Evergreen Speculated To Shift Hub From Tanjung Pelepas To Singapore

Evergreen, the Taiwanese mainline operator, has declined to comment on speculation regarding its potential shift of port calls from Malaysia’s Port of Tanjung Pelepas (PTP) to Singapore. This follows the announcement of its joint venture with PSA Singapore to establish a terminal expected to open by the end of this year.

Key Developments and Industry Analysis

1. New Terminal in Singapore:
   • Evergreen’s collaboration with PSA Singapore aligns with its sustainability initiatives. The terminal aims to:
     • Improve vessel punctuality.
     • Support alternative bunkering solutions for future fuels.
     • Provide enhanced support for seafarers.
   • The decision leverages Singapore’s position as a major bunkering hub.
2. Impact on Ocean Alliance:
   • Evergreen is a member of the Ocean Alliance, alongside Cosco/OOCL and CMA CGM.
   • Linerlytica suggests the alliance could consolidate its Southeast Asian hub operations in Singapore starting in February, aligning with its new network rollout.
3. Current Commitments to Tanjung Pelepas:
   • Evergreen has reiterated its commitment to working with Malaysian terminals and fostering mutual business growth.
   • At PTP, Evergreen currently operates two Asia-North Europe services:
     • NEU6: 14 vessels averaging 22,600 TEU.
     • NEU7: 14 vessels averaging 16,200 TEU.
4. Context within the Ocean Alliance:
   • Cosco/OOCL and CMA CGM already operate joint ventures with PSA Singapore, established in 2003 and 2016, respectively.
   • CMA CGM’s partnership was part of its acquisition of Neptune Orient Lines (NOL), which included commitments to process higher container volumes in Singapore.

Strategic Implications

• Singapore as a Hub: The move reflects Singapore’s growing importance in maritime logistics, particularly for large alliances seeking efficient port operations and sustainability-focused solutions.
• Tanjung Pelepas’ Role: While Evergreen signals ongoing collaboration with Malaysia, a shift of key services could impact PTP’s volumes, particularly for the Asia-North Europe trade.
• Alliance Dynamics: The consolidation of Ocean Alliance operations in Singapore would streamline activities, enhancing operational efficiency for its members.

As the February deadline for the new Ocean Alliance network approaches, further clarity on Evergreen’s strategic port choices will likely emerge.