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Bintulu port enjoys Evergreen support

The vast prospects expected from the development of the Brunei-Indonesia-Malaysia-Philippines Growth Area prompted the Taiwan based Evergreen, a world leading independent container shipping line, to take the head-start in providing the first direct mainline service out of Bintulu Port in Sarawak.

 

Disclosing this, the general manager of Evergreen Marine Corporation (M) Sdn Bhd, the general agents for the Taiwanese shipping lines, Lee Hock Saing said the time was right (for Evergreen) to start a long haul containerised vessel service calling direct at Bintulu “which we did on the 24th July last year.”

 
The line deploys three 1100 TEU vessels offering a weekly every Tuesday call at the recently-opened Bintulu International Container Terminal offering direct containerised vessel service ex Bintulu to
Manila, Taiwan and Hong Kong.

 
”With this service we are also able to offer service to USA / Canada/ Europe  via Kaohsiung , Japan / Korea via Taichung , PRC via Hong Kong,” Lee added.

  
Lee who was speaking at a trade and shipping conference in Bintulu last week said instead of importing / exporting containerised cargo via the usual transhipment hub i.e Singapore, Port Klang , Jakarta , Surabaya, there is now a nearer transhipment hub at Bintulu International Container which is ocated centrally in the BIMP - EAGA region.

 
He felt the location of Bintulu port may serve as a nearer transhipment hub to import or export the merchandise of the shippers and may well result in cheaper transportation cost due to the sole reason being reduction in distance.

 
Lee said reduction in transportation distance might lead to faster shipment of cargo as well as increase in the volume of cargo moved since shipments would be more competitive.
 
He urged greater coordination among the four member countries of the BIMP-EAGA to designate a suitable transshipment hub for the region “instead of each of the four countries investing in new port terminals, establishing and promoting 15 ports to act as transshipment hubs.”

 
”We feel that it would be more practical if the number of the
transhipment hub can be shortlisted base on an independent consultant's recommendation after taking all factors into consideration and that some of the efforts and resources can be channelled to promote more feeder linkages,” he said.

 
Lee also wanted assistance to be considered for MLO's and feeder operators who stick out their neck to start a new service linking BIMP – EAGA region.
 

“To start a new service in a new area, there is an investment cost to the vessel operator to promote growth in the first two years hoping that there would be light at the end of the tunnel thereafter and the continued eventual growth will pay off the investment,” he said.

 

“Whatever assistance that the relevant government authorities and port terminal operators can render to the vessel operators are crucial in creating a conducive environment for a vessel operator to launch a new service in a new area,” he noted.

 

Meanwhile, Evergreen Marine is reported to have firmed up its plans to move its Southeast Asia transshipment base in Singapore to Pelabuhan Tanjung Pelepas, in Johore.

 

The group chairman, Chang Yung-Fa is reported to have confirmed about the switch to Tanjung Pelepas in an interview with the Japanese press.

  

Chang said: “We have formally decided on that shift.”

In October Evergreen announced that it signed a memorandum of understanding with Tanjung Pelepas on shifting its annual volumes of 1.2 million TEUs from Singapore from August this year.

Evergreen would be the second major shipping line to quit PSA Corporation's terminals in Singapore, following PTP stakeholder Maersk Sealand at the beginning of 2001.

 

Cost would appear to be the issue involved in Evergreen's planned switch.

 

According to the report, Chang is reported to have cited cost being the main consideration for the shipping line’s move to PTP.

Charges for Tanjung Pelepas, said Chang are more than 50 per cent lower than those in Singapore. 

 

Our company has annually handled about 1.2m teu of container cargoes in Singapore, so the difference between the two ports amounts to as much as US$200m or so,” Chang was quoted as saying. 

 

“At a time when the environment for our management is becoming increasingly severe, we have been forced to decide on the shift of the hub port in consideration of its effects on our earnings position,” he said. 

   

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