Liow: Ocean Alliance move only causes short-term effect
PUTRAJAYA: Malaysian ports are among the most efficient in the world, with the capability to meet the requirements of shipping lines at very competitive charges, says Transport Minister Datuk Seri Liow Tiong Lai.
The country’s competitiveness, particularly Port Klang, remains unaffected despite the move by Ocean Alliance, led by CMA CGM, to relocate their operations to the Port of Singapore.
“It is only a short-term ripple effect due to the move by Ocean Alliance, and mergers and acquisitions of CMA CGM,” he said after the 3rd National Logistics Task Force Meeting on Thursday.
Liow said with two out of three shipping alliances operating in Singapore, shipping lines would find it more challenging to operate, especially transshipment, in the island nation.
“It makes more sense for each of the alliance to locate its hub in different ports so that it can compete, leveraging on the strength of its supply chain.
“But now, they are competing within a single hub in the same port without deriving any strategic advantage. Instead of having a pool each for themselves, they are now competing within a single pool.
“It is not farfetched to say that with shipping lines intensifying competition against one another in Singapore, Port Klang will potentially become an attractive alternative hub in the future. It is a golden opportunity for shipping lines,” he added.
Liow said Malaysian ports are expected to grow exponentially with a steady increase in total trade.
“Last year, our total trade stood at RM1.48 trillion while for the first seven months up to July , it surpassed RM1 trillion, the fastest pace ever.
“Total indigenous throughput for the first eight months this year for Port Klang grew 5.5 per cent to 2.85 million twenty-foot equivalent units (TEUs) against 2.70 million TEUs recorded in the same period last year,” said Liow.
Cargo volume was expected to increase with the setting up of regional distribution centres in the vicinity of the ports.
“Our ports have stayed focused on attracting cargo from the Southeast Asian region,” he said.
On the Malaysia Shipping Masterplan, Liow was confident that it would bring the shipping industry to greater heights.
He will chair the Malaysia Shipping Council which has been entrusted to look into re-energising the Malaysian shipping industry towards a brighter future.
On the Digital Free Trade Zone (DFTZ) in KLIA Aeropolis, Liow urged MAHB to closely monitor the upgrading work at the former low cost carrier terminal to ensure it was completed on time and operational by year-end.
“Jack Ma (Alibaba founder) will be visiting Malaysia in November. We must be prepared to leverage on his visit, particularly the state of readiness of DFTZ,” said Liow. Bernama