Gateway July 2010

J U LY 2 0 1 0

CERTIFIED ISO 9001:2008

ADVANCING TRADEPort Klang Authority Sets

Clear Direction To Greater Heights

Published by

PORT KLANG AUTHORITYMail Bag Service 202, Jalan Pelabuhan, 42005 Port Klang, Selangor, MalaysiaTel: 603-3168 8211Fax: 603-3167 0211 / 3168 8228www.pka.gov.my

Management Team

KEE LIAN YONGGeneral Manager

CAPT DAVID RAJAN PADMANAssistant General Manager (Regulatory)

IR A MURYTHARANAssistant General Manager (Engineering)

HAJI SALIHUDDIN B YUSSUFAssistant General Manager (Administration)

AZURA BT MUHAMADAssistant General Manager (Corporate)

GATEWAY is the official magazine of Port Klang Authority

(PKA). The publication covers issues, trends and

developments affecting Port Klang and the Malaysian port

industry in general.

All care is exercised to ensure that facts presented herein

are correct. PKA and its editorial and design agencies

shall not be held liable for any loss, action or damages

arising from the content published in GATEWAY.

Copyright © Port Klang Authority 2010

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY

Inside this issue06 FocusTHE PULSE OF TRADEPKA’s General Manager explains Port Klang’s contribution to Malaysia’s ranking as the world’s top 10 most competitive country and its future plans to strengthen Port Klang as the nation’s trading gateway.

16 NorthportMULTIPLE AWARDS FOR EXCELLENT PERFORMANCENorthport wins various awards for its excellent performance in freight, supply chain and also in its container throughput.

INVESTMENT IN NEW CONTAINER TERMINALThe new container terminal is designed to serve the ultra size container ships and is poised to continue propelling the port to a higher level of service and productivity.

14 WestportsOUTSTANDING CUSTOMER SERVICEFast and reliable logistic services at competitive tariff rates with great connectivity and linkages all over the world sets Westports as the top 5 port in terms of productivity.

NEW 300-METER CONTAINER TERMINALWestports to resume expansion plan this year.

10 VistaCOMPETITIVE EDGEDatuk Dr Rebecca, Deputy Secretary General (Trade) of MITI highlights the numerous efforts implemented by the Government and private sector have finally paid off as Malaysia is now recognised as the world’s 10th most competitive country.

18 PerspectivesBEING TRADE WISEThe key to ensuring that Port Klang continues to be an attractive trading gateway is rationalised by Charles Ireland, President of Malaysian International Chamber of Commerce and Industry (MICCI).

20 PartnersMEETING REQUIREMENTSSAM, MASA and CRSA shares their opinions on how Port Klang can take it further and enhance its role as trade facilitator and also port regulator.

22 PKFZNEW OIL REFINERY IMPORTANT FOR FUTURE GROWTHCargill will be investing RM162 million to expand their existing operations and build a new vegetable oil refinery in Port Klang Free Zone (PKFZ).

04 Port TalkNews from the local front.

23 RadarUpcoming events for the industry.

Welcome back to Gateway, the official magazine of Port Klang Authority (PKA). This is the mid-year publication, and as usual your positive and constructive feedback enables us to become even better. We aim not only to provide you with pertinent and up-to-date information on the maritime industry, but also to communicate and discuss the latest issues we all face.

In this issue, we examine the roles played by Port Klang (and by extension, PKA) in enhancing Malaysia’s trade and business competitiveness. We are proud of our achievements made possible only by our absolute commitment to capitalise on our strategic advantages, in collaboration with government bodies, logistic players and our shipping associates.

Our stakeholders have taken some time to express their views on the role we have played so far in this area, and share suggestions on how we may improve to better carry out our responsibilities. We are deeply grateful to Datuk Dr Rebecca Fatima Sta Maria from the Ministry of International Trade and Industry (MITI), Charles Ireland from the Malaysian International Chamber of Commerce and Industry (MICCI), Ooi Lean Hin of Shipping Association Malaysia (SAM), Captain Intiaz Hussein of Malaysia Shipowner’s Association (MASA) and Tuan Haji Abu Bakar Bin Hussein of the Central Region Shipping Association (CRSA), for their insights and perspectives into how we can work closely together in moving Port Klang to greater heights.

Do take time to peruse through our other regular sections, featuring updates from our terminal operators Northport and Westports, as well as Port Klang Free Zone.

On behalf of PKA, I invite you to review this issue of Gateway. We hope that you will enjoy it as much as the previous issues. As always, your feedback and comments are welcomed.

Thank you.

KEE LIAN YONGGeneral ManagerPort Klang Authority

MOVING ON UP

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0 4 P O R T TA L K

June 7-9, 2010

IAPH Mid Term Board Meeting and Port Forum themed “Economic Recovery in The Maritime Trade” was held in Savannah, Georgia, USA and hosted by Georgia Ports Authority. Some 150 delegates, speakers and accompanying people, attended the event.

May 28-30, 2010

The event was held in Bukit Gambang Resort City, Pahang. Attended by 500 family members of PKA and PKFZ. Among the events organised were telematches, waterpark games, dinner, lucky draw and also a celebration for all the staff’s children who obtained good results for UPSR, PMR and SPM 2009.

May 31, 2010

This auction was on disclaimed goods that had been placed in Free Zone area (Northport & Westport) over 4 months. It was conducted by the- Free Zone Department and participated by 135 registered bidders. PKA conducted an auction to disperse unclaimed goods stored in the free zone (Northport and Westports).

VISIT FROM MARITIME AND PORT AUTHORITY SINGAPORE

INVESTMENT DELEGATION

SCHEDULED WASTE MANAGEMENT SEMINAR

IAPH BOARD MEETING AND PORT FORUM

PKA FAMILY DAY AUCTION OF UNCLAIMED GOODS

June 25, 2010

Thai Trade and Investment Delegation comprising 30 members from the Department of Foreign Trade, Ministry of Commerce, Thailand and Trang Province government and private sectors were briefed at Port Klang Free Zone by Chairman Dato’ Lee Hwa Beng.

May 3, 2010

The visit was led by Chief Executive of Maritime and Port Authority of Singapore (MPA), Mr Lam Yi Young with 5 others senior officers. The group visited Port Klang’s port facilities and later exchanged ideas for improving ties between both ports.


June 6, 2010

30 Transport and Housing delegates from the Hong Kong Special Administrative Region Government visited Port Klang to exchange ideas on port and trade development cooperation. Capt David briefed the delegates and accompanied them on a short tour of Port Klang Free Zone (PKFZ).

May 17, 2010

An official visit by 7 member of the Board of Directors from “Lembaga Pelabuhan-Pelabuhan Sabah” The visit was led by Chairman, Datuk Haji Kadzim Haji M. Yahya. The purpose was to foster closer cooperation and exchange ideas.

TRIP TO LOS ANGELES

DELEGATES FROM HONG KONG

VISITORS FROM SABAH

May 19 - 23, 2010

Dato’ Lee Hwa Beng, the Chairman of PKA and Pn Azura Muhamad, Assistant General Manager (Corporate) of PKA accompanied by officials from The Ministry of Transport. The main purpose of this visit was to study the mechanisms in planning and handling port facilities with regards to issues related to public interest and environmental concern.

