CHINA Shipping Group Co has moved its regional headquarters to Malaysia from Singapore as it expects increased shipping activities from Port Klang this year.
China Shipping, which also relocated its container transhipment hub to Port Klang back in year 2000, expects its transhipment volume through Port Klang to increase to 350,000 20-foot-equivalent unit (TEU) this year, from last year's 300,000 TEU.
"The relocation of the regional headquarters is an important adjustment to the strategy in running the container business," it vice-president Zhang Guo Fa told reporters after the opening of the company's regional office in Kuala Lumpur yesterday.
The event was officiated by Transport Minster Datuk Seri Chan Kong Choy. Zhang said the Malaysian Government's incentive to grant the company 100% foreign equity in its Malaysian operations, backed by the increase in trade between China and Malaysia, were the deciding factors for the relocation. He added the move was also evidence of the company's confidence on the performance and future growth of Port Klang.
China Shipping is the second largest container line operating in Westport, Port Klang.
"Shipping lines look for fast turnover and efficient productivity in a port," said Westport Malaysia executive chairman Tan Sri G. Gnanalingam. He said China Shipping's operations in Westport would benefit from these qualities as well as cost savings.
Gnanalingam said local container shipping industry was worth RM2bil in 2004 and that the industry was growing by about 15% annually.
Zhang said China Shipping planned to expand its service coverage to South America, Africa, and the Mediterranean to American East Coast routes. However, he did not disclose when these plans would be carried out.
China Shipping's regional headquarters would be monitor its transhipment hub at Westport as well as acting as the coordinator between its South-East Asia subsidiaries and principle office in China.
By year 2010, the group aims to be among the top three container shipping companies in the world, with a 750 thousand TEU capacity.
The Star, 2.7.2005 |
