Seaport: We’ll steer Penang Port towards China-India routes

Seaport Terminal is committed to improve the services offered by Penang Port and will position the port to handle the majority of transshipment cargo.


GEORGE TOWN: Seaport Terminal Sdn Bhd - the successful bidder for the privatisation of Penang Port - is poised to position the country's oldest port as the provider of shipping services to vessels plying the eastern and western routes of China and India respectively.

"We will provide enough depth for vessels plying these routes as our study on the port's capabilities has convinced us that Penang Port is not in a position to compete with the likes of the Port of Singapore, Port of Tanjung Pelepas or Klang Port," Seaport Terminal port director Datuk Mohd Sidik Shaik Osman told Business Times.

He said Seaport Terminal is committed to improve the services offered by Penang Port and will position the port to handle the majority of transshipment cargo.

"Our track record in operating the Port of Tanjung Pelepas and Johor Port speaks for itself, as we are a long-term player and we know how to spread our assets," Mohd Sidik added.

"We would expect the services of Penang Port to be equal to that of regional ports like Port Klang and Luang Prabang Port in Thailand."

Meanwhile, the Shipping Association of Malaysia chairman Ooi Lean Hin yesterday said the association, which has 30 member companies which are mainly involved in the container trade and serve the majority of big players, is not opposed to the privatisation of Penang Port.

"All we are concerned is that the job be given to a seasoned operator who knows what the port business is all about," he said in a phone interview.

"If we are to look at the privatisation of ports in Malaysia, we can see that it is not a bad thing and has actual helped improve the performance of the respective ports," he said in an interview.

Ooi said Penang Port is not in a geographical position to be developed into a transhipment hub, but rather serves the markets of the hinterland of Penang and also southern Thailand.

"Whether the privatisation of Penang Port should be given to Seaport Terminal or otherwise is not our call," he stressed.

"However, we are working with Seaport Terminal in their other ports and have found them to be good operators and who knows what the business is about.

"All we are asking as port users is that the port be given to experienced parties so that it remains in good hands."