May 27, 2010

The seminar organised by One Stop Centre (PKA) was held at Westports Auditorium, Pulau Indah from 10.00am -12.45pm. Talks was given by Pn Siti Zaleha bt. Ibrahim (JAS,Selangor) and En Mohd Azuan Mohamad Paudzi (Jab. Dagangan Bahaya, PKA). The participants consisted of representatives from Terminal Operators, ISOA, CRSA, MASA, SFFLA and PKFZ. The objective of this seminar was to create awareness among Port Klang’s users who are directly involved with import and export activities and also the importance of protecting the environment. The seminar also suggested appropriate ways in handling, storage and transportation of dangerous cargo in port areas.

A P P O I N T M E N T S 0 5


July 6, 2010

7 delegates from Incheon Metropolitan City, Incheon Port Authority and Korea International Trade Association made a courtesy visit to Port Klang. The objective of the visit was to promote their port to our local shippers and logistic players.

PORT KLANG UPGRADED ITS ISO CERTIFICATION

TRADE MISSION TO MEDAN

COURTESY VISIT TO PORT KLANG

PKA through the Free Zone and Dangerous Goods Department upgraded it’s ISO9001:2000 to ISO9001:2008. Certification was issued by SIRIM QAS International Sdn. Bhd. The scopes related were:i. Regulating of Trade Activities in the Free Commercial Zone;ii. Handling, Storage and Transportation of Dangerous Cargoes in the Port Premises of Port Klang.

GATEWAY congratulates YB Dato’ Seri Kong Cho Ha, SPMP, DPMP on his recent appointment as the new Minister of Transport. Prior to his appointment, he was the Minister of Housing and Local Government.

Dato’ Seri Kong who hails from Sitiawan attended primary and secondary school in Sitiawan and Ipoh. He subsequently pursued his tertiary education at University Malaya, and was awarded a B.Sc (Hon) in 1974, and a Dip.Ed in 1975.

Dato’ Seri Kong started his long, varied and illustrious career as an educator in SMJK Ayer Tawar in 1976, before becoming a businessman in 1981. His political involvement began in 1991, when he became a Councillor in the Manjung District Council, before being elected as Member of Parliament in Lumut Constituency from 1999 to date. He was subsequently appointed Deputy Minister of Ministry of Science, Technology and Innovation from 2004 – 2008, and the Deputy Minister of Finance from 2008-2009.

GATEWAY congratulates YB Tuan Jelaing anak Mersat on his appointment as the new Deputy Minister of Transport. Prior to this, he was the Deputy Ministry in the Ministry of Internal Affairs.

YB Tuan Jelaing anak Mersat started his career in the Ministry of Education as an educator from 1974-2000. He was also Chief Private Secretary of the Ministry of

GATEWAY congratulates Datuk Haji Kamaruzaman b. Haji Mohd Noor on his appointment as the new Deputy Secretary-General of the Ministry of Transport. Prior to this, he was Deputy Secretary-General (Administration) of the Ministry of Education.

Datuk Haji Kamaruzaman started out in the PM’s Department as an Assistant Secretary in 1976, becoming

New Minister of Transport - Dato’ Seri Kong Cho Ha

New Deputy Minister of Transport - Jelaing anak Mersat

New Deputy Secretary-General of the Ministry of Transport - Datuk Haji Kamaruzaman b. Haji Mohd Noor

Assistant Director of MAMPU and Assistant Secretary of the Election Commission in 1979. He was seconded as the first Head of the ASEAN Plant Quarantine & Training Institute Project, Chief Investigation Officer in the HQ of the Anti Corruption Agency (ACA) in 1982, and Director of Training for ACA in 1985. In 1988, he was the Senior Deputy Director of MAMPU, becoming Chief Deputy Director in the same year. Datuk Haji Kamaruzaman has worked in diverse ministries, including the Ministry of Culture, Arts and Tourism (1999) and the Ministry of Defence (2003).

Datuk Haji Kamaruzaman has been honoured with titles from several states, including the Darjah Mulia Seri Melaka (DMSM), Darjah Indera Mahkota Pahang (DIMP), Panglima Setia Bintang Sarawak (PSBS), Darjah Paduka Setia Mahkota Kelantan (DPSK) and the federal award Panglima Jasa Negara (PJN).

National Unity and Social Development from 1997. In 2000, he was appointed the Political Secretary to the Chief Minister of Sarawak, and became a Member of Parliament in 2004. He was subsequently was appointed Deputy Minister of Domestic Trade and Consumer Affairs from 2008-2009.

YB Tuan Jelaing anak Mersat holds the Ahli Bintang Sarawak (ABS) and Johan Bintang Sarawak (JBS) awards.

Dato’ Seri Kong is currently the Secretary-General of Malaysian Chinese Association (MCA) as well as the Chairman of the MCA ICT (MRIC) Bureau. He was also the Deputy Chairman of the MCA Perak Liaison Committee in 2009, and Chairman of MCA Lumut Division, and of the Kg Koh Branch, since 2005 and 2004 respectively. He is also the Chairman of the SJK(C) Chinese National Kg. Koh School Management Board.

Dato’ Seri Kong is a highly honoured man in his home state, having been awarded the Seri Paduka Mahkota Perak (SPMP) in 2009 and the Dato’ Paduka Mahkota Perak (DPMP) in 2004, among many other awards of Perak. He was also bestowed the Ahli Mangku Negara (AMN) in 2001.

July 21-22, 2010

Port Klang Authority made a courtesy call to Belawan Port in conjunction with the Trade Misson to Medan, Indonesia, jointly organised by PKA & SFFLA. A seminar on “Business Opportunites in Port Klang, Malaysia” was also organised and attended by 150 officials, freight forwarders, importers & exporters from Medan and Malaysia.


0 6 F O C U S

THE PULSE OF TRADE

F O C U S 07


As a trading nation, Malaysia is ranked 10th most

competitive in the world, and Port Klang is a primary

contributor to that success. According to Kee Lian

Yong, Port Klang Authority (PKA) General Manager,

PKA is proud to be associated with making Malaysia a

premier business location. “Of course, it is our close

partnership with government, with business, and with

the logistics industry, that has enabled us to achieve

this. We are committed to improving our relationships

and meeting all our stakeholders’ needs in order to

accelerate this forward progress, making Port Klang

the natural choice for Malaysian and international

businesses alike,” he elaborates.

PKA has been steadily playing a greater role as a trade

facilitator and port regulator, moving away from direct

port operations and focusing on setting strategic goals

for the port. Kee explains, “PKA is the key organisation

that oversees all the players in the port community to

ensure that we are on the right track. We at PKA make

this happen through the implementation of strategic

policies and practices.”

KEE LIAN YONGGeneral ManagerPort Klang Authority

1. WORLD-CLASS FACILITIESAs the principal port of Malaysia, it is appropriate that Port Klang boasts some of the better facilities to cope with that volume of traffic

going through it. Port Klang is equipped to handle multiple trades and can even accommodate ships as big as 13,000 Twenty-foot

Equivalent Units (TEUs). In terms of productivity, Port Klang terminal operators currently have registered a record gross crane productivity

of 35 moves per hour, which is higher than the industry average of 25 crane moves per hour. Besides being competitively efficient, Port

Klang also has ample warehouses and space to store cargo which is an added advantage over neighbouring ports.

2. TECHNOLOGICAL PROGRESSPort Klang is progressive and forward-looking in the use of technology – especially information technology (IT). Our vision is to

enhance and connect all port users on an integrated communications platform that will enable seamless business transactions,

thereby enhancing efficiency, productivity and ease of doing business.

