KUCHING: Shin Yang Shipping Corp Bhd (Syscorp) has beefed up its container shipping between Sarawak and Singapore by deploying two vessels to service the route.
The two container vessels with carrying capacities of 800 to 1,000 20-ft equivalent unit (TEU) per trip is to strengthen the shipping activities, according to Sarawak-based Syscorp, which currently operates a fleet of 14 container vessels.
In 2015, Syscorp laid off three container vessels after ceasing the unprofitable regional operations due to overcapacity faced by the industry and depressed freight rates to shift its focus to serving domestic routes – ports between Peninsular Malaysia, Sarawak and Sabah.
The group restarted its regional operations by plying Sarawak-Singapore route more than a year ago.
To cater for the demand for cargo shipment, Syscorp acquired a new container vessel with carrying capacity of 1,200 TEUs per trip in the financial year ended June 30, 2021 (FY21).
The group plans to convert three tug-and-barges to transport containers for shorter routes to ensure that there is no shortage of shipping spaces as demand for container shipping picks up, Syscorp said in its 2022 annual report.
Syscorp has leased out two other container vessels to an external party for container shipment service between Hong Kong and mainland China.
According to group executive chairman Tan Sri Ling Ching Ho, Syscorp’s fleet of container vessels transported 212,500 TEUs in lifting capacity in FY22, an increase of 930 TEUs from 211,570 TEUs in FY21.
“We analysed that domestic and coastal shipping were the major growth contributors covering the local demand from both the infrastructure and resource-based sectors.
“With the continuous improvement in terms of fleet efficiency, routes enhancement and plying speed of our vessel fleets, the group is expected to increase its containers shipping by establishing strategic alliance with business partners to provide efficient and effective port services.