ASEAN Ports Association Malaysia (MAPA)

Middle Eastern investors may invest some RM1.5 billion in a petroleum tank farm and halal industrial park in Penang Port.

Penang Port Sdn Bhd (PPSB) chairman Datuk Seri Dr Hilmi Yahaya yesterday said potential investors have approached PPSB to set up shop in the port area to tap the export potential of the Indonesia-Malaysia-Thailand Growth Triangle.

“We are looking at reclaiming some 400 hectares of land to accommodate the proposed tank farm and halal hub.

“We also have plans to house a free commercial zone and free industrial zone within the port area to facilitate the easier movement of goods for investors,” Dr Hilmi told reporters after a Penang Port Commission port consultative committee meeting chaired by PPC chairman Tan Cheng Liang.

The closed-door meeting, which was attended by officials from the finance and transport ministries and the Economic Planning Unit, was also attended by Penang port users.

The proposed area for land reclamation would be south of the Butterworth Port on mainland Penang.

“Since we have received positive indication of the port’s RM350 million request from the federal government to carry out capital dredging works under the 10th Malaysia Plan, we are hoping that the sand from the dredging activities can be used for our land reclamation purposes,” he said.

The north channel dredging of the port, from its current 11.5m depth to 14.5m, was supposed to be carried out between 2010 and 2012 to serve main line operators calling at the port.

However, the government deferred the project in its mid-term review of the Ninth Malaysia Plan.

Dr Hilmi noted the tank farm is likely to bring in a RM1 billion investment, while the proposed halal hub will rake in an estimated RM500 million.

“We are looking at potential investors to help us finance this project,” he added, “since we do not want to borrow any funds.

“We have had interest shown by parties from China and the Middle East so far to help us in the funding,” he added.

Several investors – such as those engaged in liquid crystal display production – have stated that they want to be located in an area where shipping of the goods can be seamless.

“Our next step would be to call in all interested parties to map out a detailed plan, before we proceed with obtaining permission from the federal authorities via the finance and transport ministries.”

Dr Hilmi, a former finance ministry parliamentary secretary, gave an assurance that the proposed Penang Port expansion plan would in no way end up like the scandal-hit Port Klang Free Zone project in Selangor.

By: Marina Emmanuel

IN SPITE of the difficult yet challenging economic recession that it encountered recently, Penang Port Sdn Bhd has managed to keep afloat and still perform at its best.

It did experience difficulties in the beginning. However, every cloud has a silver lining and for Penang Port, abundant opportunities emerged, just waiting to be capitalised on.

This was due to the following factors:

* Marketing strategy

In line with the Penang Port’s strategy to be supply-driven and make Penang Port a mainline port, it has embarked on several key projects.

Presently, Penang Port captures more than 90 per cent of the market share in port handling for trade by sea within the hinterland of four northern states of the peninsular and more than 50 per cent of the market share for the southern Thai region.

Its market assessment was clear – the hinterland generates cargoes and Penang is an important link for exporters and importers ensuring they remain competitive and connected in world markets.

* Continuous demand and ample resources

With continuous support from the existing hinterland and future hinterlands such as Medan, Myanmar, Bangladesh and the Indian sub-continent, Penang Port is capable of performing at its best.

Ample resources from Penang Port’s skilled and motivated employees as well as loyal and supportive stakeholers contributed to its growth and sustainability as a major port in the northern region.

In line with this, the expansion and acquisition of state-of-the-art equipment also helps to propel it to be a world-class port.

* Geographical location

Thanks to its strategic geographical location as well as being within the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT), the Penang Port manages to stay ahead, providing the best for its customers.

“Penang Port can be positioned as a regional transshipment hub and upgraded to be one of the major container ports in the Bay of Bengal,” said its managing director Datuk Ahmad Ibnihajar.

PORT THROUGHPUT

For the year 2009, Penang Port handled a total of 929,639 twenty-foot equivalent units (TEUs), a growth of 3.1 per cent from 958,476 TEUs in 2008.

