ASEAN Ports Association Malaysia (MAPA)

NORTHPORT is considering to delay the upgrading of one of its wharfs due to the economic slowdown.

“I understand that Northport is considering holding back the upgrade but whether they should hold it or not is another question,” Port Klang Authority general manager Lim Thean Shiang said during a briefing in Port Klang last Tuesday.

He said certain developments were necessary to cater to continued growth even though there may not be an immediately need for it.

“During recession one can only position oneself to be ready for the up and coming growth cycle, and if we do not have the adequate facilities available, how do we capitalise on such opportunities?” Lim said.

He said Port Klang would monitor the situation and hold consultations with ports on issues involving the development of the ports.

Northport managing director and chief executive officer Datuk Basheer Hassan Abdul Kader was quoted as saying in November last year that it would keep its RM500 million expansion plans on track.

The plan includes the development of a 350m container berth, bringing the container quayline at the port to a total of 3.4km.

By : btimes.com.my

… due to bleak outlook

PORT KLANG: Port Klang, the national maritime gateway, projects a 10% fall in cargo volume due to the bleak outlook for the economy this year.

Port Klang Authority (PKA) general manager Lim Thean Shiang said both port operators, Northport and Westports, started to feel the contraction in volume last month with a 16% drop in cargo volume against the same month in 2008.

“In an effort to cultivate and sustain the port business this year, especially import and export activities, PKA has decided on a blanket waiver for those who have difficulties in adhering to the three-day container free storage period at the port,” he told a press conference yesterday.

Port Klang previously had a five-day free storage period but this was cut to three days effective Jan 1.

Lim said the continuation of the waiver would be reviewed in July based on the economic climate then.

Lim Thean Shiang

Lim Thean Shiang

“But, the Port Klang community must continue to upgrade their efficiencies to operate under the three-day free storage period when the economy revives,” he said.

Additionally, PKA will also continue the feeder incentive scheme by April but with a new pre-qualification criteria.

The feeder incentive is given to feeder operators that help bring cargo to Port Klang from other places in the region.

The incentive was frozen in October for PKA to re-study its contribution to the cargo growth at Port Klang.

A total sum of RM37mil in incentive had been given to feeder operators since 10 years ago.

On Port Klang’s performance, Lim said it had recorded a 12% increase in cargo volume to 7.97 million 20-ft equivalent units (TEUs) last year from 7.11 million TEUs in 2007.

“This achievement has propelled Port Klang to be ranked the 15th-busiest port of the world in terms of volume last year from number 16 the previous year,” he said.

By SHARIDAN M.ALI

In June this year, the port community in Port Klang was surprised by the entry of little known Lim Thean Shiang as Port Klang Authority’s general manager.

Coming to a post that has traditionally been reserved for long-serving government employees, Lim was worried of only two things – the acceptance of PKA employees and the port community.

“They (PKA staff) were sceptical of me, because I was from the private sector and therefore had doubtful management skills,” Lim quipped.

He said direct and indirect feedback gathered has been very encouraging.

“I feel that they have taken to my management style. I believe in empowering the staff, have them chair meetings, make decisions… it’s a new culture for them.”

Lim was handpicked by Transport Minister Datuk Ong Tee Keat to head Port Klang Authority after the March general elections. The official appointment, how-ever, came two months later on June 6.

He put the two months to good use by visiting both Northport (M) Bhd and Westports Malaysia Sdn Bhd, as well as meet up with logistics players to get a better understanding of the industry.

The 37-year-old lawyer by training is not daunted by the mammoth task ahead of him though, as he points out that his task is to make sure that plans for Port Klang are on track.

“The plans for Port Klang still remain the same. The way I look at it… what is important is to put Port Klang back on the world map, to promote Port Klang and not the port operators.

“Both port operators must assist Port Klang in promoting us as Port Klang not as Northport or Westports,” Lim said

Besides continuing with the goal of making Port Klang the transshipment hub of the region, Lim plans to set out a 15-year strategic port development plan, which will map out the direction of both port operators in Port Klang and the kind of facilities and technology needed to develop both ports.

“I realise the efficiency of both ports are mainly reliant on the transportation infrastructure, especially the road infrastructure. So, we will put up the proposal to the Ministry of Transport, which will be most likely tabled in the 10th Malaysia Plan, to see how we can link up both ports,” Lim said.

He said the linkage would reduce internal transfer time as well as divert the movement of cargo trucks away from the public road system.

By : Presenna Nambiar

THE Port Klang Authority (PKA), the regulator of Northport and Westports, plans to review the tariff structure at both terminals to bring their rates on a par with their neighbours’.

“People perceive that cheap tariff is the main reason why a shipping line calls at a port. I think that is the least of the reasons, but rather it’s about the efficiency and cost-effectiveness,” PKA general manager Lim Thean Shiang told Business Times in an interview.

