ASEAN Ports Association Malaysia (MAPA)

IJM Corporation Bhd, the operator of Kuantan Port, will invest about RM2 billion to build a new deep water terminal for the berthing of vessels of up to 200,000 deadweight tonnage.

IJM Chief Executive Officer and Managing Director, Datuk Teh Kean Ming said construction of the new terminal is expected to commence in the first quarter of next year, with a 24-month completion period.

Once ready, he said the new terminal will double the size of the multipurpose port, in terms of capacity to handle 52 million freight tonnes of cargo, from the current 26 million.

“We are currently looking at the final design plan. Once our Chinese partner, Guangxi Beibu Gulf International Port Group Co Ltd, come on board in October this year, we can decide on further specifications.

“The proceeds from IJM’s 40 per cent stake disposal in Kuantan Port to Guangxi, will be used to fund the construction, together with a portion of internal funding,” Teh told Bernama.

The IJM-Guangxi sale and purchase deal of about US$102 million (about RM323.08 million), is expected to be finalised within the next three months.

Teh said the new terminal will be constructed with a water depth of 16 metres, with plans in place to dredge the waters to two more metres, in the second phase of development.

“We will construct the terminal under the first phase. The construction works will be mainly undertaken by IJM, as we have the expertise,” he added.

The expansion of Kuantan Port is part of the Malaysia-China Kuantan Industrial Park (MCKIP), in which Guangxi will invest more than RM7 billion directly or via joint ventures with Malaysian companies.

Kuantan Port is situated about 25 kilometres to the north of Kuantan city and faces the South China Sea on the east coast of Peninsular Malaysia.

Previously run by the Kuantan Port Authority, it was privatised in 1998, and is now operated by Kuantan Port Consortium Sdn Bhd.BERNAMA

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

The growth of cargo in Malaysian ports for the first six month this year is a very encouraging sign for the port businesses. If the growth continues for the next six month then Malaysian ports would have a very good year and investors would be lining up to snap-up port shares whenever they are available on the market. It is good to see various port shares trading on the KLSE moving upwards and hopefully will be better by the year end.

Ports infrastructures also had remarkable growth – the opening of the Sepangar Bay Container Port, Kota Kinabalu on 1st June 2007, marked a very important step in the development of ports in East Malaysia and particularly in Sabah. After a long break ports in Sabah are beginning to throb again, congratulations to Sabah Ports Sendirian Berhad. When I took a brief visit to the Terminal on 27th June 2007, I saw the container yard was full of containers and I think SPSB may need to reclaim more land for bigger yards!

The deepening of the North Channel in Port Kelang to enable  larger container ships to  enter and exit is another exciting development and hope will be completed soon. In Penang we have the development of the Swettenham Pier, on the Penang Island, into a cruise and leisure terminal intending for the cruise industries which is a booming industry in the Strait of Malacca. Of course, there are also ongoing development activities in PTP, Bintulu and private ports in Peninsular Malaysia.

Port physical growth is encouraging for the future of our economic well being, but we shall not forget  another equally important area that  needs growth – the port human resouces. As major ports in Malaysia grow ahead and  port regulators are  also expanding in order to cope with new areas of responsibilities, personnel with experience and know-how are slowly leaving the ports and pensioning off from port regulators. New personnel are recruited to replace those that left.  The arrival of new personnel which is fresh from universities and colleges and without the in-depth knowledge and experience of those that left have begun to create a vacuum in the ports. Many port regulators are  faced with this dilemma and urgent training of these young and fresh intakes are required in order to get trained and knowledgeable personnel. APA Malaysia had identified many courses that will be held and suitable trainers are being identified and methodologies discussed. I certainly hope that more young officers could be trained jointly by APA Malaysia instead of individually by one port . This is where APA Malaysia could be very useful in conducting joint training for all.

