KUALA LUMPUR: MMC Corp Bhd expects higher transhipment of cargo volume at its port of Pelabuhan Tanjung Pelepas Sdn Bhd (PTP) over the next few weeks, following the recent disruption caused by a container ship stuck in Egypt's Suez Canal.
Group managing director Datuk Sri Che Khalib Mohamad Noh said MMC's ports and logistics unit, in particular PTP, had received a positive outcome to accommodate transhipment activities as more shippers resumed their voyage.
This came after the giant 400 metre-long Ever Given container vessel, weighing 220,000-tonnes, was freed from one of the world's busiest marine waterways on March 29.
"They (shippers) have to find temporary area for them to place their cargo. PTP is able to accommodate the request (transhipment).
"Thus, we anticipate some spike in the next couple of weeks due to the release of Ever Given vessel," he said at a virtual press conference after the signing ceremony between MMC Port Holdings Sdn Bhd and Ramco Systems Ltd for an integrated Enterprise Resource Planning (ERP) here today.
On March 23, it was reported that more than 437 vessels, carrying billions of dollars worth of cargo had been stuck for seven days in the Suez Canal waterway.
About 12 per cent of global trade passes through the 193km canal, providing the shortest sea link between Asia and Europe.
Port Klang, which MMC Corp has operation via Northport (Malaysia) Bhd (Northport), and PTP were the only Malaysian ports receiving calls from Europe and the Mediterranean.
MMC has today partnered with global software solutions provider Ramco to undertake a major integrated ERP digital transformation programme across its ports.
The group-wide transformation allows MMC to consolidate and standardise its processes at five major ports namely PTP, Johor Port Bhd, Northport, Penang Port Sdn Bhd and Tanjung Bruas Port Sdn Bhd.
Che Khalib said the implementation of a common system and integrated technology platform would maximise synergies and allow all its ports to share expertise and benefit from economies of scale.
"We aim to leverage on technology as a key differentiator in order to gain a competitive edge and add value to our stakeholders," he said.
Che Khalib said the unified system also allowed the group to reduce about 20 per cent cost throughout all ports operations.
He said MMC had set aside a "high double-digit millions" for the group's digitisation effort for this year.
However, he did not reveal the allocation amount.
"The amount is substantial and a massive undertaking budget has been allocated for ERP system, which the whole transformation is expected to be completed in 2023," he added.