3. ENHANCED TRADE FACILITATIONPKA is absolutely committed to facilitating trade and making business procedures simpler and more hassle-free. We recognise the

need to streamline paperwork, expedite regulatory approvals, and remove bureaucratic obstacles. Hence, we have established the

‘One Stop Centre’ department to facilitate the establishment of port-related industries and enhance throughput at Port Klang. In

addition, value added services and distribution-type activities, which are in the early take off stages in Malaysia and South East Asia,

will create more trading opportunities.


0 8 F O C U S

Port Klang has trading links to 180 countries and is linked by major shipping lines to 500 ports around the world. Closer to home, Port Klang is geographically close to Malaysia’s business capital, Kuala Lumpur, the administrative capital, Putrajaya, and also the KL International Airport (KLIA), giving direct access to the port for convenient export or import of goods. The ready availability of complete multi-modal transportation means that investors can conveniently connect via sea or air transportation to any destination in the world. Port Klang is also easily accessible by road and rail. Three separate major highways connect Port Klang with the industrial heart of Malaysia in the Klang Valley, and through the highly integrated and comprehensive highway network, the rest of Peninsular Malaysia. Malayan Railways (KTM) has regular container cargo and general cargo carriage services plying the routes between Port Klang and 3 other ports in Malaysia (Butterworth, Pasir Gudang and Tanjung Pelepas) as well as the ‘inland port’ at Ipoh. General cargo can also be loaded and unloaded in most other KTM stations throughout Peninsular Malaysia.

MOVING FORWARD2010 is shaping up to continue the general upward and growing trend in terms of container throughput. “In the first half of 2010, Port Klang saw a 29.3% growth in containers handled (4.3 Million TEUs), and we are projected to handle 8.4 Million TEUs altogether this year,” Kee enthuses. “Port Klang has proven to be an attractive, top-notch global port due to our high productivity rate, competitive prices and our constant efforts in upgrading and improving our infrastructure, facilities, equipment and services.”

Kee realises the importance of ensuring Port Klang remains attractive in the face of competition from ports in Singapore, Thailand, Vietnam and Sri Lanka, especially over the next 5 years. “Port Klang is continuing to capitalise on our competitive advantages such as political stability, strategic location, adequate draft, luxury of space and minimal red tape in terms of policy, guidelines, rules and regulations that hamper the ease of doing business,” he remarks. “Our drive to continually elevate our performance and enhance our competitiveness has led to our being ranked Top 13th container port in the world today.”

As with all business processes and systems, there is always room for improvement. Kee says, “We will and do take comments and suggestions on board, consider the costs and benefits, and implement ideas that make sense. Then, we can bootstrap ourselves into the future, where we will be known as Malaysia’s logistics and trading hub.” All of these changes, improvements and developments have one end in mind – to make Port Klang an attractive location, synonymous with Malaysia, when thinking of seaborne cargo and maritime logistics.

Kee holds the opinion that this goal depends on exemplary performance. He explains, “The private sector is all about tangible results and great emphasis is placed on business profitability. Hence, people in the private sector are market-driven, proactive in achieving goals and always strive for excellence in all that they do. On the other hand, the work culture in the public sector is not necessarily as competitive as the private sector. Civil servants are typically assigned to a specific role, usually administrative, and not given the opportunity and exposure to grow in their careers. It is my ultimate aim to ensure that PKA, although a statutory body under the auspices of government, behaves more like a corporation in the private sector in terms of performance, innovation and leadership.”

Developing the Port Klang Development Master Plan.The Master Plan covers short-, mid- and long-term plans for the port’s infrastructure and strategic purposes. The plan will be implemented over 20 years from 2010 until 2030.

Conducting a general review of the current port tariff structure.The existing port tariff is being reviewed and simplified. Strategic pricing will enable businesses to flourish while ensuring service levels and port facilities are constantly improved.

Marketing advantages and services, not only in Malaysia, but also throughout the global shipping and business community.We are coming up with strategic marketing, trade promotion plans and port promotion to turn Port Klang into a major regional logistics hub. We will also develop facilities to meet the objectives. As mentioned earlier, we are also focused on creating a business relationship with its sister ports to enhance the port industry. We will highlight the benefits of these sister port agreements to our customers, especially in the areas of greater connectivity and trade growth. And we will be working to strengthen our ties with maritime industry players such as the freight forwarders and hauliers to build the port business.

Participating in the National Port Council.The council is set up as a platform for the development of a National Port Policy. This is to ensure that the ports develop healthily and continue to stay competitive.

4. INFRASTRUCTURAL STRENGTH

4

4

4

4

F O C U S 0 9


INTO THE FUTUREThe maritime sector has always been the most important component of Malaysia’s economy, and Port Klang Authority (PKA) Chairman Lee Hwa Beng intends to see Port Klang take a quantum leap forward in captaining the sector to more dizzying heights.

A primary goal of the Malaysian maritime sector is to minimise transport costs to exporters and importers, empowering manufacturing and trade to become an effective engine of growth for the Malaysian economy. High-speed network connectivity to link up manufacturing establishments with foreign buyers and providers of shipping and port services is also essential. Port Klang is in an advantageous position, with infrastructure where manufacturers have ease of access to suppliers, warehousing, storage and convenient, cost effective rail and road access.

“This region has the potential to benefit from high trade growth both on an intra- and inter-regional basis. But the contribution of any individual maritime player cannot be seen in isolation, but rather as a part of an integrated whole. Therefore, in adopting a global approach to industrialisation, as well as enhancing competitiveness in the maritime sector, we need to focus on improving the links between the various players,” Lee says.

Port Klang is poised for growth, and Lee believes it is crucial for its stakeholders to wholeheartedly embrace synergistic marketing tools to leverage on its strengths. “There are many opportunities and areas in which Port Klang can expand itself. For example, we should be making strong efforts to expound the advantages of using Port Klang as a preferred logistics hub for the ASEAN, China and Indian subcontinent regions,” he elaborates.

Terminal operators should also be encouraged to carry out marketing activities in their regional niches. Malaysian shipping companies should be encouraged to pool their resources to set up a network of feedering services to and from Port Klang, as this is an essential requirement if the calls of

mainline vessels are to be sustained.

One S top Centre was se t up to he lp Por t K l ang Au thor i t y (P K A) f ac i l i t a t e t r ade and some o f i t s f unc t ions i nc lude :• Consol idate and introduce the best pract ices for the log is t ics industr y to f ac i l i t a t e t r ade in Por t K l ang .• Fac i l i t a t e the es t ab l i shment o f po r t r e l a t ed bus iness i n Po r t K l ang to enhance Por t K l ang ’s th roughpu t• Fac i l i t a t e approva l s , l i censes o r pe rm i t s fo r bus inesses r e l a t ed to the por t • Handlepubl ic enquir ies andfeedbacksonPKAserv iceleve l• Organ i se d i a logues w i th por t use rs

P l e a s e e m a i l a n y e n q u i r i e s t o ones topagency@pka .gov.my

ONE STOP CENTRE

DATO’ LEE HWA BENGChairmanPort Klang Authority

Connectivity is the hallmark of a successful port.

As one of the major ports in the world thanks to its strategic location along Straits of Malacca which handles 25% of global maritime trade, it is not surprising that Port Klang is continually developing to be the national load centre and transshipment hub for the region. Port Klang was recently announced as the World’s Top 13th Container Port, a testament to the port’s intrinsic strengths in its vision to become the region’s preferred logistics hub. Today, the port and has trade connections with over 180 countries and dealings with more than 500 ports around the world.