This was quite an achievement as many other ports in the region were registering negative growth then.

As a multi-purpose port, Penang Port handles dry bulk cargo, liquid bulk cargo, break bulk cargo and also containerised cargo.

Cargo handling performance in 2009 registered a marginal decrease of 6.69 per cent to 24,278,244 tonnes compared with 26,019,903 tonnes in 2008, but for the year to date for 2010, cargo handling recorded a growth rate of 51.59 per cent to 4,361,478 tonnes compared with 2,877,082 tonnes the previous year.

Swettenham Pier Cruise Terminal

“Penang Port was proud to receive the RMS Queen Mary 2, one of the world’s largest ocean liners, when it made its maiden call at the Swettenham Pier Cruise Terminal on February 4.

“It marked a new milestone for the port operations in handling cruise liners.

“With more international cruises berthing at the Swettenham Pier, we aim to achieve higher and better revenue in the near future,” said Ahmad.

With the continuous support of anchor customers, Ahmad said Penang Port managed to handle cruise vessels in spite of the economic downturn in recent times.

Port Achievements

Penang Port has also embarked on a corporate branding exercise.

“Our objective is to elevate the port into a powerful and influential name as well as the brand ambassador for Malaysia, and at the same time ensure the achievement of its long-term objectives.

“This is in line with our infrastructure expansion and attaining the latest port equipment to ensure that Penang Port achieves the efficiency of a world-class port,” said Ahmad.

Penang Port also aims to enhance its image and services and at the same time send out the right message of what it represents or stands for and what it aims to be in the future.

“The whole idea of corporate branding is not only about image building but also about culture and vision.”

Penang Port also strives to deliver on its promises to its customers.

The year 2009 marked another milestone in the history of the port.

It was the first port in Malaysia to receive the MS1900-2005 Quality Management System – Requirement from Islamic Perspective on Provision of Container Handling Services and Warehouse certification from Sirim.

“In order to enhance our safe working environment, we are also undertaking a programme for the OSHAS 18001-2007/MS1722-2005 certification which is expected to be completed by this year,” Ahmad said.

PART of Penang Port will be turned into a halal section with halal concept facilities by mid-October.

State Domestic Trade and Consumer Affairs Committee chairman Abdul Malik Abul Kassim said yesterday the Penang Port was discussing with a Syariah compliance logistics company plans to brand Penang as a halal port.

“The Penang Port has already obtained the Syariah family compliance approval in May.

“The state is now having direct discussions with the Rotterdam Port in Holland and with other related logistics companies,” he said.

Abdul Malik said although Penang Port had allocated certain portions of the port area to be turned into a halal port, the areas would be expanded progressively depending on the demand for halal shipments.

“The state will also embark on a drive to create awareness among exporters on the port halal facilities to enable them to trace where the raw materials were obtained from, their packaging and the company used to transport the products,” he said.

He added that once operational, the halal port could take advantage of the opportunites provided by the halal industry in southern Thailand.

Halal products from southern Thailand are currently being exported via Bangkok.

Abdul Malik said the halal port in Penang would be similar to the one in Rotterdam.

It will have cold room facilities, storage areas and other related facilities to store halal products.

He said the state would look into tapping the Indonesia-Malaysia-Thailand Growth Triangle (IMTGT) to attract investors for the halal industry.

“The state is keen to take advantage of the growing US trillion-dollar halal products industry worldwide,” he said.

By : The Star Online

Besides the private finance initiative model, the government may opt to use its own coffers for the project

THE government is exploring the possibility of using a private finance initiative (PFI) model to deepen the north channel of Penang Port.

Transport Minister Datuk Seri Ong Tee Keat said besides the PFI model, another alternative is for the government to use its own coffers for the project, which is estimated to cost RM1 billion.

He said a study is being carried out to determine the feasibility and suitability of both models.

“We will decide on the matter based on the outcome of the study. This is top on my priority list and I hope the engineering working proper will kick off before September this year,” he told reporters in Penang yesterday after launching the Penang MCA’s 60th party anniversary celebration.

