Kuala Lumpur: The era of consolidation in shipping could be spreading into the ports sector with news that two of Malaysia’s top port operators are discussing collaborating together.
MMC Corportation, which runs the Port of Tanjung Pelepas as well as Johor Port, is keen to work with NCB Holdings, which runs Northport. The former has invested in NCB, recently taking a 15% stake in the company.
NCB group managing director Abi Sofian Abdul Hamid said discussions between the two companies were still at the “exploration” stage.
“Collaboration with other ports is one of the ways to achieve higher handling volume whereby we have a target of 3.3m teu this year from 2.58m teu last year,” he told local media.
Two terminals with the same (exactly) shareholder structure and within the same country might be able to cross-leverage commercially. Otherwise it is difficult to foresee what the value might be here for these two terminals. Not least since Pasir Gudang and Pelepas have failed to “cooperate” over the last 15 years. The next chapter will be interesting.