Why Malaysian ports are losing out to SingaporeBy Syed Jaymal Zahiid
KUALA LUMPUR, Sept 14 — Five major global shipping firms ditched Port Klang for Singapore in April as a result of an-industry wide shakeup meant to sustain a struggling container liner business bogged by the global economic slowdown.
By shifting operations to the Port of Singapore, the companies now operating under the newly formed
Ocean Alliance effectively took with them over
a third of Port Klang’s income or roughly around two million worth of imported conventional containers (carrying goods) that otherwise would have passed through its terminals before getting shipped to other major ports in the world.
This process, called transhipment, accounts for almost 30 per cent of Port Klang’s total income; transhipment volumes account for 40 and 20 per cent of total revenue for its two main terminals, Westports and Northports, respectively.
It would make more sense for shipping companies to call at Singapore’s ports since smaller feeder ships from ports from around the region can travel roughly 600km less to load or unload goods from larger vessels parked there.
PSA Terminal is currently the second largest container port in the world next to Shanghai, handling up to 30.9 million twenty-foot equivalent units (TEUs) in 2015 alone
Source: The Malay Mail Online
https://malaysia.yahoo.com/news/why-mal ... 00843.html
It's all about "how much you made when you were right" & "how little you lost when you were wrong"