Port Of Tanjung Pelepas / Malaysia ( www.ptp.com.my )

The Port of Tanjung Pelepas has recorded tremendous growth from its beginnings in 1999 to becoming South East Asia's fastest growing container terminal which in 2003 handled approximately 3.5 million TEUs.

PTP also offers over 1000 acres of commercial and industrial free zone. The excellent connectivity via road, rail, air or sea that PTP offers has been a major factor that has attracted companies like BMW, Schenker Logistics, Maersk Logistics and Kenwood Logistics to set up operations here.

PTP is now preparing to meet the demands of the future with the development of Phase II which comprises an additional 2.8 Km of linear wharf. The first 2 berths which are under construction will be completed by mid 2004. Upon completion of the 2 berths, PTP will have an annual capacity of 6 million TEUs.

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PTP bags Container Terminal of the Year 2004

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Port of Tanjung Pelepas (PTP) has been awarded the Asian Container Terminal of the Year 2004 at the Third Asian Logistics Award in Kuala Lumpur on Oct 7.

"The port is deeply honoured to have won this prestigious award especially in view of the highly competitive field in this category which included terminal operators for the Port of Singapore and Hong Kong Port," PTP said in a statement.

In 2000, PTP became the first Malaysia port to be named the Best Emerging Container Terminal, an award that was again bagged PTP in 2001.

"We believe that this award is recognition that it is not size alone that makes a great container terminal. There are many other factors such as throughput growth rates, current and future handling capacity, operational efficiency and the potential for future growth," PTP added.

Business Times - 12 Oct 2004

PTP volumes in 9 months set record

By DONALD URQUHART

(SINGAPORE) Malaysia's Port of Tanjung Pelepas said yesterday it handled a record number of containers in the first nine months this year, up 20 per cent on the same period in 2003 as surging global trade continues to push record volumes through the region's container terminals.

In the first three quarters of 2004, PTP handled 3.03 million TEUs, up 20 per cent from the 2.52 million TEUs it handled over the same period last year, according to a PTP statement.

Transhipment cargo - the bulk of PTP's throughput - saw a 20 per cent gain with 2.9 million TEUs handled during the first nine months, compared with 2.4 million TEUs handled in the same period last year.

PTP attributed the rising throughput figures to the continuing global economic expansion, the increasing market share of local cargo and the addition of new services calling at PTP.

Local cargo volumes handled at the port rose 16 per cent over the period to 122,654 TEUs, compared with the just over 100,000 TEUs handled last year. Total throughput in the third quarter of 2004 rose 11 per cent to 1.02 million TEUs.

The port has two primary customers, mainlines Maersk Sealand and Evergreen Marine Corp, both of which were formerly PSA Corporation customers.

Surging global trade also boosted Singapore's two container handlers, with PSA Corporation reporting a 15 per cent rise in its local throughput to 15.3 million TEUs for the first nine months this year, while its total overseas ventures reported a 25 per cent rise in throughput to 9.5 million TEUs.

Jurong Port, meanwhile, said it was also experiencing record throughput growth, with monthly volumes of about 76,000 TEUs, a near-trebling of volumes compared to the same period last year.

The strong growth was attributed to new services introduced by existing customers, and existing customers phasing in larger tonnage, along with new customers.

Jurong recently wooed United Arab Shipping Co from PSA Corp based on a service package more tailored to its needs.

In the port's latest newsletter, Jurong Port president Fong Yue Kwong said the port will 'continue with its niche marketing which has served to keep the port growing and relevant. It is our aspiration to provide the best services and to grow together with our customers.'

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

OCT 12, 2004

Container handling at PTP up 20% since Jan

KUALA LUMPUR - Malaysia's Port of Tanjung Pelepas (PTP), which is competing with Singapore for South-east Asia's sea freight, said it handled 20 per cent more containers in the first nine months of this year, as global trade expanded.

PTP said it handled a record 3.03 million 20-foot standard containers in the January-to-September period, according to a press statement. The number of vessels calling at the port increased 49 per cent to 2,378 during the period.

Half-owned by Malaysia's MMC Corp, PTP has been luring business away from PSA International, operator of the world's second-busiest container port in Singapore.

PSA last week said it handled 24.8 million 20-foot containers in the first nine months of this year, 19 per cent more than a year ago. It handled 15.3 million containers during the same period, a 15 per cent increase from a year earlier.

Taiwan's Evergreen Marine and Maersk Sealand, a unit of Denmark's AP MoellerMaersk, are among the shipping lines that have switched to using PTP as their South-east Asia stopover, attracted by the harbour's cheaper port charges.

PTP shares are not publicly traded.

The shares of MMC fell 0.5 per cent to RM1.98 yesterday morning in Kuala Lumpur.

PSA's shares are not publicly traded.

PTP opened two new berths in the third quarter, helping to increase the port's annual capacity to six million 20-foot containers.

The number of containers handled by it that were bound for another destination, or the so-called transhipment traffic, increased 20 per cent to 2.9 million 20-foot units in the first nine months.

Local cargo volume gained 16 per cent to 122,654 20-foot containers.

Malaysian ports are expected to handle 11.5 million 20-foot containers this year, 13 per cent more than a year ago amid rising trade, Malaysian Transport Minister Chan Kong Choy said last week in Kuala Lumpur. -- Bloomberg News

Malaysia could raise port service charges

BY P.T. BANGSBERG - THE JOURNAL OF COMMERCE ONLINE
8 October 2004
Journal of Commerce Online

Malaysia, which has some of the lowest transshipment charges in southeast Asia, is considering a standardized fee system that could bump up rates by as much as 10 percent.

Industry sources say Port Kelang Authority, which administers the Northport and Westport box complexes at Kelang near the capital, Kuala Lumpur, is finalizing a study for submission to the country's Transport Ministry.

The authority was asked by the ministry to devise a national port tariff policy that would cap how much local ports can charge for services. Many of Malaysia's older ports have not raised tariffs for as long as 30 years.

The Kelang agency is being assisted by operators at the Ports of Johore and Tanjung Pelepas in the south; Penang in the northwest; Westport and Northport at Kelang, and Bintulu and Kuantan, two smaller gateways, according to the local Business Times.

Details of the plan could not be independently confirmed.

"Everyone wrote to the Transport Ministry asking for different rates of increase. Thus, the ministry decided to entrust the whole exercise to PKA to convene a meeting of various port authorities and private port operators to come up with a simplified and standardized national port tariff," one source was quoted as saying.

Kelang charges 140 ringgit ($36) per 20-foot transshipment container, Kuantan 50 ringgit, Pelepas 200 and Johore 80. By contrast, Singapore charges the equivalent of $67 and Hong Kong $180.

PTP’s yard cranes guided by satellite


The Port of Tanjung Pelepas has equipped all its 57 rubber-tyred gantry yard cranes with SmartRail, a new system manufactured by Kalmar Industries that uses the Differential Global Positioning System (DGPS) to pinpoint positioning accuracy.

(11/4/2004)

The DGPS can handle all RTG steering and positioning activities by itself, as opposed to requiring the RTG operator manoeuvre the RTG in the yard while loading and unloading containers.

Through the tight integration between the SmartRail system and the port operating system NAVIS, SmartRail aims to eliminate human error regarding confirmation and selection of containers during operations, avoid misplaced containers, reduce waiting time for the quay cranes during loading and discharge, and have 100% accuracy between container position in the port operating system and the actual physical location in the yard.

According to a PTP spokesman, retrofitting of the RTGs was completed in July, and the system’s performance over the past few months has been very encouraging, with noticeable improvements in operations productivity - attributable to the SmartRail system - despite the increased volumes handled this year.

He added that safety has also been dramatically improved, and any possibility of RTG related service failures have been eliminated since the system went live.

The ability to accurately track and position individual containers and RTGs has allowed the port to maximise its yard space and minimise wasteful double handling of containers.

Possible future developments and enhancements to the system could include dynamic deployment so that the RTG nearest to a particular prime mover is assigned to it, instead of prime movers being assigned to dedicated RTGs which may not be positioned optimally.

Author: Newsdesk / eyefortransport.com

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Phase two development on schedule: PTP
The Business Times Singapore - April 12, 2005

The Malaysian Port of Tanjung Pelepas (PTP) said its phase two development is on schedule with 40 per cent more container yard space coming on stream in August as the six-year-old port breaches the one-million-TEU mark for the first time.

The container port posted a 5 per cent growth in container volumes for the first quarter this year over the same period in 2004 with volumes hitting just over one million TEUs. Most of this volume growth came from transhipment cargo which comprised 96 per cent of total volumes.

Local export cargo grew 37 per cent to 34,709 TEUs for the first quarter which PTP attributed to increased activity in its free zone where a new halal food distribution hub is being developed.

PTP said it will complete the first four rows of container yard blocks 10, 11 and 12 this month which will support the first two berths of its second phase expansion that it completed in July last year.

The remaining yard space will be completed by end-August, boosting capacity by 40 per cent, or up to 154,000 TEUs at any one time, PTP said.

By end-April, PTP will also complete the construction of a new power substation which will run the latest generation of 82-tonne super post-panamax gentry cranes. Capable of handling 40-ft container twin lifts, these cranes will be operational in the fourth quarter of this year.

PTP's phase two berths have depths of 19 metres, enabling them to handle ships up to 250,000 DWT, including the next generation of container ships up to 12,000 TEUs.

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PTP gets ready for the big boys
Fairplay - May 17, 2005

Tanjung Pelepas, Singapore’s nearby rival for container transshipment cargo, is flush with capacity after added two berths as part pf its Phase Two expansion. A total of eight berths give the nascent port, which began operating in 1999, capacity of 6M TEU a year.



CEO Mohd Sidik Shaik Osman exudes confidence that PTP is geared to cater to the most exacting demands of lines during boom time. Almost all its cargo – the facility topped 4M TEU during 2004 – is derived from Maersk and Evergreen Marine.



There is no sign of any other major line leaving Singapore’s PSA terminals for PTP, which is preparing to accommodate huge container ships.



“There is no other port in the region where 100% of the berths and cranes can cater to 8,000 – 9,000 TEU vessels,” Sidik tells Fairplay. So, it could be just a question, which will add six berths, has been designed for ships of even 12,000 TEU.



PTP stresses efficiency
PTP has an edge over rivals with its lower handling costs, but Sidik stresses that PTP regards efficiency as its main strength. In the present times of plenty, the sees the cost factor receding into the background.



“The shipping boom has resulted in lines not looking at quick cost gains, but rather overall efficiency gains and analyzing how the ports can cater for their growth,” he explains.



PTP’s other big edge is space for “unlimited” expansion, which enables the port to offer dedicated facilities. Sidik discloses that feeder connectivity has “grown tremendously” since Evergreen’s arrival in 2002, resulting in multiple connections to all major Southeast Asian destinations. As part of its efficiency drive, PTP has deployed Kalmar’s Smartrail system, officially handed over on 14 April.



This uses satellite technology for its automatic steering system and provides automatic container position verification. It can be connected to yard management systems and has increased productivity through higher gantry travel speed, reduced crane shifting time and faster container handling, Sidik discloses.



Hinterland cargo is growing along with transshipment throughput, albeit from a lower base. PTP has already captured one-quarter of the Johor market. Free-zone tenants such as BMW, Linfox, Logistics and Schenker Logistics have contributed to this growth.



Sidik expects the first phase of the free zone to be “fully occupied” in 2005. Its second phase is expected to begin in mid-2005.



He plays down talk of overseas acquisitions: “While we have had offers to invest in overseas terminals, we have yet to embark on any,” he says.



Exports and local cargo drive PTP to 1m TEU in Q1
Containerisation International - April 12, 2005

Phase two development on schedule: PTP
The Business Times Singapore - April 12, 2005

PTP's throughput above 1m TEUs in 1Q
The Edge Daily - April 12, 2005

Pelepas port container volume up 5pc in 1st quarter
The Malay Mail - April 12, 2005

PTP kendali 1.005 juta TEU
Berita Harian - April 11, 2005

PTP first port to handle over 1m TEUs in Q1
New Straits Times - April 11, 2005

1mil TEUs in three months
The Star - April 11, 2005

Tanjung Pelepas Terminal Kontena Terbaik 2004
Utusan Malaysia - April 11, 2005

Tanjung Pelepas: Newcomer puts pressure on rival
Robert Wright
23 May 2005
Financial Times

Standing at the port of Tanjung Pelepas, the distant cranes of a Singapore's container terminal can just be seen through the tropical haze. Given their intense rivalry it is hard not to imagine that the ports are glaring at each other across the strait of Johor.

Tanjung Pelepas at the southern tip of the Malaysian peninsula pulled off one of the most extraordinary coups in modern shipping in 2000. It sealed a deal for Maersk-Sealand, the world's largest container shipping line, to move nearly all its trans-shipment business away from Singapore - the world's greatest trans-shipment hub - to its newly built container terminal. The move lost Singapore more than 10 per cent of its container throughput.

Taiwan's Evergreen Shipping, the world's fourth largest container line by capacity, followed in 2002, taking another 5 per cent of Singapore's business. PTP, as Tanjung Pelepas port is known, started operations only in October 1999 but was last year the world's 16th busiest container port, handling 4.02m 20-foot-equivalent units (TEUs) of containers.

It is a remarkable success for a port that critics once said would never be used and that was constructed, highly unusually, entirely by private shareholders. It has also demonstrated the potential for a determined new entrant into the market for trans-shipment - the moving of containers between different seagoing ships - to take business from an established centre.

"PTP has been very successful," says Neil Davidson, container ports analyst at London based Drewry Shipping Consultants. "The big challenge for them now is to try to get the third big customer in."

The port was not initially designed exclusively to handle the kind of trans-shipment business which now accounts for 95 per cent of its throughput.

Brian Paul, corporate communications manager for the port, says Seaport Terminal Johore, controlled by Syed Mokhtar Al-Bukhary, a Malaysian tycoon, planned the terminal mainly for trans-shipment but also to capitalise on local economic growth.

Work started on the terminal, which cost $600m and involved substantial land reclamation, in 1993. But it opened after the Asian financial crisis when prospects looked grim.

Its fortunes were turned around by Maersk's unhappiness with PSA, Singapore's main terminal operator, which was charging high fees for Maersk's 2m annual TEUs. PSA had also refused to allow it to take a stake in a terminal.

Under the deal for Maersk-Sealand to move its business, AP Moller-Maersk, Maersk-Sealand's parent, took a 30 per cent stake in PTP. All Maersk's inter-lining - movement of containers between deep sea, long distance ships - in south-east Asia is done at PTP.

For Evergreen, the move from Singapore is thought to have brought a cost reduction of 30 per cent.

Other shipping lines call at PTP - including feeder operators that take containers between PTP and regional ports.

However, Mr Paul concedes that growth "has been very sporadic. Instead of organic growth we've had a huge step up then another huge step up. Many people are asking, 'When is the next huge step up?'"

To attract further customers, he says, the port needs to expand. PTP has already prepared quay space for a further two berths on top of its existing six.

PTP is likely to benefit if, as expected, Maersk completes its planned takeover of P&O Nedlloyd, the third largest container line, the business of which would then come to PTP. The port is also working on developing a freeport area to generate more direct cargo.

However, Singapore has slashed its prices and improved its relations with shipping lines since the two defections. It is widely believed to use its pricing system to discourage feeder lines from calling at PTP.

Some likely customers for PTP, including China Shipping and France's CMA-CGM, have opted to do their trans-shipment at Port Klang near Kuala Lumpur.

Yet PTP remains optimistic about its prospects. Beyond the turquoise and white cranes of the existing terminal, PTP has reclaimed nearly 3km of land for six more berths. With the two so far unequipped berths, they would more than double PTP's capacity, moving it closer in scale to its cross-strait rival.

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TANJUNG PELEPAS PORT, JOHOR.

The Tanjung Pelepas Port, situated at the mouth of the River Pulai in south west Johor calls itself the 'container port of the future'. The future being 20 years into the next millennium as this port infrastructure is planned in five phases of development and final completion could stretch to the year 2020. To meet future needs of super large ships, the first phase of the port development has been designed, with 2.16 km linear berths, 115 ha container yards, super large port equipment and sophisticated IT-driven port management.

By ZAZALI MUSA in Gelang Patah, Johor

Flextronics Group will be investing RM1.5bil over the next 10 years to expand its operations in Johor, Flextronics Asia president and managing director Peter Tan said.

The investment would be used to develop a fully integrated manufacturing centre at Port of Tanjung Pelepas' (PTP) free zone to house the engineering, printed circuit board assembly, plastics injection moulding and logistic operations in single location, he said.

The 1.3 million sq ft industrial campus was the largest in Malaysia under the Singapore-based company's operations and the second largest in Asia after China.

The company had invested about RM525mil in its Malaysian facilities in Senai, Tampoi, Tebrau, Shah Alam, Penang and Malacca, which together employ 18,000, he told a press conference after the signing of an agreement between Flextronics and PTP yesterday.

In Malaysia, the original equipment manufacturer serves multinational companies in the communications, printing and digital imaging, computing and automotive industries.

Tan said the company would consolidate its Malacca, Tampoi and Tebrau operations at the new centre, which would be fully operational next April.

“The new centre needs between 12,000 and 13,000 employees, including 1,000 engineers,'' Tan pointed out.

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Peter Tan (right) exchanging documents with Datuk Mohd Sidik Osman after the signing ceremony.
The company operates six other industrial campuses in Brazil, China, Hungary, Mexico and Poland.

For its financial year ended March 31, 2005, Flextronics recorded US$16bil in revenue, of which 44% was from Asia.

PTP chief executive officer Datuk Mohd Sidik Osman said the port was currently talking to three manufacturers who plan to set up facilities in its free industrial zone.

“We are at looking towards the end of the year to finalise the talks and hopefully the projects could start early next year,” he said.

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What a fantastic port this is. Amazing!! Those Bridgecranes are awesome!! :cheers:

Hope to see more pics and news in the future.

Japan Solderless Terminals (JST) through its Malaysian subsidiary, JST Connectors (Malaysia) Sdn Bhd, will develop a one million sq ft integrated facility in the Pelepas Free Zone.

The plant, to be built over 12.58ha, will be developed at an initial cost of US$100 million (RM373.66 million) and will increase to more than US$200 million over 10-year period.

The new plant is for production, engineering, R&D, training and sales and it will be the most advanced of its kind, the company said in a statement on Aug 5.

"It will be part of JST's long-term goal of being the global leader in electronic and electric connectors," it said.

JST said the new plant would be part of JST's long-term goal to be the global leader in electronic and electric connectors.

The lease agreement was signed on Aug 4. Port of Tanjung Pelepas was represented by its chief executive officer Datuk Mohd Sidik Shaik Osman while JST was represented by chairman Miyoko Nishimoto.

A JST spokesman said JST decided to locate in the Pelepas Free Zone partly because of the lower overall costs of business and logistics facilitation, especially with their Singapore and Indonesian operations.

It said the other factors were the extensive and effective distribution network available through PTP to reach out to the company's global market.

JST has annual global sales of more than US$1 billion and a global workforce of over 6,000.

It supplies to leading companies and MNCs in the electronics, telecommunications and automotive industry.

Mohd Sidik said the entry of JST was the start of an industry cluster for the electronics industry in the Pelepas Free Zone, which over time will have a significant impact on the local cargo volumes handled by the port.

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:cheers:


What a size and what a speed this is built.

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Yay for ptp!

unfair trade practices!!

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:)

why is it unfair trade practices?

If it was unfair trade practices, Singapore, PSA would be complaining to the WTO!

PTP goes from strength to strength
Cargonews Asia - October 03, 2005

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Malaysia’s Port of Tanjung Pelepas has undergone one of the fastest container volume increases in the world outside China, but higher oil prices may see earnings remaining flat this year.

With accolades pouring in from various quarters the Port of Tanjung Pelepas (PTP), the port’s ambition of becoming Southeast Asia’s “sole hub” looks within reach.

“We cater towards the large hinterland market of Malaysia with rail and road connections: and being strategically located, we are also an attractive transshipment hub of regional connections,” explains Brian Paul who looks after PTP’s business development. Other factors include our ability to expand, being situated in a greenfield site and growth potential.”

Shipping experts agree that PTP has gone from strength to strength. Having begun operations in 2000, PTP has succeeded in getting Maersk Sealand and Evergreen Marine Corp. to shift their hub from nearby Singapore port to PTP within the first two years.

“One of the factors that went in PTP’s favour was its much lower cost of operations and its strategic location within easy reach of Malaysia’s hinterland, Singapore and Indonesia,” said Helmut Ischinger, a German shipping analysts, based near Hamburg, who monitors the Asian shipping sector.

An estimated US$600 million was initially investing the port, earmarked mainly fort the construction of a six-berth terminal with a 110,000 TEU container yard, ancillary facilities, 24 quay and rubber-tyred gantry cranes and a full complement of prime facilities and trailers. “The strategic location of the port amid the world’s busiest confluence of international shipping lanes and a vision and drive to establish PTP as a premier hub in the region were key drivers towards its success,” said Paul.

There are not many ports in the region that can efficiently handle 8,000 TEU+ vessels; PTP was designed to cater to these ships. A strong advantage, as many experts said, is that PTP offers space to grow. “Being a greenfield port, we offer our customers a promise of continuos growth opportunities. The completion of reclamation works for additional berths in the phase two plan offers flexibility where physical construction of these berths can be completed within 12 months,” Paul maintained.

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Dawn of new growth phase
The Star - December 09, 2005

IS 2006 going to be a better year for your company, the economy and you personally?

