|
|
MMC Corp Bhd sees lower
revenue contribution from its port business in
Johor this year due to the drop in cargo volume,
said chief executive officer Hasni Harun.
Both its ports in the state, Port of Tanjung
Pelepas (PTP) and Johor Port, had been hit by
the global recession, he said.
“Ports in the region have been experiencing a
decline in volume of between 15% and 20% since
the fourth quarter last year.
“There has been a spike in volume last month due
to the replenishment of depleted inventories but
it is premature to say whether this is
sustainable.
“Subject to an improvement in consumer
confidence globally, the situation may not lead
to a long and deep downturn. It might improve in
2010 and we hope to maintain what we’ve achieved
last year,” he told StarBiz.
PTP registered a container throughput of 5.6
million twenty-foot equivalent units (TEUs) last
year, up 1.8% against 2007.
Johor Port handled 17.2 million freight weight
tonnes of bulk and conventional cargo in 2008,
representing a growth of 8% year-on-year, and
recorded 934,767 TEUs of containers last year,
an increase of 1%.
The two ports contributed 14% to MMC group
revenue in 2008 compared with 20% in 2007.
Hasni said the decline in percentage of
contribution from its ports despite higher
revenue was due to the increase in Malakoff
Bhd’s revenue contribution, resulting from the
12-month consolidation of Malakoff’s results
last year versus only eight months in 2007.
“Based on the current slowdown, we expect the
revenue contribution from our ports to also be
lower year-on-year,” he said.
On capital expenditure (capex), Hasni said PTP
planned to spend RM400mil to RM500mil this year,
which is lower than the RM900mil spent last
year, in line with the slowdown in business.
“This year’s capex includes for additional
equipment at existing berths (berths 9 and 10),
which will further increase the port’s
operational efficiency, as well as for the
ongoing construction of berths 11 and 12.
“We are making prudent decisions on capex and
will equip berths 11 and 12 progressively as
global shipping trade improves,” he said.
He added that Johor Port also expected to spend
a lower amount of capex this year, primarily for
maintenance works.
Going forward, Hasni said PTP’s value
proposition was in its strategic location,
unrivalled potential capacity growth,
connectivity and competitive rates.
“These attributes will continue to make PTP an
ideal choice for shipping lines, particularly
those that are restructuring their routes and
collaborating with other lines to minimise costs
under the current economic scenario.
“Meanwhile, Johor Port focuses on high-value
cargo and commodities in the bulk and break-bulk
terminals,” he said.
Besides port operations, MMC has finalised the
acquisition of Senai Airport Terminal Services
Sdn Bhd (SATS) in Johor for RM1.7bil.
According to Hasni, having interests in ports
and an airport allowed the company to achieve
better integration between the two modes of
transportation.
“The acquisition of SATS will expand MMC’s
logistics business, in line with its vision to
be a global utilities and logistics group,” he
said.
SATS is currently undergoing an expansion,
including the extension of its runway from
3,354m to 3,800m, which will accommodate
fully-loaded long-haul cargo flights.
“An Aero-Mall is also being built, which will
add 6,500 sq m, bringing the total outlet space
to 8,500 sq m to cater for the growing
population residing within easy access of the
airport. The mall is scheduled for completion in
the first quarter of 2010.
“The airport also has a cargo capacity of 80,000
tonnes per annum and offers bonded warehouse and
warehousing facilities,” he added.
Hasni said SATS’ potential would be realised
with the development of Senai Airport City into
a regional cargo and logistics hub.
Works on Senai Airport City, with a gross
development value of RM10bil, would commence
towards the year-end and scheduled for
completion by 2020, he said. |
