This article first appeared in The Edge Malaysia Weekly on October 7, 2024 - October 13, 2024

Last Thursday (Oct 3), Johor Corporation (JCorp) subsidiary JLand Group launched container operations at Tanjung Langsat Port (TLP), making the port the third in the southern state to handle containerised cargoes.

At the same time, JLand said that TLP is embarking on the development of a container port in Johor, which would be the third in the state. The group said that the port will complement existing ones in Johor, contributing to the state’s economy.

Johor is already home to two container ports — Port of Tanjung Pelepas (PTP) and Johor Port in Pasir Gudang. The former is a major transshipment hub in Southeast Asia alongside Port of Singapore and Port Klang, while the latter primarily serves the palm oil industry and other industrial bulk cargo.

As for TLP, it was set up in 1995, with a vision of becoming the regional hub for the oil and gas (O&G) industry. In early 2000, Dialog Group Bhd (KL:DIALOG) invested in Dialog Terminals Langsat, which comprises three terminal facilities with a total storage capacity of 855,000 cubic metres of petroleum products.

Now, the area of southern Johor is indeed strategic for the development of container ports, especially those that are focusing on regional transshipments. However, the development of ports in the state must be viewed holistically, rather than fragmentally.

JCorp must ensure that TLP’s container terminal serves an untapped or underserved market, rather than eating into the market share of PTP or, to a certain extent, Johor Port.

Would it be more prudent for TLP to remain a terminal that serves the O&G industry, while PTP’s berths and container yards are expanded to capture a bigger share of the regional transshipment business away from Singapore?

After all, the competition is from Port of Singapore next door, and not PTP or Johor Port along the Tebrau Coast.

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