Loading...

The Battle of Transhipment Hubs: PSA vs. PTP

The latest status between the two ports

Term Paper 2012 9 Pages

Business economics - Supply, Production, Logistics

Excerpt

Table of Contents

List of Abbreviations

List of Figures

1 Introduction

2 The latest Status between the Ports
2.1 Container throughput and growth rates
2.2 Other performance facts
2.3 Current strategic approach

3 Conclusion

List of references

List of Abbreviations

illustration not visible in this excerpt

List of Figures

Figure 1: Container Throughput, PSA and PTP, 1999-2011

Figure 2: Container Throughput (Growth Rates), PSA and PTP, 2002-2011

1 Introduction

For a long period, the port of Singapore had a relatively exclusive position at the Straits of Malacca and it was the dominant transhipment hub in Southeast Asia (Leong and Chen, 2004). However, the main port operator, PSA International Pte Ltd – formerly also known as Port of Singapore Authority – has to face competition since the emergence of the Port of Tanjung Pelepas which started its operation in 1999. It has been serious for PSA since the shift of main customers such as Maersk or Evergreen at the latest as a big proportion of volume was thereby shifted to PTP (Leong and Chen, 2004). In the following, the latest status between the two ports will be described.

2 The latest Status between the Ports

2.1 Container throughput and growth rates

Having a large proportion of their business in container traffic, one crucial element of both ports’ business is the container throughput. Figure 1 illustrates the development of the container throughput from 1999 until 2011.

illustration not visible in this excerpt

Figure 1 : Container Throughput, PSA and PTP, 1999-2011

Source: Own created figure, Data adapted from Informa UK Ltd (2011), Maritime and Port Authority of Singapore (2012 d), Pelabuhan Tanjung Pelepas Sdn Bhd (2012 e)

Figure 1 illustrates the development of container throughput since the opening of PTP. It is apparent that PSA is still handling the majority of containers. In 2011, PSA handled 29.9 million TEUs. PTP touched 7.5 million TEUs in the same period. The difference is also evidenced in the world port ranking of 2010. The port of Singapore handling 28.4 million TEUs in 2010 is ranked 2nd in this category whilst PTP is only ranked 17th with 6.53 million TEUs (Port of Rotterdam Authority, 2011, p.13). With regard to the total cargo throughput, PTP is not even located in the top 20 ports whereas PSA, handling a total volume of 502.5 million tons, comes in the 3rd place after the ports of Shanghai and Ningbo / Zhoushan (Port of Rotterdam Authority, 2011, p.8). Although the majority of this volume results from PSA’s container throughput, this rests also on the fact that PSA handles a fairly high volume of bulk cargo (Maritime and Port Authority of Singapore, 2012 c). The other side of the coin is, however, that PTP has seen high growth rates in the last decade. This is illustrated by the following figure 2.

illustration not visible in this excerpt

Figure 2 : Container Throughput (Growth Rates), PSA and PTP, 2002-2011

Source: Own created figure, Data adapted from Informa UK Ltd (2011), Maritime and Port Authority of Singapore (2012 d), Pelabuhan Tanjung Pelepas Sdn Bhd (2012 e)

Since PTP’s opening in 1999, the port has raised its container throughput from zero to 7.5 million TEUs in 2011. A comparison of the growth rates in figure 2 shows that PTP experienced stronger growth than PSA in each year except for 2005, 2008 and 2010. The corresponding growth rates of 2000 and 2001 are not displayed as both percentages exceed 300 percent.

2.2 Other performance facts

Undoubtedly, the figures mentioned in 2.1 result from different conditions. According to Leong and Chen (2004), PSA was established in 1964 whereas PTP started business only in the end of 1999. Due to this fact, it comes as no surprise that PSA can offer a much greater network than PTP. Nowadays, PSA can provide its services to more than 200 shipping lines. The operator handles more than 140,000 vessel calls in the port of Singapore per year and provides links to more than 600 ports located in over 120 countries (Maritime and Port Authority of Singapore, 2012 a).

In contrast, PTP has a much smaller network. Only 26 shipping lines and port operators are currently contracted (Pelabuhan Tanjung Pelepas Sdn Bhd., 2012 d). However, it is important to mention that PTP continues to convince customers to shift volume from PSA to their own facilities. In 2011, PTP was able to gain volume of different big carriers such as Mitsui O.S.K. Lines, “K” Line, China Shipping Container Lines, Hanjin Shipping and others. Moreover, PTP succeeded it increasing volume of its existing customers, particularly Maersk and CMA CGM (Pelabuhan Tanjung Pelepas Sdn Bhd., 2012 d).

The difference of both ports with respect to their current status gets also observable when examining the available capacity of facilities. PSA as one of the busiest ports in the world services four container terminals with a designed capacity up to 35 million TEUs in total. Additionally, 54 berths equipped with the latest generation of gantry cranes ensure that the biggest container vessels are able to call the port (PSA International, 2012; PSA Singapore, 2012 b).

Those biggest container vessels can also call at PTP. Nevertheless, the existing facilities are not comparable concerning the size. PTP operates only one container terminal consisting of 12 berths and a designed capacity of 8.4 million TEUs (Pelabuhan Tanjung Pelepas Sdn Bhd., 2012 a).

Both ports also have distriparks in the immediate vicinity of their port areas. PSA operates the Keppel Distripark, PTP operates the distriparks, A and B in which value added services, warehousing and other supporting logistics activities are provided (Pelabuhan Tanjung Pelepas, 2012 b; Pelabuhan Tanjung Pelepas, 2012 c; PSA Singapore, 2012 a).

[...]

Details

Pages
9
Year
2012
ISBN (eBook)
9783656210283
ISBN (Book)
9783656212706
File size
421 KB
Language
English
Catalog Number
v195086
Institution / College
Heriot-Watt University Edinburgh
Grade
A
Tags
Maritime Logistics Transhipment Port Singapore Singapur Tanjung Pelepas PSA PTP

Author

Share

Previous

Title: The Battle of Transhipment Hubs: PSA vs. PTP