ASEAN Ports Association Malaysia (MAPA)

Port Klang, which is projected to handle 10.4 million twenty-foot equivalent units (TEUs) this year, may have a third port in the next five to six years to help meet the growing demand, Deputy Minister of Transport Datuk Abdul Aziz Kaprawi said.

Currently the existing port operators, Northport and Westports, are still able to meet the demand and cater to the needs of shipping lines, he said.

“The third port is part of the Port Klang Development Master Plan to strengthen the world’s 12th busiest port in the future,” he said at a press conference on the sidelines of the ‘Asia – Engine for Growth’ logistics forum and exhibition here today.

Asked if there any plans to increase Port Klang’s tariff structure to be on par with neighbours’, Abdul Aziz said there is no tariff revision at the moment.

“We are trying to offer competitive rates to encourage more vessels to Malaysia,” he said.

The current handling charges for a 20-foot and a 40-foot container are RM230 and RM345 respectively, while transshipment costs RM140 for a 20-foot box and RM210 for a 40-foot box.

The deputy minister said the government is committed to continuing to develop and expand ports in the country including to deepen and widen the entrance to the Kuantan Port, which faces the South China Sea.

“We are going to provide an integrated multi-modal transport system, this can be seen in the efficient highway system we have in place and the double-tracking rail network that is currently being undertaken by the government,” he said.

Abdul Aziz said the government will continue to give strong support to realise Port Klang’s vision to remain the national load centre and be the region’s most preferred logistics hub.

“Both terminals at Port Klang have purchased hybrid equipment in line with the government’s green technology initiative to enhance productivity and efficiency as well as to promote a green environment,” he said.

Port Klang, the premier container port in Malaysia, handled over 10 million TEUs last year.BERNAMA

The CMA-CGM Group expects to grow its container volume in Port Klang between 12 per cent and 13 per cent again this year, if everything goes reasonably well.

“It’s very difficult to predict. We don’t want to be too optimistic and tempt fate, because there is still a lot of uncertainties in the European and US economy but we think with the good recovery last year we can continue,” CMA-CGM & ANL Malaysia managing director Simon Whitelaw told reporters during an appreciation lunch to mark CMA-CGM’s for breaching 2 million twenty-foot equivalent units (TEUs) in Port Klang.

CMA-CGM registered between 12 and 13 per cent growth in container volume in Port Klang in 2010, due to good growth in transshipment as well as local cargo.

Last year the company contributed about 26 per cent to Port Klang’s overall throughput volume.

Local cargo makes up about 10 – 12 per cent of the cargo CMA-CGM handles while the remainder is from transfer of containers and transshipment.

Whitelaw said however that the fourth quarter of 2010 saw some softening in cargo movement, as China’s consumer demand eased off.

“The fourth quarter was definitely softening a little bit partly because business tailed off, and China was not the big consumer demand everyone was expecting. Fourth quarter was a little bit softer from the third quarter,” Whitelaw said.

CMA-CGM started out in Port Klang in 1998, handling some 20,000 TEUs.

Meanwhile Port Klang Authority chairman Datuk Lee Hwa Beng said he is confident that the port would be able to at least maintain its world ranking of the previous year. Port Klang was ranked 13th in the world’s busiest container port in 2009.

“We improved by 21 per cent last year, we still don’t know the world ranking for 2010 but we expect to at least maintain it. I don’t think many ports in the world have seen such a large jump,” Lee said.

Port Klang, which comprises Westports and Northport, recorded a 21 per cent rise in container volume in 2010, to 8.9 million TEUs.

Malaysian ports handled 16.6 per cent more containers in the first 10 months of this year compared with the same period in 2009, reflecting a recovery in both domestic and transhipment cargo.

Container traffic at the 11 major ports rose to 15.3 million TEUs (20-foot equivalent units) from 13.1 million in the periods reviewed.

In a statement, Transport Minister Kong Cho Ha said transhipment traffic was up 17 per cent. Transhipment cargo is that which arrives in the country and is transferred to another ship before continuing to its final destination.

Export containers showed a 17.6 per cent increase, while import traffic rose 14.1 per cent.

Port Klang, comprising Northport and Westports, solidified its position as the busiest container port in the country, with nearly half or 48.5 per cent share of the total number of containers handled by all Malaysian ports.

Its container throughput rose 24.8 per cent in the January-October 2010 period compared with the same period in 2009.

It moved 7.43 million TEUs against 5.95 million TEUs before.