I expect 2006 to be an excellent year for PTP. Our growth from 2000 to 2004 has been astounding; no other port that has grown from zero to four million TEUs (20-foot equivalent units) within four years.

Over the last 10 months, we have focused on further improving productivity, enhancing turnaround time and increasing value-added services.

The shipping market is going through significant changes with new vessel deliveries and we should see the larger 9,000-TEU-vessel class being put into operations next year.

The market is also in a busy period of consolidation through acquisitions.

From a South-East Asian terminal viewpoint, the larger vessels and the consolidation will mean greater opportunities for a newly designed port such as PTP.

Today, the liners see PTP as being able to provide easy access to capacity and with much better turnaround time.

Next year will also see PTP growing the terminal business further, with new product offerings and leveraging on the development of our Free Zone.

In terms of growth, Malaysia needs to move away from the traditional model and look for new economic drivers.

PTP and south-west Johor promise to offer this new driver as the area has been marked as an industrial, maritime and logistics centre.

It is thus becoming an attractive investment centre to drive Malaysia into the future.

Personally, 2006 would be an exciting year working with the PTP team to further develop the business and contribute to the industry, community and the nation.

What would be top on your list of priorities for the coming year?

The priority for PTP is to continue to grow as the premier port in the region.

As vessel sizes increase, PTP is well positioned to be the market leader for service delivery such as rapid turnaround time and best in class moves per hour with high berth capacity.

This will provide liners the overall operational efficiency, leading to significant cost savings in terms of vessel operations.

The liners are also aware that PTP has the flexibility to expand and fully meet their future needs.

People are core to the sustainable success of the business and this is the other area we shall focus on.

We will enhance the PTP teamwork further and align everyone to deliver the satisfaction expected by our customers.

Cost management and operational efficiency are also important so that PTP would be able to deliver all the services requested by customers while delivering the expected return on investment to shareholders.

Are you going to invest more in 2006?

We would expand the terminal capacity by another two million TEUs with the completion of berths 9 and 10 in the third quarter of 2006 and the delivery of eight new container quay cranes in 2006.

In parallel, the Free Zone would be further developed with the construction of new plants and warehouses.

Please share some of your plans in relation to energy conservation, which has emerged as a major theme.

There is a need to use energy efficiently and move away from traditional forms of non-renewable energy.

For the latter, there is a need to develop and support alternate fuel sources like natural gas or renewables such as ethanol, biodiesel and hydrogen.

For biodiesel, Malaysia is well positioned with a plentiful source of palm oil as a viable alternative.

We also have plenty of sunshine as a source of solar energy to produce electricity or hot water.

PTP is a large consumer of energy from electricity and diesel, especially in the terminal operations. We have taken steps to reduce energy consumption with the use of more efficient cranes fitted with energy-harmonic filters and training of the crane operators.

On a wider scale, we are evaluating the use of natural gas for air-conditioning and power supply.

Finally, a mindset change is critical for success and we are developing strategies to change the behaviour of our staff with the help of two certified energy managers, who are part of our team.

CIBA Vision’s plans in PTP
The Star - November 14, 2005

Late last month an announcement made by an Atlanta based company, CIBA Vision Corp once again thrust the port and its unit the Pelepas Free Trade Zone into the limelight.



CIBA Vision’s plan, involves an investment of some RM500mil over the next eight years for the setting up of an integrated contact lens manufacturing and moulding plant at the Pelepas Free Trade Zone.



Although the new entry, comes after many other renowned names such as Bayerische Motoren Werke AG, Schenker Logistics, and Flextronics International Ltd, the new client could make a marked difference, as a result of its strong parentage.



CIBA Vision is a wholly owned unit of Novartis AG, Europe’s second largest drug maker by market value.



Novartis is a giant in the pharmaceutical business and its strength can be gauged from the fact that the company raked in as much as US$5.8bil in earnings from revenues of US$28.2bil last year.



Its market capitalisation exceeds 190 billion Swiss francs (US$144.5bil).



Atlanta-based CIBA Vision, although minute in comparison to its gigantic parent, has revenues of about US$1.4bil per annum, and is a leader in the research, development and manufacturing of optical and ophthalmic products, and is synonymous with the production of contact lenses.



“In terms of making contact lenses, we are the largest in the world. In terms of sales, if you look at the whole of Asia, we are number two, but in Europe and the US we are very well entrenched as the number one. It’s a very competitive market ... making contact lenses is somewhat an art now,” CIBA Vision’s group vice-president global supply chain Mike Dilworth tells BizWeek at an exclusive interview.



His company is currently the second largest in the world in terms of global market share, with a 30% slice of the pie.



The plan



The plan, or the big picture involves strengthening CIBA Vision’s foothold in the Asian region, and possibly taking over pole position in terms of sales in Asia.



CIBA Vision already has two existing facilities in the region, one in Batam, Indonesia and another located in Singapore.



The new facility in Tanjung Pelepas fits snugly into CIBA Vision’s plans. Dilworth elaborates, “It is very important for our facilities to be in close proximity so that any of our associates, especially our management have the opportunity to be in any one of the three facilities within a couple of hours of each other.



“Proximity is also important in terms of the regional build-up that we have, and the synergies and closeness in terms of having a finished product, or a product (which needs) to be finished in multiple areas in the regions.



“With our new plant, we now have two options to distribute, as the new facility is located close to our distribution hub in Singapore. It also allows us to do finishing for our products like O2 Optics in two places, in Batam and now in Malaysia. O2 Optics has been a big winner for us so we want to ensure that there is constant supply,” he adds.



O2 Optix is a breathable contact lens, which is currently CIBA Vision’s ace, and is in hot demand.



These lenses transmit up to five times more oxygen than traditional soft contact lenses resulting in whiter, healthier looking eyes and can even be worn while sleeping for up to six nights of extended wear.



Focus on Johor



The new plant in Johor is currently the object of Dilworth’s focus.



“Although we have two other facilities in the region, in Singapore and in Indonesia, this new facility helps to complement our existing facilities...This is going to be a large operation for us, possibly this is one of the largest facilities that CIBA Vision has.



“Ground breaking hopefully will be in the first quarter of next year. We are in negotiations with contractors to build the new facility. Hopefully by the end of December this year or January next year we will be able to start construction.



“We hope that by the end of 2006 we would have completed the construction of our building and by early 2007 start manufacturing products for sale ... Time is of essence,” Dilworth adds.



Starting off on a 35,000 sq m area, CIBA Vision will build up to some 50,000 sq m, which Dilworth says should take place over the next five years.



In terms of production, the plant would initially make about 300,000 contact lenses on a daily basis and grow to about 500,000 at a later stage.



Dilworth does not discount the fact that there may be more such investments coming PTP’s way, either by CIBA Vision or its pharmaceutical giant parent, but he merely says: “The future will be very bright we hope. We have the option and the land to expand the facility, and knowing that the Asian market is very large, we have the opportunity to expand even further beyond the 50,000 sq m. But as it stands now, this is our intent.”

The Star Maritime - April 17, 2006

Port of Tanjung Pelepas (PTP) is steaming ahead to increase its capacity to handle eight million TEUs annually once contruction work on berths nine and 10 are completed in the third quarter of this year.

“We will have a 3.6km-long linear wharf formation with improved annual capacity from two million to eight million TEUs by the end of this year,” said PTP chief executive officer Harun Johari.

He said the new berths would have the capacity to handle vessels of up to 250,000 dead-weight tonnes (dwt) and drafts of 19 meters alongside.

“We foresee a healthy growth for the container market in this region which will require a significant rise in operational effectiveness as well as capacity and space to handle more cargo.

“PTP’s investments are gearing to offer just that over the next five years or so. Beyond that, PTP has the ability to be flexible in diversifying our growth and opportunities to suit customers’ demands.

“More berths will be built to cater for any future growth that may come our way,” he said.

He added that PTP was also on the lookout to reclaim additional land for the development of Phase III of the port’s expansion plan beyond 2010.

In terms of value-added services, Harun said the Pelepas Free Zone (PFZ) had over 400ha of land for future development.

“As the south Johor hinterland has been earmarked as the next phase of industrial growth in Malaysia, manufacturers who are looking to locate their distribution hub in this region are aware that PFZ offers the best solution in terms of locality, fast enhancing connectivity as well as space for expansion,” he said.

He said the port not only planned to further grow in its container business but also use the opportunities from diversification of port activities.

“We are also looking to further develop our free zone land to help entice more local cargo and also become the catalyst for growth in south-west Johor.

“The PFZ and the recent agreements signed with three new investors namely Flextronics, JST and CIBA Vision to build manufacturing facilities here will catalyse further growth for the area.

“PTP will indeed be able to benefit directly from the spin-off of local cargo that will inevitably come from these factories,” he said, adding that the current capacity could cater for more than half of the projected growth.

Moving forward, PTP foresees itself as a major transhipment hub as well as building on the local traffic volumes opportunities.

“We are planning to diversify our business to take advantage of the growth potential in the southern area of Peninsular Malaysia as we can already see congestion influencing trade patterns.

“Today, more port capacity is needed than what is already planned and eventually the congestion will lead shipping lines to consider alternative routings.

“Ports like PTP that have available excess capacity will be able to resolve the issue of congestion faced by shipping lines,” he said.

He said the growth in global trade would benefit PTP as the port had ready capacity to accept more containers as well as the ability to handle the biggest vessels.

“We also view the mergers and acquisitions of shipping lines as a positive development for our growth.

“These new lines will undoubtedly require higher levels of productivity, flexibility as well as port capacity to maximise profits which is currently offered here at PTP,” he said.

He said the port served the customers by providing them with excellent distribution capabilities in terms of sea, land, air and rail.

“Our location near the tip of Peninsular Malaysia and at the chokepoint of international shipping lanes has seen our port grow from zero to four million TEUs in barely four years and is an excellent point for a transhipment and distribution hub,” he said.

Meanwhile, PTP chairman Datuk Mohd Sidik Shaik Osman has been appointed as president of the Federation of Malaysian Port Operator Companies (FMPOC).

Mohd Sidik, who is also the CEO for Senai Airport, will hold the post over a two-year term.

The FMPOC membership comprises PTP, Westport, Northport, Penang Port, Johor Port, Kuantan Port, Bintulu Port and Lumut Port.

As FMPOC chairman, Mohd Sidik aims to increase the competitiveness of major Malaysian ports, and ensure a level playing field with regional ports which have strong government backing.

The FMPOC will also discuss common issues affecting all privatised ports and hold regular dialogue with the government.

TERMINAL - PHASE 1
Linear berths : 6 berths of 360 metres each (totaling 2.16 km)
Draft alongside : 15 metres
Turning basin : 600 metres

TERMINAL - PHASE 2
Linear berths : 2 berths of 360 metres (totaling 0.72km)
Draft alongside : 16 metres (dredgeable to 19 metres maximum)

CONTAINER YARD CAPACITY
Designed to handle an annual throughput of 4.5 - 6 million TEUs annually
Total Area : 1.2 million sqm
Total ground slots : 22,120 TEUs
Storage capacity : 110,000 TEUs
Reefer points : 2,100 points

TERMINAL EQUIPMENT
Super Post Panamax
Quay cranes : 14 units with 18 box outreach 10 units with 22 box outreach and twinlift spreader
Draft alongside : 16 metres Rubber-Tyred Gantry
(RTG) cranes : 57 units operational, 15 more units on order
Stacking capabilities : 1 over 5 high
Other equipment and services : Prime movers and trailers
Maintenance and repair facilities for containers

GATE SYSTEM
14 lane Single Entrance Exit Point
GCAM-Gate Control Automated Management System
Fully computerized for smooth flow and reduced waiting time

...

PTP gets world's largest quay cranes
By Siti Nurbaiyah Nadzmi
news@nstp.com.my

May 23 2006

PORT of Tanjung Pelepas (PTP) is the first port in Asia to have the world's largest quay cranes to unload containers from commercial vessels.

The gigantic 89m tall structure, which is equivalent to a 26-storey building and the weight of 500 elephants, was successfully installed over the weekend.

The three Super Post Panamax quay cranes, costing RM82 million, were designed and manufactured by a Malaysia-Argentina joint-venture crane fabrication company IMPSA (Malaysia) Sdn Bhd in Lumut.

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Executive director Shawaludin Md Din said the installation was done in two phases.

The first phase was setting up the legs of the cranes, which were about 55m high (completed on April 26), while the second phase was lifting the head of the crane and attaching it to the legs.

He said these cranes are of the latest generation and are designed to serve very large vessels.

"These cranes are able to unload two 40-foot containers at once, cutting down unloading time by almost half," he said when met at the installation ceremony in Johor.

The high precision operation was made possible with a full tide to allow the floating skylift crane to lift the upper structure of the quay cranes and position it on the legs. Some 60 workers manned the four-hour operation.

Shawaludin said the crane will boost the efficiency of the port and allow it to be one of the most technologically advanced in the region.

He said so far there were only three ports in the world to have installed quay cranes of this size - two in US and another in Rotterdam.

"We will be installing five more quay cranes at PTP next March," he said.

He said IMPSA will be penetrating the European market by supplying three units of ship-to-shore cranes to the APM Terminal at Port of Algeciras in Spain next year.

Established in 1996, IMPSA has built more than 100 cranes in Malaysia for the local and export markets for the past 15 years.

PTP Increases Annual Capacity To 6 Mln TEUs
May 22, 2006 21:31 PM

By Minggu Simon Lhasa

JOHOR BAHRU, May 22 (Bernama) -- Port of Tanjung Pelepas (PTP) has increased its container annualised handling capacity to six million TEUs (twenty-foot equivalent units) following the addition of three new-generation super post panamax ship-to-shore cranes.

PTP's current annualised handling capacity is five million TEUs, said its deputy chief executive officer Capt Ismail Hashim at a press conference last Saturday before the erection of the 1,200-ton upper structure of the second crane on top of the crane legs.

The contract for the world's three largest cranes is worth RM82 million and the cranes will be operational next month.

PTP has also ordered another five more from IMPSA (Malaysia) Sdn Bhd, which manufacture the cranes at its plant in Lumut, Perak.

The new orders are expected to be ready in the first quarter of next year.

The crane is capable of lifting two 40-footer containers at the same time, Ismail said.

Not counting the three, PTP already has 24 super post panamax cranes which can lift up two 20-footer containers at the same time.

Ismail said with the new crane, PTP could now accommodate the bigger container vessels which are currently under construction.

He said PTP is now operating seven berths at its wharf with a ratio of 3.5 cranes per berth.

The new cranes will be located at Berth No. 8.

Ismail said the largest vessels are now about 9,000 to 10,000 TEUs and accommodate up 17 rows of containers across, while the new vessels which are expected to come into operation in the first quarter of next year would be as high as 12,000 TEUs and could carry 21 rows of containers.

The new cranes could serve ships carrying 22 rows of containers compared to existing cranes which could serve ships with up to 18 rows of containers, said IMPSA director of operations Sergio Evan Ciner.

Such ships are still under construction but PTP already has the cranes to serve them, he added.

Ismail said the new crane would also allow PTP to move two containers at the speed of one-and-a-half time that is required to move one container.

According to him, PTP's gross productivity now was about 22 moves per hour.

"The new vessels are going to be bigger and carry more containers but the ship operators still want their vessels to stay at the port at the same length of time as the current vessels," Ismail pointed out.

He said last month, PTP was lifting about 1,400 TEUs of containers per vessel call with about 280 vessel calls per month.

Meanwhile, Ciner said wind was a critical factor in the operation for the erection of the upper structure of the crane on its leg.

The operation was carried out over a period of three nights, from last Friday to Sunday, with one crane per night, he explained.

The operations were carried out successfully.

Ciner said the operations were carried out at night, involving up to 150 people, including 60 from IMPSA, as the ideal time to lift the uppper structure was at high tide.

He said the total height of a completely built-up crane is 89 metres, the equivalent of a 26-floor apartment block with a weight equivalent to about 500 elephants.

The total length of the crane is 150 metres, which is the same as 33 Proton Perdanas lined up back-to-back.

The upper structure was lifted from the barge used to transport it from Lumut using the largest floating crane in Asia, appropriately named Asian Hercules II, and mounted at 55 metres high onto the top of the crane legs.

While on the ground there was not much wind, at 55 metres above ground it could be very windy, Ciner said.

IMPSA has built more than 100 cranes in Malaysia over the last 15 years for the local and overseas markets.

It is the only ship-to-shore crane and rubber tyred gantry crane manufacturer based in Malaysia equipped with full technology.

-- BERNAMA

Hmm...

Some feeder lines has ditched PTP for PSA recently

HRC Shipping and Maersk's MCC Transport has some services moved to PSA Terminal in Q2

Malaysia's Port of Tanjung Pelepas sees 2006 double-digit sales growth

www.forbes.com - August 07, 2006

KUALA LUMPUR (XFN-ASIA) - Port of Tanjung Pelepas expects to see double-digit growth in revenue this year on the back of the completion of two new berths and the opening of the multi-billion ringgit South Johor Economic Region, the New Straits Times newspaper reported .

The paper cited a source as saying that the port is studying possibilities to add more berths and further develop the land in its Pelepas Free Zone, which covers about 405 hectares, over the next several years to support its growth.

Of this, about 162 hectares have been designated as a free commercial zone reserved for distribution, logistics, and warehousing activities ideal for consolidation, international procurement centers, regional distribution centers, and distribution services, it said.

Currently, only 30 pct of the land is developed, housing big firms such as Flextronics Int Ltd (Singapore), JST Manufacturing Co (Japan), CIBA Vision Corp (Atlanta), and German luxury carmaker BMW.

Meanwhile, with 10 berths currently in operation, the port aims to increase its capacity to handle 8.0 mln TEUs (20-foot equivalent units) per year, the report said.

Its two new berths (9 and 10) have the capacity to handle vessels of up to 250,000 tons and offer drafts of 19m alongside.

The port, which is 70 pct owned by MMC Corp Bhd and 30 pct by Maersk Sealand, handled 1.82 mln TEUs for the first five months of the year. It handled 4.2 million TEUs for the whole of 2005.

PTP clinches two major productivity awards

www.theedgedaily.com - June 02, 2006

The Port of Tanjung Pelepas (PTP) has clinched another international award after being named as the “Highest Berth Productivity for 2005” at the recent APM Terminals awards held in Shanghai.

The award follows PTP's overall average berth productivity of 102.40 moves per hour in 2005, which was the highest among all 37 APM terminals and affiliated ports worldwide.

APM Terminals, whose port network spans five continents, bestowed the award on PTP based on the port's cocsistent high performance and service levels over the past year.

“The award reflected the constant dedication and hard work that PTP’s skilled personnel put to ensure efficient and reliable services for shipping lines calling at the ever-improving transhipment hub,” PTP said.

PTP was also recognised as the best terminal for 2005 by Maersk Line, the world’s biggest shipping line after its recent merger with P&O Nedlloyd. This award is given to the port with the highest level of productivity and efficiency serving Maersk Line vessels worldwide.

In another development, PTP said it had recently received delivery of three new Super-Post Panamax cranes from IMPSA. The three cranes, touted as the largest in the world, brings the total number of super post-panamax cranes at PTP to 27 units, of which 13 of these cranes were fitted for twin-lift container operations.

The purchase of these cranes was in line with the port’s Phase 2 expansion plans that include the construction of two new berths to be completed by the end of this year.

Upon its completion, PTP would have a 3,600m linear quay wall with 10 berths and capable of handling up to eight million TEUs (twenty-foot equivalent units) of containers annually.

Wisma PTP
From : Pelabuhan Tanjung Pelepas Sdn Bhd.

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PTP sets up customer service
Aug 15, 2007


THE Port of Tanjung Pelepas (PTP) has set up a customer service centre to further facilitate customers' requirements and respond to complaints to ensure it becomes the "Preferred Port of Choice".

Chief executive officer Harun Johari said PTP acknowledges the importance of customers and believes they play an important role in determining the port's success.

"With the existence of the centre, all your queries and complaints will now be immediately responded to, handled professionally and progressively tracked by a focused team until all expectations are met," he said in his speech at PTP's Customer Appreciation Day in Johor Baru today.

The centre has its own dedicated toll-free number and e-mail address.

In addition, Harun said, the team would also provide the latest information required while any repetitive complaints would be analysted to identify its root cause to strategise a permanent solution. - Bernama

PTP, Johor Port And Senai Offer The Best Connectivity In The IDR


JOHOR BAHARU, (Bernama) -- Port of Tanjung Pelepas (PTP), Johor Port in Pasir Gudang and the Senai International Airport (http://www.skyscrapercity.com/showthread.php?t=139824) offer world class connectivity to investors who come to southern Johor's Iskandar Development Region (http://www.skyscrapercity.com/showthread.php?t=494365&page=3) (IDR), said PTP Chairman Datuk Mohd Sidik Othman.

The two seaports and airport, he noted, are already recognised internationally as a world class transshipment hub for Southeast Asia.

Mohd Sidik, who is also chief executive officer of Senai Airport, said investors in the IDR can rely on the logistics capability of the three facilities to provide an uninterrupted flow of goods in and out of the IDR.

"This logistics combination provides sea-air linkages to the IDR and is one of the major attractions from the logistics angle for investors looking to set up base here," he told a seminar on the IDR in Singapore this week.

All the three logistics hubs in the IDR are majority owned by MMC Corp Bhd.

Mohd Sidik said the IDR is "the first regional growth area being developed by the government, (and) it has tremendous prospects because it is well located, close to Singapore."

