ASEAN Ports Association Malaysia (MAPA)

PORT KLANG: All operations at Northport, here, have returned to normalcy with shipment backlogs caused by technical delays expected to be cleared by tomorrow.

During a working visit to Northport (Malaysia) Berhad by Investment, Industry and Commerce, Small and Medium Enterprises, and Transportation committee chairman Datuk Teng Chang Khim on Tuesday, the Northport management assured the state government that the glitches caused by a new computer system implemented on April 22 had been resolved.

Northport commercial division head M. Suresh Kumar said the port had replaced the old processing system last month with a new one to offer more services to its customers.

The update, he said, was mooted by the company three years ago when the management felt it was time to upgrade the old system, which had been used since 1989.

“We have been testing out the system for about six months before we implemented it fully on April 22.

“However, two days after implementation we realised that some core processes were not aligned properly and our IT team worked to resolve these issues,” he said, adding that the company had successfully addressed all the technical issues within five days.

However, the complications during those five days had resulted in shipments being stuck at the port for extended periods with many being untraceable which triggered complaints from the Selangor Freight Forwarders and Logistics Association (SFFLA).

In response to the customers complaints of delays and additional costs incurred, Suresh Kumar said the company will waive all storage and special service request fees that were caused by the delays as a result of the computer system glitches during the period between April 22 and tomorrow (Friday).

“We understand that delays are a major problem for the industry so we will absorb these costs,” he said during a press conference at Northport Tower A, here, on Tuesday.

Investment, Industry and Commerce, Small and Medium Enterperises, and Transportation Committee Chairman Datuk Teng Chang Khim (right) listens to the explanation given by Northport Commercial Division Head M. Suresh Kumar over the issue.

Meanwhile, Teng said Northport had to learn from this experience to ensure such incidents do not recur as it would negatively affect Port Klang’s reputation in the region.

By: NST

NCB Holdings Bhd expects the construction of Wharf 8A in Port Klang by its subsidiary Northport (Malaysia) Bhd to be operational in September this year.

NCB Holdings chairman Tun Ahmad Sarji Abdul Hamid said Northport would be able to gradually handle close to 5.6 million twenty-foot equivalent units (TEUs) of containers once the wharf is completed.

“Wharf 8A, which will inject an additional container handling capacity of 600,000 TEUs, is important for Northport to retain its customers.

“The wharf will contribute to the efforts in strengthening the institutional capacity at Northport,” he told a media briefing on the progress of Wharf 8A at Northport here today.

Wharf 8A, which forms part of Container Terminal 4 at Northport involving an investment of nearly RM350 million, will be able to berth vessels with deeper draft of up to 17 metres which in turn will improve connectivity.

The wharf, together with the planned re-development of container wharves eight, nine and 10, will eventually offer seamless container wharf configuration to support ultra large vessels (14,000 TEUs and above) which are being deployed by main line operators currently.

Ahmad Sarji said the contractors of the wharf took three mitigation plans to ensure the smooth progress of the wharf including increasing the number of workers, extending the working hours and having additional team to work from southern end of the wharf.

He said he was confident in the integrity part of the wharf structure based on the proven track record shown by the contractor.

Ahmad Sarji said Northport aimed to handle about 3.4 million TEUs of containers this year compared with 3.09 million TEUs last year. BERNAMA

KLANG: The proposed third port, to complement the existing Northport and Westports, is currently awaiting cabinet approval, Port Klang Authority chairman Datuk Dr Teh Kim Poo said.

Teh said the facility will help accommodate the growing demand.

“The existing North and West ports are capable of catering to port users until 2016. The establishment of a third port will greatly help these two,” he told reporters at the closing ceremony of Port Klang’s golden jubilee celebrations here, on Friday.

Teh said the third port is expected to be built on a private land, unlike its two predecessors, which are located in the land owned by the Port Klang Authority

The Port Klang Development Master Plan, completed in April this year, outlines a new site for port expansion as well as proposals on the redevelopment of its third port, Southpoint.

Northport and Westports are currently the two main ports in Port Klang, ranked among the world’s top 20 ports in the world.

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.

