Disruption at Port Said East Terminal (SCCT)

1 Aug 2011

We want to update you today on operational disruption at Port Said East Terminal (SCCT) in Egypt, and the steps APL is taking to mitigate the problem. Terminal crane productivity has decreased by nearly 30% as a result of a number of factors impacting labour efficiency. This decline in productivity has resulted in a backlog of vessels.

As of 29 July, it was reported that 10 vessels were at anchor awaiting a berth at SCCT. Since line haul vessels have been given priority for a berth, feeder vessels have been disproportionately impacted. We are experiencing feeder waiting times in excess of seven days in some cases.

Here is what APL is doing in response:

• We are adjusting our line haul network to shift a number of vessels away from SCCT, thereby freeing up berths to improve feeder access.

• We are securing additional feeders on an ad hoc basis to maximize the velocity of our recovery efforts.

We apologize for network disruptions at our Egypt hub terminal. We will provide progress reports as we work to remedy the situation.

APL press release