https://www.reuters.com/business/autos-transportation/lordstown-motors-says-it-has-no-binding-purchase-orders-customers-2021-06-17/

they need more cash to trade more steel... good for the company...

Westports shares plunge on talk of biggest customer's relocation
Kang Siew Li
sunbiz@thesundaily.com

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PETALING JAYA (Oct 23, 2013): Shares in Westports Holdings Bhd, which made an impressive debut on Bursa Malaysia on Friday, plunged 4.83% yesterday, amid market talk that a new shipping alliance which includes the terminal's biggest customer, CMA-CGM, may move its transshipment hub from Westports to Port of Tanjung Pelepas (PTP) in Johor, which could negatively impact its revenue.

Westports shares fell 13 sen to end at the day’s low of RM2.56, with 53.98 million shares changing hands. The 30-stock FBM KLCI closed up 0.97 points at 1,803.58.

The P3 shipping alliance, a link-up between the world's three biggest container-shipping companies – CMA-CGM, Maersk Line and Mediterranean Shipping Co, announced its shipping routes on Monday, which raised concerns of French liner operator CMA-CGM moving its container operation to PTP in which Maersk Line has a 30% stake and is already the transshipment hub of Maersk Line.

When contacted by SunBiz yesterday, Westports CEO Ruben Emir Gnanalingam confirmed that CMA-CGM has announced its P3 service routings on Monday in Europe.

"There has been a revision in port calls, but not to a level which was unexpected. We currently have 10 services out the 30 plied by these lines on the Asia-Europe/Mediterranean trade lanes. Going forward, we will have six out of the 26 services," he said.

Ruben does not expect the route realignment of the P3 shipping alliance to have a large impact on Westports from the reduction in services.

"CMA-CGM has never indicated that they have any intention of switching hubs and P3 only represents a portion of their volume to us. Capacity and service levels within the region must also be taken into account.

"Any impact, would only really present itself in 2015 as P3 is only expected to start in mid-2014, assuming that it receives all the necessary approvals to proceed as planned," he added.

Ruben said Westports is on track to achieve between 5% and 10% volume growth for 2013.

"We are still confident of growing between 5% and 10% for 2014. The year 2015 is a long time away and many other things can happen in between now and then," he added.

Westports currently commands a 69% market share of the container traffic in Port Klang, and has six container terminals capable of handling 9.5 million TEUs (20-foot equivalent units) per year with plans to potentially ramp up the capacity up to 16 million TEUs per year.

According to analysts, CMA-CGM currently contributes more than 10% of Westports' total revenue and its future revenue and profits will be impacted substantially by any move by CMA-CGM to relocate its transshipment hub away from Westports.