KUALA LUMPUR: Westports Holdings Bhd is mitigating yard congestion by expanding capacity, adding 250,000-300,000 twenty-foot equivalent units (TEU) of annual handling capacity by converting existing areas.
According to a Maybank Investment Bank Bhd (Maybank IB) report, an initial 140,000 TEU would be available by April-May 2026 from the conversion of the demolished container freight station (potentially scaling to 200,000 TEU depending on dwell time), while the on-dock depot conversion is expected by year-end.
Stricter container receipt rules have also been implemented to ensure more disciplined yard operations, the bank-backed research firm noted.
Maybank IB noted that Westports handled 11.3 million TEU in FY25, up by 3% year-on-year.
“We were told that traffic built up started from the end of November 2025, with yard utilisation peaking at full capacity in December due to higher vessel discharges. However, conditions have since eased, with utilisation below 90% (currently >10 vessels waiting vs 50 at the peak).
“Productivity is expected to recover in the coming weeks. Wesports estimates that deferred or temporarily diverted volume during the congestion is at 50k–100k TEUs, highlighting underlying demand exceeding handled throughput,“ the research firm said.
Further, Maybank IB noted that the 10% Phase 2 tariff increase took effect this month, with more than 95% of Westports’ contracts typically expiring in December, with renewals at the end of 2025 subject to a cumulative tariff ceiling of 25% versus 1H 2025 levels (15% from Phase 1 plus 10% from Phase 2).
“FY26 volume guidance remains at low single-digit growth, and we assume a 2% increase for the year.
“Westports noted that construction of Westports 2 is progressing 5% ahead of schedule, with land reclamation for CT10–CT12 completed and currently undergoing a one-year settlement period.
“Yard and wharf construction is expected to commence in early 2027, and CT10 remains on track to begin operations in 2H 2028,“ it said.
Maybank IB is positive on Wesports and sees potential upside to Q4 2025 earnings, supported by stronger year-on-year and quarter-on-quarter volume growth, as well as elevated yard utilisation.
It said Wesports’ yard density exceeded 100% in December due to high vessel discharge volumes, despite storage fees increasing by up to three times (post-grace period) since July 2025, while dwell time remained largely stable. This dynamic could support stronger quarter-on-quarter earnings, with Q4 results expected on Jan 30.
“Westports’ 9M 2025 results accounted for 74% of our full-year forecasts. We maintain our forecasts and target price of RM6.73 and reiterate our Buy recommendation,“ Maybank IB said.
