ASIA

Port Klang to create super terminal?

21 years ago

Two of the largest container terminal operators at Malaysias Port Klang, Northport and Westport, are planning to merge to create a regional super-hub capable of handling 5mTEUs a year. Of the two, Northport is the larger with an annual capacity of 4mTEUs. However, before changes can be made, they will require the blessing of the Ministry of Finance. The idea behind the merger is to make better use of existing resources and also to realise synergies between the two terminal operations.

Nevertheless, other options are also being studied in case the government says no.

Driving the merger could be increased competition between ports in the region.

For 2005, all Malaysian ports are expected to handle 11.5m TEUs compared with 10.2m in 2004. However, Singapore, Malaysia’s main trading rival, posted throughput last year of 21.3m TEUs. This prompted US consultancy, Arthur D. Little, engaged by one of Malaysia’s port holding companies, to suggest merging operations. Last year, Northport handled 2.7mTEUs while Westport recorded 2.6m.