|
|
Malaysia Freight Transport Report Q3 2008Product Type: Market Research ReportPublished by: Business Monitor International Published: July 2008 Product Code: R302-3441 Description A ruling by the International Court of Justice (ICJ) in May on Malaysia and Singapore’s long-runningterritorial dispute over small islands in the Straits of Singapore/South China Sea - an area of greatstrategic importance to world shipping - clarified some issues but left others still to be decided. The ICJruled that Singapore had sovereignty over the islet of Pula Batu Puteh (known in Singapore as PedraBranca), while on the other hand recognising Malaysia’s sovereignty over the smaller Middle Rocks. Singapore operates a lighthouse on Pula Batu Puteh that provides a key navigations aid to shipsapproaching the island-state’s main port, the world’s busiest container facility. But the ICJ left ownershipof a third rocky outcrop, known as South Ledge, open for negotiation, depending on ownership ofterritorial waters around it. Malaysia has since claimed sovereignty over this group of rocks, which isonly visible at low tide. It is calculated that around 40% of world trade passes through the Straits. Theislets are separated by only 600 metres of water. Abdul Ghafur Hamid at Malaysia’s International IslamicUniversity told Reuters that ‘the crucial thing is the two countries should delimit their territorial waters.Otherwise there will be so many problems and confusion’. BMI’s newly released Malaysia FreightTransport Report predicts that in terms of freight carried, shipping traffic will grow by an average 7.6%per year in 2008-2012. The total number of containers handled at Malaysia’s ports will grow morestrongly by 10.9% per year. The continuing export drive and the dynamism of China and other regionaltrading partners will underpin strong demand. We now expect total freight carried, measured in million tonnes-km (mntkm), to grow by an annualaverage of 7.2% over the 2008-2012 period. Total road freight turnover is expected to grow at an averageannual rate of 6.6% in 2008-2012. The cross-Malaysia railway link project is being revived, but will notbecome operational until after 2011. We expect rail freight traffic to perform reasonably well, with annualgrowth averaging 6.6%. Air freight will grow by a strong 7.8% per annum, with pipeline throughput notfar behind at 6.9%. Malaysia scores moderately on our overall freight rating at 48.3 out of a theoreticalmaximum of 100, having slipped since our last report because of a fall in its country risk rating. It isnevertheless at the top end of the spectrum in terms of expected freight transport growth and scores wellas far as long-term economic risk, transport infrastructure growth and the regulatory and competitiveenvironments are concerned. For the 2008-2012 forecast period, we expect the transport and communications sector to continueoutpacing the economy as a whole by a small margin. It will achieve average annual growth of 5.6%,versus 5.5% for overall GDP. The total value of the transport and communications sector will rise toUS$20.7bn in nominal terms by 2012, representing 7.4% of Malaysia’s GDP. Table of Contents |
|
||||||||
MindBranch has been the leading provider of industry and investment research from more than 550 independent research firms since 1992. With over 90,000 market research reports, MindBranch is your trusted source of competitive business intelligence. |