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As the container ships get
bigger, and demand deeper channels, longer berths and cranes with higher and
longer outreach, ports which are often not consulted, are faced with the
difficult task of whether to respond to the changing market requirements by
investing huge amounts of money, or save it and face extinction.
This reality is now dawning on Malaysian ports as they vie for a place in
the international port system by aspiring to become a transshipment hub.
It was a historic moment at Port Klang on 26 June 2003, when the world's
largest container ship - the 8063 TEUs capacity OOCL Shenzhen - made its
maiden call to the port.
The maiden call to Northport by the giant vessel belonging to the Hong
Kong-based Orient Overseas Container Line made Port Klang the first port
east of the Suez and second only after Singapore in this region capable of
serving the giant ship.
Yet, barely had the celebrations ended to mark the visit of the 325 metre
long SX class vessel (that was appropriately entered into the Guinness World
Book of Record) when news was received that orders had been received by a S
Korean shipyard for even a bigger ship - with a capacity to carry 8,200 TEUs.
The orders for four such giant ships by a Paris-based shipping line
underscored the relentless pursuit by global liner operators for an optimal
vessel size in the most competitive sectors of the shipping industry.
Recent reports suggest more orders are expected to be announced for the
construction of the giant ships in the next six months.
Ever since the 8,000 TEUs capacity ship size was breached, it had become
technologically possible to build even bigger container ship up to 9,000 TEU,
which a couple of years ago was deemed as unlikely.
Since the technological barrier has been overcome, it comes as no surprise
that aggressive global liner operators have started considering the new
generation of post-panamax container ships because the vessels offered
greater economies of scale.
These giant ships which dramatically lower the unit cost for the carriage of
the containers are now viewed as optimum vessel size for deployment in major
shipping lanes in the East-West trades.
In particular, the giant container ships are said to suitable for deployment
in shipping lanes, like the Asia-Europe and the Transpacific, including the
burgeoning China-US trade route where the traffic in container volumes are
expanding rapidly, and voluminously.
The threshold volumes of the containers carried by these large vessels
between ports served are sufficiently attractive to deploy the super post-panamax
container ships.
Despite the huge investments needed for building such giant ships, shippers
do not necessarily end up paying higher freight since the shipping lines,
enjoy lower unit costs tend to pass on the benefit.
However, the same is not true of ports or terminal operators who are faced
with major investment decision to respond to the specific technical and
operational requirement of these giant ships.
The decision by OOCL (owned by the family of Tung Chee Wah, the CEO of Hong
Kong SAR) to deploy its giant ships to Northport, at Port Klang is indeed a
case in point.
Northport had to make a strategic decision - to meet the specific
infrastructure requirements of the giant ships, or give it a miss and lose a
major client an act that could undermine its status as a regional
transshipment hub.
Northport had to take unprecedented initiative to meet the specific
requirements of the super post panamax container ships that the SX class
vessels of OOCL are now berthing smoothly at the premier Malaysian container
port.
After its failure to persuade the tardy Port Klang Authority (PKA) to dredge
the channel and harbour basin to cope with the requirement of the big ships,
Northport proceeded on its own to dredge the approach channel for the entry
of giant ships.
Reflecting upon the urgency of the matter, Northport went ahead, under a
special arrangement with PKA, to dredge the channel by advancing its own
funds in a bid to maintain its premier position as the country's leading
gateway port.
The approach channel at Port Klang leading to Northport was dredged by
Integrated Marine Works Sdn Bhd, selected by the Ministry of Finance.
With the completion of dredging work, the depth of the Pulau Angsa passage
has now been re-declared to 15 metres from previous level of 11.3 metres.
The initiative was no doubt crucial to Northport to keep its position as the
second port in the region after Singapore to maintain the largest
concentration of mainline vessels, or mother ships.
Its efforts did not go unnoticed by the global shipping industry - several
leading shipping lines have commended the port's initiative and are
comforted by the fact that the customer-responsive approach by the port.
In addition to the paving the approach channel, Northport also worked under
odds to get its show-case container terminal - CT3 - ready on time for the
giant ships.
The first phase of the RM100 million CT3 was completed well ahead to receive
the giant ships. In addition to the development of the new berth, Northport
also added an array of high-speed cargo-handling equipment, including longer
out-reach super post-panamax sized quay cranes to handle the giant ships.
Five super post-panamax cranes with capability to handle 21 containers
across the deck have been installed at CT3 which when fully competed will
offer a 534 meter linear berth in 2004.
It is not just providing the necessary infrastructure to meet the demands of
the giant ships that Northport had to consider but more importantly it had
daunting task of assuring the shipping lines that the giant vessels will be
"turnaround" in a predictable manner.
Thus, benchmarking itself against international accepted standards,
Northport out-sourced the ship & landside responsibilities to private
contractors, who since started their service in March this year, have
received all-round praises for their consistency and high performance.
The advent of the giant container ships is expected to continually impact on
ports like Northport if it is to remain relevant in the emerging global
port-shipping environment at Port Klang.
Though ports may complain that they are not usually consulted by shipping
lines when they order the huge ships, they are nevertheless expected to keep
abreast with the dynamics of shipping economics. If shipping economics is
given a free run, even the 10,000 TEU that is said to be on the drawing
board is unlikely to be satiated. But for the moment, the technology for the
construction of such a sized vessel has not been breached - which may give
ports like Northport a breather and to rest on its laurels. |