More than half or 61.7 per cent of Port Klang’s container volume was from Westports, which generated 4.58 million TEUs. Northport accounted for the remaining 38.3 per cent or 2.85 million 20-foot equivalent units.

The Port of Tanjung Pelepas in Johor continued to be the second largest container port, handling 35.2 per cent of the country’s total throughput in the period.

Its container throughput rose 8.8 per cent to 5.38 million TEUs against 4.95 million TEUs before.

Kong said since container throughput in every Malaysia’s port was growing, his ministry was confident that the total throughput will reach 18.4 million TEUs by year-end.

Earlier this year, the total container throughput of Malaysian ports was projected to be 17.7 million TEUs for 2010, but the figure was later revised upwards following the better-than-expected performance in the last few months.

The country’s ports handled 16 million TEUs in 2009.

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

Container traffic through Port Klang, the country’s busiest container port, fell by 8.3 per cent last year, as the global economic downturn continues to hurt the country’s exports.

The port handled 7.3 million TEUs (20-foot equivalent units), the standard measurement for shipping containers, compared with 7.9 million TEUs in 2008.

In terms of tonnage handled, traffic through the port was 133.8 million tonnes, down 8.8 per cent over the previous year.

More than half, or 61 per cent of the container volume, was from Westports, which generated 4.451 million TEUs. Northport accounted for the remaining 39 per cent or 2.858 million TEUs.

Transhipment cargo took the largest share of Port Klang’s total throughput, contributing 58 per cent, with local boxes constituting the remaining 42 per cent .

However, transhipment volume also saw a 9 per cent drop to 4.3 million TEUs for the 12 months.

Port Klang Authority (PKA) general manager Kee Lian Yong said the decline in container and cargo throughput is in line with the global trend.

“(Nevertheless,) the port’s container volume was better than our earlier forecast of a 10 per cent drop. Overall Port Klang also fared better than other major ports in the world, which saw a 10-15 per cent drop in traffic,” he told Business Times.

Kee said Port Klang is expected to post throughput growth in 2010, returning to 2008 volume of 8 million TEUs.

“We remain cautiously optimistic as the shipping community is predicting that 2010 will still be a tough year,” he added.

According to Drewry Shipping Consultants Ltd’s most recent projections, the market will have to wait until 2012 before global container port volume exceeds 2008 levels again. It expects Far East and Southeast Asian container traffic to recover faster than that in other regions.

“In 2010, the market should brace for another tough year,” Shipping Association of Malaysia chairman Ooi Lean Hin had said in an earlier interview .

By: Kang Siew Li

Plans are underway to increase the capacity of the newly-completed Sepanggar Container Port Terminal (SPTC) in order to meet growing demand.

According to Infrastructure Development Minister Datuk Seri Joseph Pairin Kitingan, ever since the container port was open for business, it has been recording an upward trend in performance.

Speaking after attending a briefing cum work visit to SPTC, Thursday, he said Sabah Port Sdn Bhd (SPSB) has been mulling over the expansion plan.

This is to further improve the port’s capacity to enable it to handle more containers coming into Sabah.

“The port has been recording a commendable increase in terms of operational performance and an expansion plan is necessary and something to look forward to,” he said.

This despite the port with a capacity of 500,000 TEUs (twenty foot equivalent units) handling only about 200,000 TEUs last year as said by its Chief Operating Officer Mohd Sahid Nawab Khan.

Pairin said the privatisation of ports in Sabah has resulted in their management becoming more efficient as reflected by the steady increase of operational performance.

He said that positive performance displayed by the container port showed that it was heading in the right direction.

Explaining the expansion plan, he said it would be carried out based on projected future needs. “The plan would include increasing the size of the container yard and docking areas.”

Costing RM400 million over 22ha in Sepanggar opposite the Naval Base, the port commenced operations on June 9, 2007.

Plan for expansion of the newly completed Sepanggar Container Port Terminal (SPTC) is being foreseen.

Infrastructure Development Minister, Datuk Seri Joseph Pairin Kitingan yesterday said Sabah Ports Sdn Bhd (SPSB), the government-linked company managing the port, was already mulling on expansion plan to further improve the port’s capacity.

The port, sitting on a 22 hectare land started operation June 9, 2007, has a capacity of 500,000 TEUs but last year it handled only about 200,000 TEUs, as revealed by its Chief Operating Officer, Mohd Sahid Nawab Khan.

However, according to Pairin, since commencing operation it has recorded a commendable increase in terms of operational performance and thus an expansion plan was something to look forward to.

He said the move to privatize the ports in Sabah has resulted in a more efficient management where a steady increase in operational performance has been noticeable.

