|
|
|
|
|
| September 2, 2000 | atimes.com | ||
|
|
Southeast Asia
A new era in Asian shipping By Tony Allison CONTENTS OVERVIEW CHAPTER 1: MAERSK MAKES WAVES Introduction World trade outlook Sick of Singapore? CHAPTER 2: RIPPLE EFFECTS Why PTP? Singapore's response Benefits to Malaysia Beyond the ports Missing rail link East coast connection Landbridge to Bangkok The Trans-Asia Railway CHAPTER 3: PORTS OF CALL A port too many? Port of Tanjung Pelepas Perceived advantages Free trade zone Master plan The Port of Singapore A port too many? Port Klang Westport Westport up for grabs? The Klang Port Authority (KPA) Klang Port Management Sdn Bhd (KPM) Johor Port Malaysian national ports study CHAPTER 4: CALLING CARDS PTP's leading customers The Maersk Group The Neptune Orient Lines (NOL) Mitsui O.S.K. Lines (MOL) CHAPTER 5: INVESTMENT IN MALAYSIA Malaysian investment decline Investment environment Types of business organizations Capital controls PTP plans Singapore offering The Central Limit Order Book (Clob) OVERVIEW Malaysian Prime Minister Mahathir Mohamad once remarked that the prefix SIN (for Singapore) featured too prominently in newspapers detailing shipping itineraries and schedules. He commented that this may have contributed to the low confidence level of Malaysian businessmen in using Malaysian ports. "Allowing this big void to continue for so long could be Malaysia's greatest sin," the premier noted. Mahathir had every reason to be concerned over the dominance of his southern neighbor. In 1999 the Port of Singapore handled 15.9 million teus (twenty-foot-equivalent-units), making it the second busiest port in the world behind Hong Kong. Malaysia handled less than a tenth of this volume. It is estimated that as much as 20 percent of Malaysia's shipping trade "leaks" to Singapore, where services and facilities have long been considered superior. On average, 95 percent of Malaysia's total imports and exports moves via ships, so the loss is significant. Malaysia has long been aware of the problem. In 1991 Mahathir unveiled his 2020 Vision for Malaysia, a comprehensive plan for transforming the country into a fully industrialized nation by the early 21st century. The development of the country's ports was an integral part of the master plan, and 10 years later, the vision is bearing fruit. In August 2000, Danish shipping giant Maersk Sealand confirmed it was shifting its transshipment/hub operations from Singapore to Malaysia's spanking new southern port, Tanjung Pelepas (PTP) in Johor, having purchased a 30 percent stake in PTP from PTP's holding company, Seaport Terminal Sdn Bhd, for an undisclosed amount. Industry analysts have estimated, however, that the stake could be worth in the region of US$200 million based on the US$733 million cost of the first phase. The shift is believed to be the biggest single move in the port industry in Southeast Asia, and it will guarantee PTP an annual volume of two million teus in 2001, as well as serve as a catalyst to attract other major carriers. This news was followed a few days later by reports that Hutchison International Terminals Ltd (HIT), a unit of Li Ka-shing's Hong Kong-based Hutchison Whampoa Group, planned to buy a 30 percent stake in Kelang Multi Terminal Sdn Bhd (KMT), a private company that owns and operates Westport, one of three gateways at Klang Port, also in southern Malaysia. Both KMT and PTP have indicated plans to go public, the latter on the Stock Exchange of Singapore. Regardless of whether the Hong Kong deal eventuates, Klang Port is already on the move. In 1999 it was the 14th largest container port in the world, up from 21st place in 1998. Its leap up the rankings was the highest ever by any port. Overnight, the words of a senior Singaporean shipping official, spoken some years ago, are coming true: "We have a lot of jealous neighbors in the region, we have to watch out." Singapore played down the Maersk move, saying it involved just a small percentage of total cargo, and pointing out that the line's headquarters will remain in Singapore. Subsequent reports were a bit more defiant, saying that Singapore would "fight back", but no details were given. Malaysia, for its part, could not be more pleased. Recognition of its port facilities, which have improved markedly under a comprehensive privatization program, is expected to have a positive spin-off effect on both foreign investment and local industry, and to provide infrastructure opportunities associated with the ports. "The government is confident that the port sector's further growth will thrust the national economy into a new era of globalization, which is presently engulfing the international trade sector," said Mahathir of the developments. Further, strong, viable southern ports will enable Mahathir to fulfill his dream of the Trans-Asia railway, a proposed 5,513 kilometers of railway that will link Singapore, Malaysia, Thailand, Cambodia, Burma, Laos, Vietnam and Kunming in southern China. (c) Asia Times Online CHAPTER 1: MAERSK MAKES WAVES |
|||||||||