Port Klang, comprising Northport and Westports, has retained its title as the country’s busiest container port in the first half of this year, with a 48.3 per cent share of the total number of containers handled by all Malaysian ports.

Its rival, Port of Tanjung Pelepas in Johor, was listed second busiest, handling 35.4 per cent of the country’s total container throughput.

Port Klang moved 4.31 million TEUs (20-foot equivalent units) of cargo in the January-June 2010 period, up 29.3 per cent from 3.33 million TEUs a year earlier, as the global economic recovery boosted cargo traffic, said Port Klang Authority (PKA) general manager Kee Lian Yong.

It handled 856,110 TEUs of exports, up 25.8 per cent from a year earlier, and the volume of imports rose 18.2 per cent to 828,082 TEUs. Transshipment volume rose 34.5 per cent to 2.62 million TEUs.

Kee said Westports led the way in the first half of 2010 with a 30 per cent increase in container volume from the same period in 2009, handling 2.65 million TEUs, while Northport saw a 28 per cent increase to 1.66 million TEUs last year.

“We are on track to achieve our stretch target of 8.4 million TEUs for the whole year, where Westports is projected to handle 5.2 million TEUs and Northport 3.2 million TEUs. The fourth quarter is traditionally the busiest quarter of the year,” Kee told Business Times in an interview.

Port Klang moved 7.31 million TEUs last year, a decline of 8.3 per cent compared with 7.97 million TEUs recorded in 2008.

“The projection for 2011 is a growth of 10 to 12 per cent in container volume (from 2010),” said Kee.

Meanwhile, in terms of tonnage handled, traffic through Port Klang in the first five months (January-May) of this year increased by 36.8 per cent to 65.54 million tonnes from 47.90 million tonnes a year earlier.

“PKA and the two terminal operators (Northport and Westports) took this time of slow-paced economy and downturn to reshape our strategies. These strategies have hastened and increased our growth even more so with the global economic recovery as can be seen by our growth percentage for the first half of 2010,” said Kee.

He added that the port authority is aware that emerging ports in Asia such as Vietnam and Sri Lanka pose stiff competition to Port Klang.

“In order for us to be competitive, we are constantly looking at our operations to ensure (we offer) effective and efficient service, are service oriented, and have cost-effective operations and a commercial competitive environment,” he said.

By: Kang Siew Li

It will reactivate berth expansion plan on economic recovery

PETALING JAYA: NCB Holdings Bhd projects a volume increase of 10% to 15% and will reactivate its expansion plan at Northport (M) Bhd this year in line with the current economic recovery trends.

Northport, a port operating subsidiary of NCB, posted a 5% decline in volume to 2.9 million twenty-foot equivalents units (TEUs) last year due to the global economic downturn.

Chairman Tun Ahmad Sarji Abdul Hamid said the positive volume outlook this year was for containerised and conventional cargo.

We only expand to commensurate the business that we have: NCB HOLDINGS BHD CHAIRMAN TUN AHMAD SARJI ABDUL HAMID

“And since there are perceptible trends in economic recovery, the group has decided to reactivate the expansion of berth 8A this year,” he told reporters after the company AGM yesterday.

The expansion of berth 8A or container terminal 3 is part of Northport’s RM585mil five-year expansion plan announced in 2008. The project was postponed due to the global economic meltdown.

Ahmad Sarji said works on berth 8A would commence in two months for completion in about 18 months.

“The capital expenditure (capex) on the project has been revised where the cost will be determined by tendered price.

“Northport will continue to be prudent. We only expand to commensurate the business that we have and to retain our customers,” he said, adding that Northport’s 30-year lease agreement would expire in 2013 and it was doing the necessary to renew the lease.

Northport managing director and chief executive officer Datuk Basheer Hassan Abdul Kader said the revised capex on berth 8A was line with the drop in raw materials prices and construction cost.

He also forecast closing the port’s first quarter this year with a 24% year-on-year volume increase.

“But, it must be noted that the previous corresponding period was the worst quarter that the port recorded last year in tandem with the global economic downturn,” he said.

On NCB’s other business in container haulage and logistics via Kontena Nasional Bhd (KN), Ahmad Sarji said the company now was on the fast track to fully utilise its sizeable assets in an effort to move into third-party logistics (3PL) business.