“Operation wise, the privatization is showing a desirable result as the performance of our port continues to improve. We are heading towards the right direction,” he told reporters here yesterday during a visit to SPTC yesterday.

He said the scale of the expansion would depend on future needs and it would involve increasing the size of the container yard and docking areas.

Pairin who was in his first work visit to the port since taking over the Ministry of Infrastructure Development in May, however regretted that high percentage of empty containers going out from the port has continued.

He said this was due to Sabah still not producing sufficient manufactured product for export.

In the mean time, SPSB Chairman Datuk Karim Bujang explained that Sabah currently exports mainly crude palm oil which does not require the usage of containers.

Sahid added that 70 per cent of the total containers handled that entered through the port last year returned empty and the figure has increased slightly this year.

Other ports around the globe, he noted, were showing similar trend due to global economic slowdown.

Most of the cargos it handles are from Peninsular Malaysia with a small percentage of transit cargos.

By :  Sabah Times

MALAYSIA’S major ports should be able to withstand the onslaught of the global economic crisis, at least for this year.

In fact, many are still projecting growth in volume although business may not be as robust as in previous years.

There are about seven major container ports in the country – Northport and Westports in Port Klang; Penang Port; Port of Tanjung Pelepas and Johor Port in Johor; Bintulu Port in Sarawak; and Sapangar Bay Container Port in Sabah.

The harsh impact of the global economic crisis has resulted in declining world trade. However, healthy intra-Asian trade and higher local public spending growth is expected to spur more imported goods and raw materials.

OSK Research, which has lowered the country’s gross domestic product forecast for this year to 1.1% from 2.7%, says the RM7bil economic stimulus plan by the Government should be able to support high public spending this year.

Most analysts say the ports’ stellar performance in past years has boosted their resilience to sail through the choppy waters.

Moreover, they are somewhat “protected” from the economic storm due to their location, particularly those along the Straits of Malacca, the main maritime trade route in Asia.

Ports in east Malaysia are also strategically placed in the Brunei, Indonesia, Malaysia, Philippines-East Asean Growth Area (BIMP-EAGA).

It helps, too, that the ports have a mixed portfolio of handling transhipment as well as exports and imports. Most of the Malaysian ports managed to meet volume targets last year although by the fourth quarter, early signs of a trade decline were evident.

Northport (M) Bhd and Westports Malaysia Sdn Bhd, the two terminal operators at the country’s maritime gateway Port Klang, are confident of maintaining volumes this year.

Northport posted slightly more than three million 20ft equivalent units (TEUs) last year, up 5% from 2007. It also expects to continue its RM585mil expansion plan which will be funded with internal funds.

On the other hand, Westports recorded around 16% volume growth in 2008 to slightly under five million TEUs. The positive forecast this year is supported by Westports’ biggest customer, CMA-CGM. Similarly, the global slowdown has not thrown a spanner in the works for Westports’ RM800mil expansion. The port’s container terminal five has been completed, adding a capacity of 1.2 million TEUs to a total of 7.2 million TEUs.

Its executive director Ruben Emir Gnanalingam, in his New Year’s message to the staff of Westports, says the company will embark on plans to consolidate its business in terms of processes, staff skills and initiatives given the relatively quieter period.

“Our manpower strength is currently at 3,650, which is sufficient to see us through the expected volume.

“Our next batch of recruits would probably come in during the second quarter of next year,” he said.

The country’s main transhipment port, Port of Tanjung Pelepas (PTP), expects to break even this year at 5.6 million TEUs.

“The current situation is unprecedented,” says chief executive officer Capt Ismail Hashim, adding that the best and worst-case scenario would see a 15% rise or 10% drop in cargo volume for the year.

Noteworthy is that PTP has experienced a 6% contraction in cargo volume in the final quarter of 2008 against the corresponding period a year earlier.

“But we are keeping our hopes up as our main-line operators, such as Maersk and Evergreen, are anticipating marginal growth this year,” he says. “The non-decline forecast is largely based on our exposure to the still healthy intra-Asian trade.”

Penang Port, according to its chief operating officer Mohd Niana Merican Abd Kadir Merican, expects a flat growth this year given the uncertainties going forward while Sapangar Bay Container Port (SBCP), managed by Sabah Port Sdn Bhd (a wholly-owned subsidiary of Suria Capital Holdings Bhd), is not expecting volumes to fall.

Sabah Port also manages seven other ports in Sabah. Suria Capital group managing director Datuk Abu Bakar Abas is optimistic of the outlook for this year due to the Government’s stimulus package to boost economic activity in the country.