GLOBAL CONNECTIVITY

1 0 AT A G L A N C E

Port Klang Connected to Over 500 Ports In More Than 180 Countries

ARCTIC OCEAN

NORTHALANTICOCEAN

NORTH PACIFICOCEAN

INDIAN OCEAN

SOUTH PACIFIC OCEAN

NORTH PACIFIC OCEAN

SOUTH ATLANTIC OCEAN


Currently, Port Klang Authority (PKA) together with SFFLA, Northport, Westports, PKFZ, FMM and MATRADE are organising a Specialised Trade Marketing Mission to several countries. MATRADE is taking the lead in two of the trade missions, which is the Yangon and Luka Koper (Slovenia). The trade missions are not just confined to Port Klang’s sisterports, but are also directed at areas where there are trade opportunities and also possibilities in enhancing trade linkages and forming smart partnerships. The main objectives of the mission are to explore business opportunities, establish and strengthen useful business contacts and also to create greater awareness and visibility among the global business community on Malaysia’s capabilities and expertise in providing world-class facilities.

Port Klang is always actively seeking out business alliances with other ports and had made trade agreement with 8 ports from all over the world. Port Klang strongly believes that the collaborative relationship will enhance the development of port traffic and ultimately, benefit the customers of the port.

To know more about the on-going trade missions, please refer to the inner back page for the complete schedule and details.

Port Klang Authority made a courtesy call to Belawan Port on 21 July 2010 in conjunction with the Trade Misson to Medan, Indonesia organised by PKA & SFFLA

Kee Lian Yong, General Manager of Port Klang Authority, giving a speech at the seminar “Business Opportunities in Port Klang, Malaysia” in Medan, Indonesia organised by PKA & SFFLA on 22 July 2010.

Seminar “Business Opportunites in Port Klang, Malaysia” organised by PKA & SFFLA in Medan, Indonesia on 22 July 2010 attended by 150 officials, freight forwarders, importers & exporters from Medan and also Malaysia.

Campaign Team showing thumbs up after announcement of IMO council results.

Dato’ Lee and the BOD, PKA visited Port of Rotterdam

P O R T U P D AT E 11


The understated yet hugely promising cruise terminal operations here at Port Klang is set to be boosted by the recent takeover of Glenn

Cruise Terminal (formerly Star Cruises Terminal) by Glenn Marine Group (“GMG”) in June 2010. The cruise terminal is part of Port Klang

Cruise Centre (“PKCC”), which is now set to undergo radical development to boost passenger traffic and place it as a prime destination in

its own right.

GMG is the leading marine husbanding and logistics provider in the region, providing a comprehensive range of services to a global

customer base. The group is now extending its own brand of impeccable service to cruise ships, other passenger vessels and eventually to

the tourism industry as a whole.

As Malaysia’s primary gateway for maritime cargo, Port Klang’s status as a bustling cruise hub is often overlooked. At its peak the cruise

terminal received over 300,000 cruise passengers in a year. Cruise passengers can generate strong economic impact due to their greater

spending power and thus bring exponential benefits by creating spin-off opportunities. Realising the great potential of the port in this

sector, GMG plans to both invest their own capital and collaborate with business partners and strategic investors to develop PKCC into

an integrated cruise hub. This will place Port Klang as a world-class destination of choice not only for merchant vessels but also for cruise

ships and passenger vessels alike.

Acquisition Set to Place Port Klang as World-class Destination of Choice

1 2 V I S TA

COMPETITIVE EDGEFrom its 18th ranking in 2009, Malaysia has emerged as the 10th

most competitive nation in the world, according to the 2010 World

Competitiveness Yearbook (WCY). It is published by the Swiss-based

Institute for Management Development (IMD) which assesses a country’s

competitiveness based on four factors, namely economic performance,

government efficiency, business culture (in terms of productivity, labour

market, finance, management practices, attitudes and values) as well as

the quality of national infrastructure.

According to Datuk Dr Rebecca Fatima Sta Maria, Deputy Secretary General

(Trade) of Ministry of International Trade and Industry (MITI), Malaysia had

done particularly well on the government and business fronts.

She enthuses: “We managed to achieve such a feat because of strong

improvements in our economic fundamentals, positive changes in the

way business is conducted and also our own government transformation

efforts. All these measures reflect the tagline, 1Malaysia, People First,

Performance Now.”

Datuk Dr Rebecca firmly believes that there is still much room for

improvement in terms of facilitating trade. She elaborates: “Currently, the

government is aggressively pursuing reforms on many fronts. For example,

we have instituted the New Key Economic Activities, as outlined in the

New Economic Model. They are expected to further accelerate Malaysia’s

economic development. However, we still need to strive for further

reforms, such as, revamping outdated policies and re-engineering business

processes to shape a truly dynamic business environment.”

The Deputy Secretary General stresses that the responsibility of making

Malaysia more competitive and efficient does not solely lie on the

shoulders of the Government. She says: “We not only welcome the

views and feedback of all stakeholders but also the direct participation in

efforts to improve performance in any given arena.

“Take, for example, the trading activities in a port. All parties involved

in the entire value chain must play their respective roles. The port

authorities, terminal operators, freight forwarders, importers as well

as exporters must all be highly competent so that business can run

smoothly and easily. Quality of service will improve and this will enhance

the ease of doing business”.

ENHANCING PORT KLANGDatuk Dr Rebecca feels that, as Malaysia’s principal port, Port Klang

has contributed greatly to the nation’s economy especially in relation

to supporting international trade. However, she adds: “Port Klang can

DATUK DR REBECCA FATIMA STA MARIADeputy Secretary General (Trade)Ministry of International Trade and Industry (MITI)www.miti.gov.my


V I S TA 1 3

The numerous efforts implemented by the Government and private sector have finally paid off as Malaysia is now recognised as the world’s 10th most competitive country

FACILITATING BUSINESSThe Special Task Force to Facilitate Business (PEMUDAH)

was formed on February 7, 2007 out of the need for closer

collaboration between the public and private sectors to enhance

delivery levels and improve Malaysia’s business environment.

Reporting directly to the Prime Minister, PEMUDAH comprises

a panel of 23 highly respected individuals from both the private

and public sectors. It is co-chaired by YB Tan Sri Mohd Sidek

Hassan, Chief Secretary to the Government of Malaysia and

YBhg Tan Sri Datuk Yong Poh Kon, Immediate Past President of

the Federation of Malaysian Manufacturers (FMM).

PEMUDAH aims to drive the nation’s economic growth with

substantive improvements to essential processes that create

major impact on the nation’s competitiveness. Apart from the

IMD World Competitiveness Yearbook, PEMUDAH also tracks the

World Bank Ease of Doing Business Report (WBDB). Currently,

Malaysia is ranked 23rd in the world but is among the top five

countries in Asia. PEMUDAH’s plans include continually striving

to place Malaysia among the top 10 nations in the WBDB.

Towards this end, a special Focus Group is set up under the

PEMUDAH umbrella to engage relevant Government agencies

and industry associations in identifying issues and best practices

for export and import process flows. Supervised by MITI, the

Group addresses gaps and barriers to improve the efficiency of

international trade.

