ASEAN Ports Association Malaysia (MAPA)

BILATERAL trade and investment with China will soon be given a shot in the arm with the expansion of Kuantan Port and as it adopts the Eastern Gateway name.

Offering the most direct route between both countries, it also reduces sailing time to three days between Kuantan and southern China.

East Coast Economic Region (ECER) Development Council chief executive officer Datuk Jebasingam Issace John said the Kuantan Port will serve the industries in ECER, with cargoes such as oil palm products, petrochemical products, bulk cargo (iron ore) and automotive parts and components, with the growth of the Pekan Automotive Park.

It will also serve bulk cargo and container traffic.

The government, he said, is investing RM1 billion to build the 4.7km breakwater at the port, one of the longest in the world, as well as upgrading external infrastructure to support the port expansion.

The newly built breakwater will create a sheltered basin that will allow berths to operate safely and efficiently throughout the year.

“The private-sector investment worth RM3 billion is for the carrying out of the capital dredging, reclamation works to create new development land, construction of new berths, operational buildings and facilities, and provision of equipment and machineries for port operations,” he said yesterday.

The expansion of Kuantan Port, which will be officially launched by Prime Minister Datuk Seri Najib Razak on September 7, will further accelerate the transformation of the region and position itself as the investment gateway to Asean and Asia Pacific.

Kuantan Port is now in the midst of expansion involving deepwater-dredging works.

John does not think the Malaysian ports will be competing against each other for transshipment.

“Each of Malaysia’s ports has its own unique positioning.

“In the case of Port of Tanjung Pelepas, it is strategically located at the confluence of the main east-west shipping lines whereas Kuantan Port is a multipurpose port located in the ECER Special Economic Zone, where there is already a concentration of various industries.”

A catalyst for the growth of traffic at Kuantan Port is the Malaysia-China Kuantan Industrial Park (MCKIP), the sister park of China-Malaysia Qinzhou Industrial Park that will promote the growth of bilateral trade with China.

The port concession is a joint venture between IJM Corp Bhd and the Guangxi Beibu International Port Group that operates four major ports in southern China, including Qinzhou Port.

“The marketing of Kuantan Port to international shipping lines is handled by the port operator, namely Kuantan Port Consortium.”

Meanwhile, ECER is expecting to complete the RM30 billion 620km East Coast Rail Link (ECRL) feasibility study by early next year.

“The study covers both the engineering and financial aspects of the project,” he said.

Shell Malaysia Trading Sdn Bhd has signed a long-term sub-lease agreement Thursday with Westports Malaysia Sdn Bhd at Port Klang for storing, supplying and distributing petroleum products.

The 14-year agreement enables Shell to operate and manage liquid bulk cargo at Westports Liquid Bulk Terminal (LBT).

Products to be stored initially are diesel and petrol.

“Westports is proud to have one of the largest companies in the world operating at the Westports LBT terminal,” said Westports’ Executive Director, Ruben Emir Gnanalingam in the statement released here, Friday.

He added that Shell, emerging as a conventional client, certainly speaks volume of Westports’ strength, especially its strategic location to attract leading industries to undertake commercial activities at the port.

The terminal spans 9.71 hectares and includes access to Westports’ jetty that is medium range/long range vessel capable, cargo lines, fuel and chemical tanks and gantry facilities.

— BERNAMA

JOHOR BAHARU, Dec 31 (Bernama) — The Port of Tanjung Langsat (PTL), in Pasir Gudang, will emerge as the leading chemical logistics hub in South East Asia, given the edge it has over its competitors.

Menteri Besar Datuk Abdul Ghani Othman said the port’s advantages were obvious although it has to compete with integrated petrochemical complexes in Pahang, Terengganu, and Pulau Jurong in Singapore.

Speaking to reporters after officiating PTL’s liquid cargo berth here today, he said PTL can boost of its deepwater facility and offered a far lower cost of operation compared with other ports.

