Lower operational costs have clearly been a major consideration in attracting the two top lines – as confirmed by Evergreen spokesperson Elysia Chen. But PTP ceo Mohd Sidik Shaik Osman (right) plays this factor down, emphasizing to Seatrade the fast improving infrastructure, performance and sheer ‘youthful agility’ to compete of a port first privatized in the mid-1990s.

 

PTP currently offers six berths totaling 2.16km, equipped with 19 Super Post-Panamax cranes (of 18 – to 22-box outreach) plus five more on order. Construction of two more berths is planned by the end of next year, closely followed by six more: annual capacity of 10m boxes is promised 2005.

 

Meanwhile, productivity increases apace and the port now averages 30 gross moves per hour per crane, according to Sidik. “This is higher than most established ports and we are now trying to achieve more gains with the new twin-peak cranes’.

 

But perhaps more than anything it is the flexibility of PTP’s marketing strategy that has paid off. The port allowed Maersk a 30% stake in the port, a say in operations and its own terminal.

 

Maersk Sealand’s Jesper Praerstensgaard, senior vp – line management, Asia region, explained to Seatrade that the move fitted in with Maersk’s long-term strategy of being ‘master of its own destiny.’ ‘Our business is now of such a size that we need to have even better control and influence over our terminal operations’. He said the Danish company had been ‘extremely impressed’ by PTP’s ‘ good productivity, efficient vessel handling and low error rate – the three essential service characteristics for a successful port/transhipment hub’.

 

PTP hopes to secure another major client soon. Strong overtures were made to Hanjin Shipping but Korean line stayed put, for the time being at least, reportedly because of Singapore’s stronger feeder links. K-Line and MSC were also identified as others possibly interested in moving significant volumes to PTP.

 

Questioned earlier this year about PTP attempts to woo Singapore clients, PSA (Port of Singapore Authority) then chairman Yeo Ning Hong waxed philosophical. PSA had always had to compete with all ports on the Europe-Far East sea lane, new sources in its stride. ‘When you start out with 100% of the customer base, you can only lose…Customers come and customers go wherever they find circumstances appropriate to their strategies’.

 

But Singapore has nevertheless hit back by announcing its willingness to allow customers’ ‘partnership’ stakes in the port and to drop its long-time opposition to the idea of dedicated terminals. It also introduced a 10% reduction in handling fees plus a 50% cut in handling charges for empty containers, both effective for one year from July 1.

 

At presstime it was unclear whether this was a case of too’ little, too late’ to prevent further defections, but the moves were widely welcomed by the lines. NOL chief executive and president Flemming Jacobs said ‘all this is very, very, good, news to the industry.