Additionally, PEMUDAH also serves as the consultative forum

on issues concerning the public service delivery system and

Government policies impacting businesses. To date, PEMUDAH

has implemented various measures to improve efficiency in areas

ranging from starting a new business and registering property to

trade facilitation, construction permits, employing workers and

immigration matters.

For more information, please contact:

PEMUDAH Secretariat Office

Ministry of International Trade and Industry

5th Floor, Block 10, Government Offices Complex,

Jalan Duta, 50622 Kuala Lumpur, Malaysia

Tel: (603) 6203 3373

Fax: (603) 6201 9459

Website: http://www.pemudah.gov.my

PEMUDAH

embark on strategies to attract more cargo and vessels. By pursuing a

proactive marketing plan, we can encourage more main line operators

(MLOs) to call at the port. At the same time, entry and egress need to be

effectively managed and more lanes can be opened to avoid congestion.

Above all, efficiency is key in determining business sustainability.”

In relation to maintaining Port Klang as the national load centre, Datuk

Dr Rebecca highlights the importance of improving the infrastructure,

accelerating the development of the logistics industry and strengthening

supply chain management. She elaborates: “Port Klang Authority

can enhance its role as trade facilitator by promoting the provision of

sufficient skilled ancillary services and seamless interface between land

and sea transportation modes within the Klang Valley area. It should

also continuously set up linkages with other domestic ports including

establishment of a more efficient feeder network.”

Last but not least, Datuk Dr Rebecca f irmly advocates

collaboration between Government agencies and the shipping

industry. “I would encourage PKA and al l i ts stakeholders to

continue engaging in dialogues and discourses to identify greater

opportunit ies that wil l help enhance Port Klang’s standing as

Malaysia’s principal trading gateway.”


CHARLES HENRY IRELANDPresidentMalaysian International Chamber of Commerce and Industrywww.micci.com

Trade is the lifeblood of any nation and seaports are vital to trade. In its quest to continually improve Port Klang as Malaysia’s trading gateway, it is imperative that Port Klang Authority (PKA) work very closely with the various stakeholders, including the trade industry. As Malaysia’s longest established trade association, the Malaysian International Chamber of Commerce and Industry (MICCI) is an important stakeholder representative.

According to MICCI President Charles Ireland, Malaysia has been a major exporting nation for many years, and hence has been a significant component of the global shipping community. “Imports and exports have grown with the Malaysian economy, and Malaysia is now one of the top 20 trading nations in the world with aspirations for further growth. This has led to an active port scene with a number of ports in Peninsula and East Malaysia offering access points for goods,” he explains.

Ireland maintains that the key to ensuring that Port Klang continues to be an attractive trading gateway in terms of productivity, cost effectiveness and innovation is competition. The proximity of Singapore, another major world class port, has required Malaysian ports to match the standards and pricing of its neighbour in order to secure a good share of the available market. “Sustaining the highest service standards at competitive rates will ensure that Malaysian ports continue to flourish as load, discharge and transshipment hubs,” he remarks.

MICCI acknowledges the primary roles and responsibilities played by PKA as the regulatory authority and trade facilitator in driving the various initiatives and improvements to Port Klang. “The clear leadership of PKA in setting the direction of Port Klang has ensured the smooth running of the whole system,” Ireland explains. “We welcome PKA’s promotion of Port Klang as Malaysia’s trading gateway, and would be pleased to advise on any areas of common interest to aid in this endeavour.”

CONSULTATION AND COMPETITIVENESSModern ports require a wide range of services to be attractive, as ports are more than a collection of quays, cranes and warehouses. From MICCI’s perspective, Port Klang needs to examine likely changes in the Malaysian import/export pattern of the future so as to anticipate

1 4 P E R S P E C T I V E S


ABOUT MICCI

• Malaysia’slongestestablishedtradeassociation

• TracesitsoriginsbacktotheformationofthePenangChamberof Commerce and Agriculture in 1837.

• Primaryroleistoactasapositiveadvocateonbehalfofbusiness improvement.

• Intimatelyconcernedwiththedevelopmentandgrowthofbusiness in Malaysia, and strongly supports its significant manufacturing and exporting sectors.

• HasbuiltupaverystrongandcrediblerelationshipwiththeMalaysian government.

• Representsalmost1000companiesinMalaysiacoveringallbusiness sectors, manufacturing, services and professional.

• Memberscomefromover30nationalitiesandrangefromlargeforeign and domestic multinationals to smaller SMEs, representing in excess of 110 billion ringgit of investment in Malaysia and employing some 600,000workersoraround5%ofthetotalMalaysianworkforce.

• FoundermemberoftheNationalChamberofCommerceandIndustry Malaysia(NCCIM)andanactivepartnerwithmanyinternational Chambers around the world.

• SevenmajorCouncilsmonitorcriticalaspectsoftheeconomysuchas human capital, sustainable development, international affairs and others.

• Providesmembersarangeofcommercialbusinessservicessuch as Certificate of Origin and ATA Carnet export documentation services, mentoringforSMEs,informationservicesandnetworkingopportunities.


P E R S P E C T I V E S 1 5

new services that can be offered. Additionally, the association urges PKA to consider possible expansionary opportunities in the form of no-hassle free zones and extended vehicle storage and transshipment facilities. Also, PKA can consider additional facilities for the storage and export of bio-diesel, as well as facilities for receiving and de-gassing LNG to facilitate the import of gas for industry, and temperature controlled facilities to support halal food exports.

MICCI further believes that while high quality and cost effective port services are key to satisfying both shipping lines and importers/exporters, the port is only one part of the total supply chain, and land-side services can significantly influence the movement of goods. While ports may not be directly involved in road haulage or external warehousing or consolidation services, they must recognise that their own performance will be tarnished by flaws in other parts of the total transport chain. It is therefore in PKA’s interest and that of the shipping industry to pay greater attention to the cost and efficiency of haulage services and that of the supporting forwarding and agency services.

He goes on to state that while Malaysia is served by a wide range of vessels, both local and foreign owned, covering all kinds of cargo including specialised vessels for Liquid Natural Gas (LNG) transportation, Malaysia itself is not a very large player in terms of ship-owning; relying predominantly on foreign flag vessels for the transportation of its goods. Thus, Malaysian exporters are to some extent subject to the variability of international shipping both in terms of supply (container availability) and cost (freight).

Ireland notes that because ports and the shipping industry generally supports global trade but do not drive it, it is essential that PKA works with business to identify the needs for the future and deliver the widest range and most cost competitive services. “Looking at today’s shipping scenario, and its impact on business under the New Economic Model for Malaysia (NEM), it is obvious that Port Klang’s continuing growth depends on these two things – consultation (with business) and competitiveness (in service offerings),” he elaborates.

PKA’s recent reengineering is also of great interest to MICCI, Ireland reveals. “We find it very encouraging that under new leadership and management, PKA has embarked on a revamping scheme in an effort to change its working style,” he remarks. “We are monitoring these changes, and we await the results of the newly-identified 5 Key Result Areas with anticipation. We have great expectations for the future of Port Klang as a whole, and for PKA in its quest to drive the port ever forward.”