TLP is the third port in Johor, designed to complement the Port of Tanjung Pelepas and Johor Port.

Positioning itself as Southeast Asia’s premier speciality terminal, it handles bulk cargo such as liquefied petroleum gas and dangerous chemicals.

“PTL’s strategic location in South East Asia will make it the leading port for bulk liquid cargo handling.

“Besides being very spacious with a 4.5 kilometre shoreline fronting the Straits of Johor and depths of 12.8 metres, the port can accommodate large vessels,” he said.

Johor Corporation, which owns PTL, has invested RM300 million to develop five liquid cargo berths.

Its President and Chief Executive, Tan Sri Muhammad Ali Hashim, said another RM600 million would be invested to install additional berth facilities at the port.

By 2012, Johor Corporation would have invested more than RM1 billion and, todate, has invested about RM500 million to develop itself to complement the nearby Tanjung Langsat Industrial Estate.

With the completion of the PTL’s liquid cargo berth, the port can now handle 26 million metric tonnes of liquid cargo annually, making it the biggest liquid cargo port in the country and region.

The PTL berth will also serve Langsat Bulkers Sdn Bhd, a joint-venture between PTL and Felda Johor Bulkers.

As for activities at the complex, Abdul Ghani said Asiaflex Products Sdn Bhd which was in the midst of completing a RM500 million flexible pipe factory, was planning additional investments to produce high-tech “Umbilical Cords”.

Besides, South Korea’s Kiswire Neptune is planning to invest RM250 million to manufacture steel wire ropes at the integrated complex.

Ten new palm oil storage tanks to be constructed

KUCHING: Bintulu Port Holdings Bhd (BPHB) is embarking on a RM600mil expansion programme to boost Bintulu Port’s cargo handling capacity.

Chief executive officer Mior Ahmad Baiti Mior Lub Ahmad said the expansion of the container terminal, which started seven months ago, would raise annual handling capacity by 250,000 TEUs (twenty-foot equivalent units) to 650,000 TEUs when completed next year.

Also under implementation is the expansion of the multi-purpose terminal for dry bulk cargo.

Mior Ahmad said the construction of the proposed RM14.9mil container freight station was awarded last week.

To be awarded soon was a contract to build 10 new storage tanks for palm oil, he said. The proposed RM25mil project will boost storage capacity by 26,000 tonnes from 76,000 tonnes.

Also in the pipeline are the proposed development of 19.1ha for port operation buildings and yard and an additional berth for the edible oil terminal.

Other planned projects included the conversion of the existing 200m general cargo wharf into a containerised cargo wharf and the purchase of more cargo handling equipment, Mior Ahmad said after the company AGM yesterday.

“All these projects are expected to be completed by 2011,” he said.

Chairman Tun Mohd Eusoff Chin said in a statement that the company would expand the liquefied natural gas (LNG) facilities if the need arose.

“Currently, the LNG segment contributes 78% to the group’s total operating revenue,” he said, adding that in the next five years, LNG cargo would account for 60% of operating revenue.

Mior Ahmad said LNG handling contributed about RM330mil to revenue last year while containerised cargo and palm oil accounted for some RM33mil and RM22mil respectively.

BPHB recorded group operating revenue of RM448.8mil for the year ended Dec 31, up by RM31.6mil from 2007. Group pre-tax profit jumped to RM205.9mil against RM189.2mil in 2007.

Statistics have shown that container volume grew by over 15% to 290,167 TEUs last year from 251,800 TEUs in 2007.

Mior Ahmad said the economic slowdown had adversely affected Bintulu Port’s container cargo traffic, which dropped by about 30% for the first three months of this year against the same period last year.

However, he said there were positive signs that the situation had steadily improved.

“For dry bulk fertiliser there was zero import in the first quarter this year. But there are two shipments coming in this month,’’ he added.

LNG export volume, however, had sustained, he said.

He said 15 shipping lines (container cargo) were now calling at Bintulu Port.

By JACK WONG