Evergreen switches from S'pore to Malaysia

Evergreen switches from S'pore to Malaysia

Agence France-Presse, Johar Baharu, Malaysia

Taiwan's Evergreen Marine, one of the world's largest
container shipping groups, officially switched its regional hub
from Singapore to Malaysia's Port of Tanjung Pelepas (PTP) at the
weekend.

The move has been hailed as a victory in Malaysia's aggressive
campaign to compete with Singapore port operator PSA Group, which
handles about 25 percent of the world's total container
transshipment throughput.

Malaysia's Transport Minister Ling Liong Sik said during the
official launch Saturday that Evergreen would play a big role in
the development of PTP as a major transshipment hub in the
region.

PTP would use the opportunity of higher base volumes provided
by Evergreen's move to attract more feeders and main lines as it
developed and expanded the terminal.

"PTP's volume expectations of 2.5 million TEUs (twenty-foot
equivalent units) this year and over three million TEUs next year
are commendable," he was quoted as saying by Malaysia's Bernama
news agency during a ceremony here.

He said PTP, which is in Johor state just across the narrow
Tebrau Strait from Singapore, had started its phase two
construction which involved dredging and reclamation for an
additional eight berths and the construction of two additional
berths by the end of next year.

Evergreen Group vice-chairman S.S. Lin said PTP's "fundamental
elements coupled with its strong management team, complemented by
Evergreen's direct service network worldwide, will surely benefit
the customers in Johor and Malaysia."

Evergreen began phasing in its use of PTP on Aug. 24, and now
has more than 15 calls a week at the port.

PTP chairman Mohamad Taufik Abdullah said the calls by
Evergreen had proved that PTP was capable of servicing the
transshipment business of international shipping lines, thus
moving PTP closer in its quest to become the premier
transshipment center in the region.

"In 2001, PTP handled 2.05 million TEUs and for this year, we
have surpassed 2.05 million TEUs to date and are expecting to
achieve the 2.5 million mark by year-end," he said.

Singapore Port operator PSA Corp. Ltd. also lost Danish global
container line Maersk Sealand, another major jewel in its crown,
to PTP, last year. Shipping sources said PTP offered quality
service with a 30 percent discounted price against Singapore.

The Singapore government has responded by announcing an
overhaul of its shipping strategy, including a cut in handling
charges, opening the way for new port operators and offering
shipping lines the opportunity to run their own berths.

Prime Minister Goh Chok Tong, who outlined the new shipping
blueprint, said the changes were needed because of the emergence
of tougher competition in the region.