ASEAN Ports Association Malaysia (MAPA)

PENANG: Penang Port Sdn Bhd (PPSB), the port operator, has invested RM1.1 billion over the last five years to upgrade infrastructures at the port and Container Terminal as part of initiatives to pump-prime the state economy, Chief Minister Lim Guan Eng said on Wednesday.

He said the huge investment had indirectly bolstered operations of the port and the terminal, key revenue contributors to the state economy.

Continuous upgrading of infrastructures at the Penang Port and Container Terminal is to provide shipping companies and other port users user-friendly facilities, a crucial element to woo more shipping lines and container vessels to the port and the terminal, he told reporters after a briefing by the port management on Wednesday.

To realise Penang Port’s mission to provide world-class shipping services, Guan Eng said the port’s latest and efficient logistics would be the yardstick to increase the number of merchant ships and containers anchoring at the port.

The Chief Minister also called on the Federal Government to re-start the RM353 million project to deepen the North Channel at Penang Port to facilitate smooth sailing-in of container vessels.

“If the deepening work is not done in compliance with environmental requirements, it will harm plans to turn Penang into a green state,” he said.

He also hoped projects promised for Penang under the current Ninth Malaysia Plan but have not been implemented due to various reasons would be carried forward to the 10th Malaysia Plan. – Bernama

Terminal operator Northport (Malaysia) Bhd has embarked on a cost-cutting exercise that will see all recruitment frozen and advertising spending slashed, in anticipation of worsening economic conditions.

“Many people are predicting that things are going to get worse next year, and so we are preparing ourselves to ride through this crisis. An obvious way is to cut costs,” said its managing director and chief executive officer Datuk Basheer Hassan Abdul Kader.

He was speaking to reporters after delivering a talk titled “Expanding the Operating Capacity of Northport through Implementing Strategic Initiatives” at the Selangor Freight Forwarders and Logistics Association in Port Klang last week.

Basheer said the port has put a freeze on staff recruitment and postponed or cut spending in areas such as advertising.

“However, we have no plans to retrench staff. In fact, it did not cross our mind,” he said, adding that the port had recruited about 30 people in the last three months.

Basheer believes that Northport’s restructuring and merger exercise between Klang Container Terminal Bhd and Kelang Port Management Bhd in 2000 will put the port in good stead to withstand the current downturn.

This includes its strategy over the past few years of focusing on revenue and profit growth instead of volume growth; the optimal utilisation of its assets such as land, labour and capital; and moving to higher-margin businesses comprising container, conventional cargo, logistics and automotive.

“Because of our prudent policy where we have kept our gearing to almost zero, we are well positioned to withstand the current crisis,” he said.

Northport is also keeping its RM500 million expansion plans on track, which include the development of a 350m container berth, bringing the container quayline at the port to a total of 3.4km.

Basheer also said the port remained on track to meet its forecast of three million TEUs (20-foot equivalent units) in container throughput this year.

However, he warned that the port has started seeing a drop in cargo volume in the fourth quarter of this year.

“Northport’s focus is import and export trade, particularly intra-Asian trade. As such, this recession is a concern to us because if Malaysian trade is affected, Northport will also be affected.

“We are starting to feel the effects of the global slowdown in the current quarter. But the drop (in cargo volume) is nothing to be seriously alarmed about yet,” said Basheer.

By : btimes.com.my

“THE PORT FACTOR – Chairman Message”

Capt. Abdul Rahim Akob, General Manager of Bintulu Port Authority & Chairman of MAPA

Forging Malaysian Ports’ Business Synergies

I’m delighted to announce the inaugural issue of “The Port Factor”, an offical publication of the Asean Ports
Association Malaysia (MAPA). The newsletter is aimed to stimulate interest and to keep readers abreast with
the Malaysian ports and shipping industry such as port management and operations, port planning and development, marketing, training, technology, safety and security, ships and cargo handling.

Asean Ports Association Malaysia (MAPA) was formed some years ago and was subsequently registered under the acronym MAPA as a non-governmental association early this year, comprising of founding members from a total of 17 Malaysian port authorities and operators. MAPA’s primary objectives are two-pronged i.e. to give ports in Malaysia with a vehicle for national cooperation in port development, operations and management, and to promote and protect the interests of member ports.

MAPA is to specifically promote the exchange of data and information on shipping and cargo traffic amongst Malaysian ports, cooperation in port operations and management, develop and maintain close relationship with other regional or national ports associations or international port related associations, and to undertake other activities as are incidental or conducive to the attainment of the said objectives.

Ports in Malaysia have become an important crux in forging economic and business networks and alliances between Malaysia and developing countries. Business networking are becoming essential strategies for Malaysian ports as the process of globalisation and market liberation pose both challenges and opportunities for the nation and for business community. The port sector has always played a major role in the development of national economies. The attractiveness of ports is no longer based on strategic location but on the provision of efficient and prompt services, excellent land infrastructure and sea transport networks. Ports have become commercial centres and manufacturing gateways.

In this respect, MAPA is working in tandem with the developments in Malaysia’s external trade and new economic linkages. Ports are potential investment destinations, either to set up manufacturing projects or other business establishments. Thus being an effective vehicle, MAPA’s outreach will be more extensive and in this process shall be forging synergistic collaboration with trade associations and business councils in order to facilitate information exchange, commercialisation, building a more cohesive partnership and business networking. These will directly contribute not only cargo growth amongst Malaysian ports but industrial developments as well.

Nevertheless, MAPAwill harness our collective creativity, forging ahead with market-driven visions and charting roadmaps for developing, promoting and enhancing Malaysian ports capacities and capabilities in expanding opportunities and building business synergies. Ports will be growing in size and complexity of businesses, and one important asset that needs to be nurtured and enhanced will be the human resource. Ports need to share and improve its human resources and must continuously be at the forefront in its practices particularly when competing globally. This is where I hope that it could be the binding force to forge a strong and successful grouping.