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Westports keeps up record breaking 2016 to see 26% rise in 2016 profit

Major Malaysian port operator Westports Holdings had a good year, seeing 2016 net profit rise 26% to MYR637.0m ($143.4m) from MYR504.9m previously, as revenue rose 21% to MYR2.03bn from MYR1.68bn in the previous corresponding quarter.

Vincent Wee, Hong Kong and South East Asia Correspondent

February 10, 2017

2 Min Read
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For the last quarter of the year, net profit rose 17% to MYR155m while turnover rose to MYR573.3m from MYR477m, the company said in a stock market release.

The good results were achieved on the back of good volumes with Westports noting it had achieved another record with container volume of 9.95m teu in 2016, a 10% rise over the previous year’s record of 9.05m teu and putting it just shy of the 10m teu mark.

Westports added that the continued strong growth came from transhipment containers as it helped support the regional trading market.

Gateway volume was also strong, sealing off the numbers with much better growth in the second half of the year as Westports continued to facilitate domestic economic activities with the volume of laden export containers increasing by 6% in 2016. Imports however grew by a more modest 1%.

Ceo Ruben Emir Gnanalingam said Westports' record breaking financial and operational performance was gratifying, and reflected the results of the group’s relentless commitment towards accommodating growing requirements from customers.

“Over the course of 2016, Westports has also benefited from shipping clients’ ad-hoc handling requirements as they introduced larger vessels into their existing container shipping services.

“The record container volume handled and active terminal utilisation of the recently completed Container Terminal 8 (CT8) Phase 1 facilitated the need to commence with CT9 Phase 1 expansion to meet the future requirements of our shipping customers and also raise the overall terminal handling capacity at Port Klang.

“The CT9 Phase 1 expansion will entail the construction of an additional 600-metre wharf and new Terminal Operating Equipment such as Ship-To-Shore Cranes and Rubber Tyred Gantry Cranes,” he said.

Looking ahead, Wesports sees "moderate growth in container throughput in 2017” compared to growth in 2016.

The second phase of Container Terminal 8, consisting of a 300-metre wharf and supporting terminal operating equipment and facilities are expected to be operational by the middle of 2017.

“The handling capacity will increase to 12.5m teu by the middle of 2017. We have commenced the first phase of Container Terminal 9, consisting of 600-metre wharf with expected completion by December 2017,” Westports said.

About the Author

Vincent Wee

Hong Kong and South East Asia Correspondent

Vincent Wee is Seatrade's Hong Kong correspondent covering Hong Kong and South China while also making use of his Malay language skills to cover the Malaysia and Indonesia markets. He has gained a keen insight and extensive knowledge of the offshore oil and gas markets gleaned while covering major rig builders and offshore supply vessel providers.

Vincent has been a journalist for over 15 years, spending the bulk of his career with Singapore's biggest business daily the Business Times, and covering shipping and logistics since 2007. Prior to that he spent several years working for Brunei's main English language daily as well as various other trade publications.

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