THE STAR, July 22nd, 2002 - WESTPORT will not. 'counteroffer' Singapore's 50% discounts on empty box handling and 10% off all bills at its cargo terminal by giving further rebates.

Its executive chairman Tan Sri G.Gnanalingam said the terminal would not subscribe to price undercutting or devaluing the industry.He said every organisation had to sustain its operating cost and achieve a reasonable return on investment so that it could continuously expand its facilities and improve services.

"I am sure with the massive price-cutting and reaction of PSA Corp, people must be wondering what our response would be.

"Personally I think that competition is no longer fashionable. Price- cutting will never replace productivity, fast turnaround and efficient service," he told a gathering of shippers and manufacturers I recently at the Westport Cargo Owners Nite in Petaling Jaya. The guest-of-honour was International Trade and Industry Minister Datuk Seri Rafidah Aziz.

Gnanalingam said Singapore had merely reduced the rates for empties which was no concern to Malaysian Shippers as this only benefited shipping line directly.

"Since the 1980s PSA has continuously increased its process trying to match those Hong Kong, Rotterdam and the Japanese ports.

"Now they are trying to reduce their prices. A local box in Malaysia still cost US$50 while it costs US$100 to tranship out of Singapore."

The same box would cost RM700 to tranship out of Rotterdam and RM350 out of Jakarta, he said.

Gnanalingam said Westport had to ensure that sense and sanity would always prevail because it could not afford to be: a non-performing loan or go bankrupt in search of market share.

He said ports were an essential industry that provided the basic need to handle the inventory of the nation and reduce turnaround time by providing efficient services. "We believe in co-opetition which is to compete on excellent quality standards and to co-operate to ensure the industry remains viable."

Three weeks ago, PSA chairman Yeo Ning Hong announced that the port's customers would get a 50% discount on handling charges for all empties effective July 1 for a 12-month period.

Since then, Malaysian ports, including Port of Tanjung Pelepas, whose success in getting Maersk and Evergreen to shift the bulk of their transhipment to Johor has caused a blow to the republic, has come out to say that they would not engage in a price war to compete with PSA.

At the event, Westport also launched the smart card system which is aimed at enabling smooth security access, confirmation of container movement and reducing pilferage.

The card permits only authorised personnel to clear containers and checks forgery because hauliers and forwarding agents can issue their staff with a photograph imprint for identification- purposes.