The government had announced last November that it would resume work on the project, which had been shelved under the Ninth Malaysia Plan (9MP) mid-term review.

Ong had said then that after studying the benefits in dredging Penang Port’s channel, his ministry felt that the project should proceed in order to enhance the port’s competitiveness.

“The Penang Port is currently a feeder port. We should not forget its glorious past and the importance of the port to the country, the state and its people,” he said, adding that what worried him was the depth of the current port, which is between 9m and 11m.

“We hope to deepen the depth to between 15m and 17m to enhance the port’s competitiveness,” he said, adding that an environmental impact assessment (EIA) report will also be carried out before the project proper.

Operator Penang Port Sdn Bhd is targeting to develop Penang Port into a premier port by 2012 if the deepening of the north channel proceeds.

The Penang Port expansion and upgrading are outlined in the Northern Corridor Economic Region (NCER) blueprint to promote it as the leading port in the Indonesia-Malaysia-Thailand Growth Triangle.

Meanwhile, Ong who was also asked on a proposal by Bukit Bendera MP Liew Chin Tong for the Penang state government to take over the ferry operations which were reported to have suffered RM20 million losses last year.

“Anyone can propose anything but it should not be just a mere statement. Show us the proposal and we will see whether its viable or not,” Ong said, adding that he had received numerous inputs on the matter by various parties including the state MCA and individuals.

He added that so long as the proposal was genuine and for the benefit of the people, he was willing to consider it.

By : Audrey Dermawan

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

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.

Brunei Darussalam is honoured to host the ASEAN Ports Association Sports Meet for the second time since the 3rd APA Sports in 1991. The 9th APA Sports Meet was successfully held in Bandar Seri Begawan from 25th to 29th June 2007. The event was participated by a total of 323 participants and officers from 8 ASEAN countries, namely Brunei Darussalam, Cambodia, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. The event was organized by the Ports Department, Ministry of Communications, Brunei Darussalam. The launching of 9th APA Sports Meet was officiated by Dato Paduka Haji Yusoff bin Haji Abd Hamid, Acting Minister of Communications. Hosting this Sports Meet is one of the events that Brunei Darussalam has been looking forward to.

Unlike previous Sports Meets, Brunei Darussalam introduced a few different features into the 9th APA Sports Meet. This time, Brunei Darussalam has prepared for 6 games in total, i.e Golf, Futsal, Badminton, Mini Marathon, Table Tennis and Ten Pin Bowling. Ten Pin Bowling and Futsal are two new sports introduced this time around, where Futsal was to replace soccer while Ten Pin Bowling was introduced to bring new excitement to the Sports Meet. Also, Brunei Darussalam has introduced a medal system instead of a point system where the system is similar to the SEA Games.

The event demonstrated the close ties from Member Countries, whom had been acquainted from previous Sports Meet as well as making new friendships through the sports events as well as social activities such as the Opening Ceremony, Welcome Dinner, Closing Ceremony and Farewell Dinner. The cultural performances presented by member countries were met with enjoyment and friendship that APA Sports Meet encourages.

There was also good sportsmanship and cheer displayed for all the six sports activities and after 4 days of friendly competition, Thailand became the Overall Champion with 11 Gold medals, followed by Indonesia as runner-up with 7 Gold Medals and Malaysia in the 3rd place with 3 Gold Medals. Other Member Countries also did well. Details of the result is attached.

As the 9th APA Sports Meets came to a close, it was evident that despite the competitions, new friendships, fostering of cooperation and cordiality among officers and staff of ports among the ASEAN members was far more important. The APA Sports Meet is a venue where officers and staff of all levels get together in a single gathering where they could get to know each other better. At the Closing Ceremony, Brunei Darussalam, represented by Dato Paduka Haji Md Yusof bin Haji Md Hassan, Permanent Secretary of Ministry of Communications handed over the APA flag to Thailand to signify its turn as the next host, as Vietnam has indicated that they would not be able to host the next APA Sports Meet. The 10th APA Sports Meet will be held in 2010.