ASEAN Ports Association Malaysia (MAPA)

Port confident of achieving 8% growth this year

GELANG PATAH: Port of Tanjung Pelepas (PTP) expects a healthy and sustainable growth this year despite operating in a challenging business environment.

The positive outlook is based on the port’s outstanding performance in the first half of 2010 when it registered 13% growth compared with the same period the previous year.

In May this year, its monthly throughput volume stood at 572,444 20-ft equivalent units (TEUs), the highest ever handled in a single month since it started operations 10 years ago.

Prior to that, the highest number of containers handled in a single month was 557,693 TEUs in August 2009.

PTP’s monthly throughput volume in May stood at 572,444 TEUs, the highest ever handled in a single month since it started operations 10 years ago.

 “We managed to increase the number of containers handled and achieved the highest growth among the world’s top 20 container ports in 2009,” an official from PTP told StarBiz.

He said the achievement was commendable despite last year’s sluggish economy, which saw a drastic downturn in the containerised traffic sector worldwide.

Industry reports have listed only four of the world’s top 20 container ports that recorded growth in 2009, and all of them are in the region.

The four ports were PTP, which recorded 2.4% growth, and three Chinese ports – Qingdao (2.4%), Tianjin (2.3%) and Guangzhou (1.7%). Other heavyweights such as Singapore’s PSA experienced a drop of 13.5%, Hong Kong down by 14.3% and Shanghai by 10.7%.

The International Monetary Fund said in a report recently that the global economy was recovering better than expected but at varying speeds.

While most of the emerging and developing countries are experiencing steady growth, the growth in developed countries is not that impressive.

The United States and European economies are beginning to see a dip and the current downtrend in global container traffic would continue until the year-end.

“But we are confident that PTP will record 6.5 million TEUs this year, representing 8% growth from six million TEUs handled in 2009,” the official said.

He added that PTP would maintain its efficient services and provide top-notch services at competitive cost to clients.

Crane moves at the port now averaged 34 to 35 per hour, which is way higher than the industry average of 28 moves per hour.

He said PTP handled close to 80 vessel calls a week and with the current berths and 44 quay cranes, the port could handle up to nine million TEUs.

By: ZAZALI MUSA

KUCHING, Jan 11 (Bernama) — The Tanjung Manis Integrated Port is to become the primary import and export gateway for Sarawak central region when it begins full operations by next year.

The port, a subsidiary of Sarawak Timber Industry Development Corporation (STIDC) and appointed by Rajang Port Authority as its port operator in Tanjung Manis new township, had shown encouraging performance since commencing operations in July last year.

As at October 2009, it had received 11 vessels and handled 2,383 TEUs (twenty equivalent units) containers, said STIDC general manager and Tanjung Manis Integrated Port chairman Datuk Len Talif Salleh in the latest issue of Perkasa, the bi-monthly newsletter published by the corporation.

Currently, the port accesssible to 20,000 GRT (gross register tonnage) vessels, has the capacity to handle up to 200,000 tonnes of general cargo and 25,000 TEUs containers a year.

He said the existing 203-metre wharf would be extended by 200 metres to enable the port to handle an anual capacity of 200,000 TEUs of containers and six million tonnes of general cargo by next year.

When fully operational, the port is expected to be equipped with state-of-the-art cargo-handling facilities such as quay cranes, mobile harbour cranes, rubber-type gantry cranes and reach stackers, said Len.

He said the port was envisaged to play a pivotal role in the shipping industry with the completion of the Sibu-Tanjung Manis road by this year and support the various industries in the hinterland, particularly the Tanjung Manis Halal Hub and other projects planned under the Sarawak Corridor of Renewable Energy (SCORE).

“With better facilities and a team of dedicated and experienced workforce, Tanjung Manis port promises efficient services apart from reducing vessel turnaround time due to its closeness to the sea,” he said.

Len said the port’s strategic location and natural deep water complemented its role as the central region’s transshipment hub.

Meanwhile, the 77,000-hectare Tanjung Manis Halal Hub is expected to attract at least RM9 billion worth of investments for upstream and downstream halal food processing activities, which will create about 10,000 jobs, besides other economic spin-offs.

By DAVID TAN (thestar.com.my)

GEORGE TOWN: The sea and airfreight business in Penang improved in the second quarter by about 12% and 20% respectively from the first quarter.

