Johor's Tanjung Pelepas Port looks to more than double its capacity by 2030

A photo taken on Dec 11, 2018, shows part of the Tanjung Pelepas port (background), a container terminal in Johor Baru, as viewed from Tuas South Avenue 10.
A photo taken on Dec 11, 2018, shows part of the Tanjung Pelepas port (background), a container terminal in Johor Baru, as viewed from Tuas South Avenue 10.ST PHOTO: LIM YAOHUI

KUALA LUMPUR - Malaysia's southernmost port Tanjung Pelepas is seeking an expansion plan to accommodate 30 million Twenty-foot Equivalent Units (TEUs) by 2030, Transport Minister Anthony Loke told reporters in Johor Baru on Monday (Oct 14).

"Right now, the port is reaching nine million TEUs and the capacity is 12.5 million TEUs with an 8 to 9 per cent expansion annually," Mr Loke said of Tanjung Pelepas Port (PTP).

"If we don't do anything, within three to four years they'll reach full capacity. We can't wait until then to plan for expansion."

In his speech at the Johor Port Week opening ceremony earlier, Mr Loke said the federal government is seeking to make PTP a "major transshipment hub competing among the best in the world".

He also said that PTP had recorded 7 per cent growth last year, handling 8.96 million TEUs. The port also nailed a world record in July this year with the world's largest container ship MSC Gulsun departing PTP with 19,574 TEUs on board.

In a bid to make Malaysia more attractive as a shipping hub, Mr Loke said the government is easing regulations to make business at ports easier while encouraging digitisation to increase efficiency.

Measures implemented included removing the need for permits and licences for 54 goods in containers on transshipment in Malaysia, and seeking to promote development of bunkering hubs in ports.

The PTP's expansion plan will be borne by the private sector, Mr Loke said, with the government's support.

The project is expected to be done in phases to accommodate fresh capacity once the port hits its current limit of 12.5 million TEUs. However, details of the expansion will only be announced later, once talks with the Johor state government is done.

 

"PTP has to grow for the country to maximise its profits and abilities. This is a strategic port for the country," the minister said. "Malaysia is a maritime country so we need to utilise our strengths for economic development."

Mr Loke hopes that the PTP expansion would draw in additional investments from multiple sectors especially from the logistics industry.

With the intention to make Johor a "regional distribution centre", Mr Loke wants PTP to attract large corporations, including those from the automotive sector, to set up shop in Johor.

"We want to make this their base to distribute goods within this region. We have land for warehouse and land for port development," he told reporters.

 

On the Johor Baru-Singapore Rapid Transit System (RTS), Mr Loke said the Cabinet would decide how to proceed with the rail project within two weeks.

The federal government, he said, is committed to the project and will meet the Oct 31 deadline to get back to Singapore on its details.

An announcement will be made once talks are done with Singapore's Transport Minister Khaw Boon Wan.