He said Port Klang’s tariffs on most of the services it provides have remained unchanged since 1965.

It was reported that current handling charges for a 20-foot and a 40-foot container are RM230 and RM345 respectively. For transhipment, it costs RM140 for a 20-foot box and RM210 for a 40-footer.

“It is not about making more profit, but about helping port operators improve their infrastructure and facilities.

“If they don’t get higher tariffs, it is difficult for them to reinvest (in new equipment and facilities); and, if they don’t reinvest, we will never catch up with other (international) ports,” Lim said.

Citing Hamburg as an example, he said that 70 per cent of its operations is automated. Its port charges are about five to six times higher than those at Port Klang.

He has asked that the PKA’s research and development team collect tariff rates of ports in the region, which has several world-class ports, as a benchmark.

Once a review is done, a proposal will be sent to the Minister of Transport for approval.

On another matter, Lim said the port authority had put the dredging of the north channel on hold. It will study the viability of expanding the south channel instead.

The initial plan was to dredge the north channel in two stages to a depth of 15 metres, from 11.3m.

Work to deepen the channel to 13.3m has been completed, but further dredging to 15 metres is pending approval.

Expansion of the south channel waterway from 365m to 500m will allow for two-way traffic.

Lim said the final decision on which project to proceed with will consider the economic and safety benefits to be derived.

While both projects will need about the same amount of capital outlay, further dredging of the north channel would be more costly owing to the maintenance dredging needed to upkeep the depth at 15m.

“I am from the private sector, and it’s all about dollars and cents. All decisions should be based on commercial gain,” Lim said.

By : Presenna Nambiar

Come January, a new law reducing the period in which containers can be stored at Port Klang for free from five days to three will be enforced

PORT Klang Authority (PKA) will organise a trial run for the soon-to-be-implemented three-day free storage period for containers at Port Klang from November 1, with the cooperation of several members of the Selangor Freight Forwarders & Logistics Association.

“We are having the trial run to ensure that there are no hiccups in January when we fully implement the ruling … it also gives us two months to refine it to make sure that it benefits the whole port community once it is implemented,” PKA general manager and chief executive officer Lim Thean Shiang said in Port Klang last week.

Come January, a new law reducing the period in which containers can be stored at Port Klang for free from five days to three will be enforced.

In July this year, PKA had set up a committee, which comprises representation from all trade associations, to come up with a standard operating procedure (SOP), detailing the role each party plays in the total logistics chain and the cut-off time for export and import shipments.

Lim said almost 100 per cent of the SOP of each logistics provider has been finalised to date.

The committee has also come up with three areas of improvement that need to be focused on.

Firstly, the need for an amendment to clause 65(3) of the Port Klang Authority Bylaws to exempt containers which are detained by Other Governments Agencies, and a change in calculation of free storage period from days to hours.

The committee also suggested that the advance notification requirement to hauliers be reduced from 48 hours to 24.

PKA will consult with the Ministry of International Trade and Industry Development on the matter of the advance notification as the Association of Malaysian Hauliers has yet to agree to it.

Lim also said as part of the Ninth Malaysia Plan, PKA is looking at improving the connectivity bet-ween Northport and Westports due to the high cost of inter-terminal transfer of containers between the two ports.

The regulator is mulling the possibility of having a dedicated road for transporters between the ports, so as to reduce the number of accidents on public roads as well as to cut the handling costs between the two ports.

By: btimes.com.my

Bintulu Port celebrated its 25^th Anniversary on 15^th August 2006.  The activities to mark the special occasion started on 12^th August till 19^th September 2006 which include the open sea fishing competition, open golf tournament, the game of futsal and netball, religious ceramahs, port open day an port exhibition.  The climax of the celebration was the official opening ceremony of Bintulu Port Authority’s new building “MENARA KIDURONG” by Tuan yang Terutama Tun Datuk Patinggi Abang Haji Muhammad Salahuddin, Yang Di-Pertua Negeri Sarawak on the 19^th September 2006.  The Honourable Tun was accompanied by Toh Puan Datuk Patinggi Hajah Norkiah, Deputy Chief Minister / Minister of Infrastructure Development & Communication of Sarawak / Minister of Rural Development, YB Datuk Patinggi Tan Sri (Dr) Alfred Jabu Anak Numpang.  Also present for the ceremony was Deputy Secretary General (Operation), Ministry Of Transport Malaysia Y. Bhg. Dato’ Jamilah Mohd. Jan, who represented the Honourable YB Minister Of Transport Malaysia.

