MIDF Research said Westports container volumes show a year-on-year increase despite a high base.
PETALING JAYA: Westports Holdings Bhd
’s year-end container volume growth is expected to fall within the range of 5% to 6%, should the repositioning of empty containers to China normalise in the second half of financial year 2023 (FY23).
MIDF Research said the repositioning has driven container volumes to grow by 7.2% year-on-year in the nine months of FY23, surpassing the initially guided low single-digit growth.
MIDF Research said that quarter-to-date, Westports container volumes show a year-on-year increase despite a high base.
“We anticipate a surge in goods movements preceding the Chinese New Year, expected in late December 2023 or early January 2024,” the research house stated in a report.
Meanwhile, Westports’ proposed Carey Island port is expected to proceed as planned but there may be a delay due to town concerns, particularly given the congestion in the Westports area.
It was noted that alongside the development of the new port, there is an emphasis on simultaneous infrastructure enhancements and a high-level committee is expected to be constituted in January 2024 to oversee the project.
MIDF Research said Westports is now facing capacity issues while handling goods like liquid bulk.
Therefore, the extra container capacity from the Carey Island port is expected to be added after Westports 2’s expansion is fully utilised.
The research house said discussions regarding the Westports 2 expansion have reportedly concluded and the concession agreement could be signed early next month.
Meanwhile, MIDF Research said the revision of conventional tariffs is currently in progress.
