China Shipping Terminal Development Co Ltd (CST) is considering making the Port of Tanjung Pelepas (PTP) in Johor its regional container hub.
A port in Malaysia had a good chance of being chosen as the Shanghai-based China Shipping Group already transporting 500,000 TEUs (20-ft equivalent unit) of cargo through West Port in Port Klang last year, CST managing director Fang Meng told a press briefing on Friday.
The state-owned China Shipping Group has the sixth largest container fleet in the world.
With an annual growth of more than 20% a year, it recorded transhipment volume of seven million TEUs last year.
While the group had been shipping containers through Port Klang, it was also seriously considering PTP because of "good location, facilities, service and reasonable costs," said Fang who arrived from Shanghai on Thursday to meet with PTP officials.
On whether red-tape was a problem for the company, Fang said while all ports had their problems, in terms of international container shipping, Port Klang's policies were among the most reasonable in the region.
CST has been performing a feasibility study on both West Port and PTP for the past six months.
Similar studies were also being conducted on ports in Thailand and Singapore, although the group at present shipped much less cargo through them, Fang said.
The group was looking to invest in a container terminal hub in the region, following the increase in traffic volume of the group's container line here, he said.
On the form of investment in Malaysia if a deal were struck, he said: "Maybe we will look at building several ports owned by China Shipping or we can buy some shares in West Port or PTP."
He added that the parties were still in negotiations.