"It is supported by good infrastructure, by ports and by (an) airport. If you do it well, if you take care of all the fundamentals like governance, less bureaucracy, I think things will go well."

Mohd Sidik said some Singapore firms have expressed interest in moving into the IDR. They are looking at buying Malaysian products and processing them in the IDR before taking them into Singapore.

He noted that the good cooperation between the Malaysian and Singapore governments bode well for the IDR.

The two seaports and airports jointly organised the seminar with UEM World Bhd, the main developer the IDR.

-- BERNAMA

PTP Wins Excellence In Logistics Asean Award For Integrated Port
November 13, 2007 22:19 PM


KUALA LUMPUR, Nov 13 (Bernama) -- Port of Tanjung Pelepas has won the Technology Business Review's (TBR) Excellence in Logistics Asean Award under the "Integrated Port" category.

Its chief executive officer, Harun Johari, said today the port in south-western Johor, has taken a lot of initiatives to build a dynamic and competent workforce.

"The port's commitment to our people is derived from our belief that it is the softer side of the business, the people, who will ultimately produce the results for PTP," he said in a statement here.

Harun said an international selection committee made up of various industry leaders recognised and rewarded PTP based on its financial performance, the new technologies introduced to improve its business processes, customer relationship management programme, human resource initiatives to develop staff and also its corporate social responsibility commitments.

He said that winning the award serves as the best form of tribute to the employees of PTP for all their hard work and commitment shown to deliver results.

Being the only world class port in the Iskandar Development Region which is capable of servicing the new generation of vessels being deployed by shipping lines today, PTP with its state-of-the-art port facilities serves as the international gateway for the southern corridor's new economic growth area.

-- BERNAMA

PTP gets green light for terminal project
Taken from The Star
13 Nov 07
Story By : ZAZALI MUSA


GELANG PATAH: Port of Tanjung Pelepas (PTP), which has received approval from the Department of Environment for its multi-billion ringgit petroleum terminal storage centre, will begin construction next year.

Chairman Datuk Mohd Sidik Shaik Osman said the terminal, on a 2,200-acre site within the port vicinity, would take about 30 months to complete.

“The terminal will supply petroleum for vessels calling at the port and for our own usage,” Sidik told a press conference on Friday.

Development of the area surrounding the port, he said, complete with marine-related industries, would be crucial.

“The choice to build a second port in Johor at the mouth of Sungai Pulai was not by chance but by choice,” Sidik said, adding that there could not have been a more strategic location to develop a mega port capable of competing with the best in the region other than at the mouth of the river. The Sungai Pulai mouth, located at the southern tip of the peninsula, is at the confluence of international trade, which goes right into the world¡¦s busiest strait, the Straits of Malacca.

Sidik said the success of PTP's project would not only bring revenue and value to Johor but would also contribute to the success of the Iskandar Development Region.

He said to date, PTP had managed to attract more than RM10bil in investments to Johor, specifically at the port and the surrounding areas.

Earlier, Sidik presented a RM60,000 cheque to Malaysian Nature Society Johor (MNSJ) chairman Assoc Prof Dr Maketab Mohamed.

The allocation will be used by MNSJ to collect and document data on the unique ecology of the Sungai Pulai estuary, including its flora, fauna and marine species.

Also present at the event were Johor state tourism and environment chairman Freddie Long Hoo Hin and PTP chief executive officer Harun Johari.

Wisma PTP
From : Pelabuhan Tanjung Pelepas Sdn Bhd.

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From Hintan Associates Sdn Bhd.

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PTP wins excellence award
The STAR - Dec 03, 2007

THE Port of Tanjung Pelepas (PTP) recently won Technology Business Review's Excellence in Logistics Asean award under the “Integrated Logistics Hub” category.

An international selection committee made up of industry leaders voted for PTP based on its financial performance, improved business processes, customer relationship management programme, its human resources initiatives to develop staff and also its corporate social responsibilities activities.

PTP chief executive officer Harun Johari received the award at the Putrajaya Convention Centre from the Ministry of International Trade and Industry secretary general Datuk Abdul Rahman Mamat.

Factories

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Copyright © 2007. All rights reserved. Pelabuhan Tanjung Pelepas Sdn Bhd.

PTP container traffic up strongly
By Sim Bak Heng Published: 2008/01/13
Business Times Online

http://www.btimes.com.my/Current_News/BTIMES/Monday/Nation/SIM13.xml/Article/Current_News/BTIMES/Images/harun14.jpg

Last year's 14.5 per cent increase in TEUs is attributed to the continued strong global container trade, particularly the Asia to Europe route

THE Port of Tanjung Pelepas (PTP), one of the top 20 busiest ports in the world, handled 5.5 million TEUs last year, an increase of 14.5 per cent from 2006.

The company attributed the impressive growth to the continued strong global container trade, particularly the Asia to Europe route and the strong performance recorded by existing customers.

PTP chief executive officer Harun Johari said another factor was the desire and commitment shown by PTP employees.

He said these favourable factors had enabled the company to be transformed into a major transshipment hub and became Malaysia's largest container terminal today, just within a span of eight years.

"Global container trade is expected to grow from eight to 10 per cent annually for the next five years. The demand for port capacity to handle this growth will be significant. It is therefore important for us to be able to cope with the growth by boosting our capacity from time to time.

"With the availability of ample space for expansion, we are ready to meet the needs of our existing and new customers," he said.

Harun said PTP took delivery of four new quay cranes and eight rubber tyre gantry cranes in 2007, adding that orders for additional new equipment to beef up its existing fleet of cranes are underway and would be progressively delivered this year.

He appreciated the support given by the state government, adding that both sides are currently working together to further deepen the access channel.

"This, coupled with the planned construction of two new additional berths, will ensure PTP continues to provide the needed capacity and meet the high productivity levels demanded by its customers," he said.

Currently, foreigners have invested a total of RM3 billion at the Pelepas Free Zone. Last year, the company attracted twice as many number of new customers compared to 2006.

"We now have more than 50 global brands operating a diverse range of businesses within our Free Zone. To accommodate the growing interest of potential investors in our Free Zone, we are now actively developing additional land to meet the demand.

"We are ready to complement the Iskandar Development Region's growth. This is evident in the marked increase of local shippers using PTP as their preferred port," he added.

Strong year of growth for PTP
Container Management Magazine - Jan 15, 2008

Within just eight years, the Port of Tanjung Pelepas (PTP) in Malaysia has transformed itself into a major transhipment hub and is today the country’s largest container terminal and one of the top 20 busiest ports in the world. In 2007, PTP handled 5.5m teu, representing a growth in volumes of 14.5 per cent over 2006.

Harun Johari, CEO of PTP, attributed the growth experienced by the port in 2007 to the continued strong global container trade, particularly on Asia–Europe routes, together with a strong performance by existing customers and also the desire and commitment shown by PTP employees throughout the year.

"Global container trade is expected to grow at an average of 8–10 per cent annually for the next five years. The demand for port capacity to handle this growth will be significant. It is therefore important for ports to invest in capacity in a timely manner to ensure that they don’t become the bottleneck in the supply chain. With the availability of ample space for expansion, we at PTP are ready to meet the needs of our existing and new customers," said Harun.

PTP took delivery of four new quay cranes and eight RTG cranes in 2007 and has placed orders for additional new equipment to beef up its existing fleet of quay cranes, RTGs, prime movers and reachstackers. This additional equipment will be delivered in stages throughout 2008.

Harun also expressed gratitude to the Malaysian Government for its continued support of PTP. "We are currently working together to further deepen the access channel. This, coupled with the planned construction of two new additional berths, will ensure that PTP continues to provide the capacity it needs and meet the high productivity levels demanded by its customers."

Pelepas Free Zone also achieved tremendous success in 2007. To date, the zone has attracted a total of RM3bn in foreign direct investment. "In 2007 we successfully attracted twice as many new customers compared with 2006. We now have more than 50 global brands operating a diverse range of businesses within our Free Zone. To accommodate the growing interest of potential investors, we are actively developing additional land to meet the demand," commented Harun.

The launching of Iskandar Development Region (IDR) underlines the need for a strong gateway port in the south. PTP is well positioned to assume this role, due to its prime location within IDR and its world-class port and logistics services. "We are ready to complement IDR’s growth. This is evident in the marked increase of local shippers using PTP as their gateway port," concluded Harun.

Malaysia's PTP posts 14.5pc increase in TEU volume in 2007
Asian Shipper Magazine - Jan 17, 2008

MALAYSIA's Port of Tanjung Pelepas (PTP), the nation's largest container terminal, handled 5.5 million TEU in 2007, an increase of 14.5 per cent over 2006, say port authorities.

Officials attributed the growth in PTP's container traffic to the continued strength of the Asia-to-Europe container trade, the strong performance recorded by existing customers over the last year and to the hard work of PTP employees.

Harun Johari, CEO of Port of Tanjung Pelepas, said in a company statement: "Global container trade is expected to grow at an average of eight to 10 per cent annually for the next five years. It is therefore important to invest in capacity to ensure ports don't create bottlenecks in the supply chain."

PTP has taken delivery of four new quay cranes and eight RTG cranes in 2007 and has placed orders for additional quay cranes, RTG cranes, prime-movers and reach stackers.

PTP is also working with government to dredge access channels and there are plans to build two new berths.

To date, MYR3 billion (US$924.04 million) of foreign direct investment has been made in the Pelepas Free Zone. "In 2007 we attracted twice as many new customers compared to 2006. We now have more than 50 global brands operating a diverse range of businesses within our free zone," he said.

PTP cheer for the needy
The Star Online - 2008
By Zazali Musa

PORT of Tanjung Pelepas (PTP) is allocating several million ringgit for its corporate social responsibility (CSR) programme this year.

Senior general manager corporate division Shahrull Allam Shah Abdul Halim said the money would be used for the environmental, educational and poverty eradication-related activities.

Declining to disclose the exact allocation, he said most of the activities would be held within Gelang Patah and Pontian.

Shahrull presented schoolbags, stationery items, uniforms, shoes, water bottles and RM100 cash each to 139 children from Kampung Orang Asli Simpang Arang near Gelang Patah recently.

He said this was the first time that PTP had chosen orang asli children as recipients of the educational aid and the programme would probably be extended to other orang asli villages in Pontian in the future.

Johor has 62 orang asli villages, of which seven are in Pontian district.

“We are also open to giving scholarships to orang asli students who are doing well in their studies and assist them up to tertiary education,” Shahrull said.

He said some 14 schools from Pontian and Gelang Patah were involved in PTP’s educational activities that included motivational camps and tuition classes.

He said PTP also gave opportunities for orang asli with the qualifications and experience to work at the port and currently had 30 of them working in the port.

Location is key for PTP’s free zone
Marcus Hand - Feb 15, 2008

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THE free zone at the Port of Tanjung Pelepas in southern Johor, Malaysia, has been successful in attracting many of the top names in logistics.

As primarily a transhipment port, the free zone is a way for PTP to build up its local cargo base - leveraging on its position close to the major industrial areas of southern Malaysia.

“In 2007, we successfully doubled the number of new customers in our free zone compared to the previous year and we now have over 50 global brands operating a diverse range of business activities within our free zone,” said Harun Johari, chief executive of PTP.

To date, the free zone has attracted M$3bn ($926m) in investments and in 2007 it generated 20% more cargo than the previous year. Among the companies currently operating their warehouses within Pelepas free zone are APM Global Logistics, Schenker Logistics, BMW Distribution Centre, Keppel Logistics and Panasonic.

PTP’s free zone seeks to take advantage of the strategic location the port has at the crossroads of southeast Asia next to the Malacca and Singapore straits.

“The strategic location of PTP just off the international trade routes and right in the middle of the busy southeast Asian markets makes it ideal as a logistics and distribution centre for regional and global markets,” said Mr Johari.

The port also sees an advantage in that the free zone is run by the port as a private company rather than by a government body, as with most similar facilities around the world. “PTP is one of the very few ports in the world that administers its own free zone,” said Mr Johari. “Customers need to deal with only with one party on any matters pertaining to the free zone or port operations. As such, any issues faced by the customers can be better managed.”

Being located next to the terminal, it takes just four minutes on average for containers to move from the ship to the free zone.

While the free zone has helped build a local cargo base for the port itself, tenants are not restricted to using the port for sea transport links. There are even systems in place for the transport of cargo to and from the port’s neighbour and competitor Singapore, with an exemption from levies that would normally be charged.

“Customers also enjoy the benefit of seamless connectivity of their cargo as they have the option of using other ports like Johor Port or PSA [Singapore], or even airports like Senai, Kuala Lumpur International Airport or Changi as the entry or final exit points for their cargo,” said Mr Johari.

The upcoming Iskandar Development Region in Johor is set to further boost PTP’s business with both the free zone and the port linking in to this major initiative to attract businesses to the area.

“We foresee that as the IDR progresses, more business activities will be generated, leading to PTP having an increased role as a gateway port,” added Mr Johari.

www.lloydslist.com

PTP posts 14.5pc increase
Transport Weekly

Port of Tanjung Pelepas (PTP) handled 5.5 million TEU in 2007, an increase of 14.5 per cent over 2006, port authorities said.

Officials attributed the growth in PTP's container traffic to the continued strength of the Asia-to-Europe container trade, the strong performance recorded by existing customers over the last year and to the hard work of PTP employees.

PTP has taken delivery of four new quay cranes and eight RTG cranes in 2007 and has placed orders for additional quay cranes, RTG cranes, prime-movers and reach stackers.

PTP is also working with government to dredge access channels and there are plans to build two new berths.

To date, MYR3 billion (US$924.04 million) of foreign direct investment has been made in the Pelepas Free Zone. "In 2007 we attracted twice as many new customers compared to 2006. We now have more than 50 global brands operating a diverse range of businesses within our free zone," he said.

Lloyd’s first for Port of Tanjung Pelepas
Wednesday April 23, 2008

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Port call: Ong (second from left) listening to a briefing by Port of Tanjung
Pelepas Operations Division senior general manager Keld Pedersen (right)
during a tour of the port Tuesday.


JOHOR BARU: The Port of Tanjung Pelepas has shown impressive growth and should be able to achieve a target of 6.5 million twenty-foot-equivalent units, said Transport Minister Datuk Ong Tee Keat.

“This port is the only one in the country to pass the 5 million TEU mark. In the first quarter of the year, it has already handled 1.3 million TEUs,” he said.

He was speaking to reporters after a ceremony to commemorate the port being awarded the Integrated Management System (IMS) certification from Lloyd’s Register of Shipping yesterday.

The port is the first in the Asia Pacific region to receive the recognition.

Ong congratulated the port's management and said that it should strive even harder to improve its services and its competitive edge to ensure even greater success in the future.

Port chairman Datuk Mohd Sidek Shaik Osman said the port had made a name for itself in the maritime sector as the biggest port in Malaysia and one of the busiest container ports in the world.

“This was done in just eight years,” he said, adding that at present the port had 10 berths stretching 3.6km, equipped with the latest and most modern cranes.

Putrajaya Perdana bags RM181m contract
06 May 2008 11:34 AM, THEEDEDAILY

KUALA LUMPUR: Putrajaya Perdana Bhd’s subsidiary Perdana Construction Sdn Bhd has secured a RM180.5 million contract from Pelabuhan Tanjung Pelepas Sdn Bhd in respect of the second phase of the development of the Port of Tanjung Pelepas.

Putrajaya Perdana said yesterday the project involved the construction and maintenance of wharf structures at berths 11 and 12.

The project, which started on April 30, is scheduled for completion in 17 months and expected to contribute positively to the earnings of the group’s financial years ending Dec 31, 2008 and 2009.

MISC signs up with PTP
Seatrade Asia Online - Apr 30, 2008

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Kuala Lumpur: MISC has said it is partnering Pelabuhan Tanjung Pelepas Sdn Bhd (PTP) in an effort to make PTP Port the main transshipment hub in the region.

On 29 April 2008, MISC entered into a Joint Venture Agreement (JVA) with PTP to establish a private company known as PTP-MISC Terminal Sdn Bhd.

Under the agreement, PTP-MISC will have an initial issued and paid-up capital of RM500,000 (US$156,250), MISC, Malaysia's leading international shipping line, said in a statement to Bursa Malaysia on April 29.

PTP will hold a 70 per cent stake in the joint venture while MISC will own the balance of 30 per cent.

The joint venture company will serve MISC and other shipping lines with a view to make PTP Port the main transshipment hub in the region, the statement said.

PTP is a port for container ships located on the eastern mouth of the Pulai River in south-western Johor. The port has been scratching around for new clients since it snagged Maersk and Evergreen in 2001 and 2002.

Malaysia's MISC In JV To Make PTP Port Main Transshipment Hub
Asia Pulse - Apr 30, 2008


KUALA LUMPUR, April 30 Asia Pulse - MISC Berhad (MISC) (KLSE:3816) on Tuesday said it is partnering Pelabuhan Tanjung Pelepas Sdn Bhd (PTP) in an effort to make PTP Port the main transshipment hub in the region.

On 29 April 2008, MISC entered into a Joint Venture Agreement (JVA) with PTP to establish a private company known as PTP-MISC Terminal Sdn Bhd.

Under the agreement, PTP-MISC will have an initial issued and paid-up capital of RM500,000 (US$156,250), MISC, Malaysia's leading international shipping line, said in a statement to Bursa Malaysia on April 29.

PTP will hold a 70 per cent stake in the joint venture while MISC will own the balance of 30 per cent.

The joint venture company will serve MISC and other shipping lines with a view to make PTP Port the main transshipment hub in the region, the statement said.

PTP is a port for container ships located on the eastern mouth of the Pulai River in south-western Johor.

Port of Tanjung Pelepas, MISC complete deal
American Shipper+Shippers' NewsWire - May 05, 2008

The Port of Tanjung Pelepas and Malaysian ocean carrier MISC Berhad on Friday signed an agreement to set up a joint venture company to serve MISC and other shipping lines out of the southern Malaysia port.

The agreement will see PTP, Malaysia's biggest port, hold a 70 percent majority stake in the joint venture, with MISC holding 30 percent. It will also see MISC become the third major shipping line to use PTP as their hub in the region, following the moves of Maersk and Evergreen to PTP in 2000 and 2002, respectively.

"Cargo owners from the southern parts of Malaysia will benefit from the direct calls offered by MISC to various destination ports globally," MISC said in a statement.

PTP Chief Executive Harun Johari said the deal would expand the port's connectivity by at least 20 percent. No details about expected cargo volume from MISC were released.

Last year, PTP handled 5.5 million TEUs, a 14 percent rise over 2006. The port said it has capacity for 8 million TEUs and has room to build even further. PTP competes regionally with the Port of Singapore for transshipment cargo through Southeast Asia.

PTP To Spend Up To RM3 Bln In Capex Over Next Few Years
Bernama - Jul 08, 2008
By Tengku Noor Shamsiah Tengku Abdullah

KUALA LUMPUR, July 8 (Bernama) -- The Port of Tanjung Pelepas (PTP), ranked 17th among the world's busiest container ports, will spend up to RM3 billion in capital expenditure on expansion over the next few years.But this is dependent on the prevailing economic situation.

"The expansion includes the construction of two new berths at a cost of RM360 million and work commenced earlier this year.

"The berths will increase PTP's annual terminal handling capacity to 10 million twenty-foot equivalent units (TEUs), from the present eight million, to cater to growth over the next 18 months," said chief executive officer, Harun Johari, in an interview with Bernama.

Harun also said that PTP had recorded a double-digit growth since starting operations in 2000.

Last year, it recorded a throughput of 5.5 million TEUs.

"We are ready to cater to the growth in existing customers and also new ones. This year, especially the past six months, has been good for PTP," he added.

According to earlier reports, PTP should be able to achieve a target of 6.5 million TEUs this year.

Harun also indicated that, depending on other potential customers using the port, a further RM800 million would be invested in two more berths for a total of 14.

This year, PTP is expected to take delivery of more than RM480 million worth of additional port equipment such as twin-lift quay cranes, double-hoist quay cranes and rubber-tyre gantry cranes.

"The completion of a RM40 million, 132-kilowatt electrical sub-station, in October will also ensure reliability of power supply and smooth port operations.

"Other expansion plans include the construction of additional container yards," Harun highlighted.

Harun said about RM3 billion has been spent to develop PTP.

A further RM90 million was spent as part of PTP's social responsibility commitment, to relocate the local community affected by its development, to a modern and permanent resettlement.

Harun also stated that PTP had always been focused in its efforts to attract more shipping lines to utilise it.

"The current initiatives, including the expansion plans are all geared towards this.

"But the process of signing up shipping lines is not easy and it does not happen overnight.

Among other things, we have to first gain their trust and build bankable relationships.

"It is not merely about making a deal. We want the shipping lines to grow together with PTP," Harun said.

Harun pointed out that PTP's existing customers like Maersk Line and Evergreen had grown organically and were doing well.

"Having MISC on board as a new customer this year will benefit the development of PTP," Harun noted.

In April, PTP signed a joint venture agreement with MISC to serve it and other shipping lines. The aim was also to make PTP the main transshipment hub in the region.

PTP's deal with MISC will benefit its customers, particularly the Johor area ship owners, and further enhance PTP's regional as well as worldwide shipping connectivity.

Harun said with the availability of MISC's shipping services at PTP, ship owners have additional options in terms of freighting their cargo into and out of Johor.

"We are excited about the future. The transshipment business in the region is expected to grow," Harun added.