Others dignitaries present included Resident of Bintulu, Dr Razali Abon, Tuan Hj. Mohidin Bin Ishak, General Manager of Bintulu Development Authority, Heads of Departments from various government agencies and private companies including General Manager of Sabah Ports Authority, Perbadanan Aset Keretapi and representatives from Port Klang Authority and Johor Port Authority.  Welcoming address was delivered by Y. Bhg. Capt. Abdul Rahim Bin Akob, General Manager of Bintulu Port Authority and the keynote address was given by Y. Bhg. Dato’ Jamilah Mohd. Jan, who represented the Honourable YB Minister Of Transport Malaysia.

Historically, Bintulu Port Authority (BPA) began 25 years ago with its establishment on 15^th August 1981 under Bintulu Port Authority Act 1981.  It carried with it the responsibilities covering the development, administration, marketing and provision of adequate and efficient port services.  This is aimed at making Bintulu Port the largest and most efficient transport and distribution centre in the region.  Bintulu Port commenced its operations on 1^st January 1983.  Bintulu Port Authority is a Federal Statutory Body under the Ministry Of Transport Malaysia.

By 1993, the government had decided to corporatise and subsequently in 2001 privatize the port services operation at Bintulu Port under the privatisation Acts 1990.  For the purpose of carrying out port services operation, Bintulu Port Authority had licensed Bintulu Port Sdn. Bhd. a port operating company.  Following the privatisation of Bintulu Port operations in 1993, Bintulu Port Authority was restructed in accordance with its main function as a regulatory body entrusted to oversee all activities at the port including the utilization of port facilities and operations by licensed port operators, owner of port properties, acts as trade facilitator, planning and development of the Port.  Bintulu Port Authority also overseas and ensures the safety and security in port operations at Bintulu Port and within its water limit.

Bintulu Port is the only export gateway for Malaysia’s biggest export earner – liquefied natural gas (LNG) produced from the Central Luconia field, off the Bintulu coast.   Even though LNG is the main commodity handled at Bintulu Port, a variety of general cargo, liquid and dry bulk and containerized cargoes continue to grow in volume.

Throughout twenty five years of existent, Bintulu Port doesn’t seem to slow down and continue to develop.  The Port has enhanced its operational capabilities considerably to provide greater capacity and capability to meet  the needs of the port users.  From merely 4.14 million tons in 1983, now Bintulu Port handles 36.44 million tones of cargo in 2005.  Ships calling at Bintulu Port have grew to 5,789 ship calls in 2005 from only 1,095 ship calls in 1983.  When it first operational, the main cargo (LNG) was recorded at 1.38 million tones which was handled through only one LNG jetty.  Now the cargo continues to grow with a recorded 22.26 million tones of LNG in 2005, handled through its 3 jetties which the latest one was launched officially on 22^nd April 2004 by YB Dato’ Seri Chan Kong Choy, Minister Of Transport Malaysia.  With this development Bintulu Port has become the single largest LNG export terminal in the world with the capacity to handle 23 million tones annually.

On 28^th June 2005, YB Datuk Douglas Uggah Embas, Deputy Ministry Of Transport Malaysia, accompanied by General Manager Captain Abdul Rahim Akob witnessed the handing over ceremony of the 2^nd Inner Basin and Interconnecting Dyke.  The 2^nd Inner Basin will facilitate the port operation especially for ever growing palm oil industry with the oil palm terminal supported by bulking installation located in the area.

Menara Kidurong, the new BPA Corporate Headquarters Building was completed April 2005.  It will play a major role in facilitating the business transaction within the port by becoming the modern one stop centre that will host several government agencies and all major players in the port community, including a fully-equipped Control Tower for overall port surveillance.  The building offers more than 9,000 square meters of rentable office space, a shipping hall, auditorium, cafeteria, exhibition hall and function rooms, basement parking and many other facilities.

BPA commitment to quality was given due recogniction with the accreditation of ISO standard by Independent European Certification (IEC) with the certification of MS ISO9001:1994 in 2001 for “Regulating the operation and handling of LNG at Bintulu Port”.  The objectives were to ensure the quality and safety of LNG operaton at Bintulu Port.  The certification was upgraded to the ISO9001:2000 version on 22^nd December 2003.  BPA was also certified to be compliant to the International Ship & Port Security (ISPS) Code with effect from 1^st July 2004.  This has placed Bintulu Port on an international footing for all foreign vessels to have confidence in Bintulu Port security measures.  It is also a testimony of Bintulu Port commitment to provide a secure and safe environment for all port users and creates a more comprehensive awareness of threats.

On it’s 25^th Anniversary, Bintulu Port Authority has established its indispensable role to ensure the development of maritime trade and port industry in the country and the region.  It plays an important role in the establishment of Bintulu Port as Malaysia’s LNG Gateway and in the establishment of Bintulu as an important logistics and trading hub for this part of the country and region at large.  With vast experience since its inception in 1981, BPA will continue to play its role as the governing body of Bintulu Port, working hand-in-hand with the Port Operator and other agencies to bring Bintulu Port to greater heights and better prepared in meeting future challenges.

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.