Maersk drops Singapore, adds Malaysian port

By Staff -- Logistics Management, 9/1/2000

Shipping giant Maersk Sealand is moving its transshipment hub from Singapore, one of the world's busiest ports, to neighboring Malaysia's new Tanjung Pelepas terminal. All of Maersk's main line ships, except those on the New Zealand and Western Australia routes, will now put in at Malaysia instead of Singapore. The move, to be completed in December, is expected to deal a blow to Singapore, which stands to lose 10 to 12 percent of the freight its port processes yearly from Maersk.

Although Singapore will remain regional headquarters of Maersk Sealand, the shipping company is also taking a 30-percent stake in the Malaysian port and has agreed to operate the terminal there. The company is guaranteeing the port an annual volume of two million TEUs next year.