WESTPORTS in Port Klang aims to handle five million TEUs (20-foot equivalent units) and nine million tonnes of conventional cargo in 2008.

These figures are respectively a rise of 15 per cent and six per cent from last year.

Westports Malaysia Sdn Bhd executive director Ruben Emir Gnanalingam said container traffic will continue to drive the port's growth in revenue and volume this year.

"The volume of container traffic is increasing as more break bulk cargo such as vehicles and steel products are shipped in cargo containers, leaving grains and liquid products for bulk shipment," he told Business Times in an interview.

"Nevertheless, conventional cargo growth will be relatively stable, thanks to increased shipments of palm oil and petroleum," he added.

Transshipment containers are expected to account for some 3.5 million or 70 per cent of the port's total projected container throughput for 2008, while the remaining 1.5 million TEUs or 30 per cent will come from local cargo.

Ruben said the Middle Eastern shipping lines calling at the port will also help boost its revenue and growth in volume this year.

"We will continue to see growth in volume from our top customers like CMA-CGM and China Shipping Container Lines. At the same time, we expect the Middle Eastern shipping lines such as United Arab Shipping Co and Emirates Shipping Line to grow faster in Malaysia over the next two to three years," he added.

Westports expects revenue this year to grow by 19 per cent to RM1 billion, from RM840 million in 2007.

In 2006, it posted a revenue of RM738 million, of which RM571 million came from its container operations.

On another front, Ruben said the port is on track to settle all its outstanding loans of RM356.8 million by 2011.

It has reduced its debt-to-equity ratio to 0.50 times, from 0.90 in 2007.

Meanwhile, Westports remains confident that it will withstand impending competition from Penang Port and Kuantan Port, which are gearing up to become mega ports under the developments of the Northern Corridor Economic Region and the Eastern Corridor Economic Region, alongside Westports, Northport and Port of Tanjung Pelepas in Johor.

"The world's shipping lines seek to call at a port that can offer productivity, fast turnaround, efficiency and world-class facilities such as deployment of more Super Post Panamax Cranes, natural deep-sea for berthing, skilful workers and most importantly, a large volume of cargo to ensure a profitable return voyage.

"At the same time, shippers opt to use a port that offers regular services and has good connectivity," said Ruben.

"We at Westports have made every effort to build up a good network of routes. Productivity in the port is constantly increasing, and we are spending some RM800 million over the next three years starting 2007 on port expansion, taking into account that ships are getting bigger," he added.

Ruben said Westports will remain supply-driven to absorb any surge in volume and global trade.

"This approach will also help shipping lines maintain their competitive edge," he said.

Ruben also said this year, he has lined up plans to build up Westports' automotive business and is expecting to handle some 100,000 cars by year-end, from 30,000 in 2007.

"We will also focus on the implementation of the Enterprise Resource Planning (ERP) system that is designed to improve productivity, competitiveness and efficiency at the port.

"We have allocated some RM5 million for the project last year and expect to complete it by April this year," Ruben said.

The NST, 04.01.2008