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.