Terminal operator Westports Holdings plans to invest RM1bn (US$300m) in a new container terminal at Port Klang in Malaysia.
The company, which already operates the largest terminal in Port Klang, believes that its transhipment business has room to grow and that its new terminal will become a major hub for the new Ocean Three shipping alliance.
Westports CEO Ruben Emir Nganalingam told The Malaysian Reserve that his company’s focus is on increasing transhipment and wants he wants to increase transhipment revenue by five to ten percent in 2015.
Ruben said that about 75% of Westport’s throughput is transhipment compared to rivals Port Tanjung Pelepas and Singapore whose throughputs are around 95% transhipment.
The new container terminal will be called Container Terminal Eight and will have a 300m long wharf and be open by 2016 and fully operational by 2017.
A Container Terminal Nine may follow although this is not certain and the timing has not been confirmed.
Rubens said that technological advancement, as well as capacity expansion, was necessary to increase Westports’ transhipment business.
The Ocean Three Alliance comprises CMA CGM, China Shipping Container Lines and United Arab Shipping Company and is expected to be operational in January.
Westports increased its year-on-year throughput by 12% in the first nine months of 2014.