Port of Tanjung Pelepas (PTP), which is competing directly with Singapore, is expected to be ranked the world's 20th busiest port in terms of volume handled by the end of the year, a minister said today.

"Within a short period, PTP has seen a good record and this is not due to its modern facilities alone but it also has one of the highest levels of productivity in the world," Transport Minister Chan Kong Choy told parliament.

PTP handled 1.6 million twenty foot equivalent units (TEUs) in the first six months to June 2003, sharp growth of 37 percent compared to the same period in 2002, Chan said, adding that the port is expected to handle 3.6 million by year-end.

A spokesman for PTP told AFP that the port was ranked number 21 and 23 last year in lists by UK-based shipping publications Lloyd's List and Cargo Systems respectively. Singapore is ranked second on both lists.

The development of Phase Two of PTP, which involves dredging and reclamation for another eight berths and the construction of two new berths, will enable PTP to handle six million TEUs annually, Chan said.

Work on Phase Two is due to be completed July 2004, he was quoted as saying by the Bernama news agency.

Singapore's strategy

PTP has seen rapid growth since commencing its operations in January 2000, handling 2.0 million TEUs in 2001 and 2.6 million last year, he said.

PTP, which is in Johor across the narrow Tebrau Strait from Singapore, is also capable of transferring 31 containers in an hour compared to Singapore's 27 containers an hour, Chan said.

Singapore, which lost Denmark's Maersk Sealand and Taiwan's Evergreen Marine to PTP last year, has overhauled its shipping strategy, including cutting handling fees and offering shipping lines the opportunity to run their own berths.

Germany's Bayerische Motoren Werke AG (BMW) has confirmed it will move its parts distribution hub from Singapore to PTP in the second half of next year, a statement on the PTP official website said.

However, it will continue to use Singapore as its regional headquarters, it added. - AFP