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Malaysian ports ride on transshipment wave

Driven by a strong increase in the volume of transshipment containers handled, the total container trade at Malaysian ports last year posted an impressive 12 per cent increase over the previous year.
 
The total volume of containers handled by local ports increased to 13.6 million TEUs (twenty-foot equivalent units), up from 12 million TEUs handled in 2005.
 
A third of the volume was due to volumes at the Port of Tanjung Pelepas, the largest container port in the country.
 
With more than half of the total volume of containers handled by ports in the country now being composed of transshipment traffic, the trend towards transshipment driving the growth of major ports is expected to further intensify and, indeed it seems, inevitable.
 
This trend is especially expected to accentuate in view of the lower prospects for growth of national trade as reflected in the container volumes generated on account of the national trade handled by major ports.
 
Thus, while PTP and Westports recorded surging gro-wth on account of the strong growth in transshipment traffic, national gateway ports like Northport, Penang and Johor have to contend with single-digit growths.
 
In fact the growth in transshipment at Westports, Port Klang, was somewhat unprecedented - in excess of 30 per cent.
 
The surge in transshipment at Westports - that includes the handing of re-stow, re-positioning and empty containers - has steeply increased the port's dependence on transshipment for its survival, making up 70 per cent of the total volume of containers handled by the port.
 
Westports, which handled 2.9 million TEUs in 2005, of which 1.9 million TEUs made the transshipment volume, last year recorded a total volume of 3.7 million TEUs, with 2.3 million TEUs making up the transshipment volume.
 
Unlike Westports, Northport, which is the largest national gateway port, retained its strong cargo base from volumes generated by national trade, while also making inroads into transshipment.
 
Total volume of containers handled by Northport rose marginally less than one per cent to 2.7 million TEUs.
 
Despite the higher volume of containers handled by Westports, it received fewer ship calls that did Northport consistent with the characteristics of a transshipment port that generally does more "ship exchange" of containers (that includes re-stowing and re-positioning of empty containers by ships calling at the port).
 
The average number of containers per ship at Westports was thus about 640 TEUs compared with 436 recorded by Northport, based on ship calls totaling 5,600 and 5,900 by Northport and Westports, respectively.

               

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