Why Is Maersk-Sealand Changing Their Hub Port to PTP?

Maersk-Sealand announced recently that it will move its hub port from
Singapore to the Port of Tanjung Pelepas (PTP) in Malaysia. This annou
ncement rose in the middle of serious competition amongst nearby ports
. Analysts predict that the Singapore port will lose popularity as a h
ub port.
There are three main reasons for Maersk-Sealand to change their hub po
rt to PTP.
First, Maersk-Sealand has purchased a 30 percent share of PTP stocks a
nd obtained their own terminal. By using a private terminal, Maersk-Se
aland expects to offer various and highly advanced customer services t
hrough Maersk-Logistic, Maersk-Distribution, and Maersk-Malaysia in Ma
laysia.
Secondly, Maersk-Sealand pointed out that since 1995, harbor fees have
been quite expensive and that the Port of Singapore has taken no heed
of this and rather raised the rates incessantly. It was said that PTP
presented rates 30 percent less.
Thirdly, Maersk-Sealand prefers to operate their own exclusive termina
l to serve faster and more stable services to customers. It was nearly
impossible to obtain an exclusive terminal at the Port of Singapore a
nd would remain so in the foreseeable future.
Dr. Paek, Chong-shil, working for the KMI (Korea Maritime Institute),
proposed several things for the Korean government to be careful of.
Foremost, a country oriented towards logistics has to offer real space
to supply the quality services that shippers and shipping companies p
refer. It must be possible for ultra-giant and fast container ships to
call at once and be highly productive while offering additional logis
tic services.
Secondly, transshipment ports have to be developed and invested in wit
hout stop in order to supply a variety of logistic services.
Thirdly, hub ports have to provide opportunities for shipping lines to
obtain private terminals to give more stable logistic services.
Finally, the rates in harbor are also an important factor to draw more
shipping companies.
For Pusan and Kwangyang to succeed as transshipment ports, it is neces
sary to balance allowing exclusive terminals, offering additional serv
ices, advancing productivity, and having proper rates policies.