UOBKH Research said signs of transshipment recovery could be observed in Westports’ container volume data for the first four months of 2025.
PETALING JAYA: Westports Holdings Bhd
’s lack of spare capacity is choking its ability to push for a stronger container volume growth, says UOB Kay Hian (UOBKH) Research.
Average vessel berth waiting times at Port Klang had been at two to three days, while yard congestion hovered at a critical 90%, as pointed out by the research house .
In a note, it said Westports’ container volume growth pales in comparison to that of Straits of Malacca peers such as Port of Singapore Authority and Port of Tanjung Pelepas.
“Although group chief executive officer Datuk Ruben Emir Gnanalingam’s decision to retain single-digit growth guidance is admirable in hindsight, he reiterates the limitation on volume growth arising from Westports’ lack of spare capacity.”
The Gnanalingam family owns 45.5% of Westports, which runs an integrated port facility at Port Klang.
Meanwhile, UOBKH Research said signs of transshipment recovery could be observed in Westports’ container volume data for the first four months of 2025.
It also said that by anticipating a resurgence in trade during the 90-day tariff cooldown, Westports can meet its unchanged volume growth guidance.
“While gateway volume continued to look weak, transshipment boxes appeared to be restaging growth in April 2025, and this benefited both NCB Holdings Bhd and Westports (total growth recovered to 3%).
“Port Klang’s 4% year-to-date growth also appeared on track towards the 2025 target of 15 million twenty-foot equivalent units (2.3% growth).
“In our opinion, while May data may still look weak, it may be a prelude to Trump Always Chickens Out impact, namely a rush of China-cargoes to the United States during a 90-day tariff cooldown.”
On port tariff hike, UOBKH Research said the expectations had been priced-in.
It is noteworthy that a 30% tariff hike for container handling and storage has been proposed. The tariff hike is to be spread into three phases, with a more transparent and structured tariff review mechanism.
