Westports maintains P3 routings will not harm business

Kuala Lumpur: Recently listed Westports has responded to news of the P3 Network’s service routings, which sees the Malaysian port lose some traffic.

The P3 service routing represents an operational alliance between CMA CGM Group, Maersk Line and Mediterranean Shipping Co, which is subject to various regulatory approvals being obtained. If approved, the P3 service routing is expected to be implemented in the second quarter next year.

Westports currently has 10 services out of the 30 plied by these lines on the Asia-Europe / Mediterranean trade lanes. Following implementation of the P3 service routing, Westports will have six services out of the 26 being proposed for the Asia-Europe / Mediterranean trade lanes.

“We do not expect a material impact to Westports as a result of this proposed revision in the near-to-medium term,” the port maintained.  “Throughput volumes at Port Klang do not necessarily have a direct correlation to the number of services or total vessel capacity, rather they are dependent upon volumes carried per service. To date, we have not been informed by our customers of any material changes to their hubbing strategy or throughput volumes and further, the P3 service routing only represents a portion of their volumes to Westports.”

News of the P3 service offerings yesterday saw Westports’ shares, which debuted on the Kuala Lumpur bourse last Friday, fall 4.85% to 2.56 sen. The shares were also down today.  [23/10/13]

 

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