ASEAN Ports Association Malaysia (MAPA)

BILATERAL trade and investment with China will soon be given a shot in the arm with the expansion of Kuantan Port and as it adopts the Eastern Gateway name.

Offering the most direct route between both countries, it also reduces sailing time to three days between Kuantan and southern China.

East Coast Economic Region (ECER) Development Council chief executive officer Datuk Jebasingam Issace John said the Kuantan Port will serve the industries in ECER, with cargoes such as oil palm products, petrochemical products, bulk cargo (iron ore) and automotive parts and components, with the growth of the Pekan Automotive Park.

It will also serve bulk cargo and container traffic.

The government, he said, is investing RM1 billion to build the 4.7km breakwater at the port, one of the longest in the world, as well as upgrading external infrastructure to support the port expansion.

The newly built breakwater will create a sheltered basin that will allow berths to operate safely and efficiently throughout the year.

“The private-sector investment worth RM3 billion is for the carrying out of the capital dredging, reclamation works to create new development land, construction of new berths, operational buildings and facilities, and provision of equipment and machineries for port operations,” he said yesterday.

The expansion of Kuantan Port, which will be officially launched by Prime Minister Datuk Seri Najib Razak on September 7, will further accelerate the transformation of the region and position itself as the investment gateway to Asean and Asia Pacific.

Kuantan Port is now in the midst of expansion involving deepwater-dredging works.

John does not think the Malaysian ports will be competing against each other for transshipment.

“Each of Malaysia’s ports has its own unique positioning.

“In the case of Port of Tanjung Pelepas, it is strategically located at the confluence of the main east-west shipping lines whereas Kuantan Port is a multipurpose port located in the ECER Special Economic Zone, where there is already a concentration of various industries.”

A catalyst for the growth of traffic at Kuantan Port is the Malaysia-China Kuantan Industrial Park (MCKIP), the sister park of China-Malaysia Qinzhou Industrial Park that will promote the growth of bilateral trade with China.

The port concession is a joint venture between IJM Corp Bhd and the Guangxi Beibu International Port Group that operates four major ports in southern China, including Qinzhou Port.

“The marketing of Kuantan Port to international shipping lines is handled by the port operator, namely Kuantan Port Consortium.”

Meanwhile, ECER is expecting to complete the RM30 billion 620km East Coast Rail Link (ECRL) feasibility study by early next year.

“The study covers both the engineering and financial aspects of the project,” he said.

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.

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

PASIR GUDANG: Johor Corp (JCorp) will be investing RM500mil under the second phase of the Tanjung Langsat Port expansion plan this year, said chief executive officer Tan Sri Muhammad Ali Hashim.

Two new berths measuring 500m each dedicated to the handling of general cargo would be built at the port, he said.

“It is necessary to further expand and upgrade facilities at the port to accommodate the needs of existing investors and to attract potential ones,” Ali told reporters after presenting awards to athletes of the Johor Yachting Association on Saturday.

JCorp is the parent company of port operator Tanjung Langsat Sdn Bhd (TLSB) and TMP Technopark Sdn Bhd, which is developing the 1,400ha Tanjung Langsat industrial estate.

Since 2000, TLSB has invested RM500mil in the port, equipping it with machinery to handle liquid petroleum cargo and other hazardous chemicals and building storage facilities.

Ali said the port was originally built to handle liquid petroleum-related cargo, not general or dry cargo. “However, we have to make some changes to include berths for handling general cargo as there is demand for such facilities here,” he said, adding that the port would have between 12 and 14 berths under the port’s long-term expansion plan.

Ali said to date, there were 21 local and foreign companies operating in the industrial estate with a combined total investment of RM10bil including infrastructure.

He said although the outlook for the global economy was uncertain, there remained opportunities in niche segments such as the petrochemicals industry.

JCorp will be targeting more investors from the Middle East and will join a trade delegation to the United Arab Emirates later this month, according to Ali. He said that the Middle East investors he met on his trips to the Gulf States recently had expressed their commitment to invest more in Malaysia.

“They did not want to take any more risk by putting their monies in Europe and the United States unlike before and now most of them see Malaysia as a safe haven for their investments,” he said.

By ZAZALI MUSA

On 4 April 2005, Kuching Port Authority celebrated its 44th anniversary. KPA’s Chairman, YB Awang Bemee Bin Haji Pengiran Ali Basah, accompanied by General Manager, Madam Liu Moi Fong and Assistant General Manager, Mr. Rosli Saup attended for the function. Others present included KPA’s Deputy Chairman, Mr. Kong Ping Kung, Board Members and senior staff of Kuching Port Authority. To commemorate the auspicious event, a total of 27 staff received certificates of excellence for the exemplary work in year 2002. To all the members of Kuching Port Authority, the 44th anniversary celebration is indeed a very meaningful. It took hard work and effort to achieve what we see today. Since its operation which first started in 1961, for over forty years now KPA never stops to develop. From a single wharf at Tanah Puteh with an annual capacity of 350,000 tonnes to Pending with an annual capacity of 2.9 million tonnes and now to Senari with an annual capacity of 7.0 million tonnes, KPA aims to doing better and giving better services to cutomers.

Historically, Kuching started the import and export activities at Ban Hock Wharf as early as 1948. In order to have port facilities for trading and economic advancement of the state, Kuching Port Authority (KPA) as set up at Tanah Puteh. It became the first organized port in Sarawak, serving the state and the people, and had grown tremendously over the past four decades. Officially establised on 4 April 1961, KPA began operation on 5 June 1961 at Tanah Puteh with a single wharf of 800 feet in length and storage space of 60,000 square feet. Towards the end of 1972, KPA assumed full control and operation of the Biawak Oil Jetty, which was mainly used by tug boats to carry petroleum products to the nearby Shell and Esso installations.

By 1975, with the completion of main facilities under the Port Expansion Project Pahse 1, it was declared open and commenced operation on 16 March 1975, named Datuk Sim Kheng Hong Wharf. Twelve years later, port expansion Project Phase II was completed. Thus, the Pending Terminal was declared open on 8 September 1988. In 1989, KPA launched its first computer system and became the first Malaysian Port Authority to have its container Tracking Systems accorded the MS ISO 9002 certification on 12 August 1998. On 24 November 1999, former Prime Minister of Malaysia, tun Datuk Patinggi Dr. Mahathir Mohamed declared open the Senari Terminal. The migration of container operation from the Pending Terminal to Senari Terminal was completed in June 2001.

On 27 April 2004, KPA e-Port Community system was launched, where KPA is extending its services electronically through the web. This service aimed to facilitate paperless documentation, thus improving the efficiency of the overall logistic supply chain; at the same time reducing operating cost. it plays a major role in improving efficiency, speed, productivity and effectiveness of the port business. On the other hand, the Marine Department of Malaysia had also certified KPA to be compliant with the International Ship & Port Seciruty (ISPS) Code with effect from 1 July 2004. This placed KPA on an international footing for all foreign vessels to have confidence in KPA’s security measures. It is also a testimony if KPA’s commitment to provide a secure and safe environment for all port users and creates a more comprehensive of threats.

Kuching Port Authority recorded tonnage of 7.1 million tonnes of cargo handled in year 2004 and the number is expected to escalate in 2005.

By: Kuching Port Authority