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FRANCE'S CMA CGM, the world's
third largest container shipping
line, said it is open to the
idea of buying stakes in container
terminals and ports in Malaysia.
"We always
welcome and are interested in
any opportunity to develop or
invest in a terminal, port or
rail company. But it has to
be the right business for the
right price," CMA CGM &
ANL Malaysia Sdn Bhd managing
director Simon P. Whitelaw told
Business Times in an interview.
"We are
very flexible, whether it is
a total investment, to take
a minority stake or a management
contract, depending on market
conditions.
"But there's
nothing specific on the agenda,"
he said, when asked whether
the shipping line was examining
an opportunity to expand in
Malaysia's port industry through
the purchase of a stake.
In the past,
local ports such as Westports
at Port Klang, Kuantan Port
and Port of Tanjung Pelepas
in Johor had said that they
were open to selling a part
of their equity in the port
to foreign entities if it makes
commercial sense.
Meanwhile,
CMA CGM expects a 20 per cent
increase in volume in the Malaysian
market this year, a level similar
to the growth recorded during
2006-2007.
"We expect
transshipment volumes to drive
the majority of the growth,"
said Whitelaw.
Last year,
it handled 1.6 million TEUs
(20-foot equivalent units) at
Westports. Of the total, 75
per cent were transshipment
and the balance were local cargo
traffic.
Whitelaw said
this current growth momentum
is likely to sustain over the
next three to four years.
CMA CGM is
Westports' biggest customer.
"In the
last few years, Malaysia has
become an important part of
CMA CGM's global operations.
The main reason being our growth
at Westports as our hub port,"
said Whitelaw.
"This
also means that we have got
a large number of direct services
for the local export and import
markets," he added.
Today, it has
47 weekly services calling at
Westports to destinations in
Europe, the Middle East, the
Black Sea and Australia.
Whitelaw also
expects container freight rates
on all trades in 2008 to be
higher than last year.
"The outlook
for freight rates for 2008 remains
steady. We expect to see a gradual
increase in rates than the previous
two years," he said.
Last year CMA
CGM on a global basis saw a
58 per cent increase in net
profit to US$966 million (US$1
= RM3.15), thanks to world trade
growth and a bigger market share.
"We had
a good 2007 financial results.
"Part
of the reasons was that we managed
to control our fuel costs well,
which account for over 50 per
cent of our total operating
cost.
"This
was done partly through hedging
but more through the use of
the bunker adjustment factor,"
said Whitelaw.
The NST, 21.04.2008
by Kang Siew Li
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