and also local volumes to pick up given the beginning of direct calls at Johor." The latest move could also be an indication of the fledgling port's confidence in securing a few more major shipping companies. Mr Sidik had told BT last month that PTP was trying to entice a couple of major shipping companies to migrate from Singapore to PTP.

As with Maersk, he said PTP may offer dedicated berths to major shipping companies, something that PSA Corp would not allow. In addition, the Malaysian government has given its blessing for the sale of a 30 per cent stake in PTP to the Danish company for an undisclosed sum. Besides greater flexibility, PTP -- located near the Second Link bridge connecting Malaysia and Singapore -- has been touting itself as a cheaper alternative to PSA Corp. But it is still not known how many major shipping companies in Singapore will relocate to PTP. The move by Maersk alone will lop off almost 12 per cent of PSA Corp's annual throughput of 15.9 million TEUs recorded last year.

The shift will make PTP one of Maersk's largest hubs within its global network, with all its main line vessels, except those plying the New Zealand and Western Australian routes, calling at PTP instead of Singapore. PTP also is getting help from the Malaysian government in terms of promotions and [NOTE,road and rail infrastructure. Mr Sidik said: "With the excellent road infrastructure now in Malaysia, we also expect to see the transportation and haulage sector moving soon to new ways of doing business. This sector will now be able to offer alternatives to feeders by providing cost-competitive and efficient haulage services from Thailand and Singapore to PTP.