Westports Expects Container Volumes to Strengthen in 2H26 as Vessel Schedules Adjust

Westports expects container throughput to improve in the second half of 2026, even after volumes fell 1% year on year in the first half. The Port Klang operator has kept its full-year target for low single-digit growth, according to Hong Leong Investment Bank (HLIB), which linked the expected recovery to shipping lines adjusting routes and more vessels returning to service.

For shippers using Port Klang, the outlook points to a possible improvement in vessel availability and schedule flow as carriers adapt their services. HLIB said the effects of the ongoing disruption around the Persian Gulf appeared to have normalized, with vessels being released from the region and resuming service. Global liners are also continuing to realign schedules and routes. The bank expects second-half volumes to exceed first-half levels, though it did not provide a quarterly throughput forecast or specify which services would contribute most.

Yard space supports operational flexibility

Westports is also clearing containers that have remained at the terminal for extended periods, particularly e-waste. The effort is intended to improve operating efficiency and has helped bring yard occupancy to between 70% and 80%, HLIB reported. That space gives the terminal more room to handle shifts in cargo flow, including ad-hoc transshipment volumes: containers transferred between vessels at the port outside planned flows.

For carriers, forwarders and cargo owners, available yard capacity can matter when vessel schedules or cargo arrivals change. More space may give the terminal greater scope to accommodate unexpected transshipment activity and other short-term variations. HLIB expects these volumes to help make up for a gradual reduction in revenue from value-added services, or VAS, as storage activity normalizes.

VAS accounted for a record 30.7% of Westports’ container revenue in the second quarter of 2026. HLIB attributed the high share to greater storage volumes and a tariff increase that took effect in January. As the terminal removes long-staying containers, the bank expects VAS’s contribution to move down toward a more normal level by year-end. The report does not quantify the expected change in VAS revenue or set out how quickly the stored-container backlog will be cleared.

The operating trade-off is clear in HLIB’s outlook: less revenue support from storage services could be offset by recovering throughput and opportunities to handle unplanned transshipment cargo. The balance will depend on how vessel schedules evolve and how much of the available yard space is used for new flows. Westports’ reported occupancy range suggests capacity is available, while the bank’s volume outlook rests on more vessels returning to service and carriers continuing to adjust their networks.

Costs and expansion plans

HLIB expects operating expenses to remain stable compared with the second quarter. Westports’ two-year Green Electricity Tariff subscription is expected to help limit exposure to changes in electricity-related charges. Diesel costs are also forecast to remain stable, despite a recent rebound in market prices. The bank did not provide a separate cost estimate for either energy source.

Staff costs are another factor in the terminal’s cost outlook. Malaysia’s minimum wage is scheduled to rise to RM2,000 in June 2027, while Westports’ current minimum salary is RM1,900. HLIB estimated that the increase would affect 5% of total staff costs, in line with the company’s annual increase in staff costs. The report describes the change as manageable, but does not give a separate estimate of its effect on total operating expenses.

Meanwhile, work on the CT10-CT13 port expansion is progressing. Dredging and land reclamation are about 70% complete. Wharf and yard construction is expected to start in 2027, subject to the plans being finalized. This sequence puts the current work on site ahead of the next phase of building the terminal’s operating areas.

Westports’ projected capital expenditure is RM700 million in 2026. HLIB expects spending to rise to between RM1.1 billion and RM1.4 billion in each of 2027 and 2028 as the project moves into equipment acquisition. The report does not name the equipment or provide a timetable for when expanded capacity would become operational.

For logistics teams, the immediate indicators to follow are whether returning vessels translate into stronger second-half throughput, how quickly long-staying containers leave the yard, and whether ad-hoc transshipment demand uses the capacity being freed. The expansion is a longer-term part of Westports’ plans to serve trade through Port Klang; the near-term recovery outlook depends on vessel availability and the flow of containers through the existing terminal.