For the second quarter, sea throughput rose to 163,985 twenty-feet equivalent units (TEUs) from 145,854 TEUs in the first quarter, while air cargo increased to 24,196 tonnes from 19,910.

Penang Freight Forwarders Association (PFFA) president Krishnan Chelliah told StarBiz that the second-quarter results showed the import and export of goods in Penang were gradually improving.

“The last six months have shown a steady increase month-on-month.

“However, compared with the second quarter of 2008, the airfreight business is down by about 33%.

“The sea-cargo business in the second quarter is down about 19% compared with the corresponding period of 2008,” he said.

Krishnan Chelliah says the second-quarter results show the import and export of goods in Penang were gradually improving. ‘The last six months have shown a steady increase month-on-month.’

Krishnan said the air and sea-freight volumes in July were the highest this year.

“This shows that we are recovering and bottoming out. In January 2009, the airfreight volume was the lowest in many years, and from February onwards there was a steady increase of 2% to 3% every month.

“In July, there was a jump of 4%. However, in the sea-freight business the month-on-month increase was 10% to 15%,” he said.

Krishnan said PFFA expected the growth to continue in the second half of this year.

PFFA secretary-general Bryan Kor Hock Choon said the third quarter should see the sea and airfreight business in Penang improve by about 10% over the second quarter, and the fourth quarter by 5% over the third quarter.

“Generally, in December, business slows down for freight forwarders,” he said.

Krishnan also urged the State and Federal Governments to continue attracting foreign direct investments to maintain the momentum of growth and recovery.

»Exporters are doing less business because the number of regional buyers in Asia had dropped« DATUK TAN CHOO HIN

Meanwhile, Penang Importers & Exporters Association (PIEA) president Datuk Tan Choo Hin said that for the first six months this year, PIEA members imported about 33,000 TEUs of cargo against about 46,000 TEUs in the previous corresponding period.

“The exporters also exported less in the first six months, shipping about 45,000 TEUs compared with about 70,000 TEUs in the previous corresponding period,” Tan said.

He said imports by PIEA members were lower in the first half because February, March and April were generally slow months, the festive season was already over, and the local demand had weakened.

“The peak season starts from May and lasts till the fourth quarter,” he said.

“Exporters are also doing less business because the number of regional buyers in Asia had dropped.

“At the recent China Import and Export Fair in Guangzhou, the number of purchasers from South-East Asia dropped by about 30%. We see, instead, more buyers from India and the Middle East,” he said.

Tan said the third and fourth quarters should see an improvement but overall, business this year would not be better than in 2008.

He added that there was “no visibility” as to the business environment for 2010.

… due to bleak outlook

PORT KLANG: Port Klang, the national maritime gateway, projects a 10% fall in cargo volume due to the bleak outlook for the economy this year.

Port Klang Authority (PKA) general manager Lim Thean Shiang said both port operators, Northport and Westports, started to feel the contraction in volume last month with a 16% drop in cargo volume against the same month in 2008.

“In an effort to cultivate and sustain the port business this year, especially import and export activities, PKA has decided on a blanket waiver for those who have difficulties in adhering to the three-day container free storage period at the port,” he told a press conference yesterday.

Port Klang previously had a five-day free storage period but this was cut to three days effective Jan 1.

Lim said the continuation of the waiver would be reviewed in July based on the economic climate then.

Lim Thean Shiang

Lim Thean Shiang

“But, the Port Klang community must continue to upgrade their efficiencies to operate under the three-day free storage period when the economy revives,” he said.

Additionally, PKA will also continue the feeder incentive scheme by April but with a new pre-qualification criteria.

The feeder incentive is given to feeder operators that help bring cargo to Port Klang from other places in the region.

The incentive was frozen in October for PKA to re-study its contribution to the cargo growth at Port Klang.

A total sum of RM37mil in incentive had been given to feeder operators since 10 years ago.

On Port Klang’s performance, Lim said it had recorded a 12% increase in cargo volume to 7.97 million 20-ft equivalent units (TEUs) last year from 7.11 million TEUs in 2007.

“This achievement has propelled Port Klang to be ranked the 15th-busiest port of the world in terms of volume last year from number 16 the previous year,” he said.

By SHARIDAN M.ALI

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