Penang Port allocated RM180 million capex (capital expenditure) in 2018, mainly for operations at NBCT (North Butterworth Container Terminal).
The core business of the oldest port in the country, container operations, bring in nearly 70% of its total revenue.
According to Penang Port CEO, Sasedharan Vasudevan, the container terminal would be expanded in order to increase its handling capacity to 2.9M 20-foot equivalent units (TEUs) per year, from the current 2 million.
Recently, the port received approval for its expansion plans and expects to start construction by the 3rd quarter of 2018. The project is due to be completed within 18-20 months.
Sasedharan said that last year the port had spent between RM30-40 million capex, mainly for purchase of yard equipment.
In 2018, Penang Port aims to hit 1.6M TEUs, or 5% increase, compared with 2017. The container volume of the port increased by 6% to 1.52M TEUs in 2017 from 1.4M TEUs in 2016.
Additionally, Penang Port is planning to expand cruise operations at SPCT (Swettenham Pier Cruise Terminal), under the joint venture with Royal Caribbean Cruises Ltd, to support port’s future growth.
Sasedharan added the port would invest about RM 155 million to expand the berth as well as increase the size of its cruise terminal to handle up to 12,000 cruise passengers at a time from 8,000 currently.