5th November 2007

The Star Maritime

Bintulu Port, HUBLine sign 5-year deal

BINTULU Port Sdn Bhd (BPSB) and HUB Shipping Sdn Bhd have signed a terminal service agreement (TSA) spanning five years.
 
BPSB is a wholly owned subsidiary of Bintulu Port Holdings Bhd while HUB Shipping is wholly owned by HUBLine Bhd.
 
BPSB said in a statement the TSA would ensure cooperation between both parties for guaranteed throughput, strategic pricing incentives, operational enhancement, new shipping services and joint marketing effort.
 
“It is also to support BPSB's vision to become the main transhipment port for the Brunei-Indonesia-Malaysia-Philippine East Asia Growth Area (BIMP-EAGA region).
 
“This growth area covers Sarawak, Sabah, Brunei, Kalimantan, Sulawesi, Irian Jaya and southern Philippines,” it said.
 
BPSB said there was a strong possibility that new shipping services would be introduced by HUBLine in the future from Bintulu International Container Terminal (BICT), operated by BPSB.
 
“The shipping line is one of the top five customers of BICT and HUBLine has been contributing significant amount of containers that were handled via BICT.
 
“Currently, HUBLine has five shipping services running from BICT on a weekly basis that covers the Far East, West Malaysia, East Malaysia and Kalimantan ports,” it said.
 
According to the statement, besides being well known as a liquefied natural gas hub, BPSB has also emerged as the main port that handled containerised cargo and bulk cargo consisting of crude oil, petroleum products, fertilisers and palm oil in Sabah and Sarawak.
 
“For the first nine months of this year, Bintulu Port has handled 178,316 TEUs, an increase of 28% from the same period last year.
 
“BPSB recorded container throughput growth of 35.11% to 199,704 TEUs in 2006.”
 
BPSB said the port was expected to achieve its forecast of at least 230,000 TEUs this year.
 
Bintulu Port has been the number one container port in East Malaysia since 2003 in terms of container throughput.
 
It was ranked fourth among the top 20 container ports in the BIMP-EAGA region in container throughput last year.
 
The statement said the growth was supported by the increasing volume of transhipment containers handled at BICT and the introduction of new shipping services by notable shipping lines.
 
“Currently, almost 60% of the container volume handled at BICT is transhipment containers.
 
“In years to come, new shipping services are expected to be introduced by HUBLine from BICT that will partly fuel the growth of the container volume at BICT,” it said.
 
BPSB said the BICT container yard capacity would increase to 600,000 TEUs by 2011 from the current 328,900 TEUs.
 
“BPSB is also embarking on the development of the Container Freight Station with a space of 10,000 sq m which is expected to be ready by end of 2009,” it said.
 
“Also in the pipeline is the ongoing procurement of handling equipment such quay cranes and other yard equipment to boost the handling capacity and efficiency of the terminal.
 
“The port aims to have a total of four quay cranes by the middle of next year.”

  
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