Malaysian ports remain efficient, says Liow

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PUTRAJAYA: Malaysian ports are among the most efficient in the world with the capability to meet the requirements of shipping lines at very competitive charges, said Transport Minister Datuk Seri Liow Tiong Lai.

The country’s competitiveness, particularly Port Klang, remains unaffected despite the move by Ocean Alliance, led by CMA CGM, to relocate their operations to the Port of Singapore.

“It is only a short-term ripple effect due to the move by Ocean Alliance, and mergers and acquisitions of CMA CGM,” he said in a statement issued after the 3rd National Logistics Task Force Meeting recently.

Liow added that with two out of three shipping alliances operating in Singapore, shipping lines would find it more challenging to operate, especially transhipment, in the island nation.

“It makes more sense for each of the alliance to locate its hub in different ports so that it can compete leveraging on the strength of its supply chain.

“But now, they are competing within a single hub in the same port without deriving any strategic advantage. Instead of having a pool each for themselves, they are now competing within a single pool.

“It is not far-fetched to say that with shipping lines intensifying competition against one another in Singapore, Port Klang will potentially become an attractive alternative hub in the future. It is a golden opportunity for shipping lines,” he added.

In addition, Liow pointed out that Malaysian ports were expected to grow exponentially with a steady increase in total trade.

“In 2016, our total trade stood at RM1.48 trillion while for the first seven months up to July 2017, it has surpassed RM1 trillion, the fastest pace ever.

“Total indigenous throughput for the first eight months in 2017 for Port Klang grew 5.5 per cent to 2.85  million twenty equivalent units (TEUs) against 2.7 million TEUs recorded in the same period in 2016,” the transport minister said. — Bernama