ASEAN Ports Association Malaysia (MAPA)

The North Butterworth Container Terminal (NBCT) registered some 13% increase in the volume of cargo it handled in October.

NBCT handled 94,570 twenty-foot equivalent units (TEUs) in October, compared with 83,103 TEUs in September.

Penang Port Sdn Bhd general manager Obaid Mansor told StarBiz that the higher cargo volume was driven by goods from southern Thailand, rise in local businesses’ imports and exports, and an increase in the volume of empty containers from India and the Middle-East.

“We are confident of achieving our target of 930,000 TEUs by the year-end, matching the volume of cargo handled in 2008,” he said.

On the expansion of NBCT, he said the work to extend the 900m berth to 1,500m would be completed a year earlier.

“The original schedule for completion was October 2011. We have finished adding 400m to the berth,” he said.

He also said NBCT had already received four of the seven post-Panamax gantry cranes that it had ordered. “The other three cranes will arrive in the first week of December. Each crane costs RM25mil,” he said.

By: The Star Online

PENANG: Penang Port Sdn Bhd (PPSB), the port operator, has invested RM1.1 billion over the last five years to upgrade infrastructures at the port and Container Terminal as part of initiatives to pump-prime the state economy, Chief Minister Lim Guan Eng said on Wednesday.

He said the huge investment had indirectly bolstered operations of the port and the terminal, key revenue contributors to the state economy.

Continuous upgrading of infrastructures at the Penang Port and Container Terminal is to provide shipping companies and other port users user-friendly facilities, a crucial element to woo more shipping lines and container vessels to the port and the terminal, he told reporters after a briefing by the port management on Wednesday.

To realise Penang Port’s mission to provide world-class shipping services, Guan Eng said the port’s latest and efficient logistics would be the yardstick to increase the number of merchant ships and containers anchoring at the port.

The Chief Minister also called on the Federal Government to re-start the RM353 million project to deepen the North Channel at Penang Port to facilitate smooth sailing-in of container vessels.

“If the deepening work is not done in compliance with environmental requirements, it will harm plans to turn Penang into a green state,” he said.

He also hoped projects promised for Penang under the current Ninth Malaysia Plan but have not been implemented due to various reasons would be carried forward to the 10th Malaysia Plan. – Bernama

Port operator will expand terminal if global economy keeps improving

PETALING JAYA: Westports Malaysia Sdn Bhd will commence its RM600mil terminal expansion next year if the global economy keeps improving and starts contributing to the growth of its container volume.

Executive director Ruben Emir Gnanalingam said the project to build container terminal six was to have started last year but was postponed as the port had not reached its internal trigger point that should prompt the expansion for extra capacity.

“Our capacity now is about seven million twenty-foot equivalent units (TEUs) and we expect to handle only 4.3 million to 4.4 million TEUs this year.

“All the tender specifications for the project are ready as they are quite similar to our previous terminal expansion projects,” he told StarBiz.

Ruben said Westports had recently revised upward its targeted volume for this year from four million TEUs due to the month-on-month steady growth from the first quarter.

“The earlier target for 2009 was lower due to the sharp slump trend started in the last quarter last year.

“But the trend has been improving in the second quarter with average monthly volume of 360,000 TEUs, and even better in the current quarter with 400,000 TEUs,” he said.

Year-on-year, he added, the current third quarter still fared behind as Westports did very well in its third quarter last year with a record-breaking 475,000 TEUs in August.

Westports handled about 4.97 million TEUs in 2008.

On the global economic crisis, Ruben said Westports managed to identify and practised sustainable cost-cutting measures during the not “too busy” period to be more resilient in the future.

“We have not been able to really study our cost-saving measures previously as we were too busy with the rapid growth. But now, once we have identified the areas where we can cut costs, we will sustain the practice.

“We also managed to focus on intensive staff training in the lull period as Westports did not retrench any workers although its volume was down earlier in the year,” he said, noting that the port employed about 3,250 workers.

He said the training and cost-cutting measures made the port even more prepared to seize opportunities when the economy picked up.

On its mission to make Port Klang a bigger hub in the region, Ruben said Westports, which recently celebrated its 15th anniversary, would continue to focus on enhancing its productivity and services.

“We will also be looking at improving bunkering and feedering activities at the port,” he said.

Feedering is a process where smaller ports feed containers to hub ports as the latter have higher connectivity due to more calls made by shipping lines, while bunkering is fuel supply services to vessels.

Westports’ feedering activities come from ports in South-East Asia and India.

