NST, February 7th, 2002 - Westport in Port Klang is predicting a 1.8 million TEUs (20-foot equivalent units) handling this year, increasing container throughput volumes by 30 per cent from the previous year.

Executive chairman of Kelang Multi Terminal Sdn Bhd (the operator of Westport), Tan Sri G.Gnanalingam told Business Times that local ports are still projecting growth despite uncertainties in the global economy.

The projected growth, he added is in line with the Governments 5 per cent growth prediction for gross domestic product this year.

Last year Westport handled more than 1.45 million container boxes, increasing handling by around 45 per cent from one million TEUs handled in 2000.

"Shipping lines look for efficiency, and using the one particular port has to be economical.

"We have to be productive to be competitive," he added.

Malaysian ports, to date, have been among the most efficient in Asia, with the three main ports, Northport, Port of Tanjung Pelepas and Westport being voted among the top 10 most efficient.

Gnanalingam added that the full capacity for Westport is around 7 million TEUs

"By 2005 we should be handling in the region of 5 million container boxes. Our growth has been consistent and steady, from 20,000 TEUs in 1996 to 1.45 million last year," he added.

Westport has also been very profitable, doubling profit before tax from RM30 million in 2000 to more than RM60 million last year.

About 20 acres of additional yard space with 3;000 ground slots were completed for use by June last year, increasing the company's total terminal handling capacity to 2.5 million TEUs per year.

The main mover in Port Klang is transhipment with around 50 per cent of the total 3.7 million container box throughput.

Transhipment has grown in Port Klang from only 10,000 container boxes five years ago to around 1,8 million TEUs last year.

Port Klang is currently lingering just outside the top 10 list of the busiest container ports in the world.

Gnanalingam believes that with additional expenditure, in the region of RM2 billion, the full potential of Port Klang can utilized.

If all goes well, and both Westport and neighboring Northport handle their respective targets, Port Klang should breach the 4-million -TEU mark this year.

Northport had sometimes earlier predicted a 2.7 million- TEU handling for the current year, after achieving the 2.3million container target set for last year.

"If Westport continues to exhibit current growth patterns, the 1.8 million container handling target will definitely be reached," an official from a shipping line said.

Together the two ports will handle around 4.5 million containers this year.

To cater to the five million containers throughput expected by 2005 several expansions are currently being conducted at Westport.

The more prominent include increasing the quay length from the current 2km to 4.4km. The additional 2.4km, sources say will set the company back by around RM320 million.

The prospects for Westport, in the region, shipping line officials say are bright as the port has low handling charges and provides efficient service.

"In this trying economic situation, we (the shipping lines) have to find cheaper alternatives without drops in turn around time, ports like Westport are extremely attractive not only for the savings from handling but also for the efficiency levels," a shipping line official said recently.