Westport Malaysia expects earnings for this year to reach RM100 million, up 11% from RM90 million last year after it recently clinched a long-term contract with French shipping line CMA-CGM while two more lines are expected to also use the port.

Executive chairman Tan Sri G Gnanalingam said on July 6 that he was expecting higher volume this year with the new lines. This would boost revenue by 20% to RM600 million from RM500 million last year.

"For the first six months, our revenue grew to RM286 million from RM245 million last year and we are confident we would reach our target (of RM600 million)," he said at media briefing in Kuala Lumpur on July 6.

He confirmed a recent FinancialDaily report that CMA-CGM would use Westport as a key Asian shipment hub for the long term.

"We will also see two new shipping lines joining Westport -- Maruba from Argentina and ANL from Australia," he said. Currently, about 25 main line operators use Westport.

Gnanalingam said Westport was attractive due to its competitive pricing, state-of-the-art terminal and faster service, boosted by its recent RM300 million upgrading of facilities, which was sufficient for two to three years.

Westport aims to handle three million twenty-foot equivalent units (TEUs) this year from 2.55 million TEUs last year, with the RM300 million upgrade of its facilities in the Klang Valley.

By year-end, Westport would be able to handle six million TEUs without any further increase in investment but it was aiming at only five million TEUs. He explained that excess capacity was crucial for ports.

Gnanalingam said Westport could handle more than 10 million TEUs by 2020, if there were more investments to expand its facilities.

The Edge, 7.7.2005