Westport has started a weekly containerized feeder service calling Tanjung Wangi Port, Jakarta and Surabaya in an attempt to re-route containers to Port Klang.

A 120-TEU vessel, Jaya Niaga III, has been deployed on the direct run, which began on August 2. That service will link to Westport's other feeder service that begun on June 10, and plies the Jakarta-Pasir Gudang-Port Klang route.

A 400-TEU ship, Segera Makmur is being used for this route. It is learnt that Westport has teamed up with and Indonesian line to provide the services, seen as a move to re-direct Indonesian transshipment cargo to Port Klang, where formerly it was being sent to Singapore.

Westport Executive Chairman Tan Sri G.Gnanlingam said the services were initiated in response to market demands.

"There was a demand for it and nobody was willing to put in vessels to start off so we decided to do it".

The move is expected to divert to Port Klang some Indonesian boxes that were previously going via Singapore. It is estimated some two million containers from Jakarta are feedered to Singapore every year.

Westport had previously operated its won feeder services between Port Klang and Penang and Port Klang and Pasir Gudang. It later stopped the services.

Recently, regional feeder lines calling Singapore had asked PSA Corp to offer an "open and transparent" rate package that differentiates mainlines from feeder container operators, following more competitive rates offered by neighbouring terminals.

Regional Container Lines chairman P.L.Kua was quoted as saying that the company was being squeezed by competing operators who were "aggressively opening up direct links connecting North and West Asia with these neighbouring ports".

He had also regretted PSA's year-long incentive package which came to an end on July 1, and said it should have been continued until the market improved to enable carriers, especially regional feeders, time to implement rate hikes.