Tanjung Pelepas as an automotive hub

Automotive Industries, July, 2005

MALAYSIA'S Port of Tanjung Pelepas has undergone one of the fastest container volume increases in the world outside China. Automotive Industries (AI) asked PTP chief executive officer Datuk Mohd Sidik Shaik Osman what trade routes were served by the port.

Sidik: All the main shipping trade routes are served via PTR This includes the Far East--Europe, Trans-Pacific, Intra Asia, Asia--Australasia and the Safari route to Southern Africa. In total there are more than 140 ports globally which are served directly from PTP.

AI: What are the transit times to the main destinations/sources of supply?

Sidik: Multi-modal logistics choices at PTP include road, rail and air. The port has direct rail links from the port free zone to the Malaysian national railway grid that stretches the length of Peninsular Malaysia and into Southern Thailand. Similarly the port is linked directly via the port access highway to the North-South highway. This also connects to Thailand as well as the second link highway with links up to the Singapore expressway system via the second link bridge which is only 10 minutes away. This close proximity to Singapore is attractive to companies that have a regional base in Singapore seeking a competitive base for logistics operations. The port is also located close to the Senai International Airport which is currently being redeveloped into a regional passenger and air cargo hub. Senai Airport is only 45 minutes away from PTP. Singapore's Changi Airport is also within one hour's trucking time from the port.

AI: What facilities and support are you offering the likes of BMW to attract them to PTP?

Sidik: We provided BMW's facility on a build and lease concept where we would build according to their specifications and requirements. This benefits BMW in terms of minimal upfront capital costs to set up their business and operation within our free zone. PTP also helps to ensure BMW's competitiveness through efficient logistics and operational facilitation. This is done with the cooperation of government agencies such as customs and various trade agencies. We also assisted BMW in securing special fiscal incentives packages from the Malaysia Industrial Development Authority (MIDA). For investors, we offer a virtual one-stop center to facilitate investment into Pelepas Free Zone.

AI: What land and facilities are available in the free trade zone?

Sidik: PTP offers prime land ready for development equipped with basic infrastructure on a long-term lease. We also have ready building space for lease and can offer our customers the flexibility of our build and lease concept. The Pelepas Free Zone is suitable for both regional logistics distribution centers as well as for setting up manufacturing facilities that are primarily export-oriented. There are over 1000 acres of land available in Pelepas Free Zone. As the Port is also the free zone authority, this enables us to be more responsive to investors needs and enables us to customize our services to meet with customer requirements. We provide a one-stop service center to facilitate investment by being a focal point of contact for the investor when dealing with the various government departments and authorities.