ASEAN Ports Association Malaysia (MAPA)

PORT Klang Authority (PKA) is working towards diversifying its income stream in an effort to bear the costs of running both Port Klang Free Zone (PKFZ) and its own operations.

“Of course, now we are currently self-sufficient, but with the PKFZ loan to the service, we will have to come up with more revenue streams to generate income,” PKA general manager Kee Lian Yong told Business Times recently.

He was appointed in June to replace Lim Thean Shiang, who resigned earlier amid reports of a fallout with Transport Minister Datuk Seri Ong Tee Keat over the handling of the PKFZ controversy.

Lim was handpicked to take over the running of the port by the Transport Minister.

Kee, like Lim, was a member of the corporate sector, having headed listed companies such as Metroplex and Anglo-Eastern Plantations Plc.

He said the port authority is studying all options, but is mindful of its main role as trade facilitator.

“We believe there are a lot of opportunities. I would like to do more. As a man from the property sector, I can see that we have a lot of land here, and we have to look at how we can maximise the returns on that land,” Lee said.

He said rather than just concentrating on growing its bottomline, the port authority has to also consider initiatives that will enable the industry to grow.

Kee declined to reveal the amount of cash that PKA has in its coffers, claiming that its cash reserves did not correctly reflect the financial health of the regulator, considering its huge debts, because of PKFZ.

In 2008, it was reported that PKA’s main income comes from leasing of land under the port authority. The then general manager Datin O C Phang, had said that it made RM100 million per year.

Expenses on maintaining the port area, however, were said to come up to about RM80 million per year.

On his ambition for the port, Kee said he wants to create an equitable playing field for all players in the port industry.

“I don’t want to sideline any party. In fact I hope that we can build a supply chain that benefits everybody, and also promote the growth of the port industry,” Kee said.

By Presenna Nambiar

THE Port Klang Authority (PKA), which now holds the roles of trade facilitator, regulator and landlord aims to turn Port Klang into a hub for national and regional traffic.

PKA, established as a statutory corporation in 1963, was the port operator before the privatisation of port services which started in 1986.

With the divestment of the operational facilities and services of the port to three distinct entities under three separate privatisation exercises, PKA’s core functions under the re-shaped role are trade facilitation, port planning and development, regulatory overview of privatised facilities and services, free zone authority and asset management.

PKA is also involved in port promotion to turn Port Klang into a major regional transshipment hub and to develop facilities to meet the objectives.

Among PKA’s initiatives were the development of the country’s first inland port, the Ipoh Cargo Terminal and the first distripark, the Port Klang Distribution Park (now known as Northport Distripark). PKA is also the free commercial zone authority and overseer of the port’s Vessel Traffic Management System.

In line with its objective of developing Port Klang as a regional hub, it has also set up a one-stop agency to facilitate the establishment of businesses that will generate cargo for the port.

PKA is the owner and developer of the Port Klang Free Zone (PKFZ), which is located on a 1,000 acre site in Pulau Indah.

PKFZ is the first free zone in the country to integrate industrial and commercial activities within the same area and is designed to facilitate the growth of regional distribution or international procurement centres.

PKA also has jurisdiction over the Port of Malacca at Tanjung Bruas. Its functions, powers, duties and jurisdiction was extended to Malacca Port in July 1983.

PKA board members consist of a chairman appointed by the King and ten directors (including the general manager), appointed by the Transport Minister.

By : biz.thestar.com.my