Emma Mærsk

The World’s largest container vessel ever built is named after Mrs. Emma Mc-Kinney Møller, the late wife of Mr Mærsk Mc-Kinney Møller.
On Saturday August the 12th her daughter Mrs Anne Mærsk Mc-Kinney Møller Uggla named the vessel Emma Mærsk.

Emma Mærsk will enter the Mærsk line’s Asia – Europe Service via the Suez Canal. The rotation is Gothenburg, Aarhus, Bremerhaven, Rotterdam, Algeciras, Singapore, Kobe, Nagoya, Yokohama, Yantian, Hong Kong, Tanjung Pelepas, Felixstowe, Rotterdam, Bremerhaven and Gothenburg.

In the nearby future there will be 9 vessels with the size of the Emma Mærsk, they are being built and will be used next year.

Details Emma Mærsk:
Length 394 metres
Breadth 56 metres
Height 76,5 metres
Depth moulded 30 metres
Capacity 11.000 TEU

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FSO Taurus

UE manages and operates the Floating Storage Outfit Taurus located at Port of Tanjung Pelepas (PTP). All tanks are leased to Glencore Singapore Pte Ltd.

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Ship
Source : http://www.ptp.com.my/

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PTP on track to hit six million boxes
Monday October 13, 2008 By SHARIDAN M. ALI TheStar

PORT of Tanjung Pelepas Sdn Bhd (PTP), one of two major terminals in Johor, is confident of achieving its volume target of 5.8 million to six million twenty-foot equivalent units (TEUs) this year despite the global economic slowdown.

Chairman Datuk Mohd Sidik Shaik Osman said PTP had already handled about 2.8 million TEUs in the first six months of this year.

Already an established transhipment hub in South-East Asia where it ranks number 17 on the world’s most active ports list, PTP is expected to further enhance its portfolio via import and export boxes.

“The percentage of local cargo for first six months has increased by 90.44% against same period last year,’’ Sidik told StarBiz.

“To enhance our local cargo operations further, we are working closely with some liners to promote the services at the port to local shippers.”

PTP handled 5.5 million TEUs last year.

On the prospect of handling more local cargo, he said, Iskandar Malaysia was poised to grow as investors throng into the area.

“This will contribute to PTP’s local volume throughput,” Sidik said.

PTP is 70%-owned by MMC Corp Bhd and 30% by APM Terminals, which manages about 40 ports worldwide.

Besides PTP, MMC also owns another port in Pasir Gudang €“ Johor Port Bhd €“ in which it holds a 100% stake.

Sidik said although PTP was confident of reaching its targeted growth this year, the slower economy would inevitably affect the port sector.

“Ports, as an important component in the logistics and supply chain, will feel the pinch of sluggish trade,” he said.

Sidik said despite the economic slowdown in the US and the negative impact on global trade following the increase in fuel price, ports in South-East Asia still managed to post growth in throughput volumes for the first six months of this year.


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An aerial view of Port of Tanjung Pelepas.


Ports in Asia are probably shielded from the global economic downturn as the trade within Asia was growing faster than that with other regions.

Asia-Pacific accounts for over 50% of Malaysia’s trade compared with less than 20% with the US.

Based on that positive outlook, PTP is not slowing down on its RM3bil expansion plan.

The port is currently constructing berth 11 and 12 that would provide another 720m of wharf space at the south of berth 10, bringing the total length to nearly 4.4km.

“Berth 11 is due for completion in May and berth 12 in September next year,” Sidik said.

He added that the two new berths were designed to carry four of the world’s largest and latest dual-hoist quay-side cranes.

To provide sufficient power to drive all the cranes, PTP recently constructed a larger electrical substation with a capacity of 132 kV.

“The construction of the container yard behind these berths will start after the berths are completed.

“The 32ha yard will provide space for 40,000 TEUs,” he said.

An additional 25 rubber-tyred gantry cranes as well as 60 prime movers and trailers are expected to be acquired to support the operations of the two berths.

The total investment of the two berths and container yard is around RM750mil.

PTP would commence the construction of berths 13 and 14 next year, said Sidik.

Strategic Location

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One of PTP's key advantages is that it is a mere 45 minutes from the confluence of the world's busiest shipping lanes. Easily accessible from the Straits of Malacca, PTP is situated on the eastern side of the mouth of the Pulai River in South-West Johor. PTP is a naturally sheltered deep water port and is near the Malaysia-Singapore Second Crossing.

Ultimate Location
Intersection of East - West International trade lanes
45 minutes diversion time

Natural Factors
Sheltered bay & no tide restriction
Terminal Draft of 15-19 meters
12.6 km of Access channel for two-way traffic
Turning basin of 600m

PTP sees opportunities despite global crisis
8-11-2008:-

JOHOR BAHRU: While the shipping world “groans” under the pressure of a global economic crisis with the prospect of declining trade, the Port of Tanjung Pelepas (PTP) in Johor is optimistic of “inherent opportunities” in the current situation.

“I admit that we have been affected by the economic downturn in the United States and Europe and there is already some impact on our volume, but we consider this to be a short-term effect.

“However, this crisis can also provide opportunities for us because we are mainly a transshipment port,” PTP’s deputy chief executive Ismail Hashim told Bernama.

He said PTP was monitoring developments in global trade and shipping, and was closely working with its two major customers — Evergreen and Maersk — shipping lines which have their operations at PTP.

“One way to respond to the crisis is to cut down cost, and we are working towards lean management which, in turn, will enable us to pass on the benefits to our customers.

“This is our way of supporting our customers. In my view, the present crisis is different from the Asian financial crisis in late 1990s when interest rates were infinitely higher than now,” he said.

Arguing that customers look for the “bottom line” in tough times such as now, Ismail said PTP offered a “good option” to operators.

Cargo handled at PTP comprises mainly electronic and electrical products and consumer goods. The port handled some 5.5 million TEUs in 2007 but many experts predict that the volume may decline in the current year because of the global economic turmoil.

PTP, which has an annual capacity of about eight million TEUs, is expanding its facilities.

It is implementing its phase two projects which include reclamation work for eight berths, four of which have been completed and another two will be completed in the second half of 2009. The remaining two should be ready for use by 2011. Six berths were completed under phase one.

“We have so far spent about RM4 billion on port expansion and development. Our aim is to become the preferred port in Southeast Asia,” he said.

On global shipping trends, Ismail said he expects competition to hot up in the coming months and years.

“Besides ensuring long-term capacity and connectivity, the key word to our success will be efficiency,” he said.

“We must project ourselves as different from others. Let us not forget that we are engaged mainly in transshipment. Indeed, transshipment is the mainstay of our business. We are also looking at the gateway business and developing our hinterland cargo business,” he said.

In contrast to PTP’s status as a transshipment port, Port Klang is a gateway port.

Ismail said PTP would be looking to expand its hinterland market in future with the implementation of the government-backed Iskandar Malaysia corridor development which is expected to provide a strong impetus to shipping and distribution.

The latest to join PTP is MISC Bhd, which started to move its operations from Singapore in May 2008.

MISC’s shift will no doubt further extend PTP’s outreach in the Asia-Pacific region, he added. — Bernama

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Strong interest in PTP stake
By Shahriman Johari Published: 2008/12/10

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MMC Corp Bhd (2194), an operator of ports and power plants, may sell part of Malaysia's second largest container port to fund expansion plans, sources said.

The group, controlled by Tan Sri Syed Mokhtar Albukhary, has received strong interest from local and foreign parties to buy a stake in the Port of Tanjung Pelepas (PTP).

"It is understood that one foreign party has even offered to take control of the port. That shows how much they value the business," one of the sources told Business Times.

MMC needs to raise at least RM1.7 billion to buy airport operator Senai Airport Terminal Services Sdn Bhd (SATS), that also owns a big piece of land in Johor.

MMC now holds 70 per cent of PTP, with the rest held by Danish shipping giant Maersk Line.
Another source said an independent valuer has priced the port at around RM9 billion.

Assuming MMC sells a fifth of PTP at this value, it could raise about RM1.8 billion. It would also still have control of the port, which is the 17th busiest container port in the world.

Sources said that several large shipping lines including Taiwan's Evergreen Marine Corp have made their interest known, while some local institutional investors are also in the running.

MMC's ports business, which also includes Johor Port Bhd, is the group's second biggest profit contributor after its power plants.

In the year to December 31 2007, the ports division posted an operating profit of some RM418 million, its annual report showed. It did not give a breakdown of how much PTP earned for that year.

MMC officials declined comment when contacted.

Last week, MMC said that talks on the disposal were at an advanced stage.

MMC has now proposed to buy SATS from Syed Mokhtar at a lower price and will pay in cash instead of shares.

It had wanted to buy SATS for RM1.95 billion in an all-share deal when the stock was trading around RM2.80 apiece.

However, it now has more than halved, which means that if the deal was done at a lower share price it would dilute MMC's shareholders (other than the main shareholders).

MMC's earnings per share would also fall due to the bigger number of shares.

"The current share price is not reflective of MMC's inherent value which now trades at a multiple of approximately only 0.7 times book value per share of RM1.94.

"The cash consideration will eliminate earnings dilution resulting from issuing a sizeable number of shares at the current depressed price," it said in a statement last week.

The new price includes RM580 million for airport operations and RM1.1 billion for SATS' 1,099ha of freehold land slated for development as a logistics city.

However, the revised deal has been criticised by analysts who said the sale could be "value destroying" as it reduces profit from its core business. They also pointed out to governance risks as the deal is a related party deal while SATS has yet to make money.

Shares of MMC fell eight per cent to close at RM1.15 yesterday.

PTP valuation pricey, say research houses
24-12-2008: by Yantoultra Ngui Yichen

KUALA LUMPUR: The Employees Provident Fund's (EPF) rejection of an offer of a 20% stake in Port of Tanjung Pelepas (PTP) for RM1.6 billion from MMC Corporation Bhd has come as no surprise to research houses due to its pricey valuation.

"As we mentioned in our previous (Dec 12) report, we value PTP at RM4.4 billion compared with a possible valuation by the company itself of RM8 billion.

"Our valuation is therefore almost at a 50% discount to MMC's valuation. In fact, at a value of RM8 billion, MMC's 70% stake in PTP would be worth some RM5.6 billion, which would be more than its current market capitalisation of RM3 billion," OSK Research said.

Kenanga Research said a comparison with the price paid by MMC in 2002 and that of the offer to sell the 20% stake currently was unfair without taking into consideration the amount of infrastructure put in and the extent of the throughput it was handling now.

In 2002, Tan Sri Syed Mokhtar Albukhary's vehicle Seaport Terminal (Johore) Sdn Bhd had injected 50.1% of PTP into MMC for RM1.6 billion in cash and shares.

Kenanga said the port's capacity now was eight million twenty-foot equivalent units (TEUs) compared with 5.5 million TEUs handled in 2007 on a net profit of RM116 million. "Using a flat earnings growth for FY08, the acquisition PER (price-to-earnings ratio) of 80 times would indeed be astronomical. The regional ports PER is about eight times," it said.

Kenanga Research said if the sale was not concluded, MMC might not be able to acquire Senai airport, which was also another controversial acquisition that had been modified to an all-cash deal of RM1.7 billion instead of through the issuance of shares.

It nonetheless maintained a buy on MMC with a target price of RM2.70 as the price had already more than discounted all the uncertainties in the acquisition while the repercussions from the IPP windfall tax debacle had ebbed with little risks of default on its Malakoff bonds .

OSK Research noted that the sale of PTP would not be easy given the presence of AP Moller-Maersk AS, which might limit the potential buyers. AP Moller-Maersk has a 30% equity in PTP, while MMC owns the balance.

"As the news has yet to be confirmed, we are not ruling out EPF as yet. MMC is also sure to court other local large institutions, including PNB and Lembaga Tabung Haji. Failing that, they may reduce the asking price to a more reasonable level," it said.

OSK Research said there was no respite for MMC in terms of news flow, which continued to be negative. It maintained a neutral call on MMC while waiting for the bad news to subside.

"Investors should note that even based on our RM4.4 billion valuation of PTP, MMC's 70% stake should be worth RM3.1 billion, which is already more than the group's current market capitalisation. Once the news on its related party transactions and provisions abate in the first quarter of 2009, MMC would be a buy again," it said.

Shares of MMC closed 3.5 sen higher at RM1.02 with a total of 3.48 million shares changing hands yesterday.

PTP, Johor Port expected to register lower throughput
Published: 2009/01/19

PORT of Tanjung Pelepas (PTP) and Johor Port are expected to experience softer cargo throughput this year, as the traditionally strong fourth quarter had signalled a slowdown in trade activities last year, a local research firm said.

Maybank Investment Bank Bhd (MIBB) said PTP handled 5.6 million TEUs (20-foot equivalent units) in 2008, 7 per cent off the target of six million TEUs for that year.

Looking at this result, both PTP and Johor Port's 2009 cargo throughput will most likely fall below their last year's numbers, amid lower shipping traffic, it said.

This in turn would delay capacity expansion, and decrease capital spending, unless the two port operators succeed in attracting new key tenants.

MIBB also said the stalled talks with the Employees Provident Fund over the proposed sale of MMC Bhd's 20 per cent stake in PTP will scupper MMC's other proposal to buy Senai International Airport, with the intended sales proceeds.

MIBB said this in its research note last Friday, which focused on the Johor state, particularly the performance and activities undertaken by MMC and its subsidiaries as well as UEM Land Bhd in the state.

MIBB said the outlook for Tanjung Bin, MMC's other subsidiary looks positive, given the additonal electricity supply generated from its power plant.

"Full operations of Tanjung Bin power plant since third quarter of 2007, which added 2,100MW of electricity to the national grid, should help sustain developments in Iskandar Malaysia and Tanjung Bin's own petrochemical and marine park.

"And the fall in coal prices to US$90 (US$1 = RM3.58) per tonne now against US$150 per tonne last year should be positive to 2009 bottomline," it said.

Both PTP and Johor Port contributed about 40 per cent to MMC's net profit in the first half of last year, while Tanjung Bin contributed three per cent in the first nine months of 2008.

"MMC's stretched balance sheet (net gearing of 2.5 times as at September 2008) is a concern and may even be a stumbling block to inorganic expansion," it said.

MIBB also said UEM Land's plan to develop Nusajaya may suffer some delays in new investments, while a changed political landscape may affect Iskandar Malaysia's development, including Nusajaya.

On Iskandar Malaysia, the research house said development progress has been in patches and is likely to slow as a slower global economy affects buying sentiment.

Sabah aims to move forward
Monday January 26, 2009

KOTA KINABALU: The Sabah government is determined that its planned development projects will be carried out despite the gloomy global economic outlook.

“We intend to weather the storm,” said Chief Minister Datuk Musa Aman in his Chinese New Year message.

In this regard, he said the impetus for the state’s progress would be the Sabah Development Corridor (SDC) launched by the Prime Minister just over a year ago.

“The SDC leverages the agriculture, manufacturing and services sector with the aim of bringing balanced growth to all regions of the state,” Musa added.

Noting that several SDC projects were off the ground, he said the state government was excited at the prospect of more investments in the development corridor.

“The Federal Government realises that Sabah is a large state with a difficult terrain and remote settlements and for this reason has poured in funds so that the people will have better schools, medical facilities and roads,” he added.

Musa also reaffirmed the state government’s commitment towards safeguarding natural resources and cultural strengths as Sabah moved forward in terms of development.

“Sabah may be slow in making its presence felt in the region but we are now making use of its diverse natural heritage and rich culture to stand out,” he added.

“Another new service introduced last year was the link to Europe and the Far East by German shipping line Hapag Lloyd.

“Joint services and slot exchange arrangements between the various shipping lines calling at the port made it possible for local cargo owners to move more cargo through PTP last year,’’ he told StarBiz.

Ismail said PTP had retained its status as Malaysia’s No. 1 port with 5.6 million TEUs recorded last year and it had been leading other local ports in terms of throughput volumes since 2002, just two years after it started operations.

He said efficient and reliable port-related services had increased the confidence level of customers such as Maersk and Evergreen to introduce more service calls at the port.

“Last year, Evergreen unveiled a new service linking Vietnam’s Ho Chi Minh City and PTP, while Maersk started a service linking Asia and the US through its vessel-sharing agreement with French liner CMA CGM,’’ he said.

On its expansion plan, Ismail said PTP was in the midst of adding two new berths to the present 12. The new berths would be ready by 2013.

He said the port had also ordered eight new quay cranes worth US$80mil. Four would arrive in the second quarter and the balance in the third quarter, increasing the number of cranes to 44 at the port.

Ismail said although the global economic scenario did not look promising for the port and shipping industry this year, the unfavourable conditions could bring about some opportunities for PTP.

“During bad times, people tend to be more creative and rising operational cost will force shipping lines to look for cheaper alternatives,’’ he said.

Ismail said PTP always prided itself on being able to deliver top-class port services, operational efficiency and high productivity that translated into cost savings for its customers.

He said it would continue approaching new shipping lines to make calls to PTP despite the slowdown to provide better coverage and connectivity for their customers.

http://thestar.com.my/maritime/story.asp?file=/2009/1/26/maritime/3109703&sec=maritime

PTP seeks RM4b more for capex
Published: 2009/02/14

JOHOR'S Port of Tanjung Pelepas (PTP), one of the fastest growing ports worldwide, is looking for RM4 billion more in capital expenditure (capex) in the next five years, for its expansion plan.

A sum of RM2.5 billion was allocated under the first phase of the expansion plan and PTP is looking at RM4 billion more for phase two, PTP chief executive officer Captain Ismail Hashim said in an interview.

On current developments, Ismail said, in terms of construction of facilities, PTP was now in the process of completing Berth 11 and 12.

"We should be completing Berth 11 in the second quarter this year and Berth 12 in the third quarter," he said.

Ismail said PTP had ordered eight key cranes, with four due to arrive in the second quarter this year and the remaining four in the third quarter.

Other new equipment included 20 rubber tyred gantry cranes, scheduled to arrive in the third quarter this year, and 50 prime movers early this year, he said.

"So with all these equipment, we should be able to handle about 10 million twenty-foot equivalent units (TEUs) on 12 berths", Ismail said.

"We have a significant capacity and at the same time more to sell for new potential customers," he said.

According to him, PTP is also looking for additional manpower.

"We will be adding 200 to 400 employees," he said.

In the wake of the global economic slowdown, Ismail said PTP was looking at new businesses this year to improve revenue.

"The financial crisis is affecting most shipping lines and they are keen to hear options or alternatives which can improve their cost structure," he said.

Ismail said PTP was also working aggressively to attract more shipping lines.

"In fact, the global economic crisis is also an opportunity in the sense that shipping lines have to look at their operating situations and we have the capacity to offer them competitive pricing," he said.

PTP, he added, was also able to provide faster turnaround and minimal waiting time for berths so that shipping vessels could move in a more productive manner.

For this year, PTP was looking at a similar level of business from its existing customers, Ismail said.

"We are looking at getting new business with the surplus of two to three million TEU capacity that we will have by the second half of this year," he said.

On the challenges ahead, Ismail said that PTP has a good masterplan for moving forward in the long term.

"It is geared up towards high growth and we can grow up to five times of what we are today," he said. - Bernama

MMC can now sell PTP stake to foreign parties
By Shahriman JohariPublished: 2009/02/16

http://www.btimes.com.my/Current_News/BTIMES/articles/peetee-2/Article/Current_News/BTIMES/Images/btgraph10/ptp.jpg

If a deal can be struck, the conglomerate controlled by Tan Sri Syed Mokhtar AlBukhary will still have to go back to the government for approval, sources say

THE government has allowed MMC Corp Bhd (2194) to talk to foreign parties on the proposed sale of its port in Johor, relaxing an earlier stand, sources said.

This would help MMC, a conglomerate controlled by Tan Sri Syed Mokhtar AlBukhary, to raise much needed funds for expansion.

MMC wants to sell about one fifth of Port of Tanjung Pelepas, Malaysia's second largest container port, for about RM1.7 billion.

However, the government limited its options as it barred MMC from dealing with foreigners, viewing the port as a strategic asset, and leaving it to talk to local funds.
"There is no black and white approval but MMC can proceed (and talk to foreigners)," said one source familiar with the developments. If a deal can be struck, it will still have to go back to the government for approval.

In December last year, MMC said that the sale of a minority stake in PTP is in an advanced stage. It now owns 70 per cent of the port while Danish shipping giant Maersk holds the rest.

Interest from foreign companies, which include shipping lines, remain strong and MMC had received about four to five expressions of interest.

One had even offered to buy up to 70 per cent of the port. Large shipping lines like Evergreen Marine Corp have made their interest known while Maersk could not be ruled out due to its "pre-emptive rights" as an existing shareholder. This means that whatever offer MMC makes for its PTP stake to another party, it has to make the same offer to Maersk first.

"Those in the industry, they appreciate the value of the business, they see the value of this," the source said.

Nonetheless, MMC is likely to keep control of PTP in line with the government's interest of keeping strategic assets in national hands.

MMC's ports business, which also includes Johor Port Bhd, is the group's second biggest pro-fit contributor after its po- wer plants.

In the year to December 31 2007, the ports division posted an operating profit of some RM418 million, its annual report showed. It did not give a breakdown of how much PTP earned for that year.

MMC needs to raise at least RM1.7 billion to buy airport operator Senai Airport Terminal Services Sdn Bhd (SATS), that also owns a big piece of land in Johor.

That deal has come under heavy criticism as SATS is owned by Syed Mokhtar and MMC will have to sell a profitable business to buy an airport company that has yet to make money.

