The Implications of the Growth of Port Throughput on the Port Capacity: the Case of Malaysian Major Container Seaports

Abstract

Malaysia, situated between East and West, is an interface in world maritime trade, playing a crucial role in the business of moving container boxes in South-eastern parts of Asia. The prominent container terminals in Malaysia such as Port Klang and Port of Tanjung Pelepas are positioned among the top twenty ports in terms of volume handled. The annual average growth of throughputs in Malaysian container ports increased more than three-fold from the year 2000 to 2010. Within this context, the development of Malaysian seaports has been significantly influenced by three forces: increased use of containerisation, significant growth in domestic economic activities and ever-changing patterns in both supply and demand chains, all of which have led to increased transshipment activities and altered shipping routes. This phenomenon has brought dynamic change to Malaysian container ports, resulting in the establishment of new terminals and adapting emerging technology to enhance the ports' ability to accommodate larger vessels and an increased number of containers. This paper aims to present the development of Malaysian container seaports by addressing changes to acreage size and handling volumes during the last three decades. The results of the analysis suggest that major Malaysian ports are experiencing an exponential growth in container trade with the expansion of port capacity following trade growth and need effective strategies to reduce the operational pressures of Malaysian seaports. The results of this research offer directions for development strategies of seaports by utilising the existing inland freight facilities as an effective strategy for capacity enhancement and develop efficient distribution network to meet future demands.