Northport partners Sarawak-based shipping lines

PETALING JAYA: MMC Corp Bhd’s outfit Northport (Malaysia) Bhd will be forming a strategic alliance with Sarawak-based shipping lines Shin Yang Shipping Sdn Bhd and HarbourLink Group Bhd, which will see the three parties working together to improve economies of scale.

According to a three-way memorandum of understanding (MoU) inked between the three parties, the alliance known as The East Malaysia Network or TEAM Network will be sharing resources such as vessels, terminals arrangements and networks in a bid to increase economies of scale.

“The MoU is expected to increase shipping service frequency through schedule alignment between Shin Yang and Harbour-Link. With the consolidation of vessel capacity between the two lines, the pact will create greater economies of scale with the optimised deployment of vessels and a wider port coverage,” Northport CEO Datuk Azman Shah Mohd Yusof said in a statement.

Besides that, the arrangement is also expected to reduce operating expenses and optimise capital expenditures for the two shipping lines.

Meanwhile, Northport will be providing efficient and effective port services to the shipping lines.

Harbour Link Bhd’s share price closed 1.5 sen higher at 69 sen last Friday, with some 4800 shares changing hands. It has a market capitalisation of RM276.3 million.