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.

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.

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

Malaysian ports handled 10 per cent more containers in the second quarter of the year compared to the first, reflecting a recovery in both domestic and transhipment cargo.

Container traffic at the 10 major ports rose to 3.79 million TEUs (20-foot equivalent units) from 3.44 million in the periods reviewed.

Transhipment traffic, comprising almost two-thirds of the total, was up 11 per cent to 2.48 million TEUs from 2.22 million. 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 10.2 per cent increase to 670,718 TEUs, while import traffic rose 4.4 per cent to 640,469 TEUs.

In the January-June period, however, container throughput fell 7.7 per cent to 7.24 million TEUs from the first half of last year. Cargo tonnage was down 11.6 per cent to 168,806 tonnes.

The Transport Ministry’s special maritime adviser, Datuk Captain Abdul Rahim Abd. Aziz, said the drop in first half container volume was in line with the performance of other ports in the Asean region, which saw 15-30 per cent declines.

“For instance, ports in the Philippines reported a decline in cargo volume of an average 20.6 per cent in the first half, while Vietnam’s port container throughput was down between 14 per cent and 30 per cent and Thailand, an average drop of 35 per cent,” he told Business Times in an interview.

“While container traffic seemed to have stabilised in the second quarter, port operators in Asean remain uncertain whether the market has hit bottom.

“At the recent Asean Ports Association (APA) working committee meeting in Kota Kinabalu, the most optimistic prediction of a recovery was from the middle of 2010,” said Abdul Rahim, who is also the APA working committee chairman.

To survive the current economic downturn, port operators have resorted to various cost-cutting strategies, including sending fewer employees overseas for trips or meetings and deferring purchases of new equipment, he added.

Port Klang, comprising Northport and Westports, solidified its position as the largest container port in the country.

Its container throughput rose 7.8 per cent in the second quarter compared to the first three months. It moved 1.73 million TEUs against 1.6 million before.

Transhipment volume was 996,508 TEUs, up 4.6 per cent from the first three months, and 57.7 per cent of Port Klang’s total throughput.

The Port of Tanjung Pelepas (PTP) in Johor continued to be the second largest container port, handling 1.47 million TEUs in the second quarter.

It recorded 17.6 per cent growth from 1.25 million TEUs in the first quarter, with 94.4 per cent of all volume coming from transhipment.

Bintulu Port saw 16 per cent growth to 57,895 TEUs from 49,875 in the first quarter.

Johor Port handled 216,744 TEUs in the second quarter, up 7.3 per cent from 201,915 in the first, thanks to the increase in transhipment and export cargo.

Penang Port was the only port to record a decline in the quarters reviewed, down 24.2 per cent to 151,165 TEUs from 199,391.

By : Kang Siew Li