1 6 PA R T N E R S

OOI LEAN HINChairmanShipping Association Malaysia (SAM)www.sam.org.my

TUAN HAJI ABU BAKAR BIN HUSSEINPresidentCentral Region Shipping Association (CRSA)

CAPTAIN INTIAZ HUSSEINExecutive SecretaryMalaysia Shipowner’s Associationwww.malaysiashipowners.org

IMPROVING TRADELast year, the global container shipping industry reported a total loss of more than USD15 billion (RM48 billion) due to overcapacity and price wars. During the crisis, shipping lines have cut capacity, laid up vessels, laid off people and all this has also affected shipping’s supporting industries. However, in recent times, Malaysia’s container shipping rates have returned to near pre-crisis levels and the shortage of containers for export and vessel capacity has been of concern.

Ooi Lean Hin, Chairman of Shipping Association Malaysia (SAM) points out: “There is recovery in the shipping industry now, but we cannot automatically get everything back up as it was. It takes time. The challenge for exporters now is to find equipment

LIBERALISATION OF INCENTIVES AND TARIFFS In 2009, the world economic downturn affected all trade regardless of business sector and the shipping industry was not spared as well. Captain Intiaz Hussein, Executive Secretary of Malaysia Shipowner’s Association (MASA), explained that although the shipping demand has improved, some shipping companies have yet to fully recover from the impact of the economic downturn and are still plagued by problems. Capt Intiaz elaborates: “These shipping companies are finding it hard to keep ‘afloat’, and the biggest issues they face are of financial nature which includes cash-flow, loan repayments, decline in ship value as well as low freight revenue.”

GLOBAL STANDARDS FOR PORT KLANGBeing the top 10th most competitive nation in the world, it is only instinctive to say that Malaysia is progressively improving and positioning itself as a formidable trading nation in the world map. Tuan Haji Abu Bakar Bin Hussein, President of Central Region Shipping Association (CRSA), feels proud and relates how the shipping industry has also seen a positive uptrend in terms of volume in the first half of this year as compared to its correspondent period in 2009. Abu Bakar attributes this success to the perseverance of the ports and the initiatives taken to improve performance and productivity.

MEETING REQUIREMENTSShipping Association Malaysia (SAM)

Central Region Shipping Association (CRSA)

Malaysia Shipowner’s Association (MASA)

PA R T N E R S 17

Shipping associations are formed to promote and protect the interests of its members, and hence their views and feedbacks are invaluable and will most definitely benefit the entire shipping value chain. Therefore, it is only right that we speak to our associates, who are the ultimate end users of the port.

and/or vessel space to ship their cargo. We should focus on this issue, rather than harp on rates.

Speaking about some of the past initiatives that SAM has implemented to improve Malaysia’s shipping industry, Ooi explains: “In 1996, SAM (at that time known as ISOA) submitted a position paper to Ministry Of Transport (MOT) providing specific recommendation on incentives and rates for transshipment traffic and a strategic game plan. The plan was later adopted by PKA and the terminal operators and provided the basic foundation for the growth of transshipment business at Port Klang.”

Other activities were also carried out to develop Port Klang as Ooi further elaborates: “SAM together with terminal operators, MOT and the carrier community also did a number of road shows in

Several strategies were initiated to improve the shipping industry, one of it being the need for a new and improved finance instrument while an increase of Government-supported preferential funds can help finance fleet acquisition. Capt Intiaz adds: “We need to re-look at some of the fiscal incentives plus the rules and regulations, including the Merchant Shipping Ordinance (1952). We also need to reassess ship mortgages and guarantees to further strengthen and develop the industry.”

Currently, MASA and the Feeder Operators Association are in discussion with Port Klang Authority (PKA) to re-introduce the Feeder Incentive Scheme. Capt Intiaz feels that by having this incentive, it will attract more transshipment in Port Klang. He points out: “The source of

However, Abu Bakar insists that we should not be complacent and should always strive to be better. He elaborates: “Shipping is an international business and Malaysia should be seen as a globally-competitive country. To achieve that, we should adopt the requirements of the International Maritime Organisation (IMO) as a benchmark for port regulations. In fact as the 10th most competitive country, we should be actively participating in coming up with the regulations by providing our expertise and knowledge in the international arena.”

Apart from setting world standards, it is also crucial that Malaysia standardise the regulations, both in the international and regional forums, for example the Single Window initiative. Abu Bakar points out: “Currently, we do have

growth at Port Klang is expected to be fuelled by transshipment. When the scheme was implemented in the past, it had attracted a lot of investors and we strongly believe that it will further promote cargo in Port Klang.”

Apart from the incentive proposal, Capt Intiaz hopes that PKA will take the lead in modernising the tariff structure especially for empty container ships that return to Port Klang. Port Klang should introduce benchmarked market-responsive charges for both Westports and Northport. Capt Intiaz continues to say: “When both the ports are equally competitive in their rates, intra-port competition can be reduced and they can focus more on productivity enhancement.”

certain international protocols, but it can be improved upon as the flow of information is not as smooth as it should be. Port Klang Authority’s (PKA) role as trade facilitator should be to ease business procedures and this can be achieved with standardised documentation and protocols between countries.”

Abu Bakar applauds PKA’s initiative in the implementation of the new free storage period and its ability to get the whole logistics chain to work together. Moving forward, Abu Bakar hopes that PKA will be able to drive a more conducive business environment to enable formation of smart and collaborative partnerships rather than competing with other ports.

• Establishedin1976• MembershipisopentoMalaysianshipowners and to the shipping industry. As of April 2010, total membership stands at 226, with 103 Ordinary members and 123 Associate members.• ThemainobjectiveofMASAistoprotectand promote the interests of Malaysian shipowners, assist in the development of the Malaysian maritime industry as well as to collaborate in efforts towards continuous improvement of maritime standards.• Representsabout90%ofthenationalmerchant fleet tonnage• ConstituentmemberoftheFederationofASEAN Shipowners’ Association• Contactdetails

• Formedin1962torepresenttheinterestof vesselowners,shippingagentsandNVOCC. It is also to facilitate its members on matters concerning the shipping industry and to contribute views and recommendations to the relevant Malaysian authorities• InterfacewithMinistryofTransport(MOT), Ministry of Trade & Industry, port authorities, customs Marine Department and other relevant stakeholders• Membershipof34shippinglines/agencies

• Establishedin1982• Membershipof70memberswhichcoversthe central region• ThemainobjectiveofCRSAistoprotectand promote the common interests of the members, and particularly to enter into meaningful consultations, discussions, dialogues, communications and generally to co-operateandworkwithanyprivateandpublic establishments.

the region to promote load-centering at Port Klang. Our members lobbied hard with their respective Principals to promote Port Klang and also helped to build the feeder connectivity. We are proud to say that in 1996, transshipment volumes were only around 20,000 TEUs per annum but had grown tremendously to 4.3 million TEUs in 2009.”

For the future development of Port Klang, Ooi hopes all relevant parties involved in the shipping industry can work together to improve feeder connectivity and resolve common operational issues faced by the ports. Citing an example, Ooi continues: “The Inter-Terminal Transfer (ITT) between Northport and Westports should be addressed.

NORTHPORT GETS MULTIPLE

www.northport.com.my

1 8


Northport which registered a total volume of 2.858 million TEUs in 2009 is poised to record a significant increase in its throughput exceeding three million TEUS in 2010, based on current growth trend. The growth in the first five months of 2010 has been historic with 30 per cent growth in the volume of containers handled compared with the same period in 2009. Total traffic between January and May this year totaled 1.37 million TEUs, while a dramatic increase was recorded in transshipment containers which soared 41 per cent totaling 570,016 TEUs in Jan-May 2010 compared with 404,899 TEUs during the same period last year.