(MMC has said that the deal fits with its long-term plan to become a major logistics player.)

The value of PTP has also been questioned. Analysts have said that RM8.5 billion is too high for PTP. The Employees Provident Fund, which was approached by MMC, also thought it was high.

Still, the EPF made an offer that was below MMC's investment cost, the source said.

"Equity funds will always look for an exit strategy ...when's the initial public offer and so forth, but (shipping) liners, they know the business," the source added.

PTP Aggressively Wooing New Shipping Lines
March 01, 2009 11:32 AM
By Tengku Noor Shamsiah Tengku Abdullah

KUALA LUMPUR, March 1 (Bernama) -- Johor's Port of Tanjung Pelepas (PTP), one of the fastest growing ports worldwide, is aggressively attracting more shipping lines, said its chief executive officer Captain Ismail Hashim.

"We are actively in negotiations but I am unable to disclose details, but basically with the top 10 shipping companies in terms of fleet size," he told Bernama in an interview.

Ismail said the current global economic crisis also provided an opportunity "in the sense that the shipping lines too have to seriously look at their operating situation".

"And basically we have the capacity to give competitive pricing to these lines," he said.

"We are also able to give them the opportunity for faster turnaround and at the same time minimal waiting time for berth so that their vessels can move in a more productive manner," he added.

Ismail said under the current situation, the shipping lines were relooking at their deployment of vessels and forging closer collaborations, even with their competitors.

"They are trying to find ways and means to manage the business level they have, with the existing oversupply of capacity," he said.

Asked when the deals are expected to close, Ismail said: "The expectation is there but, of course, there are things to be negotiated and discussed."

"There has to be some considerations, so this will probably take some time or it may be earlier to come to a conclusion," he said.

On another development, Ismail said PTP planned to expand its Pelepas Free Zone by another 175 hectares from the 750 hectares taken up earlier.

The area is Malaysia's first Free Zone consisting of commercial and industrial parks which are integrated within a single boundary at the port's terminal.

"We are working to develop this additional 175 hectares for the expansion of our existing customers' requirements as well as for new customers who may want to lease the land from us," he said.

According to him, half of the 175-hectare designated area had already been taken up by PTP's existing customers who are looking to expand their business here.

Global companies such as the BMW spare parts distribution centre, Flextronics, CIBA Vision and Cameron International are currently operating in the Pelepas Free Zone.

Maersk maintains keen interest in PTP
By Shahriman JohariPublished: 2009/03/03

The AP Moller-Maersk Group, a Danish shipping giant, says it maintains a "keen interest" in the Port of Tanjung Pelepas (PTP) in Johor, Malaysia's second largest container port.

It owns 30 per cent of PTP through its port unit APM Terminals, while MMC Corp Bhd holds the rest. MMC has received government nod to talk to foreign parties on the sale of PTP, sources had told Business Times.

MMC wants to sell almost a fifth of PTP to raise funds for expansion.

Maersk did not directly reply to questions on whether it was interested to raise its stake in PTP or if it had approached MMC for this.

"Naturally, we maintain a keen interest in the terminal and in its running efficiently because this is what our customers want, regardless of who eventually takes the stake," Maersk Line country manager Omar Shamsie told Business Times in an e-mail reply.

Sources had told Business Times that interest from foreign companies, including shipping lines, remained strong and that MMC had received about four to five expressions of interest.

One had even offered to buy up to 70 per cent of the port. Large shipping lines, such as Taiwan's Evergreen Marine Corp, have made their interest known, while Maersk could not be ruled out due to its "pre-emptive rights" as an existing shareholder.

This means that whatever offer MMC makes for its PTP stake to another party, it has to make the same offer to Maersk first.

Although it holds only 30 per cent of PTP, Maersk also manages the operations at the port, which has been important for the global group.

"From a container shipping line point of view, we depend on having efficient terminal operations and that is where PTP serves Maersk Line well today, as our transhipment hub for the Asia-Pacific region," Omar said.

Earlier last month, PTP chief executive officer Captain Ismail Hashim had said that the port was looking for a further RM4 billion in capital expenditure to expand over the next five years.

Some RM2.5 billion was allocated under the first phase of the expansion plans and PTP was looking at RM4 billion more for phase two.

"For further expansion, we have to see as we move along," Ismail had said in an interview with Bernama.

In the wake of the global economic slowdown, Ismail said that PTP was looking at new businesses this year to improve revenue.

"The financial crisis is affecting most shipping lines and they are keen to hear options which can improve their cost structure," he said, adding that PTP was also working aggressively to attract more shipping lines.

PTP in discussions with China state-run firm to fund expansion
www.seatradeasia-online.com - Mar 09, 2009

Beijing: China Harbour Engineering Co is discussing purchasing stocks of the Port of Tanjung Pelepas (PTP) with MMC Malaysia.

PTP is located in Johor and is seeking overseas money for expansion. The negotiations with China Harbour have been ongoing since the last quarter of last year with an announcement expected soon. The Chinese company has helped out building ports in other countries including Sri Lanka and Pakistan.

MMC talks to China firm on port stake sale -report
www.forbes.com - Mar 06, 2009

KUALA LUMPUR, March 7 (Reuters) - Malaysian transport-to-construction group MMC Corp is in talks with China Harbour Enginerring Co Ltd to sell a stake in its port in the southern state of Johor, a newspaper said on Saturday.

MMC Corp said in December that it was in the advanced stages of talks to sell a minority stake in its port operator unit, Pelabuhuan Tanjung Pelepas Sdn Bhd (PTP).

MMC owns a 70 percent stake in PTP, the operator of the Tanjung Pelepas port in Johor, while the rest of the port operator is held by Danish shipping and oil group A.P. Moller-Maersk.

'MMC Corp Bhd is understood to have commenced negotiations with China Harbour Engineering Co Ltd to sell a 19 percent stake in Pelabuhuan Tanjung
Pelepas Sdn Bhd,' the Edge, a Malaysian weekly, said, quoting unnamed sources.

'It is learnt that talks have been going on for a while now but no conclusive deal has been reached,' it said.

MMC could not be reached immediately for comment.

The company had previously said that PTP will remain a subsidiary of MMC following the proposed disposal.

by cyberseaver
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Maersk still wedded to Tanjung Pelepas
Asia News - Apr 20, 2009

Maersk Shipping Line has revealed that it retains a "keen interest" in the Malaysian Port of Tanjung Pelepas, where it controls a 30% equity stake. This is despite the fact that majority partner MMC Corporation has been given permission to negotiate a possible sale of one fifth of its holding to foreign investors. MMC needs the cash to fund future expansion. It is not known if Maersk is interested in acquiring the extra equity.

NORTHPORT TO SLOW INVESTMENT?
Reports suggest that Port Klang terminal operator Northport is considering delaying the upgrade of one of its harbour areas, because of current financial worries.

DALIAN PORT BUYS JINZHOU
The Dalian Port Group has confirmed it is to buy Jinzhou Port this year. In 2008, it was revealed that Dalian Port would acquire an 18.9% holding at the cost of $278m, making it the second largest shareholder.

MALAYSIAN OPERATORS TO CONTINUE INVESTING
Malaysian ports have scheduled investment of $1.61bn over the next few years. Of that, PTP has set aside $812m, while Port Klang operators are to spend $373m.

Bucking the trend
Container Management Magazine - Apr 30, 2009

Some ASEAN ports are faring better in the face of the global economic crisis than their counterparts in traditional markets. Wong Joon San looks at the performance of ports in Malaysia and further afield

When the global financial crisis began to bite in the fourth quarter of 2008, many businesses turned to ports in the 10 ASEAN nations (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam), believing that developing economies such as these would fare better than elsewhere.

Sunny Ho, executive director of the Hong Kong Shippers' Council, believes that businesses turned to developing economies as a kind of cushion against the economic crisis."[They did so] as if they were some sort of compensation, with the expectation that growing economies would have a higher economic growth than traditional markets in North America and Europe," he says.

To a certain extent such optimism has been proved right, as ASEAN ports have not been as badly affected by the crisis as US and European ports on traditional shipping lanes. In addition, Ho predicts that the ASEAN ports will be among the first to recover from the crisis.

The major ports in Malaysia, for example, plan to invest more than M$6bn (US$1.63m) over the next few years to further expand their capacities and to improve their cargo handling facilities and services. This can be seen as a bold move to strengthen their role in national and regional ports systems and to seize new opportunities spawned by changing shipping trends, including the expanding role of transhipment.

Port of Tanjung Pelepas

The Port of Tanjung Pelepas(PTP), which at present has 10 berths with a designed handling capacity of up to 8m teu per annum, is currently constructing berths 11 and 12, which will provide an additional 720m of quay length. "We have planned this to be completed by end 2009. Once completed, PTP will have 12 berths with an annual terminal handling capacity of 10m teu," explains Captain Ismail Hashim, chief executive officer of PTP.

"The development and expansion that we have planned involves dredging and reclamation works for four additional berths, which will provide an additional 1.4km of quay length. The berths will be supported by container yards and equipment, including dual-hoist quay cranes, RTGs, prime movers and trailers. We also have plans to deepen the access channel further to 17.5m, in order to allow vessels needing deeper draughts to access the port," says Hashim. However, he admits that, given the current economic situation, it is difficult to say when these plans will be fully realised.

PTP handled 5.6m teu last year and, based on current economic conditions, expect sits 2009 throughput to be comparable to that of 2008. "In order to be able to provide efficient and reliable port services to our customers (current and potential), we have to ensure that PTP is congestion-free and that ships calling here will face minimal delays and enjoy a faster turnaround time," says Hashim.

"As such, we have always planned the development and expansion of the port in such away that there will always be an excess in our terminal handling capacity against the teu volume actually being handled," he adds.

MISC, which in April 2008 signed a deal to make PTP its main hub in the region, has since commenced five direct services, within Asia and to Europe and the Middle East MISC's presence resulted in a significant increase in PTP's gateway volume in 2008. According to Hashim, the port's transhipment business has a lot of potential, and it is aiming eventually to become the "preferred port of choice" for Southeast Asia.

Ship captains must declare status
www.nst.com.my - May 19, 2009

KUALA LUMPUR: All ships arriving in Port Klang's Northport and Southport are required to sign a health declaration as part of efforts to check the spread of influenza A (H1N1). A circular from the Health Ministry issued to the Port Klang Authority (PKA) -- which manages the two ports -- states that a ship's captain must sign the declaration to attest that its crew are free from any flu-like symptoms.

PKA chairman Datuk Lee Hwa Beng said so far no crew members or port workers had shown any such symptoms.

"If there are any symptoms, we will quarantine the ship and Health Ministry officers will take over."

He said the chances of port workers being infected were low as most ships have a crew of only five to 20 people.

Moreover, ships take a long time to travel from their disembarkation point to another port.

Citing an example, Lee said a ship from Singapore to Malaysia takes four days, while those from Europe take at least a month to arrive.

"By the time it reaches port, we would know whether the crew is sick as they would have displayed the symptoms because the incubation period (of H1N1) is between two and three days."

Westports Malaysia said vessels with suspected cases of influenza A were barred from docking and would anchor in open sea to allow port health authorities to screen them.

In Johor, Port of Tanjung Pelepas is stocking up on masks and enforcing disinfection at public areas such as toilets, buses and canteens.

Building capacity
Supply Chain Asia - May 27, 2009

Meanwhile, in Malaysia, a recent reduction in the generation of teu volume by clients at one of the country's foremost free trade zones is not slowing plans for a major expansion of the zone.

The Port of Tanjung Pelepas FTZ (PTP Freezone), which benefits from close proximity to Singapore and from its location within the confines of the rapidly growing Port of Tanjung Pelepas, is in the process of reclaiming a further 70ac of land that will be available for lease by the middle of 2010. About 40ac has already been leased while the other 30ac is up for market.

"We are still confident that the free zone holds a lot of benefits and advantages for local and foreign investment. However, during hard times like this, we have to put in more effort and dedication to go the extra mile in order to capture the opportunities," said PTP Freezone CEO captain Ismai l Hashim.

The PTP Freezone is focusing efforts to attract regional distribution and international procurement centres - two categories that benefit most from current zone investment incentives set out by the Malaysia Industrial Development Authority (MIDA)."We are also putting in a significant amount of effort to attract International freight forwarders who are involved in supply chain management, total logistics as well as contract loqistics," said captain Hashim.

MMC to offer terminal services to CMA CGM
Published: 2009/06/03

MMC Corp Bhd’ 70 per cent unit, Pelabuhan Tanjung Pelepas Sdn Bhd, will provide container terminal services to CMA CGM, an international operator serving maritime shipping routes worldwide, for some of its container volumes in the region.

The contract will contribute positively to MMC’s earnings for the 12 months to December 31 2009, it told Bursa Malaysia yesterday.

PTP to handle extra throughput volume
Published: 2009/06/1

PELABUHAN Tanjung Pelepas (PTP) is set to handle an additional 500,000 twenty foot equivalent units through an agreement it signed with CMA-CGM two weeks ago.

On June 2 2009, PTP, a 70 per cent owned subsidiary of MMC, agreed to provide container terminal services to CMA CGM, an international operator serving maritime shipping routes around the world.

The additional volume is expected to contribute positively to the earnings and net assets of the MMC Group for the financial year ending December 31 2009.

Port of Tanjung Pelepas in Johor bucks the trend
www.theborneopost.com - Jun 16, 2009

KUALA LUMPUR: Whilst most ports in the region are expecting to see a drop in their throughput volume this year, Malaysia’s leading container terminal, the Port of Tanjung Pelepas (PTP), in Johor, is expecting quite the opposite.

PTP is currently ranked among the top twenty busiest container terminals in the world.

Despite the current gloomy global economy, PTP, which successfully linked an agreement recently with French liner CMA CGM (CMA) recently, expects to handle this year 6.1 million TEUs, up nine per cent from the 5.6 million TEUs in 2008.

Under the terms of the agreement, PTP will provide container terminal services to CMA to handle some of its regional transshipment cargo.
In fact, prior to the signing of the agreement, CMA’s vessels had already started calling PTP as a result of the ‘Vessel Sharing Agreement’ (VSA) partnership between it and Danish liner, Maersk Line.

When asked by Bernama about PTP luring CMA from Port Klang’s Westport, PTP chairman Datuk Mohd Sidik Shaik Osman said: “Due to strategic reasons, CMA decided to have two hubs in this region, which effectively means it would use both Westport and PTP.”

For now, he explained, the joint services under CMA and Maersk’s VSA would contribute to approximately half a million TEUs from PTP’s total annual throughput.

“Naturally, we expect to see an increase in volume from these services as the economy recovers and world trade picks up again.

“We have sufficient terminal capacity and equipment to handle CMA vessels here at PTP, now and in the future.

“With our current terminal handling capacity of eight million TEUs, and the plan to increase this to 12 million TEUs within the next five years, not only can we accommodate the new volumes of CMA but also that of other shipping lines”, he added.

When asked for an opinion on PTP’s move, a shipping analyst said the agreement to provide container terminal services to CMA, was timely and a step in the right direction for PTP.

Meanwhile another analyst said: “To support its transshipment operations at PTP, CMA’s regional feeders will now need to call at the port.

“This is seen as a positive development for PTP’s feeder connectivity.

“Operators expected to now call at PTP would further enhance its existing feeder operator network.”

Sidik elaborated that CMA’s presence in PTP would not only further improve its connectivity to other ports within the South East Asian region, but also major ports worldwide.

“The resulting enhanced connectivity of the port would contribute positively to our future annual throughput volumes”, he said.

As PTP is the main gateway for Iskandar Malaysia shippers, Sidik said the improved global connectivity would also further improve the attractiveness of the corridor as an investment destination.

“Local shippers, especially those Johor-based, now have new opportunities and more options to ship their cargo through the port”, he said.
— Bernama

CMA CGM ships commence calling at Tanjung Pelepas
www.eximin.net - Jun 16, 2009

THE Malaysian Port of Tanjung Pelepas (PTP) has secured business from French shipping line, CMA CGM, after seven years of serving only Maersk Line and Evergreen as mainline operators.

CMA CGM is calling at PTP because it operates new services in cooperation with Maersk Line. The two carriers’ joint Far East-US East coast/West coast "Columbus" loop which is operated by 6,500-TEU vessels from both lines, started calling at PTP in May, while CMA CGM buys slots on Evergreen’s revamped CES service, which also began calling at PTP last month.

CMA CGM’s South-East Asian hub remains Port Klang and the carrier also calls at Singapore, mainly through slot exchange arrangements with The New World Alliance (TNWA).

CMA CGM is expected to provide fewer containers at PTP than Evergreen and Maersk Line, but the development is said to be significant because PTP has been seeking new customers for a long time.

APM Terminals holds the remaining 30 per cent in PTP.

PTP handled 5.6 million TEUs in 2008, an increase of two per cent year-on-year.

French shipping giant CMA CGM keen to strengthen presence in Malaysia
The Star - Jun 22, 2009

MARSEILLE: Malaysia’s liberalisation of 27 local services sub-sectors, including the transport sub-sector, prompted French shipping giant, CMA CGM to mull over plans to strengthen its foothold in the country.

Transport Minister Datuk Seri Ong Tee Keat had during a visit to the headquarters of the world’s third largest container shipping company in the French city last Thursday shared the Malaysian Government’s policy to liberalise the transport sub-sector, including the opening of 30% restriction in foreign ownership.

CMA CGM has had a presence in Port Klang since 1994 and is one of the largest customers of Port Klang. It has since June 1 also served the port of Tanjung Pelepas.

In welcoming the move, the company’s president Jacques R. Saade said “such liberalisation will change the strategy (of the company) in Asia.”

The shipping giant also welcomed Ong’s announcement of gradual liberalisation of cabotage of key sectors such as from Peninsular Malaysia to three major ports in east Malaysia, namely Sepangar, Kuching and Bintulu.

Saade said the company would seriously explore the opportunities available from such a move. He also said the company would expand its dry port bonded warehouses, which include the Port Klang Free Zone.

Later, Ong visited the Port of Marseille, one of the oldest and busiest sea ports in France.

Marseille Port also raised its interest to establish an in-house university specialising in shipping and maritime as part of its education and training project.

Ong took the opportunity to test-drive its state-of-the-art port simulator.

Port of Tanjung Pelepas bucks trend
www.eximin.net - Jun 23, 2009

WHILE most ports suffer a downturn world-wide, Malaysia’s Port of Tanjung Pelepas (PTP) is bucking the trend and finds itself among the 20 busiest container terminals in the world.

PTP, which recently signed an agreement with Marseilles-based CMA CGM, expects to handle 6.1 million TEUs, up by nine per cent from the 5.6 million TEUs it handled during 2008.

Under the terms of the agreement, PTP will provide container terminal services to CMA CGM to handle regional transhipment cargo, which will be transhipped at PTP near Singapore.

In fact, even before the agreement, CMA CGM’s vessels had started calling at PTP as a result of the vessel-sharing agreement with Maersk Line.

The PTP Chairman, Mr Mohd Sidik Shaik Osman, has been quoted as saying that CMA CGM had decided to have two hubs in this region, which effectively meant that the French shipping giant will continue to use Westport’s Port Klang further north near Kuala Lumpur

Administrative Building, Port of Tanjung Pelepas, Johor, Malaysia
From http://www.hintan.com/

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Strategic Location

http://www.ptp.com.my/images/strategic-map.gif

One of PTP's key advantages is that it is a mere 45 minutes from the confluence of the world's busiest shipping lanes. Easily accessible from the Straits of Malacca, PTP is situated on the eastern side of the mouth of the Pulai River in South-West Johor. PTP is a naturally sheltered deep water port and is near the Malaysia-Singapore Second Crossing.

Ultimate Location
Intersection of East - West International trade lanes
45 minutes diversion time

Natural Factors
Sheltered bay & no tide restriction
Terminal Draft of 15-19 meters
12.6 km of Access channel for two-way traffic
Turning basin of 600m

Aerial View

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Copyright © 2007. All rights reserved. Pelabuhan Tanjung Pelepas Sdn Bhd.

From http://www.ptp.com.my

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From http://www.ptp.com.my

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Container Yard
From http://www.ptp.com.my

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Container Yard
From http://www.ptp.com.my

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Container
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Marine Services
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Port Operation
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Port Operation
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Port View
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Wisma PTP
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OSK: Cargo volumes to recover gradually
Monday July 6, 2009
By SHARIDAN M. ALI

http://thestar.com.my/archives/2009/7/6/maritime/mt_pg12pelepas.jpg

An earial view of Port Tanjung Pelepas.

PETALING JAYA: Cargo volumes in Malaysia’s container ports are expected to see a gradual recovery going forward after a slump in the first half of this year, according to OSK Research.

Its analyst Ahmad Maghfur Usman told StarBiz that in general, major container ports in the country had experienced only 10% to 15% decline in volumes so far this year.

Northport (M) Bhd, a wholly owned subsidiary of NCB Holdings Bhd, recorded a 13.9% decrease year-on-year in container volume to about 1.3 million 20ft equivalent units (TEUs) in the first six months of 2009.

“Moving forward, the current slump in the port sector in the country might have bottomed out looking at the current situation.

“But do not expect any sharp increase in the container throughput going forward,” he said, adding that airfreight was expected to recover ahead of sea cargo due to urgent shipments when the economy picked up.

At Port Klang, the country’s maritime gateway, container volume in the first quarter saw a double-digit decline year-on-year.

