ASEAN Ports Association Malaysia (MAPA)

Port Klang, comprising Northport and Westports, has retained its title as the country’s busiest container port in the first half of this year, with a 48.3 per cent share of the total number of containers handled by all Malaysian ports.

Its rival, Port of Tanjung Pelepas in Johor, was listed second busiest, handling 35.4 per cent of the country’s total container throughput.

Port Klang moved 4.31 million TEUs (20-foot equivalent units) of cargo in the January-June 2010 period, up 29.3 per cent from 3.33 million TEUs a year earlier, as the global economic recovery boosted cargo traffic, said Port Klang Authority (PKA) general manager Kee Lian Yong.

It handled 856,110 TEUs of exports, up 25.8 per cent from a year earlier, and the volume of imports rose 18.2 per cent to 828,082 TEUs. Transshipment volume rose 34.5 per cent to 2.62 million TEUs.

Kee said Westports led the way in the first half of 2010 with a 30 per cent increase in container volume from the same period in 2009, handling 2.65 million TEUs, while Northport saw a 28 per cent increase to 1.66 million TEUs last year.

“We are on track to achieve our stretch target of 8.4 million TEUs for the whole year, where Westports is projected to handle 5.2 million TEUs and Northport 3.2 million TEUs. The fourth quarter is traditionally the busiest quarter of the year,” Kee told Business Times in an interview.

Port Klang moved 7.31 million TEUs last year, a decline of 8.3 per cent compared with 7.97 million TEUs recorded in 2008.

“The projection for 2011 is a growth of 10 to 12 per cent in container volume (from 2010),” said Kee.

Meanwhile, in terms of tonnage handled, traffic through Port Klang in the first five months (January-May) of this year increased by 36.8 per cent to 65.54 million tonnes from 47.90 million tonnes a year earlier.

“PKA and the two terminal operators (Northport and Westports) took this time of slow-paced economy and downturn to reshape our strategies. These strategies have hastened and increased our growth even more so with the global economic recovery as can be seen by our growth percentage for the first half of 2010,” said Kee.

He added that the port authority is aware that emerging ports in Asia such as Vietnam and Sri Lanka pose stiff competition to Port Klang.

“In order for us to be competitive, we are constantly looking at our operations to ensure (we offer) effective and efficient service, are service oriented, and have cost-effective operations and a commercial competitive environment,” he said.

By: Kang Siew Li

“THE PORT FACTOR – Chairman Message”

Capt. Abdul Rahim Akob, General Manager of Bintulu Port Authority & Chairman of MAPA

Forging Malaysian Ports’ Business Synergies

I’m delighted to announce the inaugural issue of “The Port Factor”, an offical publication of the Asean Ports
Association Malaysia (MAPA). The newsletter is aimed to stimulate interest and to keep readers abreast with
the Malaysian ports and shipping industry such as port management and operations, port planning and development, marketing, training, technology, safety and security, ships and cargo handling.

Asean Ports Association Malaysia (MAPA) was formed some years ago and was subsequently registered under the acronym MAPA as a non-governmental association early this year, comprising of founding members from a total of 17 Malaysian port authorities and operators. MAPA’s primary objectives are two-pronged i.e. to give ports in Malaysia with a vehicle for national cooperation in port development, operations and management, and to promote and protect the interests of member ports.

MAPA is to specifically promote the exchange of data and information on shipping and cargo traffic amongst Malaysian ports, cooperation in port operations and management, develop and maintain close relationship with other regional or national ports associations or international port related associations, and to undertake other activities as are incidental or conducive to the attainment of the said objectives.

Ports in Malaysia have become an important crux in forging economic and business networks and alliances between Malaysia and developing countries. Business networking are becoming essential strategies for Malaysian ports as the process of globalisation and market liberation pose both challenges and opportunities for the nation and for business community. The port sector has always played a major role in the development of national economies. The attractiveness of ports is no longer based on strategic location but on the provision of efficient and prompt services, excellent land infrastructure and sea transport networks. Ports have become commercial centres and manufacturing gateways.

In this respect, MAPA is working in tandem with the developments in Malaysia’s external trade and new economic linkages. Ports are potential investment destinations, either to set up manufacturing projects or other business establishments. Thus being an effective vehicle, MAPA’s outreach will be more extensive and in this process shall be forging synergistic collaboration with trade associations and business councils in order to facilitate information exchange, commercialisation, building a more cohesive partnership and business networking. These will directly contribute not only cargo growth amongst Malaysian ports but industrial developments as well.

Nevertheless, MAPAwill harness our collective creativity, forging ahead with market-driven visions and charting roadmaps for developing, promoting and enhancing Malaysian ports capacities and capabilities in expanding opportunities and building business synergies. Ports will be growing in size and complexity of businesses, and one important asset that needs to be nurtured and enhanced will be the human resource. Ports need to share and improve its human resources and must continuously be at the forefront in its practices particularly when competing globally. This is where I hope that it could be the binding force to forge a strong and successful grouping.

As part of the broadening relationship between Malaysia and Kenya, a sister-port agreement was signed between Kenya Ports Authority  and Port Klang Authority.  To further enhance the traditional relationship and mutual understanding between both the port authorities as well as Port Klang Operators in Malaysia and Mombasa Port of Kenya.  The sister-port agreement signed on 27^th November 2006 was witnessed by General (Rtd) J.R.E. Kibwana, Chairman Kenya Ports Authority.  Port Klang Authority was represented by Y.B. Dato’ Yap Pian Hon, Chairman and Y.Bhg. Datin Paduka O.C. Phang, General Manager whilst Kenya Ports Authority was represented by Mr Abdallah Hemed Mwaruma, Managing Director and the Corporation Secretary.

The establishment of a sister-port agreement was initially mooted during the 5^th Pan African Ports Conference and the International Association of Ports Harbours (IAPH) Europe/Africa Regional Meeting held in Nairobi, Kenya from 4^th – 8^th December 2005.  Based on the agreement, both ports have agreed to co-operate in a wide variety of fields, especially on port studies, staff training, information exchange and more importantly finding ways to develop mutually beneficial cargo and cargo traffic services between the two ports, in particular and the countries in general.

The sister-ports agreement strengthens the existing traditional friendship and mutual understanding between the people of Kenya and Malaysia and this relationship is in line with the South-South Co-operation initiated by the Malaysian Government of which Port Klang Authority is a member. Besides that the Kenya High Commission also played a vital role in the formation of this relationship through an active pursuance of ensuring the agreement materialized soonest possible.

This sister-port agreement could provide a good platform for enhancing Port Klang’s efforts in tandem with the government’s aspiration to develop business relationships between the two countries as an extension of the well established government-to government relations. South-south co-operation enhance and facilitate trade and investment linkages among developing countries. In this regard, Malaysia and Africa see economic progress as best attained through fair trade, rather than aid.

In the year 2005, Port Klang handled a total of 117412 FWT of cargo throughput from trade with Kenya. The signing of the sister-port agreement is a significant step for Port Klang as it opens up to closer relationship with East-African Ports. The Port Of Mombasa in Kenya positioned as the gateway to Eastern Africa, will provide Port Klang and Malaysia the platform to penetrate and explore new markets, especially among the countries in Eastern Africa such as Somalia, Ethiopia, Uganda and Tanzania. With this sister-port agreement, Port Klang is confident that there will be a tremendous trade development and improvements with Kenya.

A sister-port agreement between these ports provides new avenues for smart partnership arrangement to foster mutual co-operation. This is the beginning of a new era of co-operation which will not only benefit both countries but help to bring the Asian region close to the African Continent.