Intra-Asia segment boosts Westports’ 6M17
The container shipping industry is going through an unprecedented recalibration and realignment processes with the formation and transition towards new global alliances as well as the recently completed and ongoing mergers and acquisitions activities. Ruben Emir Gnanalingam, Westports chief executive officer
KUALA LUMPUR: Westports Holdings Bhd (Westports) achieved an operational revenue of RM860 million while its container operations handled a throughput of 4.7 million twenty- foot equivalent units (TEU) in the six-month period ended June 30, 2017 (6M17).
In a press statement, it pointed out that the Intra-Asia segment constituted more than half of the total containers handled, and this segment saw a favourable growth of seven per cent.
Westports continued to facilitate domestic economic activities as the gateway volume increased by five per cent in 6M17.
However, due to the ongoing changes in the container shipping industry, which saw the formation of new global alliances and reconstituted service offerings and port of calls, as well as mergers and acquisitions, the total transhipment containers handled were lesser at 3.3 million TEUs, it said.
As for conventional cargoes, Westports handled 5.4 million tonnes of throughput with higher volume recorded in the dry bulk segment.
Westports chief executive officer Ruben Emir Gnanalingam shared, “The container shipping industry is going through an unprecedented recalibration and realignment processes with the formation and transition towards new global alliances as well as the recently completed and ongoing mergers and acquisitions activities.
“At Westports, we experienced the transition from the phasing-out of Ocean 3 services to the gradual phasing- in of Ocean Alliance services.
“We have also secured a service from THE Alliance. The industry’s recent and ongoing mergers and acquisitions could also affect our container volume handled, especially of transhipment boxes, as the enlarged and merged entity, may select to re-assess their service offerings and port of calls.
“Due to all these ongoing changes, we expect our container throughput to be lower for this year when compared to the previous year.”
Ruben further highlighted, “After the well-above average rate of utilisation rate in the previous year, the more modest volume has facilitated much greater flexibility in our terminal operations as well as improved service levels and productivity.
“In the meantime, the facilities expansion at CT8 and CT9 and also new Terminal Operating Equipment would raise Westports total handling capacity.
“These factors will enhance Westports’ overall competitiveness and establish the foundation for future growth.”