The proposed rationalisation project for Johor port and the Port of Tanjung Pelepas (PTP) in Malaysia is expected to go into motion next year, said Malaysian Transport Ministry officials.
The rationalisation plans will see all container handling operations being moved to PTP while Johor port will handle all other cargo throughput such as bulk and liquid shipments.
Transport Minister Datuk Seri Chan Kong Choy said the rationalisation exercise had taken into consideration the interests of all parties affected and the federal government has decided to lend its assistance as it is of national interest.
Speaking at the launch of PTP's Phase II development, which now enables the port to handle up to eight million twenty-foot equivalent units (TEUs) per year, Chan said the government will “facilitate the plan in the interest of the country.”
Reports have pointed out how some ships have redirected themselves to Singapore due to prevalent congestion at Johor port.
According to Chan, an attempt to reduce these “leakages to Singapore” has been “one of the reasons why we (Malaysian government) think the rationalisation is necessary.”
Johor's shippers recently voiced their disapproval of the rationalisation plans, citing increased haulage costs and delays in delivery of container cargo, especially for container shipments from Johor port's Pasir Gudang area.
This latest announcement by the Transport Minister for a go-ahead comes on the back of the submission of an official letter by the Malaysian National Shipper's Council (MNSC) to the Ministry of International Trade and Industry reflecting the shippers' concerns.
Meanwhile, Chan said the government will make an announcement very shortly on the proposed development of bunkering and petroleum products facilities next to PTP.
The rationalisation plans will see all container handling operations being moved to PTP while Johor port will handle all other cargo throughput such as bulk and liquid shipments.
Transport Minister Datuk Seri Chan Kong Choy said the rationalisation exercise had taken into consideration the interests of all parties affected and the federal government has decided to lend its assistance as it is of national interest.
Speaking at the launch of PTP's Phase II development, which now enables the port to handle up to eight million twenty-foot equivalent units (TEUs) per year, Chan said the government will “facilitate the plan in the interest of the country.”
Reports have pointed out how some ships have redirected themselves to Singapore due to prevalent congestion at Johor port.
According to Chan, an attempt to reduce these “leakages to Singapore” has been “one of the reasons why we (Malaysian government) think the rationalisation is necessary.”
Johor's shippers recently voiced their disapproval of the rationalisation plans, citing increased haulage costs and delays in delivery of container cargo, especially for container shipments from Johor port's Pasir Gudang area.
This latest announcement by the Transport Minister for a go-ahead comes on the back of the submission of an official letter by the Malaysian National Shipper's Council (MNSC) to the Ministry of International Trade and Industry reflecting the shippers' concerns.
Meanwhile, Chan said the government will make an announcement very shortly on the proposed development of bunkering and petroleum products facilities next to PTP.