ASEAN Ports Association Malaysia (MAPA)

MARSEILLE: Malaysia’s liberalisation of 27 local services sub-sectors, including the transport sub-sector, prompted French shipping giant, CMA CGM to mull over plans to strengthen its foothold in the country.

Transport Minister Datuk Seri Ong Tee Keat had during a visit to the headquarters of the world’s third largest container shipping company in the French city last Thursday shared the Malaysian Government’s policy to liberalise the transport sub-sector, including the opening of 30% restriction in foreign ownership.

CMA CGM has had a presence in Port Klang since 1994 and is one of the largest customers of Port Klang. It has since June 1 also served the port of Tanjung Pelepas.

In welcoming the move, the company’s president Jacques R. Saade said “such liberalisation will change the strategy (of the company) in Asia.”

The shipping giant also welcomed Ong’s announcement of gradual liberalisation of cabotage of key sectors such as from Peninsular Malaysia to three major ports in east Malaysia, namely Sepangar, Kuching and Bintulu. (See also page 7)

Saade said the company would seriously explore the opportunities available from such a move. He also said the company would expand its dry port bonded warehouses, which include the Port Klang Free Zone.

Later, Ong visited the Port of Marseille, one of the oldest and busiest sea ports in France.

Marseille Port also raised its interest to establish an in-house university specialising in shipping and maritime as part of its education and training project.

Ong took the opportunity to test-drive its state-of-the-art port simulator.

By SHARIDAN M. ALI

Johor Port Berhad (JPB) manages and operates Johor Port in Pasir Gudang, Johor.  In the late 1960’s, the Malaysian Government had responded to the increasing  demands for a port to be established independent of a foreign port.  Thus, Johore Port was established with facilities adequate for the handling of local cargo and managed by Federal Government.  As the industrial hinterland expanded Johor Port began to further develop its facilities and was gazetted as a Free Zone in the early 1980’s.  It was the first port in Malaysia gazetted as a Free Zone following the multiplying benefits to attract more cargo and businesses.

Johore Port handles all port-related activities including terminal management, cargo handling, storage and warehousing, logistics and marine operations.  JPB offers the facilities for multiple modes of cargo, including break bulk (general cargo), dry bulk, liquid bulk and containerised cargo.

Users benefits from value-added

While terminal management and cargo handling remains the Company’s primary business, Johor Port prides itself in offering and extensive range of non-traditional port activities and value-added services for its customers.  This includes the running of the Free Zone within which Johor Port is located.  Johor Port’s control of its Free Zone services allows it to extend its scope of business and further extend the range of services to its customers.

Minister of Transport Visits Johor Port

Furthermore, having met the stringent requirements such as good security, efficient Free Zone management and excellent multi-purpose facilities, Johor Port is currently one of only four ports in Asia listed on the London Metal Exchange (LME).  The LME is the world’s largest trading platform for non-ferrous metals, and Johor Port is a safe point of storage and distribution of seven such metals: zinc, copper, lead, tin, nickel, aluminium alloy and base aluminium.

The Port also handles all marine operations within its water limits, including pilotage to private jetties, ship-to-ship transfers, salvage operations and the like, Land-based logistics Sdn. Bhd. (JPL).  JPL also operates all intra-port cargo movement.  JPL itself is expanding its total logistics operations to achieve its aim of becoming a major regional logistics player.  Working in synergistically, JPB and JPL form a comprehensive package of services to supplement the users’ supply and distribution chains.

Fully integrated ICT for speedy processing

Johor Port’s operations are managed through various web-based computer applications that allow for speedy transactions between the user and JPB.  The Johor Port Container Terminal System (JCTS) was recently launched as the beginning of a multi-phase implementation of a fully integrated system that will cover the majority of operations at Johor Port.  This system will incorporate the existing Free Zone Information Processing  System (FZIPS) and Marine Services System (MSS) together with the upcoming Multi-Purpose Terminal System (MPTS), which will manage non-container operations, and Port Safety Management System (PSMS), which will manage safety and security at Johor Port.  The ultimate aim of the integrated system is to provide a paperless and streamlined working environment that will substantially reduce operating time and costs for both Johor Port and its users.

Latest Developments

As Ports globally are increasingly competitive, Johor Port in its quest for higher efficiency and productivity, has been undertaking some intense development work.  The development covers operations facilities, support facilities and infrastructure as well as overall aesthetics.

