PTP, a 70% subsidiary of MMC Corp, is located to the west of the Forest City project in southern Johor state with is across the strait from Singapore. Previous media reports have said the Forest City project is backed by the Johor royal family.
The MYR1.4bn Phase 3 begun in 2012 and is geared towards catering for the largest Ultra Large Container Vessels (ULCVs) with an additional three berths that will increase the terminal’s annual handling capacity to between 13m and 14 m teu from the present 10m teu. It is due to be completed in two years’ time, while Singapore's Pasir Panjang Terminal phase 3 and 4 expansion will see the development will add 15 new berths and boost total port capacity to more than 50m teu per year by 2020, up from its capacity of 35m teu now.
“Beyond this, the port would have problems in expanding as the Forest City project is lapping over the concession area of PTP. This may result in loss of competitiveness for the port against the massive expansion plan by ports in Singapore,” the source was quoted as saying.
The Forest City project's China-based developer, Country Garden Holdings, plans to raise a 2,000ha man-made island in the strait to build luxury homes over the next 30 years.
Johor Port Authority (JPA) however claims that coastal reclamation works will not affect the navigation of vessels in the waterway. JPA general manager Muhammad Razif Ahmad was quoted as saying that all port operations were going on as usual and no vessel operators had reported obstacles caused by reclamation work along the straits.
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