He said it was important for Port Klang to strive to be a bigger hub as it would not only benefit the port but also local importers and exporters.

“There is a huge difference between the freight rates of a non-hub port and a hub port. The freight rates at the hub port is cheaper due to the competitiveness of the many shipping lines, volume and the availability of empty containers,” he said.

Ruben said Westports had come a long way from its inception in 1994 and would continue focusing on sustainable development that included the Pulau Indah community and the environment.

“Apart from making the island more industrious with job opportunities and supporting services to the port, we now want to make it more friendly with communal facilities.

“For the environment, Westports – which is already known for its ‘garden port’ concept – will try to plant more trees,” he said.

By : Sharidan M. Ali

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

PETALING JAYA: A number of port operators in the country have reported higher throughput volume for March but are cautious about volume going forward as the signs of recovery are still weak.

According to them, imports and exports as measured by twenty-foot equivalent units (TEUs) were up for March while transhipments – the shipment of goods to an intermediate destination before moving to another destination – were also up.

Westports Malaysia Sdn Bhd executive chairman Tan Sri G. Gnanalingam had noted earlier in a commentary that in March, Westports’ total volume, including imports, exports and transhipments, was up 10% compared with the previous three months.

He said the immediate question that came to mind was whether these were signs of recovery or if this was due to inventory corrections after managers cancelled their orders between October and December last year.

“As such, between April and June, we’ll begin to notice that the world will not only reinstate its inventory levels but also increase its orders simply because life must go on,” Gnanalingam said.

Captain Ismail Hashim, chief executive officer of Port of Tanjung Pelepas Sdn Bhd, which operates the number one transhipment port in the country, said volume grew 23% to 469,000 TEUs for March compared with February.

He said it was tricky to accurately predict the underlying reasons behind the recent increase in volume. “Whether the increase is sustainable over the longer term remains to be seen,” Ismail told StarBiz in an e-mail reply.

He said if the recent upturn was due to restocking of manufacturers’ orders as a result of them halting production abruptly earlier on when the crisis first started then the spike in volume could be “just a temporary pattern.”

Penang Port Sdn Bhd general manager Obaid Mansor said the Butterworth container terminal saw a bottoming in January when throughput was 30% lower than October 2008.

“The upturn in business was really registered in the export transhipment trade provided by our industrial hinterland,” he said, adding that a combination of improved demand for manufactured products, re-stocking, trade credit availability and demand from China and India could be the factors that contributed to an improvement in volume.

By FINTAN NG

Terminal operator Northport (Malaysia) Bhd has embarked on a cost-cutting exercise that will see all recruitment frozen and advertising spending slashed, in anticipation of worsening economic conditions.

“Many people are predicting that things are going to get worse next year, and so we are preparing ourselves to ride through this crisis. An obvious way is to cut costs,” said its managing director and chief executive officer Datuk Basheer Hassan Abdul Kader.

He was speaking to reporters after delivering a talk titled “Expanding the Operating Capacity of Northport through Implementing Strategic Initiatives” at the Selangor Freight Forwarders and Logistics Association in Port Klang last week.

Basheer said the port has put a freeze on staff recruitment and postponed or cut spending in areas such as advertising.

“However, we have no plans to retrench staff. In fact, it did not cross our mind,” he said, adding that the port had recruited about 30 people in the last three months.

Basheer believes that Northport’s restructuring and merger exercise between Klang Container Terminal Bhd and Kelang Port Management Bhd in 2000 will put the port in good stead to withstand the current downturn.

This includes its strategy over the past few years of focusing on revenue and profit growth instead of volume growth; the optimal utilisation of its assets such as land, labour and capital; and moving to higher-margin businesses comprising container, conventional cargo, logistics and automotive.

“Because of our prudent policy where we have kept our gearing to almost zero, we are well positioned to withstand the current crisis,” he said.

Northport is also keeping its RM500 million expansion plans on track, which include the development of a 350m container berth, bringing the container quayline at the port to a total of 3.4km.

Basheer also said the port remained on track to meet its forecast of three million TEUs (20-foot equivalent units) in container throughput this year.

However, he warned that the port has started seeing a drop in cargo volume in the fourth quarter of this year.

“Northport’s focus is import and export trade, particularly intra-Asian trade. As such, this recession is a concern to us because if Malaysian trade is affected, Northport will also be affected.

“We are starting to feel the effects of the global slowdown in the current quarter. But the drop (in cargo volume) is nothing to be seriously alarmed about yet,” said Basheer.