Besides container traffic, Northport, which handles about 60 million tonnes annually, is also the largest multipurpose port in the country handling the widest variety of cargo and ship types. Northport, operated by Northport (Malaysia) Bhd, receives annually more than 7,500 ship calls from a variety of ships ranging from some of the world’s largest containerships, to tankers handling palm oil, chemicals, crude oil, clean products, bulk cargo ships handling sugar, fertilizers, cereals, general cargo ships carrying raw materials and industrial commodities, steel, machineries and equipment, as well as barges and car-carriers.

Northport has a total of 27 berths stretching 5.4 km. The progress and development of Northport has been well-acknowledged by the industry and media, having won various accolades and awards in recent years. For the second time, the Asia-wide freight logistics industry selected Northport Malaysia as the winner of the Asian Freight & Supply Chain Awards 2010. Northport Malaysia was cited for usefulness of its product range, container handling rates, timely and adequate investments, effective use of IT systems and efficient turnaround of trucks delivering or picking up containers at the port.

Northport was also awarded the Asian Supply Chain Award for the best container terminal by the Hong Kong-based Cargonews Asia, signaling its success in integrating into the globalisation process. The award was a reaffirmation of the successful transformational path taken by the premier Malaysian port from an interface into integrating itself into the logistical chain to meet the needs of the global supply chain management by shippers and port users.

Other awards bagged by Northport include the Technical Business Review Excellence award in the logistics services for conventional cargo hub category, Ansted Social Responsibility International Award, The Brand Laureates for SME chapter award and The Brand Laureates for best brands logistics port Asia Pacific entrepreneurship award.

Mr S.Kumaran, Board Member of Northport (Malaysia) Bhd and the Under Secretary of Ministry of Finance, receiving the 2010 Asian Freight Supply Chain Awards for the Best Container Terminal - Asia From Mr. Caesar Yiu - CEO of Thermo King, Hong Kong.

R E V I E W 1 9


Details of equipment acquisitions in 2009/2010: 2009 2010

QUAY CRANE 26 -

RTG 57 5 UNITS WILL BE IN DECEMBER 2010

STRADDLE CARRIERS 67 -

TRAILER 112 -

PRIME MOVERS 158 -

NORTHPORT INVESTS IN NEW CONTAINER TERMINALNorthport Malaysia deferred its major investment plan totaling about RM500 million following uncertainties in the shipping demand precipitated by the impact of the global economic slow-down in 2008. However, following the strong showing of its performance in 2009, the company has now reviewed this postponed project involving the development of Container Terminal 8A and re-tendering process is now underway with the contract expected to be awarded before end of 2010.

The new container terminal is designed to serve ultra size container ships. The 370 metre long terminal will be supported by three super post panamax cranes capable of lifting two 40-foot containers or four 20-foot containers in a single move between ship and quay. The cranes will have a span outreach of 22 containers across the beam and will be capable of stacking six containers high. The quayline at the new terminal (which will initially serve one ultra large container ship a time) and will be extended into CT3 to handle more of such vessels should the need arise.

During 2009, RM48.19 million were invested in upgrading equipment and yard facilities. Investments totaling RM420.8 million were approved for implementation during the year but were not contracted out. Below are the details of acquisitions in 2009/2010

2 0


www.westportsmalaysia.com

Q. What services does Westports provide for customers/SMEs? From the very beginning, we have had a very strategic approach towards Information and Communication Technologies (ICT). We always aim to offer better value to all our customers including SMEs such as Westports e-terminal, which allows our customers direct benefit from Westports use of ICT. Our systems connect to customers regardless of the size of the organisation while the enhanced security and the premium quality service we provide will no doubt enhance the logistics capabilities of our customers. Through the use of our e-terminal and our call centre, customers can make bookings, enquiries on the status of their cargo and also track them. This will assist them in the supply chain planning. We provide greater flexibility, reliability and cost efficiency in the running of their businesses.

Q. How is Westports attracting customers to use their ports? With the increasing linkages it is making around the world, Westports has the connectivity for all players to take their goods all over the world. Over the past few years, we have been working with the Royal Malaysian Customs and other government agencies. As a result, we have together improved the quality of service provided to port users over the past 10 years. Our close proximity to facilities on Pulau Indah such as PKFZ, Selangor Halal Hub, MISC Logistics Hub, smooth connectivity to Kesas Highway as well as KLIA gives us a distinctive advantage. We also take security very seriously, thus ensuring no lost boxes or theft of cargo. We are also ISP compliant, OSHA accredited and ISO certified.

WESTPORTS PROVIDES GOOD CUSTOMER SERVICE

Westports constantly interface with many groups of people such as shipping lines, shippers, forwarding agents, hauliers, vendors and logistics companies. They provide total logistics solutions for all players and offer extensive connectivity to exporters and importers – all at an affordable rate. Westports has made many contributions to the industry. They are among the top 5 in the world in terms of productivity and they currently own world records for port productivity. Above all, they have assisted Port Klang to become the top 13th container port in the world with 8 million TEUs. In transforming Port Klang into a trading gateway, they have helped exporters and importers lower their freight costs by providing greater connectivity.

In this issue of Gateway, we speak to Executive Director, Mr. Ruben Emir Gnanalingam about the facilities provided by Westports for customers including Small and Medium Enterprises (SMEs).

Q. Why should customers and SMEs use Westports services?At Westports, customers will be accorded fast and reliable transport and logistics services to get their goods across the globe as they can find instant access to more than 300 ports around the world and all at competitive tariff rates. We are helping to grow the import and export trade, particularly among customers who want to expand their businesses to new markets especially India, Indonesia, Myanmar, Bangladesh, Vietnam and Thailand. However Westports main logistics solutions are in its value added services. We have developed solutions to meet all our customers’ requirements such as Distripark, warehousing, on dock depots, and reefer facilities, DG Storage Zone and Freight stations, among others.

Q. Since you took over as Executive Director of Westports in 2006, what have you done differently for Customers/SMEs?IT being my main KPI for the port, I ensure the staffs embrace technology as a culture and as an innovating factor to improve services with customers, especially SMEs in mind. Our drive has been to ensure all customers, big or small, gets superior service with regards to port handling issues. We have also gone beyond our borders to assist them in any logistics issues they may have. We now have managers who solely look at assisting customers or SMEs ship through Westports. Any readers are encouraged to contact our Marketing Department for assistance they need. With regards to vendors, we employ electronic bidding solutions and electronic procurements to ensure transparency and also to make sure every company, big or small, has a chance to be one of our partners.

WESTPORTS BREAKS FIRST HALF YEAR RECORD WITH 2.65 MILLION TEU’S Malaysia’s leading port, Westports Malaysia Sdn Bhd, has recorded its highest first half year throughput ever, handling 2.65 million twenty-foot equivalent units (TEUs) in the first six months of this year. This is a staggering 30% increase compared with the same period last year when it handled 2.03 million TEUs. The uptrend in volume continued from the first quarter of this year. Westports posted an all time high monthly throughput of 484,000 TEUs in June 2010, moving a total of 1.4 million TEUs in the second quarter, which is a 33% increase from the same period last year.

Additionally, local container volume posted a strong 25% growth, up from the 579,000 TEUs handled in the first half of last year to reach 724,000 TEUs in the first six months of this year while transshipment was up by 26%. Positive improvements were seen in both performance and productivity, especially in container operations.

