CONTAINER terminal operators Westports and Northport are expected to benefit from a terminal handling rate hike at Malaysia's Port Klang of 15 per cent from September 1, to cover container handling, import-export, transshipment and container shifting, stowing and storage.
The second phase of the fee hike will be implemented on September 1, 2018, for another 15 per cent.
"The tariff hike has been a topic that has been discussed for about 18 months, since the process was started. All stakeholders were involved via various consultation programmes to gather their feedback and to also set their expectations," chief executive of Westports Ruben Emir Gnanalingam, reported London's Loadstar.
Port Klang is the 12th biggest port in the world by container throughput, with 10.9 million TEU handled last year. Westports enjoys a 77 per cent share of this throughput, with volumes of 8.4 million TEU in 2014, with transshipment accounting for 70 per cent.
"Despite the increase, we still effectively have the lowest tariffs in southeast Asia. It is even more the case for transshipment containers. We remain extremely competitive even after the increase," said Mr Gnanalingam.
"For the gateway containers, we charge our shipping lines. Whether they pass it on to their shippers is entirely their call. It would be wrong for us to speak on their behalf," he said.
The smaller Northport facility could gain most from the tariff hike, according to Malaysia's Maybank. Maybank calculated that rates for transshipment cargo will remain flat due to competition levels, and that Northport's earnings would receive the bigger boost because of its greater proportion of gateway cargo.
"Transshipment tariffs will stay put as this is a competitive segment. Given that the ratio of laden-empty volume is 80:20, we estimate that the effective hike to gateway THC will be 13 per cent on September 1 and 11 per cent on September 1 2018 (24 per cent in three years).
"We also estimate that the earnings impact to Northport will be greater than to Westports, as local boxes account for 53 per cent of Northport's 2015 first-half total, compared with 29 per cent for Westports," Maybank wrote in a research note.
Northport is currently upgrading its Container Terminal Four to handle mega-ships. The upgrade will increase the quay length to 513 metres with a 17-metre depth alongside, and total capacity will rise from 5.6million TEU to 6.2 million TEU by the end of 2016.
PORTS
24 August 2015 - 21:57
Terminal handling box fee hike to reap windfall for Westports and Northport
CONTAINER terminal operators Westports and Northport are expected to benefit from a terminal handling rate hike at Malaysia's Port Klang of 15 per cent from September 1, to cover container handling, import-export, transshipment and container shifting, stowing and storage.
PORTS
24 August 2015 - 21:57
Terminal handling box fee hike to reap windfall for Westports and Northport
This news 7738 hits received.
These news may also interest you