Checks with players dealing with the port, however, revealed that volume has been rising slowly since the middle of the second quarter this year.

OSK said Northport, one of two ports located in the national load centre in Port Klang, was unlikely to witness a severe fall in container throughput volume as it would be cushioned by indigenous cargo trade as well as its relatively smaller exposure to transhipment containers.

Ahmad Maghfur said although transhipment cargo was expected to pull down most ports’ volumes compared to import and export cargo, that would not be the case for the Port of Tanjung Pelepas (PTP), a 70%-owned subsidiary of MMC Corporation Bhd and a major transhipment terminal in Malaysia.

PTP recorded about a 3% increase in container volume to 1.9 million TEUs in the first half this year compared with a year earlier, OSK said. The port was confident of recording 6.1 million TEUs for the whole of 2009 versus 5.6 million TEUs last year, it added.

[PTP corporate video]
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Magnificient architecture of Tanjung Pelepas entry point
Taken from http://cpfperak.blogspot.com/

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The interior of the building

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Masterplan
Source: http://www.ptp.com.my/masterplan.html

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Free Zone
Source: http://www.ptp.com.my/freezone.html

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PTP was accorded Free Zone status in March 1998.The Malaysian government also appointed PTP as a Free Zone Authority (FZA) on June 16, 1999, to administer both the Commercial Free Zone and the Industrial Free Zone. This administration of the FZA functions within PTP ensures smooth and efficient transactions.

Pelepas Free Zone (PFZ) is situated adjacent to the port and terminal and covers an area of about 1,000 acres. This is segmented into different zones depending on the type of activities carried out.

Of this, approximately 400 acres has been designated as Free Commercial Zone (FCZ) reserved for distribution, logistics, and warehousing activities ideal for consolidation, International Procurement Centres, regional distribution centers, and distribution services. The remaining 600 acres of Free Industrial Zone (FIZ) is reserved for light, medium and heavy manufacturing industries.

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Technology

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SMARTRAIL SYSTEM
Rubber tyred gantry yard cranes are retrofitted with SmartRail (advanced setellite-guided automatic steering and position determination system) virtually eliminating human error by using the Differential Global Positioning System (DGPS) for pinpoint positioning accuracy to avoid misplaced containers and reduce waiting time for loading discharge.

CONTAINER MANAGEMENT SYSTEM
Express and Sparcs from Navis, the core system in PTP is utilised for yard & vessel planning and for facilitating precise container movement.

GATE CONTROL AND MONITORING SYSTEM (GCAMS)
PTP's GCAMS ensures smooth flow for all gate transactions and intergrates Customs Gate Control Systems with PTP's Container Management Systems to maximize efficiency.

PORT RADAR SYSTEMS
Port Radar Systems ensure safe and efficient management of all vessel traffic movement at PTP while enhancing effectiveness during emergency situations.

VESSEL CLEARANCE SYSTEMS (VCS)
The VCS allows paperless declarations to various governmental agencies and online approval processes.

SAFETY AND SECURITY
PTP's Vessel Tracking System known as RADARS (Radar Information Processing and Display) provides vital informations such as the status of every container in the port at any given time to the Marine Dapartment for smooth traffic flow and added safety.

http://www.ptp.com.my/images/tecnology2.jpg

PTP's innovative IT systems are applied in all areas of operations. The IT network system ensures all port users easy access with 24-hour availability every day of the year via dial-up, web access or by usage of EDI transmission.

Container Terminal
Source: http://www.ptp.com.my/container.html

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Containerisation International - Jun 25, 2009
A Waiting Game

Almost all container ports in the ASEAN region have seen their box volumes fall this year and prospects for the rest of 2009 do not look too promosing. Consequently, terminal operators and port authorities are working closely with their customers to see what can be done to limit th damage. Ravindra Galhena reports.

Research undertaken by CI reveals that container throughputs in the ASEAN region's principal gateway and hub ports dropped by between 3% and 24% in Q1 09 (see table).

The region, which still relies heavily on exports, has been seriously affected by the slump in demand for its goods, particularly in North America, Europe and Japan (see 'Plumbing the depths', pp57-59). In turn, this has affected inbound traffic, leading to substantial pressure on container throughputs.

And the rest of the year will be extremely tough, with most ports now expecting deficits in their box volumes.

Lily Chan, general manager (Group Corporate Affairs) at Hutchison Port Holdings (HPH), which operates facilities in Indonesia, Malaysia, Thailand and Vietnam, said: 'We expect 2009 to be a very challenging year and we will continue to closely monitor global trade patterns.

'Given our strong port diversification model, we are confident that we are in reasonable position to respond to any changes in cargo movements. We also remain alert to any possible new investments which might arise during this period'.

She added: "We are going ahead as planned. As a group we asses all aspects of our business on a regular basis and we plan our resources according to market developments. Each port acts as a standalone entity and makes business decisions based on local circumstances.

'Regarding port development plans in South East Asia, we can report that the construction of our port in Vietnam, Saigon International Terminals Vietnam Limited (SITV) is currently underway'.

HPH hopes to have the new facility on stream in 2010, Meanwhile, the group's plans at Leam Chabang (Thailand) are also on schedule, with Chan alluding to the Hutchison Laemchabang Terminal as having three additional container terminals operation by 2011. Its first three terminals were opened between 2006 and 2007.

More: http://www.ptp.com.my/media-news.aspx?mid=1&mnid=7&cid=0&itmid=2558&title=A%20Waiting%20Game

Pelepas sees 9% rise in throughput
www.ports.gov.sa - Jul 31, 2009

PTP chairman Mohd Sidik Shaik Osman said: 'Due to strategic reasons, CMA decided to have two hubs in this region, which effectively means it would use both Westport and PTP.'

For now, he explained, the joint services under CMA and Maersk's VSA would contribute about half a million TEUs to PTP's total annual throughput.

'Naturally, we expect to see an increase in volume from these services as the economy recovers and world trade picks up again.

'We have sufficient terminal capacity and equipment to handle CMA vessels here at PTP, now and in the future. With our current terminal handling capacity of eight million TEUs, and the plan to increase this to 12 million TEUs within the next five years, not only can we accommodate the new volumes of CMA but also that of other shipping lines.'

A shipping analyst said that the agreement to provide container terminal services to CMA was timely and a step in the right direction for PTP.

Box traffic at Malaysia ports up 10% in Q2
www.businesstimes.com.sg - Jul 31, 2009

(KUALA LUMPUR) Malaysian ports handled 10 per cent more containers in the second quarter of the year compared to the first, reflecting a recovery in both domestic and transhipment cargo, reported Malaysia's Business Times yesterday.

Traffic at the 10 major ports rose to 3.79 million TEUs (20-foot equivalent units) from 3.44 million previously.

Transhipment traffic, comprising almost two- thirds of the total, was up 11 per cent at 2.48 million TEUs from 2.22 million.

Export containers showed a 10.2 per cent increase to 670,718 TEUs, while import traffic rose 4.4 per cent to 640,469 TEUs.

In the January-June period, however, container throughput fell 7.7 per cent to 7.24 million TEUs from the first half of last year. Cargo tonnage was down 11.6 per cent at 168,806 tonnes.

Transport Ministry special maritime adviser Abdul Rahim Abdul Aziz said that the drop in first-half container volume was in line with the performance of other ports in the Asean region, which saw 15-30 per cent declines.

'For instance, ports in the Philippines reported a decline in cargo volume of an average 20.6 per cent in the first half, while Vietnam's port container throughput was down between 14 per cent and 30 per cent, and Thailand, an average drop of 35 per cent,' he told the paper.

'While container traffic seemed to have stabilised in the second quarter, port operators in Asean remain uncertain whether the market has hit bottom.'

'At the recent Asean Ports Association (APA) working committee meeting in Kota Kinabalu, the most optimistic prediction of a recovery was from the middle of 2010,' said Capt Abdul Rahim, who is also the APA working committee chairman.

To survive the current economic downturn, port operators have resorted to various cost-cutting strategies, including sending fewer employees overseas for trips or meetings and deferring purchases of new equipment, he added.

Port Klang, comprising Northport and Westports, solidified its position as the largest container port in the country. Its container throughput rose 7.8 per cent in the second quarter compared to the first three months. It moved 1.73 million TEUs against 1.6 million before.

Transhipment volume came to 996,508 TEUs, up 4.6 per cent from the first three months, and making up 57.7 per cent of Port Klang's total throughput.

The Port of Tanjung Pelepas (PTP) in Johor continued to be the second largest container port, handling 1.47 million TEUs in the second quarter. It recorded 17.6 per cent growth from 1.25 million TEUs in the first quarter, with 94.4 per cent of all volume coming from transhipment.

Bintulu Port saw 16 per cent growth to 57,895 TEUs from 49,875 in the first quarter.

Johor Port handled 216,744 TEUs in the second quarter, up 7.3 per cent from 201,915 in the first, thanks to the increase in transhipment and export cargo.

Penang Port was the only port to record a decline in the quarters reviewed, down 24.2 per cent to 151,165 TEUs from 199,391.

M’sian ports recovering despite gloomy outlook
www.theborneopost.com - Aug 05, 2009

KUCHING: Malaysian ports recorded a quarter-on-quarter (QoQ) increase of 10 per cent in container traffic for the second quarter of this year (2Q09), reflecting a recovery in both domestic and transhipment cargo.

According to a maritime report published recently by London-based Drewry Shipping Consultants, traffic at the 10 major ports nationwide rose to 3.79 million TEUs (20-foot equivalent units) from 3.44 million previously.

Port Klang, comprising Northport and Westports, confirmed its position as the largest container port in the country. Its container throughput rose 7.8 per cent in 2Q09, handling a total of 1.73 million TEUs versus 1.6 million in 1Q09.

Transhipment volume came to 996,508 TEUs in 2Q09, up 4.6 per cent from 1Q09 and comprising 57.7 per cent of Port Klang’s total throughput.

The second largest container port in the country, the Port of Tanjung Pelepas in Johor handled 1.47 million TEUs in 2Q09, an increase of 17.6 per cent from 1.25 million TEUs in 1Q09, with 94.4 per cent of all volume deriving from transhipment.

In East Malaysia, Bintulu Port saw a 16 per cent growth to 57,895 TEUs in 2Q09 from 49,875 in 1Q09.

In line with the expectation of a recovery beginning in the middle of next year, total trade growth for major Malaysian ports is forecast to increase by 4.4 per cent next year, followed by an average yearly growth of 6.9 per cent between 2011 and 2013.

However, trading activities in ports globally are expected to decline significantly by over 10 per cent this year, due to the continued contraction of the global economy.

The report said cargo ships are anticipated to carry 27 million fewer containers by the year’s end compared to last year, possibly resulting in an estimated loss of US$20 billion worldwide.

Many key players in the international shipping industry almost unanimously agreed that turnaround would only begin to emerge in the middle of next year.

Even then, the situation is seen as a long-term problem that would require several years to regain trade levels achieved in 2006 and 2007.

In the US, the continuing global recession has caused the industry to deteriorate, leading to a downgraded overall outlook for 53 major ports including those of Los Angeles and Long Beach, two of its busiest seaports.

Port of Los Angeles recently lost its biggest tenant, the world’s largest shipping line AP Moller-Maersk.

The Danish-based line, which has a worldwide fleet that is bigger than the US Navy, withdrew its services in Los Angeles as well as other ports in order to cut cost.

The Maersk line, which operates 470 vessels and owns 1.9 million containers, posted a loss of US$559 million during the first quarter of the year.

At the Long beach port, trade volumes have contracted all the way down to 2003 levels, diminishing all of the trade gains recorded during peak periods of 2004 to 2007. Similar situations can be found at many US ports.

In the Asean region, the performance of major ports is showing declines of 15 to 30 per cent.

Ports in the Philippines reported a drop in cargo volume of an average 20.6 per cent in the first half of this year (1H09), while Vietnam’s port container throughput was down between 14 and 30 per cent.

Even the trade route between Asia and Europe, which has been the most resilient in the face of global recession, has now succumbed as well.

So far, the last three years of growth in trade within this route has been erased.

According to the report, such setbacks in international ports would result in consolidation throughout the shipping business.

As in the case of the Maersk line, many shipping lines are consolidating and sharing cargo routes with competitors to reduce costs.

Further aggravating the situation, the report also stated that freight rates for trans-Pacific trade, the amount that shipping lines can charge for a typical 40-foot container for cargo moving between Asia and the West Coast of the US, have now plummeted to US$920 from US$1,400 at the beginning of the year.

Nevertheless, there are several optimistic indications that are seen as possible mitigating factors against the economic crisis.

The ports of Los Angeles and Long Beach have been the two most highly rated ports in the US, a factor which has retained their continued attractiveness to shippers.

Along with their strong financial situations and competitive market presence, it is expected that both ports will have better leverage points to be among the first to benefit when the recovery begins to take effect.

Malaysian ports rise container throughput by 10% in Q2
www.ports.gov.sa - Aug 10, 2009

Export containers showed a 10.2 percent increase to 670,718 TEUs, while import traffic rose 4.4 percent to 640,469 TEUs.

In the January-June period, however, container throughput fell 7.7 percent to 7.24 million TEUs from the first half of last year. Cargo tonnage was down 11.6 percent to 168,806 tonnes.

Port Klang, comprising Northport and Westports, solidified its position as the largest container port in the country.

Its container throughput rose 7.8 percent in the second quarter compared to the first three months. It moved 1.73 million TEUs against 1.6 million before.

Transhipment volume was 996,508 TEUs, up 4.6 percent from the first three months, and 57.7 percent of Port Klang's total throughput.

The Port of Tanjung Pelepas (PTP) in Johor continued to be the second largest container port, handling 1.47 million TEUs in the second quarter.

It recorded 17.6 percent growth from 1.25 million TEUs in the first quarter, with 94.4 per cent of all volume coming from transhipment.

Bintulu Port saw 16 percent growth to 57,895 TEUs from 49,875 in the first quarter.

Johor Port handled 216,744 TEUs in the second quarter, up 7.3 percent from 201,915 in the first.

Penang Port was the only port to record a decline in the quarters reviewed, down 24.2 percent to 151,165 TEUs from 199,391.

Ormazabal delivers Medium Voltage cubicles for primary distribution to the port of Tanjung Pelepas.

http://www.ormazabal.com/datos/noticias_fotos/foto80/Malasia.jpg

In the year 2008 Ormazabal delivered Medium Voltage cubicles for the port of Tanjung Pelepas in Malaysia.

Because of the increasing demand of electric energy in the port, it has been equipped with 2 transformers of 60 MVA each and Ormazabal has installed 20 Medium Voltage cubicles CPG.1 family type, double bar assembly, gas insulated switchgear, which permits the replacement or extension without manipulating the gas from the cubicles. The purpose of these cubicles is to protect, control and automatize the Medium Voltage network within the port.

The high security and reliability of the Ormazabal equipment makes it the ideal solution for portuary and industrial applications.

UTM ISKANDARnet GPS active station successfully installed
August 9th:
http://web.utm.my/today/index.php?option=content&task=view&id=783

http://web.utm.my/today/images/stories/MOU%20IskandarNet%20for%20web.jpg

Gelang Patah, August 9th:: The Port of Tanjung Pelepas (PTP) in collaboration with Universiti Teknologi Malaysia (UTM) has utilised the locally developed Global Positioning System (GPS) active network station system for the use of maritime sector at PTP port.

The system known as ISKANDARnet is a GPS positioning support system that provides a precise and accurate GPS satellite data correction services. This one of its kind system is developed through research activities by UTM researchers from the Faculty of Geoinformation Science & Engineering and has a coverage of Iskandar Malaysia Development Region (IDR) which will connect PTP in Gelang Patah, Community College in Pasir Gudang and UTM in Skudai.

PTP has taken the initiative to enhance its positioning system by placing ISKANDARnet at its port. This collaboration between the two parties was finalised recently in a MoU signing ceremony at Tanjung Pelepas.

The MoU was signed by the Deputy Vice Chancellor (Research & Innovation), Prof. Dr. Marzuki Khalid on behalf of UTM while for PTP, the documents were signed by its Chief Executive Officer, Captain Ismail Hashim.

“With this system, PTP can fully utilise the data from the GPS satellite for the port’s navigation and other uses accurately. PTP is always open and prepared to work together with any research institutions to enhance the current positioning system in our port,” said Ismail.

“The ISKANDARnet GPS system gives an edge to PTP in catering to the latest infrastructure development for the comfort of our customers in the port vicinity. The installation of the GPS station in PTP does not only assist port activities but would also benefit the development of the IDR area,” he added.

According to Marzuki, “PTP’s commitment has shown that this system has the potential to be developed and is applicable for navigational activities, maritime and positioning in ports. Apart from that, it has also created a beneficial collaboration between the university and industry to develop local research products”.

UTM will do the maintenance work of the system for 2 years in PTP. For the time being, UTM has worked with researchers from the Satellite Navigation and Positioning Lab, University of New South Wales (USNW), Australia to improve the ISKANDARnet system.

PTP eyes govt-guaranteed sukuk
Published: 2009/10/08

Malaysia’s Port of Tanjung Pelepas plans to issue RM1-2 billion (US$292.4-US$584.8 million) of government-guaranteed Islamic bonds to fund its expansion, a source familiar with the deal said today.

The paper will have maturities of up to 10 years, said the source, who asked not to be identified as the deal has not been publicly announced.

Another source said the paper would be issued by year-end.

Port of Tanjung Pelepas was not immediately available for comment.

The Port of Tanjung Pelepas Islamic bonds, or sukuk, come after an earlier RM5 billion government-guaranteed bond issue by the Terengganu Investment Authority, the investment arm of a Malaysian state.

Bankers say the Malaysian government will be raising more funds through state-linked firms as it ratchets up spending to woo foreign investment and to pull its trade-dependent economy out of a recession.

Malaysia’s economy was officially forecast to shrink 4-5 per cent this year but the central bank has said this estimate would be revised, after GDP fell by a smaller-than-expected 3.9 per cent in the second quarter from a year ago.

Port of Tanjung Pelepas is 70 per cent-owned by Malaysian infrastructure group MMC Corp and is located at the southern end of the Malacca Straits, Asia’s busiest shipping route.

Islamic bonds are usually structured as profit-sharing or lease-based agreements to avoid paying interest, which is prohibited by the religion.

Sukuk issuance plummeted 56 per cent to US$14.9 billion in 2008, according to Standard & Poor’s, but there are early signs that a global economic recovery is bringing some issuers back to the market.

A newspaper reported that water company Pengurusan Aset Air will sell RM20 billion of sukuk to refinance existing debt and for working capital. - Reuters

PTP building up hinterland cargo volume
The National Maritime Portal - www.portsworld.com - Nov 05, 2009

Port of Tanjung Pelepas (PTP), the country’s premier transhipment terminal, is working towards increasing hinterland cargo volume to achieve a more sustainable business model, says chief executive officer Captain Ismail Hashim.

On average, PTP now handled 95% transhipment and 5% hinterland cargo, he said.

“We feel that we have to strike a better balance to achieve a more sustainable business model,” he told StarBiz via e-mail.

Development in Iskandar Malaysia, which included logistics, would in turn support hinterland cargo growth, he said.

“In this respect, PTP, along with its sister companies Johor Port and Senai Airport, will play complementing roles to further strengthen the logistics sector in Johor.

“The presence of strong logistics infrastructure in Iskandar Malaysia and Johor will attract investors, manufacturers and industries that are looking for strong and efficient logistics backbone,” Ismail said.

This would result in an increase in Johor’s hinterland volume, he added.

PTP’s 1,000-acre free-zone land has also been successful in attracting brands, contributing to the hinterland volume of PTP.

“Companies which are already rooted in Pelepas Free Zone include Ciba Vision, Flextronics, BMW, JST as well as logistics players such as Maersk Logistics, Nagai Nitto, Schenker Logistics and Century Logistics.

“We are continuously marketing the free-zone land to attract more players,” Ismail said.

The port’s aims to quadruple its volume in the next 20 years augurs well for hinterland cargo.

Ismail said in line with the expected increase in volume and its long-term goal, PTP would have to expand its port infrastructure.

“Some of the factors that shipping lines look for when deciding on a port of call is the accessibility to the port, operational efficiency and capability to handle current and future volumes (scalability).

“In the case of PTP, we belief we will be able to achieve this due to the value propositions that we have to offer,” he said.

PTP currently has 12 berths and a terminal-handling capacity of 10 million TEU’s (twenty-foot equivalent units) per annum.

Ismail said it had the space and potential to build up to 95 berths with a terminal-handling capacity of more than 100 million TEUs.

PTP handled about 5.6 million TEUs last year.

On the current business environment, Ismail said it had been very challenging for all port operators globally due to the economic down-turn.

“However, PTP has shown out-standing performance in weathering this stormy condition, especially in the second half of the year,” he said.

He noted that PTP registered a 3.4% increase in volume as at September compared with the same period last year.

“Despite the downturn, we expect to see some growth this year via the new services introduced through our existing and new customers such as CMA CGM,” he said.

Five-year forecast expects 3.4 percent growth across all modes
The Journal of Commerce Online - Nov 05, 2009

The Port of Tanjung Pelepas expects throughput growth of 9 percent in 2009 up to 6.1 million 20-foot equivalent units, compared to 5.6 million TEUs in 2008, according to the Malaysian national news agency, Bernama.

The port recently signed an agreement with French shipping company CMA CGM.

Port capacity is 8 million TEUs per year and is expected to grow to 12 million TEUs within five years, said Chairman Mohammad Sidik Shaik Osman.

