MARC Ratings has affirmed its rating on port operator Pelabuhan Tanjung Pelepas Sdn Bhd’s (PTP) RM3.5 billion Islamic Medium-Term Notes (Sukuk Murabahah) Programme at AAIS. The rating outlook is stable.
The rating affirmation is driven by PTP’s strong position as a major container transshipment port supported by the expertise of and continued investments by its shareholders that have strengthened the port’s capacity and operational efficiency. The rating is also supported by PTP’s ability to generate healthy cash flow and maintain a strong liquidity position relative to its debt servicing and port expansion requirements. The key moderating factor to the rating is the susceptibility of the port handling volume to global trade which, in turn, is highly reactive to major geopolitical events.
PTP’s shareholders, MMC Port Holdings Berhad (MMC Port) (70%) and Netherlands-based APM Terminals B.V. (APM Terminals) (30%), have proven track records in port development and operations. MMC Port owns several key port operators in Malaysia while APM Terminals, owned by A.P. Moller-Maersk A/S (Maersk), has interests in more than 60 ports globally. Maersk, one of the world’s largest shipping companies, is a key customer and has consistently contributed about 70% of PTP’s throughput volume over the past five years.
The commencement of Gemini Cooperation between Maersk and Hapag-Lloyd AG in February 2025 has substantially increased PTP’s throughput volume, given the port’s position as a key hub under the cooperation’s hub-and-spoke model; PTP connects regional gateway ports with 12 key transshipment hubs globally which are majority-owned and/or controlled by Maersk or Hapag-Lloyd.
PTP is continuing its planned capex programme costing up to RM3.6 billion through 2026–2029, involving the purchase of port equipment, expansion of its container yard, construction of a new berth, and an assets replacement programme. By 2029, the safe operating capacity is projected to increase to about 15.9 million twenty-foot equivalent units (TEUs) from the current 14.0 million TEUs. The capex is expected to be funded through internally generated funds and sukuk issuances in approximately equal proportion. PTP’s strong cash flow generation capacity, and liquidity position with cash balance of RM948 million as at end-9M2025 would support its expansion plans.
The rating agency views PTP’s strong cash flow generation of about RM800 million annually over the last three years would allay any concerns on the debt increase. PTP recorded cash flow from operations interest and debt coverages of 11.75x and 0.28x during 9M2025. Total outstanding notes under the rated Sukuk Murabahah programme stood at RM2.03 billion; RM200 million maturing in 2026 and RM765 million in 2027 are expected to be repaid/refinanced through a mixture of internal funds and new issuances.