Saturday, August 24

Ports and shipping sector to face challenges in 2016

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The impact might be mitigated by the cost advantage enjoyed by local operators as compared to the regional peers, even after the tariff hike from end-2015.

The impact might be mitigated by the cost advantage enjoyed by local operators as compared to the regional peers, even after the tariff hike from end-2015.

KUALA LUMPUR: The challenging global economic outlook coupled with poor sentiment in the port industry is expected to pressure the throughput volume on the downside.

According to Kenanga Research, the impact might be mitigated by the cost advantage enjoyed by local operators as compared to the regional peers, even after the tariff hike from end-2015.

While maintaining its “neutral” call on the sector, the research firm, in a research note today said, the industry would also be supported by the expansion plans to boost handling capacity.

As for the shipping sector, Kenanga also reiterated the same call as the outlook for it remained uncertain.

“The shipping sector is overall experiencing a down-cycle. But, the saving grace is the strong performance of the petroleum segment, supported by limited vessel supply and high level of oil production,” it added. – Bernama