One of the main upgrades is the revamping of the main entrance control.  Previous Customs checkpoint was demolished and replace.  Johor Port’s own security checkpoints also replace with new, dedicated checkpoints for individual entry to Container Terminal and Breakbulk Terminal.  These checkpoints and equipped with CCTV and centralised communications as well as basic utilities.

Facilities for port safety were also upgraded, with the JPB Port Safety Department office being expanded and renovated to house the Fire & Rescue under one roof.  A new Security Service Centre is now available to provide pleasant and professional ambiance to cater for all security issues pertaining to entrance control.

Roads at the main entrance and key intersections were upgraded to durable, heavy-duty concrete pave.  The construction also involved creating maintenance trenches for communications cables and utilities to reduce the impact of future maintenance work on day-to-day operations at the port.  The completed the package, the landscaping in the area has also been revamped with walkways and new foliage appeasing to users and visitors of the Port, thus making the environment suitably convenient and conducive for businesses.

On the operations, JPB has procured several new cranes, some of which have already been deployed recently.  Three new Rubber Tyre Gantry Cranes (RTG’s) began operations at the Container Terminal in late 2005, with three more to come in 2007.  Also in early 2007, a new Post-Panamax Gantry Crane will be delivered for wharf operations in the Container Terminal, increasing the total number of wharf cranes at the terminal to eight in total.  A bulk-handling crane was also delivered in the middle of 2006 to improve productivity at the Bulk and Break Bulk terminal.  Warehouses are all fully upgraded and built in 2006, making the total covered storage area for Bulk and Break Bulk to 1.5 million square feet in total.

For the users and seafarers, the Port has conveniently provided place, a mariner centre to converge for meetings or pleasures.  With a bank, clinic, a meeting room, a recreational lounge, a gift shop, a restaurant and three cafes, the mariner centre will be a great place for the Port users to rest and relax as well as conduct important business discussions.  The mariner centre also houses JPB Training Centre and a private marine training centre.

As part of the broadening relationship between Malaysia and Kenya, a sister-port agreement was signed between Kenya Ports Authority  and Port Klang Authority.  To further enhance the traditional relationship and mutual understanding between both the port authorities as well as Port Klang Operators in Malaysia and Mombasa Port of Kenya.  The sister-port agreement signed on 27^th November 2006 was witnessed by General (Rtd) J.R.E. Kibwana, Chairman Kenya Ports Authority.  Port Klang Authority was represented by Y.B. Dato’ Yap Pian Hon, Chairman and Y.Bhg. Datin Paduka O.C. Phang, General Manager whilst Kenya Ports Authority was represented by Mr Abdallah Hemed Mwaruma, Managing Director and the Corporation Secretary.

The establishment of a sister-port agreement was initially mooted during the 5^th Pan African Ports Conference and the International Association of Ports Harbours (IAPH) Europe/Africa Regional Meeting held in Nairobi, Kenya from 4^th – 8^th December 2005.  Based on the agreement, both ports have agreed to co-operate in a wide variety of fields, especially on port studies, staff training, information exchange and more importantly finding ways to develop mutually beneficial cargo and cargo traffic services between the two ports, in particular and the countries in general.

The sister-ports agreement strengthens the existing traditional friendship and mutual understanding between the people of Kenya and Malaysia and this relationship is in line with the South-South Co-operation initiated by the Malaysian Government of which Port Klang Authority is a member. Besides that the Kenya High Commission also played a vital role in the formation of this relationship through an active pursuance of ensuring the agreement materialized soonest possible.

This sister-port agreement could provide a good platform for enhancing Port Klang’s efforts in tandem with the government’s aspiration to develop business relationships between the two countries as an extension of the well established government-to government relations. South-south co-operation enhance and facilitate trade and investment linkages among developing countries. In this regard, Malaysia and Africa see economic progress as best attained through fair trade, rather than aid.

In the year 2005, Port Klang handled a total of 117412 FWT of cargo throughput from trade with Kenya. The signing of the sister-port agreement is a significant step for Port Klang as it opens up to closer relationship with East-African Ports. The Port Of Mombasa in Kenya positioned as the gateway to Eastern Africa, will provide Port Klang and Malaysia the platform to penetrate and explore new markets, especially among the countries in Eastern Africa such as Somalia, Ethiopia, Uganda and Tanzania. With this sister-port agreement, Port Klang is confident that there will be a tremendous trade development and improvements with Kenya.

A sister-port agreement between these ports provides new avenues for smart partnership arrangement to foster mutual co-operation. This is the beginning of a new era of co-operation which will not only benefit both countries but help to bring the Asian region close to the African Continent.