Westports conventional business achieved an overall growth of 18% in general cargo and bulk cargo. As for RoRo, the port witnessed an increase of 45% in vehicle handling compared to 2009. The contributing factors in growth were an increase in steel products, both imports and exports while for Bulk Cargo, the contribution came from an increase in fertilizer imports. With this growth, Westports is in line to achieve its overall target of 8.5 million metric tonne for conventional business in 2010.

R E V I E W 2 1


Westports Malaysia Sdn Bhd will resume the initial phase of its expansion this year that will see the construction of the 300m-container terminal 6 (CT6). Westports was supposed to have begun its expansion about two years ago but was slowed down by the global economic downturn. The cost is unknown until the bid comes in. However it is estimated that based on previous experience, the cost could be more than RM200mil inclusive of construction, equipment, logistics and dredging. The construction of CT6 comprises an additional 300m berth, 1,500 additional ground slots of yard space and four new quay cranes. It is expected to be ready by second quarter next year. This will see the increase of the port’s capacity to 7.5 million TEUs (twenty-foot equivalent units).

Executive Director Ruben Emir Gnanalingam said when completed, CT6 would see the berth length of about 600m. However, Westports would construct half of the project first as the remaining development would require land reclamation. The reclamation tender is already out and it will start development as soon as possible. Ruben said Westports planned long-term expansion would see capital expenditure of RM3.5bil to RM4bil to be developed over the span of 15 to 20 years. It will involve about 3km of berth length for five terminals. Again, the speed of the expansion plan will depend on the trend of the future economy.

WESTPORTS NEW 300-METER CONTAINER TERMINAL

2 2

NEW OIL REFINERY IMPORTANT FOR FUTURE GROWTH

ABOUT CARGILL

• Foundedin1865asasinglegrainelevator in the United States, Cargill now employs more than 153,000 people in about 66 countries.• HasbeenconductingbusinessinMalaysia since1978andhasasignificant• Internationalprovideroffood,agricultural andriskmanagementproductsand services. Cargill is committed to using theirknowledgeandexperiencetomeet customers’ unique needs and help them succeed.

Over the years, the palm oil industry has immensely strengthened the nation’s economic development. In 2009, the palm oil sector contributed RM17 billion or 3.3 per cent (one third) to the Gross Domestic Product (GDP) and accounted for RM49.6 billion in exports. Under the 10th Malaysian Plan (2011-2015), Malaysia aims to boost palm oil industry’s GDP’s output to RM21.9 billion, with RM69.3 billion in exports earnings. To achieve the target, Malaysia will be

promoted as a global hub for palm oil and the preferred destination for foreign investments in the development of value-added products and sustainable supply of raw materials to support the downstream activities.

As the way forward for the industry, the RM162 million invested by Cargill is to expand their existing operations and build a new vegetable oil refinery in Port Klang Free Zone (PKFZ). This demonstrates

their commitment to the continued development of the palm oil industry in Malaysia. Bram Klaeijsen, Cargill Asia-Pacific Regional Director, elaborates: “Cargill is committed to providing high-quality and nutritious products to the food industry. We are confident this refinery will bring significant benefits to meet the diverse needs of our existing customers and provide opportunities to new customers.”

Mr Chia Kon Leong, General Manager of PKFZ Sdn Bhd welcomed Cargill’s decision to invest in PKFZ. “It augurs well for PKFZ that a multinational company like Cargill has chosen to locate its new refinery here and take advantage of its strategic location within a seamless port environment coupled with well-supported infrastructure, readily available labour market and most importantly, the conducive investment climate and attractive incentives offered by the Government”.

In addition, it is also worthy to note that the location of the refinery is within the area gazetted as Halal Industry Zone. The Halal industry commands an annual market value of about RM6.7 trillion globally, and the fact that Malaysia’s Halal certification is world-recognised especially in the OIC countries as Malaysia set its sight to capitalise on it. Chia added: “This will encourage other companies to locate their operations here and help contribute to Malaysia’s vision to become a global Halal hub.”


GATEWAY magazine invites you to announce your upcoming industry events here.

ON THE RADAR

Email us at:[email protected]

Or mail us at:Port Klang Authority Mail Bag Service 202, Jalan Pelabuhan Utara, 42005 Port Klang, Selangor Malaysia


The objectives of these mission are in relation to the logistics services sector and includes:i) Explore business opportunities for collaboration.ii) Strengthen useful business contacts and network with local freight forwarders, shippers, port authorities as well as government agencies and associations.iii) Create greater awareness and visibility among the business community and the local public on Malaysia’s capabilities and expertise in providing world-class logistics services.

Trade Mission On Logistics Services

LIST OF MISSION TRADE CO-ORGANISED BY PORT KLANG AUTHORITY AND LOGISTIC PARTNERS

PORT KLANG FACILITIES

PORT KLANG

CONTAINER NORTHPORT WESTPORTS TOTAL

BERTHS

NUMBER OF BERTHS 12 11 23

LENGTH (METRES) 2,679 3,200 5,879

DRAFT (METRES) 11.0 - 15.0 16 11 - 16

STORAGE

ANNUAL CAPACITY (MILL TEU) 5 6 11

REEFER POINTS 751 1,236 1,987

EQUIPMENT

QUAY CRANES 26 34 60

RUBBER TYRED GANTRY CRANES 57 92 149

STRADDLE CARRIERS 67 - 67

HIGH STACKERS 8 25 33

LIQUID BULK NORTHPORT WESTPORTS TOTAL

BERTHS


LENGTH (METRES) 779 1,305 2,084

DRAFT (METRES) 10.5 - 11.5 10 - 16.5 10 - 16.5

DRY BULK NORTHPORT WESTPORTS TOTAL

BERTHS


LENGTH (METRES) 426 850 1,276

DRAFT (METRES) 12 14 - 15 12 - 15

STORAGE

OPEN STORAGE (SQ. METRES) 17,520 - 17,520

BREAK BULK NORTHPORT WESTPORTS TOTAL

BERTHS


LENGTH (METRES) 1,286 1,000 2,286

DRAFT (METRES) 6.0 - 12.5 15 6.0 - 15

STORAGE

WAREHOUSES (SQ. METRES) 47,169 33,740 80,909

OPEN STORAGE (SQ. METRES) 57,805 80,357 138,162

Date Venue

29-31 Aug 2010 Yangon, Myanmar (Led by MATRADE and FMFF) 16-25 Sept 2010 Koper, Slovenia and Marseille, France (Led by MATRADE and FMFF)

Oct 2010 Vietnam (Co-organised by Luka Koper - PKA sister port) Nov 2010 Thailand

Dec 2010 India

GATEWAY sincerely apologises for the misprint for Port Klang Facilities that was published on the April 2010 issue. The information reflected in this issue is correct at the time of printing.

With a maritime tradition hailing back to 1901, Port Klang is today a major gateway that’s connected to over 500 ports in more than 180 countries. As Malaysia’s national load centre and a fast-emerging regional trans-shipment hub, we link manufacturers with the markets of Asia and the rest of the world. Enabling seamless cargo transfers with state-of-the-art facilities at two award-winning terminals and a fully-integrated industrial and commercial free zone. A world-class port pulsing with pro-business sensibilities, matched with the customer service excellence that will delight you. Now you know why we’re the world’s top 13 container port. The winning formula is here, in PORT KLANG.

equippedfor your

SUCCESS

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Gateway July 2010