PTP has been competing successfully to attract cargo business away from its nearby rival, Singapore. The port offers favorable handling rates and tax-free logistics to international companies, according to the Malaysian Freight Transport Report

The next two years seen as trying times for growth
The Star - Nov 17, 2009

GELANG PATAH: Port of Tanjung Pelepas (PTP) sees 2010 and 2011 as the most challenging years for growth as the global economy should enter a recovery period after almost a year of recession.

Chief executive officer Capt Ismail Hashim said PTP is like any other port in the world and depended on the global trade activities and volumes.

He said in the last 12 months or so, all port operators had been operating in a very challenging business environment due to the economic downturn.
Capt Ismail Hashim

“We are doing quite well despite the unfavourable economic situation and for next year we are looking at double-digit growth,” Ismail told StarBiz recently.

He said in September and October, PTP registered a 3.4% and 5% increase in volume respectively compared with the same months last year.

Ismail said the port handled 4.9 million TEUs (twenty-foot equivalent units) in the first 10 months of the year and was confident of recording 6 million TEUs in 2009 against 5.6 million
TEUs in 2008.

He said last year, PTP had captured 8% of South-East Asia’s total port market and expected to increase the market share to 10% this year.

Although there were already indications the global economy was on the road to recovery based on the economic figures released from the United States and Japan, it was still too early to rejoice, he said, adding that there were 10% reductions in the total global container throughput in the last one year and the outlook for 2010 was not that rosy as it was still uncertain where the global economy would be heading.

“We handle 95% transhipment and 5% hinterland or local cargo and want to increase the latter to 20% in our short- to medium-term business plan,” Ismail added.

He said the logistics sector, one of the five existing economic pillars in Iskandar Malaysia, was being developed and strengthened under the Iskandar Comprehensive Develop-ment Plan from 2006 until 2025.

The other four pillars are electrical and electronics, petrochemical and oleochemical, food and agro-processing and tourism.

Port of Tanjung Pelepas has 12 berths and the capacity to handle 10 million TEUs yearly
The five existing core sectors are health services, educational services, financial services, ICT and creative industries.

Ismail said the development and presence of strong logistics infrastructure in Iskandar would attract investors, industries and manufacturers which in turn would benefit service providers such as PTP.

PTP, together with Johor Port and Senai Airport which are closely linked to business tycoon Tan Sri Syed Mokhtar Al-Bukhari, would be among the beneficiaries as these entities are located within the five flagship development zones in Iskandar.

“Apart from Iskandar, the Singapore factor will also benefit us by attracting haulers from there to PTP.”

He said PTP would expand its port infrastructure in line with the expected increase and long-term goal and two new berths would be added under its phase two expansion plan.

Ismail said the port would be calling for tender early next year to build the 13th and 14th berths. Work on them should start in the third quarter of 2010 and it would take 18 months to complete.

PTP currently has 12 berths and a terminal-handling capacity of 10 million TEUs.
He said under the phase three expansion plan, the port would build eight new berths and include land reclamation and dredging.

“We are looking at organic growth and our long-term plan is to have 95 berths where our capacity will reach 150 million TEUs,” said Ismail.

He said PTP’s 404.68ha Pelepas Free Zone (PFZ) had 50 clients now with an average warehousing occupancy rate of 68%.

Companies with a presence in the PFZ include CIBA Vision, Flextronics, BMW, JST, Maersk Logistics, Nagai Nitto, Schenker Logistics and Century Logistics.

The Pelepas Free Zone: More Than Just Cost Advantages
Site Selection Magazine - Nov 18, 2009

Current global economic circumstances might prompt some multinationals to scale back operations for the time being. For others – those with clear logistics and cost-of-manufacturing advantages – now might be the time to grow. Among the companies to have found both advantages in the Pelepas Free Zone at the Port of Tanjung Pelepas (PTP) are Flextronics, JST Connnectors, Schenker Logistics, CIBA Vision and many others. MNCs with locations at PTP, in the Iskandar Development Region in Malaysia’s southernmost point, seek a southeast Asian base from which to serve the region cost-effectively and efficiently.

The 1,000-acre Pelepas Free Zone includes 400 acres dedicated to logistics and distribution activity, international procurement centers and warehousing; 600 acres is a Free Industrial Zone for manufacturing. The adjacent Port features 44 quay-side cranes, 12 berths and 4.3 km. of linear wharf; it handles 10 million TEUs annually.

Six factors make the Pelepas Free Zone the preferred logistics and manufacturing hub for so many MNCs in the region. They are:

MORE > http://www.ptp.com.my/media-news.aspx?mid=1&mnid=7&cid=0&itmid=2574&title=The%20Pelepas%20Free%20Zone:%20More%20Than%20Just%20Cost%20Advantages

Shippers in Johor oppose port rationalisation
Published: 2009/11/26

SHIPPERS operating out of Johor have strongly opposed the proposed port rationalisation exercise involving Johor Port in Pasir Gudang and Port of Tanjung Pelepas (PTP) in Johor.

Under the rationalisation exercise, all container operations would be moved to PTP while Johor Port would handle all other cargo such as bulk and liquid shipments from January 1 next year.

In a statement issued yesterday, the Federation of Malaysian Manufacturers (FMM) Johor Branch argued against consolidation of the containers handling functions between the two ports, citing potential disruption of manufacturing operations, substantial increase in logistical costs, inadequate readiness at PTP and concerns on cargo security.

FMM Johor Branch said the proposed move would cause disruptions in operations for manufacturers not only in Pasir Gudang but in the Tampoi and Tebrau Industrial Estates.

It also estimates that the haulage costs are expected to double after taking into account the higher port charges at PTP.
“The sudden introduction of the weighbridge charges of RM7.50 per container at PTP is unjust. It was never implemented prior to the rationalisation,” it added.

FMM Johor Branch also said PTP was not ready for such a move because there are only two main line operators operating in PTP notably Maersk and Evergreen.

It calls on the federal government to maintain the status of Johor Port and ensure container operations there are continued.
“Manufacturers must be allowed to decide the port of choice through market forces,” it said.

PTP, FMM Johor to let Cabinet decide on port consolidation
By Anis Ibrahim Published: 2009/11/27

THE Port of Tanjung Pelepas (PTP) and the Federation of Malaysian Manufacturers' (FMM) Johor branch have agreed to leave the final decision to consolidate PTP and the Johor Port to the Cabinet.

PTP deputy chief executive officer Azlan Shahrim said the consensus was reached after a two-hour meeting between PTP and FMM Johor at the Johor Port office in Pasir Gudang.

"While we believe that there are clear merits to the proposal, we recognise that it will only be implemented after consultation with port users and other stakeholders including the federal and state governments and the Johor Port Authority.

"The views of our stakeholders are essential to the success of this exercise," he told Business Times yesterday.

The announcement of a port rationalisation exercise involving PTP and Johor Port has been met with opposition from shippers, particularly those operating out of Pasir Gudang.

Under the proposal, all container operations will be moved out to PTP while Johor Port will handle all other cargo such as bulk and liquid shipments from January 1 2010. Both PTP and Johor Port are owned by MMC Corp Bhd.

FMM Johor says the move will disrupt operations for manufacturers not only in Pasir Gudang but in the Tampoi and Tebrau industrial estates.

Azlan said the consolidation was proposed by MMC Corp as Johor Port was congested and operating at full capacity with no room for expansion.

MISC, PTP Mutually Agree To Terminate JV Agreement
December 17, 2009 19:42 PM

KUALA LUMPUR, Dec 17 (Bernama) -- MISC Berhad, Malaysia's leading international shipping line, and Pelabuhan Tanjung Pelepas Sdn Bhd (PTP) have mutually agreed to terminate a Joint Venture (JV) and Shareholders' Agreement inked on April 29, 2008 following the shipping line's withdrawal from the Grand Alliance.

In a statement, MISC said the agreement was signed to form a joint-venture company called "PTP-MISC Terminal Sdn Bhd" (JV Co) to serve MISC and other members of the alliance to develop Port of Tanjung Pelepas into the region's main transshipment hub.

Grand Alliance is a grouping of shipping giants comprising Hapag-Lloyd, NYK, OOCL and MISC, formerly known as Malaysia International Shipping Corporation Berhad.

However, following MISC's withdrawal from the alliance, effective Jan 1, 2010 and restructuring of its liner business to be a leading Intra Asia Liner operator, PTP and MISC had agreed to rescind the JV Agreement.

MISC, a subsidiary of Petronas, will nevertheless continue to use Port of Tanjung Pelepas in Johor via a direct Terminal Services Agreement with PTP.

PTP, a 70 per cent-owned subsidiary of MMC Corporation Bhd, is the operator of the Port of Tanjung Pelepas.

The statement said the termination would not have any effect on the earnings of the MISC Group in the financial year ending March 31, 2010.

-- BERNAMA

-delete-

PTP posts another year of growth
Published: 2010/01/12

THE Port of Tanjung Pelepas (PTP) recorded another year of growth in 2009 and retained its position as Malaysia's leading container terminal.

Chairman Datuk Mohd Sidik Shaik Osman said the port closed 2009 with a container throughput of 6 million twenty equivalent units which was 7.5 per cent higher than 2008.

This growth was achieved against a backdrop of shipping lines and ports facing double digit drops in volume due to the global economic downturn.

The increased throughput was also achieved with lower overall costs given considerable pressure on rates during this period.

" We are fortunate to be one of very few ports in the world which recorded an increase in container volume in 2009.

" PTP managed to grow the port for a number of reasons. While existing customers contributed with new services, new volumes brought in by French shipping line CMA-CGM also added to the numbers," Sidik said in a statement.

He added there was a nine per cent increase in local volume from the Johor industrial hinterland as more shippers were now using PTP for their import and export needs.

Saying that more shipping lines called at Port of Tanjung Pelepas, he added the port handled 20 per cent of Johor's hinterland cargo last year.

" Apart from Evergreen and Maersk Line, we have CMA-CGM, MISC and other shipping lines providing direct services to many global destinations.

" Local cargo shipped out of PTP do not need to go through other transshipment ports before they can connect to bigger long-haul vessels as they are already calling at PTP directly," Sidik said.

He said this benefited shippers as it reduced point-to-point transit time, eliminated the risk of missed vessel connections at other transit ports and provided end-to-end savings in the overall logistics costs.

On PTP's outlook for 2010, Sidik predicted an overall challenging year ahead despite signs of a global economic recovery.

" 2010 will clearly be a challenging year. We expect lower operational costs for shipping lines to be a key focus area",

Sidik said, adding that the port viewed this as an opportunity as shipping lines would look for more efficient and cost-effective alternatives.

" PTP has much to offer both existing and potential new customers. Cost efficiency, world class service levels and unlimited capacity allows customers to extract greater efficiencies that will ultimately improve their bottom line," he said. - Bernama

PTP On The Rise
www.tradewinds.no - Jan 13, 2010
By Gary Dixon

Malaysia’s Port of Tanjung Pelepas (PTP) has bucked the trend of falling volumes with a record total in 2009.

The country’s biggest terminal said throughput reached 6m teu last year, up 7.5% from 2008’s total.

Chairman Sidik Shaik Osman said: “We are fortunate to be one of very few ports in the world which recorded an increase in container volumes in 2009.”

He put the growth down to new services from existing customers Maersk and Evergreen, plus fresh volumes brought in by new signing CMA CGM of France.

There was also a 9% increase in local volume from the Johor industrial hinterland.

Looking ahead, Sidik said markets would still be challenging in 2010.

“We expect lower operational costs for shipping lines to be a key focus area,” he added.

“We do, however, see this as an opportunity for PTP when shipping lines look for more efficient and cost-effective alternatives”.

Port of Tanjung Pelepas hits 6m teu mark
Container Management (Jan/Feb) 2010 issues - Mar 02, 2010

The Port of Tanjung Pelepas (PTP) recorded another year of growth in 2009 retaining its position as Malaysia’s leading container terminal.

PTP Chairman Datuk Mohd Sidik Shaik Osman said that PTP closed 2009 with a container throughput of 6m teu, 7.5% higher than 2008. This growth was achieved in a very difficult year for the industry, where many shipping lines and ports faced double digit drops in volume due the global economic downturn. The increased throughput was also achieved with lower overall costs given considerable pressure on rates during this period.

“We are fortunate to be one of very few ports in the world which recorded an increase in container volumes in 2009” Sidik said.

PTP managed to grow for a number of reasons. While existing customers contributed with new services, new volumes brought in by PTP’s latest signing, French shipping line CMA-CGM also added to the numbers. There was also a 9% increase in local volume from the Johor industrial hinterland. More Johor shippers are now using PTP for their import and export needs and the port handled 20% of Johor’s hinterland cargo last year.

“We now have more shipping lines calling at our port compared to the early years. Apart from Evergreen and Maersk Line, we have CMA CGM, MISC and other shipping lines providing direct services to many global destinations. Local cargoes shipped out of PTP do not need to go through other transshipment ports before they can connect to bigger long haul vessels, as they are already calling PTP directly. This benefits the shippers as it reduces point-to-point transit time, eliminates the risk of missed vessel connections at other transit ports and provides end-to-end savings in the overall logistics costs,” Sidik said.

Sidik said that despite signs of the global economy recovering, 2010 will clearly be a challenging year with lower operational costs for shipping lines being a key focus area. However, Sidik sees this as an opportunity for PTP which provides more efficient and cost-effective alternatives.

PTP raises thebar, leverages on productivity
Published: 2010/06/21
http://www.btimes.com.my/Current_News/BTIMES/articles/ptpt17-2/Article/#ixzz0rNz8FHEZ

http://www.btimes.com.my/articles/ptpt17-2/pix_topright

PORT of Tanjung Pelepas (PTP) is leveraging on world-class productivity to build on last year's strong performance and enhance its competitiveness against regional ports.

Deputy chief executive officer Azlan Shahrim said PTP was now raising the bar after having met its productivity goal of 35 moves per hour compared to the industry average of 25 moves per hour.

"Higher productivity, lower operating costs and an increased capacity of 8.5 million twenty-foot equivalent units (TEUs) will enable the port to deliver a higher service level cost-effectively," Azlan said in an interview.

PTP, the country's largest container port and the fastest growing in Southeast Asia, is situated at the mouth of Pulai River, to the west of Johor Bahru.

Azlan said PTP handled six million TEUs last year, which was 7.5 per cent more containers over the previous year.

The increase, he said, was achieved during a difficult year when many ports around the world recorded a drop in volume.

According to Azlan, PTP's growth last year was the highest among the major ports worldwide.

With the global economy recovering this year, PTP is confident of extending its growth trend, he said.

"PTP's monthly volume in May this year was the highest recorded in the port's 10-year history," he added.

However, Azlan cautioned that "the question is sustainability as part of the growth is due to the restocking of inventory, which has depleted considerably from last year's economic downturn".

"Shipping lines have also reintroduced capacity into the market, which will exert pressure on freight rates. These factors make us cautious even as we experience recovery," he said.

PTP's strategic focus now is to enhance feeder connectivity and increase its mix of local cargo, which will attract more shipping lines to the port, Azlan said.

"Three of the world's top four shipping lines are already calling at PTP," he said, listing Maersk, which is ranked number one, CMA-CGM (ranked number three) and Evergreen (ranked number four).

Azlan said the huge vessels calling at PTP offered direct sailing to Europe and the US without having to first transship cargo at neighbouring ports.

"This allows for shorter transit times. Our exports will reach faraway destinations faster and this efficient supply chain enhances the competitiveness of Malaysian goods," he said.

Azlan said that PTP's ample capacity meant that there was no congestion which would otherwise have increased cost to port users.

"These advantages make PTP well-positioned to be an efficient gateway port for Johor's local hinterland cargo," he said. - Bernama

Southeast Asian ports ready for growth in 2010
Shipping Gazette - Mar 10, 2010

Recently in The Container Shipping Manager we looked at the performances of various ports throughout a number of regions the world over.

It came as little surprise to see that China’s ports, while a number suffered declines in 2009, are still the undisputed world leaders in volumes handled. This disparity with the rest of the world should ensure that its position will remain dominant for the foreseeable future.

But China’s rise in the shipping industry has been well documented to date. However, rising steadily through the ranks have been the ports of Southeast Asia.

Over the past few years ports in Malaysia, Singapore, Thailand and Indonesia have been growing at a constant, steady pace, placing the region as the second busiest in terms of port activity in the world, replacing the likes of Hong Kong, Kaohsiung and Busan in north Asia.

Today in The Container Shipping Manager we will take a closer look at this exciting region and its prospects for the post-financial crisis period ahead.

One of the standout ports in 2009 in the region was the southern Malaysian port of Tanjung Pelepas (PTP). It was the only Southeast Asian port to actually record a rise in volumes for the year, up from the 5.6 million TEU to 6.02 million TEU, as reported in our earlier story.
Not only was it the only port in Southeast Asia to record growth, the 7.5 per cent jump in container volumes also made it the highest growing port in the world last year.

PTP managed to grow while other ports suffered double digit declines in 2009 because of its lower costs and as such was able to attract more customers at a time when shipping lines were desperately seeking to cut their expenses.

Aside from the port’s regular customers adding new services last year, PTP also benefited from new customers such as CMA CGM and MISC.

PTP To Capitalise On New Opportunities Helped By Increased Capacity
www.bernama.com.my - Apr 21, 2010
By Wan Nor Azura Mior Abd Aziz

KUALA LUMPUR, April 21 (Bernama) -- Port of Tanjung Pelepas Sdn Bhd, owned 70 per cent by MMC Corporation Bhd, is well-placed to capitalise on additional demand and new opportunities once the global economic recovery gathers momentum this year based on its increased port capacity of 8.5 million twenty-equivalent-units (TEUs).

Last year, PTP chalked up a seven per cent increase in container volume by handling a throughput volume of six million TEUs, MMC's Chief Executive Officer, Datuk Hj Hasni Harun, said here on Wednesday.

The increased capacity was made possible with the completion of 12 berths last year and commissioning eight new quay cranes, 32 new rubber tyred gantry cranes and other port equipment.

He said MMC's strategy of acquiring PTP over the years has proven to be effective as it managed to ride through the extremely challenging period and remains on-track to achieve its vision to be the "Preferred Port of Choice in South East Asia".

This has made it the world's 17th busiest container port and the country's largest container terminal," he told Bernama.

"With its strategic location, attractive rates and world class efficiency, PTP is in an ideal position to capture new businesses and expand its market share in the container business," he said.

Hasni, who has also been appointed Group Managing Director effective May 3, said that the port also saw an increase in its domestic market share from 35 per cent in 2008 to 39 per cent in 2009.

"PTP also saw an encouraging 9.0 per cent increase in local volume from the Johor Industrial hinterland as more shippers are now using PTP for their import and export needs," said Hasni.

He also said that the port's major customers undertook a restructuring in their services to cut costs which resulted in higher transshipment volume calling at the port.

PTP chalked up a pre-tax profit of RM50 million last year while net profit was higher at RM173 million due to the impact of deferred taxes.

Combined with Johor Port which is wholly-owned by MMC, the group's market share of container volume among domestic ports improved from 41 per cent in 2008 to 44 per cent in 2009.

Last year, Johor Port posted a revenue of RM498 million, down two per cent from RM508 million in 2008.

"Johor Port will continue to serve as an important origination point for cargo, particularly from the adjoining Pasir Gudang hinterland," he said.

This mature port will continue to provide a steady annual income steam to the group, Hasni said.

The company also said, Johor Port handled 14,389,338 free weight tones (FWT) of conventional cargo consisting of dry bulk, break bulk and liquid bulk cargo through its port facilities.

Total container throughput stood at 844,856 TEUs last year.

He also said that the Multi-Purpose Terminal System (MPTS), which was one of the key components of Johor Port's information and communications technology, was scheduled to be launched by the middle of this year.

With its completion, the port would complete the integration of all online applications for terminal operations and warehouse planning, thus allowing it to provide a seamless online working environment.

Government To Form National Port Council To Coordinate Port Management
www.bernama.com - Apr 22, 2010

PETALING JAYA, April 22 (Bernama) -- The government has agreed to set up the National Port Council to coordinate management of ports nationwide.

Transport Minister Datuk Seri Ong Tee Keat said further details on the matter would be announced later and that the setting up of the council, to be chaired by him, would not jeopardise the functions of existing port authorities.

"The cabinet and the National Economic Council have approved the formation of the National Port Council to coordinate matters pertaining to management of ports to further promote them at international level to attract more clients," he added.

Ong told this to reporters after the award giving ceremony for excellent achievements in the world standings of top container ports of the world at the Grand Dorrsett Hotel near here on Thursday.

At the function, the country's two leading ports, Port Klang and the Port of Tanjung Pelepas (PTP) were honoured for being in the list of the world's best 20 ports last year.

Port Klang ranked 14th, from 15th in 2008, while PTP moved up to 17th last year, from 18th the previous year.

According to Ong, PTP was also three ports in the world which showed positive growth last year, despite the world economic recession.

"Last year, only three of the world's best top 20 ports recorded a positive growth and among the three, PTP recorded the highest growth at 7.5 per cent, compared with the Port of Guangzhou and Port of Tianjin in China which recorded growth of 1.7 per cent and 2.4 per cent respectively," he added.

The Port of Singapore topped the world's best 20 ports with 25.866 million TEUs, followed by Port of Shanghai (25.0 million TEUs) and Port of Hong Kong with 20.98 million TEUs.

Port Klang handled 7.3 million TEUs and PTP 6 million TEUs.