New and interesting ideas are being pushed – such as the Trans-Peninsular Pipeline project from Pulau Bunting, Yan, Kedah to Bachok, Kelantan to transfer oil from Strait of Malacca to South Chine Sea without passing the Straits of Malacca and Singapore – the world’s most congested international waterways. Whether this will materialised and be a reality, time will tell. If it become a reality, then Malaysia will have two additional ports to manage. It will be very challenging for young port officers who will be entrusted to run and manage new ports of the future. What we have to do now is train as many as possible to enable them to take the challenge and manage future ports in Malaysia and the world!

Regards,

Abdul Rahim bin Akob

President,

APA Malaysia.

Global uncertainty will continue to impact Kuantan Port throughout 2006. Last year, we registered almost the same volume recorded in 2004 i.e. 9.4 million tonnes. However, as the new year beckons, Kuantan Port is cautiously positioning itself and is optimistic that it will be better than 2005.

“Strategic positioning will continue ti be Kuantan Port Consortium Sdn Bhd (KPC) primary marketing focus. The four key areas include petrochemical, ASEAN automotive trade hub, China trade and palm oil. The strategic positioning of each of these key areas id calculated upon KPC’s strength and competitive advantages over other local ports. Each of these areas is also carefully formulated to be in line with the national and east coast states economic growth trend,” said Wong Soon Fah, COO of KPC.

He added that, ” The palm oil industry is a clear national core competency. It is one of the pillars of the Malaysian economy, accounting for 27% of the world’s largest producer of palm oil, contributing 58% of the world’s production. Malaysia’s R&D is way ahead of the competition, with more than 300 patents registered. The state of Pahang also has one of largest palm oil plantation in the East Cost stood at 2,416,004 tonnes or 33% of Peninsular Malaysia’s total CPO production”.

Among many of its uses, palm oil is also said to be one of the most promising renewable energy source. The depletion of fossil fuels, coupled with the increasing awareness of environmental protection, has led to concerted and escalating efforts in search for a renewable and environmentally friendly alternative energy source and biodiesel is the result. Biodiesel is a clean burning alternative fuel derived from a blending process of processed liquid palm oil and petroleum diesel which can be used in compression ignition engines ir diesel engines.

Biodiesel is the term refers to methyl esters of long chain fatty acids made using an alcohol like methanol and a chemical process that separates glycerin and methyl esters (biodiesel) from fats or vegetable oils such as palm oil, rapeseed oil, and soy bean oil. Biodiesel is cleaner as it does not emit toxin, does not contain sulphur, and has lesser carbon monoxide. Using biodiesel could reduce environmental pollution by between 75 percent and 90 percent and provide better engine lubrication as compared to petroleum diesel.

Biodiesel have become increasingly popular in recent years amid concern over the world’s diminishing oil and gas reserves and as countries try to reduce their dependence on imported fossil fuels. In Malaysia, biodiesel will be fully commercialised and ready for general use from January 1, 2007. High demand of biodiesel from countries like Italy, Germany, South Korea, Columbia and India has inspired palm oil companies in Malaysia to embark on the production of this highly touted renewable energy.

The COO mentioned that,”As at November 2005, already nine companies were issued with approved license to produce biodiesel and two are located at Gebeng and Kuantan Port Industrial Area. The location chosen was partly due to the fact that the plant must be close to an export point to save on logistics costs. Kuantan Port Industrial Area has string advantages in terms of the availability of palm oil and its downstream oleochemical activities as well as other raw materials to produce biodiesel. Its existing facilities such as the availability of pipe rack facility, tank farms, dedicated palm oil berth and liquid chemical berths also compliments the whole set up”.

“For those who are planning to set up a biodiesel plant, rest assured that Kuantan Port is ready to receive you. We have proven track record in promoting investments in the petrochemical and palm oil industries and presently handles over 3 million tonnes of liquid cargo annually. To further enhance and to make Kuantan Port an attractive site, an additional berth will be constructed with land adjacent for tank farms for storage”. remarked Wong.

By: Kuantan Port Consortium Sdn. Bhd.