Johor Port ends 2020 on a high note

Johor Port ends 2020 on a high note

JOHOR BAHRU, 7 JANUARY 2020 – Johor Port Berhad (Johor Port), a member of MMC Group finished strong in 2020 by surpassing 1 Million Twenty-foot Equivalent Unit (TEUs) amid the COVID-19 pandemic.

“We are very pleased to see that despite the headwinds of COVID-19 as well as shortage of empty Containers in Malaysia and other parts of the region which affected the overall Port business and related industry sectors, Johor Port still managed to progress its business efficaciously and surpassed the 1 Million mark for year 2020,” commented Md Derick bin Basir, Chief Executive Officer of Johor Port Berhad.

In the 1st Quarter of 2020, Johor Port had a remarkable performance with a YoY growth of 6%. However, the emergence of the COVID-19 pandemic had affected the Port’s business for three months consecutively. With the re-opening up of industries on 4 May 2020, export volume had regained back its momentum as manufacturers stepped up their production to meet the pre-Movement Control Order. In the context of Johor Port, the export and import volume have shown some improvement this year mainly due to the strong support of Gateway cargoes.

The majority of the Gateway volume were derived from the production by major industry players. Johor Port had also managed to secure 4 new services in the year 2020 mainly to the Intra-Asia region. The Terminal also managed to entice Sealand to bring in a new service to cater for their short haul cargoes. Apart from the traditional Gateway business, Johor Port has also encouraged ad-hoc calls and mini transshipments which provided the additional volume to the Terminal
to cater for their short haul cargoes. Apart from the traditional Gateway business, Johor Port has also encouraged ad-hoc calls and mini transshipments which provided the additional volume to the Terminal.

Operational improvements have also contributed to productivity improvement and Yard efficiency which resulted in a better Gross Moves Per Hour (GMPH) of 22 crane Gross Moves Per Hour as opposed to previous years where the Terminal had been consistently operating at a GMPH figure of 20 crane moves per hour.

“We remain optimistic on our growth prospects throughout the year, as we witnessed global trade recovering gradually. While we are expecting a long recovery period of between six months to an entire year, Johor Port is committed to ensuring business continuity and for the Port to be managed well throughout this volatile time,” added Md Derick bin Basir.

Ports and Terminals represent a doorway to maximise the country’s economic development and is a crucial lifeline that interconnects local communities to the regional and global markets. The United Nations Conference on Trade and Development (UNCTAD) expects Maritime trade growth to return to a positive territory and expand by 4.8% in 2021, assuming the world economic output recovers. Nevertheless, the Maritime transport industry will need to be prepared to brace for any economic uncertainty in the post-COVID-19 world.

Despite the economic uncertainty, Johor Port has a leverage through its strategic positioning as a major Regional Commodity Hub which connects ASEAN to the Intra-Asia region as well as a competitive edge in its customer segmentation, which includes shipping lines, Non-Vessel Operation Common Carriers (NVOCC), manufacturers and logistics operators. As a full-fledged Multi-Purpose Port with wide shipping connectivity, Johor Port is living up to its position as the main Gateway to the Asia Pacific region with direct calls to Intra-Asia destinations.

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