Earlier in his speech, Ong said that ports and the shipping industry, particularly container handling, was a highly competitive industry.

"Ports must be attractive enough to accommodate the ever changing requirements and trends of the industry. The most significant trend is to move towards larger container vessels," he added.

He said that in the 1980's, the largest container vessels could accommodate just over 3,000 TEUs from today's vessels of 10,000 TEUs.

He said container shipping line operators were therefore under pressure to achieve economies of scale whereby a 50 percent increase in vessel size could result in 20 percent reduction in operating and voyage cost.

Johor Port, PTP can still achieve cost savings
By SHARIDAN M. ALI Thursday August 12, 2010
http://biz.thestar.com.my/news/story.asp?file=/2010/8/12/business/6841014&sec=business

http://biz.thestar.com.my/archives/2010/8/12/business/b_02port.jpg

An aerial view of Port of Tanjung Pelepas. MMC proposed to streamline
operations at PTP and Johor Port to reduce cargo leakages to Singapore,

PETALING JAYA: The expected cost savings from the consolidation of Johor Port and Port of Tanjung Pelepas’ (PTP) operations can still be achieved without changing their corporate structure, says Kenanga Investment Bank research head Yeonzon Yeow.

“The deferment of the rationalisation plan of the two ports will have minimal impact on their parent company, MMC Corp Bhd. Whether they consolidate or not, both ports are still within the group,” he told StarBiz yesterday. MMC owns 100% of Johor Port and 70% of PTP.

MMC proposed to streamline operations at the two ports to reduce cargo leakages to Singapore, which has been going on for many years due to better connectivity offered by Singapore ports.

The consolidation would also see Johor Port’s container operations in Pasir Gudang moved to PTP in Gelang Patah, turning the former into a non-containerised port.

But the Government shot down the idea last week due to the distance between the two ports, which is about 90km, as shippers and manufacturers operating in Pasir Gudang, Tampoi and Tebrau complained that they would incur higher transportation cost going to PTP.

OSK Research Sdn Bhd research head Chris Eng said with the deferment, the listing of MMC’s port units was unlikely to materialise soon.

“Nonetheless, we believe there is still the possibility of MMC list ing its other units, Gas Malaysia Sdn Bhd and Malakoff Corp Bhd within the next two to three years,” he said in a recent note to clients.

Eng said the deferment of the consolidation exercise would also result in PTP’s excess capacity being underutilised for the time being.

He said the main reason for the rationalisation between the two biggest ports in Johor was because the container operations at Johor Port was congested with minimal room for further expansion.

“The consolidation would boost container volume at PTP, helping it reach the eight million twenty-foot equivalent units level, which would then help to attract new customers,” he said.

Flextronics woos investments into Iskandar
By Marina EmmanuelPublished: 2010/08/16
http://www.btimes.com.my/Current_News/BTIMES/articles/flexptp/Article/#ixzz0wkkdecrx

ELECTRONICS manufacturing services giant Flextronics International Ltd whose presence in the vicinity of the Port of Tanjung Pelepas in Johor continues to expand, is also serving as a magnet to attract other investors to the Iskandar Development Region (IDR) .

The company's 1.4 million sq ft facility, which is the equivalent of 16 football fields, has some 5,000 workers on its payroll and serves as Flextronics' flagship facility for the assembly of solar modules.

"Our presence here in IDR places us in a competitive position, since we are supported by a matured supply chain," Flextronics Technology (Malaysia) Sdn Bhd general manager Koh Yew Wah told Business Times during a recent visit to the Pelepas Free Zone (PFZ) facility.

Besides offering vertical integrated manufacturing services, the Flextronics facility at PTP also boasts International Procurement Centre status.

"We are targeting customers who are looking for manufacturing sites where costs are comparatively lower and those wanting to venture into downstream activities," added Koh, saying that these could include solar module suppliers and those who integrate modules into solar power plants.

Other investors with a presence in the PFZ include CIBA Vision, BMW, JST, Maersk Logistics, Nagai Nitto, Schenker Logistics and Century Logistics.

Koh noted that Malaysia's position as a growing centre for the production of solar panels, serves as plus points for Flextronics.

"These include our proximity to solar original equipment manufacturing operations, localised resources and a world-class logistics solutions," , he said.

With customers located in markets like Europe and the US, Koh points to Flextronics' strategic location of being at the crossroads of the East-West trade routes, by virtue of the company's proximity to the Port of Tanjung Pelepas.

"Apart from giving us shorter transit days to the European Union markets, we can tap into direct ship and feeder service to the Port of Singapore, or use the services of any one of the 9 liners which serve the Port of Tanjung Pelepas," he added.

Koh said that Flextronics wants to help the country reduce its dependency on labour-intensive industries as a source of investments.

PTP set to handle more containers
By ZAZALI MUSA Wednesday October 6, 2010
http://biz.thestar.com.my/news/story.asp?file=/2010/10/6/business/7138990&sec=business

http://biz.thestar.com.my/archives/2010/10/6/business/b_10tanjungPelepas.jpg

PTP’s monthly throughput volume in May stood at 572,444 TEUs, the highest
ever handled in a single month since it started operations 10 years ago.

Port confident of achieving 8% growth this year

GELANG PATAH: Port of Tanjung Pelepas (PTP) expects a healthy and sustainable growth this year despite operating in a challenging business environment.

The positive outlook is based on the port’s outstanding performance in the first half of 2010 when it registered 13% growth compared with the same period the previous year.

In May this year, its monthly throughput volume stood at 572,444 20-ft equivalent units (TEUs), the highest ever handled in a single month since it started operations 10 years ago.

Prior to that, the highest number of containers handled in a single month was 557,693 TEUs in August 2009.

“We managed to increase the number of containers handled and achieved the highest growth among the world’s top 20 container ports in 2009,” an official from PTP told StarBiz.

He said the achievement was commendable despite last year’s sluggish economy, which saw a drastic downturn in the containerised traffic sector worldwide.

Industry reports have listed only four of the world’s top 20 container ports that recorded growth in 2009, and all of them are in the region.

The four ports were PTP, which recorded 2.4% growth, and three Chinese ports – Qingdao (2.4%), Tianjin (2.3%) and Guangzhou (1.7%). Other heavyweights such as Singapore’s PSA experienced a drop of 13.5%, Hong Kong down by 14.3% and Shanghai by 10.7%.

The International Monetary Fund said in a report recently that the global economy was recovering better than expected but at varying speeds.

While most of the emerging and developing countries are experiencing steady growth, the growth in developed countries is not that impressive.

The United States and European economies are beginning to see a dip and the current downtrend in global container traffic would continue until the year-end.

“But we are confident that PTP will record 6.5 million TEUs this year, representing 8% growth from six million TEUs handled in 2009,” the official said.

He added that PTP would maintain its efficient services and provide top-notch services at competitive cost to clients.

Crane moves at the port now averaged 34 to 35 per hour, which is way higher than the industry average of 28 moves per hour.

He said PTP handled close to 80 vessel calls a week and with the current berths and 44 quay cranes, the port could handle up to nine million TEUs.

http://farm5.static.flickr.com/4017/4232630277_9dacf82ae5_b.jpg
http://www.flickr.com/photos/mmcg968/4232630277/

PTP on fast track to handle 7.5m TEUs in 2011
Published: 2011/05/13
http://www.btimes.com.my/Current_News/BTIMES/articles/20110513154757/Article/index_html

MMC Corp Bhd's Port of Tanjung Pelepas (PTP) has emerged as the fastest-growing container port in the first quarter of 2011 and is on track to handle 7.5 million twenty-foot equivalent units
(TEUs) for the year.

In the first quarter of 2011, PTP's container traffic grew by 1.79 million TEUs, or 18 per cent, compared with a year ago.

MMC group managing director, Datuk Hasni Harun, said the remarkable growth was mainly due to higher volume from its main customers -- Maersk Line and Evergreen Group.

"PTP is poised to extend its uninterrupted annual volume growth, with a forecast volume of 7.5 million TEUs in 2011, up 15 per cent from the previous year," he said in an interview with Bernama on Wednesday.

In fact, the compound annual growth for PTP's throughput volume for the 10 years since 2001 is at 14 per cent, positioning it as a competitive port.

"PTP's double-digit growth is comparable with some of the leading ports in Malaysia as well as in the region," said Hasni, adding that it was currently ranked 17th in terms of the world's busiest container port in 2010.

Going forward, he said, PTP would benefit from an increasing customer focus on cost, which would lead to main liners opting for ports which offered better value proposition.

The productivity and efficiency of PTP's port operation is also
internationally-recognised where its average quay crane productivity handling 35 gross crane moves per hour is of a world-class standard. PTP also has the capacity to handle a sizeable 8.5 million TEUs.

Strategically located at the confluence of the world's major shipping lanes, PTP has 12 berths stretched over 4.3 km quay length and has the facility to accommodate the latest generation vessels that are generally large in size.

Johor Port, which MMC has 100 per cent, also serves as an important origination point for cargo, particularly from the adjoining Pasir Gudang vicinity, he said.

Johor Port manages the largest vegetable oil tank installation in the world and is one of the few ports in Asia which received accreditation from the London Metal Exchange (LME) as an approved LME location for its warehousing activities and facilities.

"This mature port continues to provide a steady annual income stream to MMC, where positive growth was recorded year-on-year," he said.

In 2010, Johor Port handled 15.7 million free weight tonne (FWT) of conventional cargo consisting of dry bulk, break bulk and liquid bulk cargo, an increase of nine per cent compared with the previous year.

The port's container terminal recorded a four per cent growth in container throughput to 876,000 TEUs driven by higher imports and exports volume. -- Bernama

http://farm5.static.flickr.com/4040/4171255880_941f614c5f_b.jpg (http://www.flickr.com/photos/faizalomar/4171255880/)
Port of Tanjung Pelepas (View from man made island) (http://www.flickr.com/photos/faizalomar/4171255880/) by Super Cab Driver (http://www.flickr.com/people/faizalomar/), on Flickr

DHL launches HK-Johor LCL services
Published: 2011/11/29
http://www.btimes.com.my/Current_News/BTIMES/articles/20111129135925/Article/index_html

DHL, the leading global logistics company, has announced the launch of the Less than Container Load (LCL) service, connecting Tanjung Pelepas in Johor to Hong Kong.

With the launch, DHL Global Forwarding become one of the first service providers to have direct LCL coverage from Hong Kong to all Malaysian containerised ports.

The new weekly service between Hong Kong and Tanjung Pelepas would offer a transmit time of five days between the two ports, the company said in a statement today.

Its chief executive officer for Africa and Asia Pacific, Amadou Diallo said: "With the Port of Tanjung Pelepas having a container throughput rise of 16 per cent in the first half of 2011 to 3.6 million twenty-foot equivalent units (TEUs), customers will see immense benefits in being connected to one of the largest ports in Southeast Asia.

"This would also enable both North and South Asia Pacific exporters to better tap into the immense international opportunities this market offers."

He also said the service allows Asian exporters to reach destinations in Malaysia in shorter times and capture a higher proportion of the country's market share.

Meanwhile, Dennis van der Meijs, managing director DHL Global Forwarding Malaysia, said the company is confident that its customers would benefit significantly from the connection to Tanjung Pelepas. -- Bernama

PTP handles 7.5m TEUs of containers
New Straits Times - Jan 05, 2012

source:http://www.ptp.com.my/media-news.aspx?mid=1&mnid=7&cid=0&itmid=2694&title=PTP handles 7.5m TEUs of containers

JOHOR BAHRU : Johor’s Port of Tanjung Pelepas (PTP) handled 7.5million twenty-foot equivalent units (TEUs) of containers in 2011, representing an increase of 15 per cent over 2010.

The group said the increase was driven by strong organic growth from existing customers as well as volume from new customers. Container volume from PTP’s main existing customers, Maersk Line and Evergreen, increased by 16 per cent over the previous year.:banana:

Port operator PTP records 15% growth

Star Online - Jan 05, 2012

source:http://www.ptp.com.my/media-news.aspx?mid=1&mnid=7&cid=0&itmid=2686&title=Port operator PTP records 15% growth

PORT of Tanjung Pelepas (PTP) in Johor handled 7.5 million 20-ft equivalent units (TEUs) of containers in 2011, an increase of 15% over the previous year, on the back of strong organic growth from existing customers and volume from new customers.

The figure outperformed the global volume growth of 7%, PTP said in a statement yesterday.

Container volume from PTP's main existing customers, Maersk Line and Evergreen, increased by 16 compared to the previous year, said PTP.

New shipping lines, including HanJin and STX Pan Ocean of Korea, Mitsui and K-Line of Japan, and China Shipping were added over the year.

PTP deputy chief executive officer Azlan Shahrim said its focus was to continue improving the quality of its services.

"From just two shipping lines in our early days, we now have 26 shipping lines and box operators. This has vastly improved connectivity and frequency, and enabled us to provide shippers better access to the global market,"he said.

PTP is also one of seven ports worldwide chosen by Maersk Line for its new "Daily Maersk" service, a daily service between the Far East and North Europe involving 70 vessels operating between four mega ports in Asia and three ports in Europe.

PTP is a joint-venture between MMC Corp Bhd (70%) and APM Terminals, a Netherlands-based utilities and infrastructure company.

PTP aims for 11% growth


The Star - Feb 06, 2012

source:http://www.ptp.com.my/media-news.aspx?mid=1&mnid=7&cid=0&itmid=2698&title=PTP aims for 11% growth

PETALING JAYA: Port of Tanjung Pelepas, the single largest terminal in Malaysia by volume, aims to grow the handling of twenty-foot equivalent units (TEUs) by 11% this year against 2011.

PTP deputy CEO Azlan Shahrim said the growth target this year would very much depend on the global economy and how shipping lines responded to changes in the marketplace.

“Last year, we grew by 15% compared with the industry growth of 7%. This year, the global container traffic is estimated to grow by 5.5% and we aim to double that,” he told StarBiz, adding that the PTP would be handling more local cargo.:banana:

Port of Tanjung Pelepas will be handling more local cargo.

“This segment increased by 30% last year and there is momentum to do even more. We now have 26 shipping lines and box operators compared with just two lines in our early years.

“This significantly improves connectivity and frequency, so local shippers now have better access to the global market,” he said.

Additionally, he said the PTP would continue to improve the quality of its services.

“We are probably the sixth largest terminal in the world and must continue to deliver high efficiency even as our operations become bigger and more complex.

“Our staff have been amazing in coping with the 15% rise in volumes and we must continuously raise the bar,” he said.

Another focus of the port was to build a great team that could lift the organisation to the next level.

“Advanced equipment and systems alone are not enough. Execution is what matters, and that relies on human capability.

“Managing talent is one of my most important roles. So I’m constantly on the lookout for bright and engaged people who want to make a difference,” he said.

PTP, which is a 70% subsidiary of MMC Corp Bhd, plans to add two more berths to cater for potentially higher demand.

“This will increase our current capacity from 8.4 million TEUs to 10 million TEUs next year.

“We are also adding capacity by improving productivity and enhancing the capability of our equipment. For instance, we are enhancing our yard management and upgrading the capacity of our first generation quay cranes. So, we not only build more berths but also ensure that we handle more volume per quay metre within our existing berths,” said Azlan.

Beyond that, PTP’s next phase of development, consisting of eight more berths, would raise capacity to over 15 million TEUs.

“This phase will require dredging and land reclamation. In fact, our long term masterplan envisages a capacity of 150 million TEUs, five times the current volume of Singapore,” he said.

Last year, PTP recorded a year-on-year growth of 15% in volume to 7.5 million TEUs. A key contributor to volume growth was the selection of PTP as one of seven ports worldwide for the new “Daily Maersk” service.

“This initiative by Maersk offers daily on-time delivery at the seven mega ports in Asia and North Europe, which is something new in the shipping industry.

“We are also pleased that volumes from our other existing customers such as Evergreen and CMA CGM have grown substantially,” he said.

PTP had also received new shipping lines in 2011, including Mitsui and K-Line of Japan, China Shipping and four Korean lines - Hanjin, STX Pan Ocean, Sinokor and Heung A.

“So, there has been growth from existing customers as well as volume from new customers,” he said.

any pic of PTP recently (bird eye pic)??

source:http://www.ptp.com.my/media-news.aspx?mid=0&mnid=1&cid=0&itmid=2714&title=PTP investing RM 1.4bil to make port more competitive

PTP investing RM 1.4bil to make port more competitive
The Star - Jul 02, 2012

TANJUNG PELEPAS: The Port of Tanjung Pelepas (PTP) is investing RM1.4bil over the next three years in new cranes, electrifying existing rubber-tyred gantries (RTGs) and building new berths.

"The industry is continuously evolving and shipping lines continue to build larger vessels to achieve economies of scale. Ports will therefore need to deploy bigger capacity cranes. For example, Evergreen is building 10 mega-sized vessels with a 13,800 twenty-foot equivalent unit (TEU) load capacity," said PTP chairman Datuk Mohd Sidik Shaik Osman.

"Maersk Line is also building 20 mega-sized vessels in South Korea. The new vessels, nicknamed the 'Maersk Triple-E' vessels, will be even bigger than the largest container vessel plying the oceans today.

Sidik said none of the cranes used in the world today would be able to handle these vessels as they were not big enough. "In order to serve these giant vessels, ports will need new cranes which are more sophisticated, higher and have a longer outreach," he said.

As such, PTP - along with six other international ports (Felixstowe, Bremerhaven, Rotterdam, Yantian, Shanghai and Ningbo) selected by Maersk Line for their "Daily Maersk" programme - will have to build new cranes in order to accommodate these vessels.

As for PTP, it was already in the advanced stage of the procurement process, he said. "We plan to purchase eight of these cranes at a total cost of RM250mil. We will also invest in 32 additional units of RTG cranes at a total cost of more than RM200mil. Our plans also include building two new berths" he added.

Sidik said that the port was on track to handle eight million TEUs for the full year 2012. "The figures look encouraging. Last month, we handled 679,617 TEUs, the highest ever handled by PTP in any single month. Prior to this, the highest number of containers handled in a single month was in March when we handled 679,256 TEUs," he noted.

He attributed the port's good performance to its motto of continuously striving to provide efficient port services.

Efficiency encompassed a few factors, among them, he said, were high productivity in terms of fast crane movements and the ability to turn around vessels quickly.

Unlike other local ports, as a transhipment hub PTP would compete in a totally different field, he said, adding that 95% of the boxes that it handled were boxes on transit.

He said it was a very competitive and volatile sector as shipping lines could choose to tranship their boxes at any one of the regional transhipment hubs in this region. In order to stay relevant, PTP needed to continuously perform and invest in technology, he noted.

Sidik said of late, they noticed that there had been an increase in cargo originating from other parts of Malaysia being transhipped at PTP.

"The numbers are increasing. Last year, we handled 230,000 TEUs from the northern region and 320,000 TEUs from the central region of Malaysia.

http://farm6.staticflickr.com/5059/5541863438_d02dcfae8c_b.jpg (http://www.flickr.com/photos/wangk/5541863438/)
Port of Tanjung Pelepas (PTP) (http://www.flickr.com/photos/wangk/5541863438/) by DuCourage (http://www.flickr.com/people/wangk/), on Flickr
http://farm5.staticflickr.com/4092/5048936103_98542825a0_b.jpg (http://www.flickr.com/photos/ashmilphotos/5048936103/)
KTM30Sep10_00627_26112+26109 (http://www.flickr.com/photos/ashmilphotos/5048936103/) by TheFlyDutchman (http://www.flickr.com/people/ashmilphotos/), on Flickr
Port of Tanjung Pelepas
http://farm2.static.flickr.com/1077/551722098_b51306a8d2_b.jpg
http://www.flickr.com/photos/orfeo256/551722098/in/set-72157603840342790/

http://www.ptp.com.my/userFiles/image/AS-large.jpg http://www.ptp.com.my/userFiles/image/c5-large.jpg
http://www.ptp.com.my/

PTP to chart new course with Hilton
Published: 2013/03/13
http://www.btimes.com.my/Current_News/BTIMES/articles/pott/Article/#ixzz2NejjO9Lx

http://www.btimes.com.my/articles/pott/pix_topright

KUALA LUMPUR: Port of Tanjung Pelepas (PTP), Malaysia's largest container terminal operator, has appointed Glen Hilton as its new chief executive officer effective March 1.

One of Hilton's immediate tasks is to oversee PTP's RM1.4 billion expansion.

It involves the building of two new berths and three blocks of container yards, the purchasing of new cranes and electrifying of existing rubber-tyred gantries.

The expansion will raise PTP's annual handling capacity by 25 per cent to 10.5 million TEUs (twenty-foot equivalent units) and increase the number of berths to 14 with total quay length of 5km.

The expansion will complete Phase 2 of PTP's master plan.

Construction work on the new berths measuring 720m has started and is slated for completion in May next year.

"Hilton's track record and extensive experience in managing ports and delivering results makes him the ideal candidate for this position.

"He is also an inspiring leader and we look forward to Hilton stepping into his new role to continue PTP's development and expansion plans," said PTP chairman Datuk Mohd Sidik Shaik Osman in a statement yesterday.

Hilton has spent 12 years with various ports in the DP World Group.

He played a crucial role in the turnaround of Caucedo terminal in the Dominican Republic and the successful start-up of Ho Chi Minh City container terminal in Vietnam.

PTP's new berths and equipment will be able to handle the Maersk Line Triple-E vessels, a new generation container ships with 18,000 TEUs capacity.