Page 22 - MMC Ports Newsletter-2024_Apr-Jun_ISSUE

22 MMC PORTS’ NEWSLETTER

ON THE HORIZON

With markets gradually stabilising across the nation and
beyond, all ports are well positioned to accelerate value for
their stakeholders throughout the rest of the year, cautiously
optimistic to conclude 2024 on a high despite ongoing
ripples caused by the Red Sea crisis as well as factors such PTP
as inflationary pressures and slowing economic momentum
in many national economies.
From the start of the year until May 2024, PTP has handled a
Globally, the World Trade Organisation’s (WTO) latest trade volume of 4.9 million TEUs, a 20.1% growth compared to the
forecasts remain closely in line with those made at the start same period in 2023. Notably, May 2024 itself contributed
of the year to indicate stability, with the latest predictions 1.1 million TEUs as the highest-ever volume handled in a
indicating a 2.6% GDP growth for the rest of the year backed month since PTP started operations without experiencing any
by a strong estimated import volume growth of 5.6% in the congestion. Based on the current run rate, PTP expects to
Asian region. close out 2024 with 11.7 million TEUs, or a double-digit growth
of 11.4%, maintaining its spot as the largest, most efficient
Locally, a strong showing of 4.2% year-on-year GDP Growth container terminal operator in Malaysia and ASEAN as a
in the first quarter has positioned the nation to thrive whole. Additionally, permittable yard density and capability as
towards the latter half of 2024, especially with increased well as increased congestion from neighbouring ports are all
trade activity within the local hinterland and South Thailand anticipated factors to ensure smooth operations in PTP amidst
regions. Malaysia is also expected to benefit from increased increasing volumes.
demand in international trade from major trading partners
such as China and the US. Other upcoming developments are planned throughout the
year to strengthen PTP’s position as an important transhipment
Leveraging upon the current circumstances and forecasts, hub along the Straits of Malacca. From this year onwards, an
each port has strategically established future plans and additional 2.8 million square feet (sq ft) of warehousing spaces
upgrades for the rest of 2024. will be injected in phases within its free zone, with the currently
existing 6.3 million sq ft of warehousing space already being
fully occupied.
On the local hinterland, the Johor-Singapore Special Economic
Northport Zone will also be an important bilateral collaboration that will
both directly and indirectly benefit PTP as a gateway for global
With 1,390,916 TEUs of containers already handled through the connection, with the collaboration slated to boost investment,
first five months of 2024, Northport’s ongoing developments growth, and economic activities in the state of Johor.
have set the company on the right track to achieve its targets
for 2024.

As part of the ‘Reinventing Northport’ initiative, the new Block
K container yard is currently undergoing construction. Upon its
completion in September 2024, the container yard will provide
an additional capacity of 459,900 TEUs, significantly enhancing
Northport’s operational efficiency. As a result, Northport is
capable of providing berth on arrival for more than 80 percent
of vessel calls at Northport.