Top shipping line to relocate to Malta

A top shipping line is about to start using Malta Freeport after deciding to stop using Gioia Tauro, according to industry sources.

APL, a member of the New World Alliance, will use the Maltese port as part of a new service it will launch with major international shipping lines CMA and Norasia.

The service, expected to be called Sunda Express, will be launched over the coming weeks.

Lloyd's List reported that Gioia Tauro, Malta Freeport's strongest rival, had lost the custom of three shipping lines because of endless delays and congestion.

New World Alliance members MOL, APL and Hyundai Merchant Marine pulled their Asia-Europe Express string out of Gioia Tauro's Medcentre Container Terminal earlier this month and informed the terminal's owners - Contship Italia - that the remaining Japan/Asia-Mediterranean/Northern Europe string would also cease calling at Gioia Tauro at the end of next month.

Lloyd's List said the three members of New World Alliance were said "to have made alternative arrangements in the Mediterranean".

APL decided to start using Malta Freeport in a twofold arrangement. It has decided to join CMA and Norasia - the two largest clients of Malta Freeport - in the creation of a new service and it has reached agreement with CMA to use its slots for vessels that operate between China and Malta Freeport. "Basically, APL's work in the Mediterranean will go through Malta, " Lloyds said.

The sources said they believed the business generated by the new service would be substantial but it was premature to quantify it.

The sources said that despite the sudden departure of K Line and Yang Ming from Malta Freeport some months back, the volume of work at the Maltese port was believed to be strong. "The indications are that the volume of work this year will exceed last year's."

Lloyd's List reported that the departure of the lines from Gioia Tauro will reduce throughput there by about 500,000 containers. Volumes at Gioia Tauro grew to just under three million last year, making it the 17th busiest container port in the world.

Lloyd's List said that growth by current customers and the arrival of Grand Alliance - which had left the Malta Freeport - has created congestion, which became even worse with unprecedented bad weather early this year.

"When volumes increase suddenly by 25 per cent this causes congestion," Cecilia Battistello, chairman of both Gioia Tauro and Consthip Italia, told Lloyd's List.