The future crisis forecast in the shipping industry is based on the increasing oil prices and the slowdown in the United States, Europe and even China, Westport executive chairman Tan Sri G. Gnanalingam said.

"To survive any of these slowdowns ports have to have sufficient capacity, high productivity and fast turnaround time to grab a share of any market.

"There has always been a forecast of doom and gloom in this industry and we in the port industry cannot be susceptible to such forecasts.

"Today there's massive congestion in Europe and the Unites States because after the 9/11 tragedy there has been a reluctance to provide capacity growth. We in Westport are familiar with all these crises.

"From day one we have experienced the Asian economic crisis of 1997, the 1998 currency crisis, Bosnia and the Y2K bug in 1999, Kosovo in 2000, Sept 11 in 2001, war in Afghanistan in 2002, Iraq war in 2003 and the outbreak of severe acute respiratory syndrome (SARS) and avian flu last year," he said when commenting on claims by some industry players on a possible slowdown in the second half of this year.

Gnanalingam said Westport was now both a hub for transhipment and a gateway for local products and its local growth was currently two and a half times that of the GNP.

He said the port's transhipment growth was based on its productivity, fast turnaround time and competitiveness.

"As such we have to maintain a supply driven situation so that the inventory of the country as the 17 largest trading nation can move speedily in and out of the country.

"Our challenges are mainly to improve productivity, acquire equipment and train a multi-skilled staff and realise that on our own we have no business but depend largely on our shipping lines' needs," he said.

Gnanalingam said the second challenge was to remain supply driven to absorb any surge in volume and realise that world trade had grown by 10% over the last 50 years.

"We cannot base our growth on crises or slowdowns, which are at the end of the day hiccups," said Gnanalingam.

He said Asia's trading volume would continue to grow because of new technology and increasing income and spending power of more educated population.

"For example, previously we were happy with just one phone at home and another in the office but today we buy at three handphones a year.

"A decade ago we were content with one 16" television set at home but today most houses have at least three 32" TV sets. This alone has increased containers from one to six."

Thirdly, he said, as more and more population became educated, they would have incomes to buy cars, live in air-conditioned houses with refrigerators and other items for comfort.

"Even an oven in the house gets changed more regularly today than in previous years. During a crisis you may not want to change your car but after five or six years you would have to get rid of the obsolete car.

As such, he said Asia was bound have containers with increasing incomes in China and India let alone South East Asia.

Gnanalingam said lastly more and more goods are being containerised today.

"We have seen not only dry bulk cargo but also liquid bulk that is moved in containers.

"India is only 20% containerised, China 60% while Malaysia is 70% and it is already 80% in the western world," he said.

The Star, 25.7.2005