By : btimes.com.my

Within the kaleidoscope of fast changing global logistics scenario, Penang Port Sdn Bhd has formulated a strategic approach to serve our customers at the peak level, in line with our new corporate vision to make Penang Port to be the PREMIER PORT AND LOGISTICS CHAIN INTEGRATOR IN THE REGION.

Under New Business Plan, for container operations, the North Butterworth Container Terminal will be expanding by another 600 meters to accommodate seven vessels at any one time.  The north channel entrance will also be dredged to 13.5 meters from the current depth of 11.5 meters to accommodate bigger drafted vessels.

In addition, the port is also planning a 1500 meter storage deck located directly to the back of the present berth.  This will enhance the handling of export containers and improve port productivity performance by up to 30%.  This deck will be able to handle 873,900 teus and together with the current capacity of 961,300 teus, total yard capacity at the port will be 1,835,200.

The new expansion plan will be equipped with six new super post panamax gantry cranes and 15 rubber tyred gantry cranes.  These new superstructures and equipment will certainly enhance our strategy of being supply driven port instead of being driven by demand.  With these new developments in plan, productivity at the port will be increased, with a new target of at 35 teus moves per hour.  The cost of construction is expected to be RM380.7 million.

Penang Port Sdn Bhd also has formulated a strategic approach to provide information services in tandem the company’s long term business plan, PELKON III, PPSB’s newest container terminal management system was official launched on 1 September 2006.  The objective is to make the port intelligent and move to   the paperless era with a host of new features and functionalities that will enable port customers to do business in an easier and faster way.

In the pipe line after marina project completion, is the development an international cruise passenger terminal at Swettenham Pier, that is estimated to cost RM65 million.  The project is already kicks off in May 2006 and targeted to complete in 2007.  The present Swettenham Pier will be upgraded as world class cruise terminal to revitalize the Georgetown Waterfront.  The scope of work involves the redeveloped of Swettenham Pier into an ultra-modern international cruise Terminal with a T-shaped berth 450 meters long and 9 meters deep.  Upon completion, the berth will be able to cater for cruise vessel carrying more than 2,000 passengers.

We believe that with these developments in place, we will be able to fulfill our customer’s expectations, thereby strengthening our market position and company performance.  Thus enhancing our capability to make Penang Port Sdn Bhd a truly regional huh for the Indonesia, Malaysia and Thailand growth triangle.

Biport Bulkers Sdn Bhd (BBSB) is the newest gem of Bintulu Port Holdings Berhad (BHB) after Bintulu Port Sdn Bhd (BPSP). Both companies are a wholly owned subsidiary of Bintulu Port Holdings Berhad. BBSB was established to manage and operate a vegetable oil bulking terminal to cater for ever growing palm oil industries in the state of Sarawak, Malaysia. BBSB is currently the only company specializing in the storage and the main outlets for vegetable oils in Sarawak.

Palm oils history at Bintulu dated back in 1986, where the first refinery was built adjacent to Bintulu Port with the export and import of the oils being facilitated by Bintulu Port through pipelines stretching along its general cargo wharves ad container terminal at the 1^st Inner Harbour. Being the only distribution outlets in the state of Sarawak to the outside world and still remain so at this moment, palm oil products handled through Bintulu Port grew from 23,000 tonnes in 1986 to 1 million in 2004. The growth in throughput is a testimony of the strategic role played by Bintulu Port in supporting the industry. With the government current emphasis on the development of palm oil industry throughout the country, especially in the state of Sarawak, throughput handled through Bintulu Port is set to breach 1.2 million tones in 2005.

In furthering its support to the industry and in tandem with the impending developments. BHB took another step forward with the formation of Biport Bulkers Sdn. Bhd. To manage and operate a vegetable oil bulking terminal that aims to provide a safe, efficient, quality and affordable storage solutions for the industry.

Built at the cost of RM66 millions on a 15 acres site, BBSB’s bulking terminal is equipped with modern and state of the art facilities. Its facilities consisted of multi-sized tanks of various capacities to cater for different needs and requirements of individual companies. Each tanks farm is segregated from one another and designed with a dedicated pipeline system to ensure optimum security and efficiency during handling of the oils. To facilitate the export and import operations, a dedicated jetty was build adjacent to the terminal. The jetty, which can accommodate 2 vessels of various sizes and lengths at any one tome, is owned, managed and operated by Bintulu Port Sdn. Bhd.

By: Bintulu Port Sdn. Bhd.