By SHARIDAN M. ALI

The growth of cargo in Malaysian ports for the first six month this year is a very encouraging sign for the port businesses. If the growth continues for the next six month then Malaysian ports would have a very good year and investors would be lining up to snap-up port shares whenever they are available on the market. It is good to see various port shares trading on the KLSE moving upwards and hopefully will be better by the year end.

Ports infrastructures also had remarkable growth – the opening of the Sepangar Bay Container Port, Kota Kinabalu on 1st June 2007, marked a very important step in the development of ports in East Malaysia and particularly in Sabah. After a long break ports in Sabah are beginning to throb again, congratulations to Sabah Ports Sendirian Berhad. When I took a brief visit to the Terminal on 27th June 2007, I saw the container yard was full of containers and I think SPSB may need to reclaim more land for bigger yards!

The deepening of the North Channel in Port Kelang to enable  larger container ships to  enter and exit is another exciting development and hope will be completed soon. In Penang we have the development of the Swettenham Pier, on the Penang Island, into a cruise and leisure terminal intending for the cruise industries which is a booming industry in the Strait of Malacca. Of course, there are also ongoing development activities in PTP, Bintulu and private ports in Peninsular Malaysia.

Port physical growth is encouraging for the future of our economic well being, but we shall not forget  another equally important area that  needs growth – the port human resouces. As major ports in Malaysia grow ahead and  port regulators are  also expanding in order to cope with new areas of responsibilities, personnel with experience and know-how are slowly leaving the ports and pensioning off from port regulators. New personnel are recruited to replace those that left.  The arrival of new personnel which is fresh from universities and colleges and without the in-depth knowledge and experience of those that left have begun to create a vacuum in the ports. Many port regulators are  faced with this dilemma and urgent training of these young and fresh intakes are required in order to get trained and knowledgeable personnel. APA Malaysia had identified many courses that will be held and suitable trainers are being identified and methodologies discussed. I certainly hope that more young officers could be trained jointly by APA Malaysia instead of individually by one port . This is where APA Malaysia could be very useful in conducting joint training for all.

New and interesting ideas are being pushed – such as the Trans-Peninsular Pipeline project from Pulau Bunting, Yan, Kedah to Bachok, Kelantan to transfer oil from Strait of Malacca to South Chine Sea without passing the Straits of Malacca and Singapore – the world’s most congested international waterways. Whether this will materialised and be a reality, time will tell. If it become a reality, then Malaysia will have two additional ports to manage. It will be very challenging for young port officers who will be entrusted to run and manage new ports of the future. What we have to do now is train as many as possible to enable them to take the challenge and manage future ports in Malaysia and the world!

Regards,

Abdul Rahim bin Akob

President,

APA Malaysia.

On the 21^st May 2007, Sapangar Bay Container Port (SBCP) was graced with the visit of the federal Transport Minister Datuk Seri Chan Kong Choy.

Datuk Seri Chan Kong Choy was briefed by Suria Capital Holdings Berhad’ Group Managing Director, Datuk Hj. Abu Bakar Hj. Abas on the current progress of the states newly built container port. It was announced that SBCP was ready for operation on 1^st June 2007 and shifting of the containerization activity from KK port to Sapangar would commence on the mentioned date.

Among the issues that were highlighted in the briefing was the impressive development of the ports in Sabah, in particular Kota Kinabalu port, which had grown in terms of container throughput.

An increase of almost 8.5% was recorded in KK Port from a total of 141 969 teus (in 2005) to 153 793 teus (in 2006) and for the first quarter of 2007, a growth of 20% container throughput was achieved.

In addition, the container rate productivity had significantly increased to 18 boxes an hour and is expected to reach 20 – 22 boxes per hour upon the operation of SBCP. Datuk Seri Chan Kong Choy hailed these improvements as phenomenal and cited the crucial role of crane productivity in terms of faster turnaround time which will attract vessels to SBCP.

Datuk Seri Chan Kong Choy had also mentioned on the need of the ports in East Malaysia to grow and take advantage of the opportunities in the Brunei Indonesia Malaysia Philippines East Asean Growth Area (BIMP EAGA) and for East Malaysian ports to complement each other in this respect.

Among the officials that were in attendance was Sabah’s Deputy Chief Minister cum Infrastructure Development Minister Datuk Raymond Tan Shu Kiah, Assistant Minister to the Chief Minister, Datuk Edward Khoo, Sabah Ports Authority (SPA) Chairman, Datuk Dr Zaki Gusmiah and SPSB Board of Directors and officials.