Johor ports waiting for govt nod on plan to rationalise

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

31 Dec 2009

Port of Tanjung Pelepas (PTP) and Johor Port, both owned by MMC Corporation Bhd, is still waiting for the government's decision on the plan to rationalise their operations. A source from PTP who refused to be named said the outcome of recent talks between his company and manufacturers at Johor Port on the issue had been submitted to the Transport Ministry.
'We are leaving it to the government to decide,' he said.
Under the proposal, all container operations will be moved to PTP in Gelang Patah while Johor Port in Pasir Gudang will handle all other cargo such as bulk and liquid shipments.
The rationalisation exercise is scheduled to start on Jan 1.
The source said the exercise was proposed because Johor Port did not have enough space for expansion.
Besides, the industry was witnessing the use of bigger container vessels which require the port to have certain equipment and depths to receive them, he said.
'Johor Port could not cater for the change in the industry.
'The rationalisation proposal will also save costs and improve the port's operational efficiency,' he said.
He said manufacturers at Johor Port as well as hauliers and forwarders had refused to move their operations to PTP on the cost factor.
To reduce the cost burden, he said, PTP and MMC had come out with several suggestions including a lower port tariff.

Source: Bernama