“The move into 3PL is considered a natural progression for a haulage company like KN. Besides our prime movers, we also have over three million sq ft of open yard and 500,000 sq ft covered warehouse.

“About 50% to 60% of our 3PL customers last year were our current haulage customers,” he said.

NCB recorded a 12.1% drop in total revenue to RM831.4mil in its last financial year ended Dec 31.

However, its pre-tax profit was 2.3% higher at RM167.9mil.

NCB has also declared final and special dividend of 21 sen per share.

Northport recorded a pre-tax profit of RM148mil on revenue of RM611.9mil last year.

Meanwhile, KN posted a pre-tax profit of RM9.7mil and revenue of RM219.5mil for the year under review.

Northport (M) Bhd’s commitment to human capital development was recognised recently when it bagged the 2009 Human Resources Ministry HR Development Award under the major employer (services sector) category.

The award, organised annually by Pembangunan Sumber Manusia Bhd, is the country’s leading event to recognise leadership and benchmark human resource practices.

Northport managing director and chief executive officer Datuk Basheer Hassan Abdul Kader said that as a service-related company, Northport placed high importance on human capital development.

Datuk Basheer Hassan Abdul Kader

This was to ensure service levels offered by the port meet global standards, he said in a statement.

“We are a global port serving the needs of more than 100 global shipping lines which connect Northport to more than 300 ports worldwide.

“Thus the expectation is very high on the delivery standards and performance levels which cannot be achieved unless we have well-trained and dedicated workforce in Northport,” he said.

Northport has 2,700 employees.

Basheer said in view of the heavy responsibility placed on the port’s workers, Northport had given considerable importance to retraining and skills upgrading.

“We have a dynamic human resources development programme which aims to equip our employees with specialised and up-to-date skills. This is especially since businesses are becoming more competitive and demanding,” he said.

Northport is Malaysia’s largest multi-purpose port. It offers the widest shipping connectivity among ports in the country.

By: The Star Online

PORT Klang Authority (PKA) has decided to withdraw its scheme to provide incentives to feeder operators linking Port Klang to regional ports, with effect from this year. It will, however, still pay out the monetary incentives due to operators for the year 2007.

For the year 2008, though, feeder incentives will be based on a new formula for qualified operators. The new formula was not specified in the statement released to the press.

The feeder incentive scheme was developed and introduced by the PKA in 2000 as part of an overall strategy to further strengthen Port Klang as a national load centre and a regional hub port.

Selected local and regional feeder operators and landbridge operators enjoy a rebate of RM20 for a 20-ft container and RM35 for 40-ft container sent through Port Klang as well as a 10 per cent discount on marine charges such as pilotage and tug boat services by the respective terminals, Northport and Westports, under the old feeder incentive scheme.

While the idea had been mooted that the costs of incentivising feeder operators be transferred to terminal operators, Northport and Westports, a PKA official told Business Times, that feeder and terminal operators have instead, been left to negotiate their respective terms.

“It is not a matter of transferring the costs to the terminal operators, up to the two parties to come to an arrangement,” the official said.

In a statement released on September 17, PKA recommended that Northport (M) Bhd and Westports Malaysia Sdn Bhd play a more active role in encouraging feeder operations in Port Klang.

The feeder incentive scheme has been suspended since 2008.

By: btimes.com.my

It will institute measures to reinforce its authority as port regulator

PORT KLANG: Port Klang Authority (PKA) has come out with four proactive initiatives to further boost the efficiency and businesses at terminals and its supporting industry.

Its new general manager Kee Lian Yong said PKA would institute necessary measures to reinforce its authority as a port regulator and play a positive role in safeguarding the interest of all players in the industry. “First is the registration of all necessary logistics players in Port Klang to ensure efficiency and cooperation.

“We will also have to continue monitoring the performance of the ports closely to ensure compliance on the efficiency and performance at the ports are maintained and at par with international standards.

“Next, all direct port activities and ancillary services within the port limit should be licensed where PKA has taken steps to license and regulate private jetty operators.

