MALAYSIA's MTT Shipping Sdn Bhd wants to buy two ships in the 1,200-TEU range to exploit the growing west-east Malaysian trade, adding to the five already in service, reports Bernama news agency.
MTT Shipping to buy 1,200-TEUers for east-west Malaysia trade MALAYSIA's MTT Shipping Sdn Bhd wants to buy two ships in the 1,200-TEU range to exploit the growing west-east Malaysian trade, adding to the five already in service, reports Bernama news agency.
Two-year-old MTT Shipping recently acquired its fifth vessel, the MTT Port Klang for US$6.2 million and expects its comparatively big and fast ships to enter the trade between Sabah, Sarawak and the peninsula, which has grown "enormously in the last couple of years".
MTT Shipping managing director Ooi Lean Hin said the planned acquisitions are still in the planning stage, and the two new vessels are expected to be similar to the fifth just purchased.
"We are looking at modern and more economical vessels, which will be reflected in our balance sheet and operating costs. We are still waiting for market demand to pick up before deciding on the purchase," said Mr Hin.
"The issue in the west-east Malaysia trade is the imbalance from Sabah and Sarawak, compared with the amount shipped to the other states," he told Bernama.
Mr Hin said the return ratio from Sabah and Sarawak is only 25 per cent of the goods exported from Peninsular Malaysia.
He said MTT Shipping expects Sabah and Sarawak state government to upgrade port facilities.
"The poor port infrastructure and facilities in Sabah and Sarawak makes the shipping of goods difficult and unsafe. There is also a higher cost for companies like us," he said.
