Evergreen's move a blow to Singapore<\/p>\n
Reuters, Kuala Lumpur<\/p>\n
Malaysia's Port of Tanjung Pelepas (PTP), barely two years
\nold, is giving larger, more established rival Singapore a run for
\nits money as it courts Taiwanese shipping giant Evergreen Marine
\nCorp with lower fees.<\/p>\n
With Denmark's Maersk Sealand International already a PTP
\nconvert, Malaysia's capture of Evergreen would mean it had lured
\ntwo of the world's top three container shippers from the
\nSingapore port, a swing of the rudder across the Johor Strait.<\/p>\n
An Evergreen company spokeswoman quoted group chairman Chang
\nYung-fa as saying on Wednesday the planned move to Malaysia's new
\nport, located in the southern state of Johor, was cost-driven.<\/p>\n
The spokeswoman told Reuters in Taipei the switch would save
\nthe company T$100-200 million (US$2.86-$5.72 million) a year.
\nEvergreen's contract with PSA expires in August.<\/p>\n
PTP is dwarfed by its southerly rival, handling just two
\nmillion twenty foot equivalent units (TEUs) last year to the 17
\nmillion or so TEUs at Singapore's port. That said, it has taken a
\nbig bite out of PSA's business during its brief existence.<\/p>\n
PSA officials declined to comment on the possible loss of
\nEvergreen, though a source close to the port operator insisted
\nnegotiations with its client were continuing.<\/p>\n
Malaysian Prime Minister Mahathir Mohamad, asked by reporters
\nto comment on the possible move, was upbeat.<\/p>\n
\"We are as strategic as Singapore. So there's no reason why we
\ncannot be a hub for trade and shipping in the region.\"<\/p>\n
The Singapore port sees 250 shipping lines with connections to
\n600 ports in 123 countries.<\/p>\n
PTP, which opened for business only in October 1999, dealt the
\ncity state's port operator PSA Corp its first big blow just 10
\nmonths later, as Maersk Sealand International jumped ship.<\/p>\n
The deal saw Maersk, part of the Danish oil and shipping
\nconglomerate A.P. Moeller Group, transfer an annual 1.2 million
\ntwenty foot equivalent units (TEUs) to PTP.<\/p>\n
The Danish firm, the world's largest container shipper, also
\nbought a 30 percent stake in Pelabuhan Tanjung Pelepas Sdn. Bhd.,
\nthe private company which owns the Malaysian port.<\/p>\n
P&O Nedlloyd, a joint venture between Dutch group Koninklijke
\nNedlloyd Groep NV and Britain's P&O, is the other member of
\nworld's big three container shippers.<\/p>\n
Transport and communications contributed nine percent to
\nSingapore's gross domestic product in 2000, up from 7.1 percent
\nin 1999, the Ministry of Trade and Industry said.<\/p>\n
Singapore's ultra modern port operation lies cheek-by-jowl
\nwith business and residential areas on the city state's southern
\nshore, playing a major role in the tiny nation's transformation
\ninto a world trading power over the centuries.<\/p>\n
PSA has been looking toward China for new business, signing on
\ncustomers like shipping giant COSCO last October.<\/p>\n
Obstacles it face at home are limited, pricey real estate and
\na dearth of cheap workers among its citizenry.<\/p>\n
Confronting it over the water in PTP is a custom-built rival
\nnestled among mangroves at the mouth of a deep draught river,
\nwith 1,935 acres (783 hectares) of greenfield land to play with.<\/p>",
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