“So far, PKA has approved 20 private jetty operations based on the merit that they will contribute and complement trade growth here.

“Finally, PKA is enforcing enhanced security and safety within the port limit and pilotage district where it has ugraded the Vessel Traffic Management System which now includes the Automatic Identification System in line with the International Maritime Organisation’s safety of life at sea convention,” he told reporters at a briefing on PKA’s strategies for growth and improved services yesterday.

Kee added that Port Klang was also equipped with scanners at both Northport and Westports together with megaport initiatives with the US Customs.

Kee said PKA would also set out a strategic port master plan which would map out the direction of Port Klang for short- and long-term planning for the next 10 to 20 years.

The current port master plan expires next year.

He said the prospect of strengthening Port Klang’s competitiveness could be via better cooperation between the two terminals.

“Whilst healthy competition is encouraged, I believe there’s room for enhanced cooperation between the two that will lead to better services for port users, optimisation of port capacity and mutual long-term benefit for the industry as well as the nation,” he said.

PKA is the trade facilitator, regulator and landlord of the terminals in Port Klang.

To further enhance the port’s efficiency, Kee said PKA’s effort to deepen and widen the south entrance to Port Klang was 60% to 70% completed.

The dredging project will see a deeper south entrance of 16.5m from 15.5m previously, and width of 500m from 365m previously.

“The RM100mil project is set to be completed by December,” he said.

In terms of container volume, Kee said the volume in the second quarter of this year showed significant improvement of 7.8% quarter-on-quarter, reflecting signs of recovery going foward.

“But, the container throughput declined by 15.4% in the first six months this year against the same period last year.

“Hence, Port Klang’s full year volume is expected to contract by 10% this year against 7.9 million twenty-foot equivalent units in 2008.

“From the positive indications, we hope to fare better next year,” he said.

Additional initiatives according to Kee would include gearing the industry for the implementation of reduction of free storage period for import and export containers at the terminals to three days effective Jan 1. The free storage time at present is five days.

Kee said PKA would also step in to resolve issues in the industry such as depot gate charges and feeder incentive scheme.

On Port Klang Free Zone, Kee said PKA would announce its business turnaround plan in two months after securing approval from relevant stakeholders.

Kee, who is an accountant by profession with about 25 years of experience in the corporate world, took the helm of PKA two months ago replacing former general manager Lim Thean Shiang.

By SHARIDAN M. ALI

Port Klang handled 7.97 million TEUs last year, ie, 48.5 per cent of the total number of containers carried by all Malaysian ports

PORT Klang, the home of Westports and Northport terminals, remained the leading port in the country last year, holding a 48.5 per cent share of the total number of containers carried by all Malaysian ports.

It handled 7.97 million TEUs (20-foot equivalent units) last year, against the 16.4 million TEUs handled by all Malaysian ports last year.

Westports led the way with a 15.2 per cent increase in container volume from 2007, handling some 4.96 million TEUs, while Northport saw a 7.1 per cent increase to three million TEUs last year.

Conventional cargo movement for last year saw a 0.2 per cent increase to 22.2 million tonnes for Port Klang.

In terms of numbers carried by individual terminals, however, Port of Tanjung Pelepas (PTP) in Johor remained the top port, handling 5.6 million TEUs last year.

PTP was followed by Westports and then Northport.

Of all Malaysian port terminals, only one, Kuantan Port, registered a contraction in container volume last year.

Kuantan Port recorded a 0.4 per cent decline in container volume, from 127,600 TEUs in 2007 to 127,061 TEUs last year.

All ports in Sabah and Sarawak recorded positive growth in container volume, with Miri registering the biggest jump, growing by 30 per cent to reach 28,094 TEUs from 21,618 TEUs in 2007.

Bintulu Port managed to record robust growth last year, increasing to 286,013 TEUs from 251,800 TEUs in 2007.

For 2009, the local port industry is expected to experience a drop in cargo volume handled as import and export activities fall, amid slowing demand for goods.

Last week, Port Klang Authority (PKA) general manager Lim Thean Shiang had said that this year’s contraction would see Port Klang’s container throughput fall to levels experienced in 2007 to 7.118 million TEUs.

By : btimes.com.my