Base cargo forges growth at Johor Port

The continued high volume of foreign direct investment in the manufacturing sector received by the state of Johor over the last few years boosted the growth in the volume handled by the Port.

Container traffic at the Port rose by 15 per cent in the first five months of this year.

The Director of Port Operations of Johor Port Bhd Dr Lim Meng Soon, said Pasir Gudang remains one of the fast expanding industrial regions in the state of Johor.

"Taking the advantage of lower Ringgit value a few years ago, a number of foreign investors have expanded their operational activities and a steady stream of new investors have ventured aggressively into electronic & electrical and furniture industries," he said.

Dr Lim said cargo generated from these investments are largely shipped via the Port's box terminal.

"Almost 80 per cent of our traffic is "base cargo" which is generated from the Pasir Gudang and Tanjung Langsat Industrial Estate, located some five to seven km from our container terminal. The industrial site is within the reach of Johor Port allows shippers to ship their consignment without any delay," said Dr Lim.

The remaining 20 per cent of the box traffic comes from Larkin, Tebrau, Johor Bahru, Mersing Industrial Estates and other industrial estates that are being developed by the Johor State Economic Development Corporation and other private sector.

"We are also receiving some traffic from industrial estates in Batu Pahat, Muar and some even from Malacca as well," said Dr Lim.

The increasing volume of boxes has attracted some shipping to mount daily service from JPCT.

He said currently the container terminal was served by 15 dedicated main line operators on a regular basis.

"The lines are increasing their strings in response to the expanding cargo volume from immediate hinterland of Johor Port. In the first five months of this year Johor Port Container Terminal handled 247,945 TEU," Dr Lim added.

"We believe the trend will continue and Johor Port will enjoy buoyant growth. With the current high growth scenario we expect to handle about 600,000 TEUs by end of this year, " said Dr Lim.

"In view of the huge surge in the container traffic, we are streamlining our operational area. This includes efforts to optimise our berthing facilities by utilising conventional area for the feeder carriers. This streamlining activity will allow us to cater up to one million TEU at the present 760-metre container terminal," said Dr Lim.