ASEAN Ports Association Malaysia (MAPA)

PORT KLANG: Westports Malaysia Sdn Bhd (Westports), operator of the country’s busiest port, is looking at the overseas market to expand its business beyond Malaysia via partnerships.

Its chief executive officer, Ruben Emir Gnanalingam, said Westports was looking at a few potential markets particularly South East Asian countries and India to expand its container business.

He said despite the slowing down of demand in Europe, US and China, the fast emerging markets such as India, Africa and Middle East countries were continuing their growth.

“We are always looking for opportunities beyond Malaysia and are often in talks with various parties but todate we do not have any concrete development on that yet,” he said.

He said talks were still at the early stages and the group was now getting to know its potential partners.

Westports’ core business is container operations and its major clients include the CMA CGM group, China Shipping and United Arab Shipping Corp.

Ruben Emir said Westports will spend about RM500 million in 2013 to improve its current facility and provide better services to its clients.

“We are currently constructing the 300-metre and 600-metre wharfs which are to be ready by January 2013 and early 2014 respectively.”

He added that the port hoped to see positive improvements in both performance and productivity, especially in container operations, once the wharfs are completed.

“Our current capacity is 8.5 million TEUs and we will be able to reach 10 million TEUs capacity with the completion of the two wharfs in 2014.”

The wharfs will come along with crane and corresponding yacht equipment.

“The improvement for the yacht equipment is that we are moving towards electric based equipment from fuel based equipment,” he added. Bernama

Middle Eastern investors may invest some RM1.5 billion in a petroleum tank farm and halal industrial park in Penang Port.

Penang Port Sdn Bhd (PPSB) chairman Datuk Seri Dr Hilmi Yahaya yesterday said potential investors have approached PPSB to set up shop in the port area to tap the export potential of the Indonesia-Malaysia-Thailand Growth Triangle.

“We are looking at reclaiming some 400 hectares of land to accommodate the proposed tank farm and halal hub.

“We also have plans to house a free commercial zone and free industrial zone within the port area to facilitate the easier movement of goods for investors,” Dr Hilmi told reporters after a Penang Port Commission port consultative committee meeting chaired by PPC chairman Tan Cheng Liang.

The closed-door meeting, which was attended by officials from the finance and transport ministries and the Economic Planning Unit, was also attended by Penang port users.

The proposed area for land reclamation would be south of the Butterworth Port on mainland Penang.

“Since we have received positive indication of the port’s RM350 million request from the federal government to carry out capital dredging works under the 10th Malaysia Plan, we are hoping that the sand from the dredging activities can be used for our land reclamation purposes,” he said.

The north channel dredging of the port, from its current 11.5m depth to 14.5m, was supposed to be carried out between 2010 and 2012 to serve main line operators calling at the port.

However, the government deferred the project in its mid-term review of the Ninth Malaysia Plan.

Dr Hilmi noted the tank farm is likely to bring in a RM1 billion investment, while the proposed halal hub will rake in an estimated RM500 million.

“We are looking at potential investors to help us finance this project,” he added, “since we do not want to borrow any funds.

“We have had interest shown by parties from China and the Middle East so far to help us in the funding,” he added.

Several investors – such as those engaged in liquid crystal display production – have stated that they want to be located in an area where shipping of the goods can be seamless.

“Our next step would be to call in all interested parties to map out a detailed plan, before we proceed with obtaining permission from the federal authorities via the finance and transport ministries.”

Dr Hilmi, a former finance ministry parliamentary secretary, gave an assurance that the proposed Penang Port expansion plan would in no way end up like the scandal-hit Port Klang Free Zone project in Selangor.

By: Marina Emmanuel

JOHOR BAHARU, Dec 31 (Bernama) — The Port of Tanjung Langsat (PTL), in Pasir Gudang, will emerge as the leading chemical logistics hub in South East Asia, given the edge it has over its competitors.

Menteri Besar Datuk Abdul Ghani Othman said the port’s advantages were obvious although it has to compete with integrated petrochemical complexes in Pahang, Terengganu, and Pulau Jurong in Singapore.

Speaking to reporters after officiating PTL’s liquid cargo berth here today, he said PTL can boost of its deepwater facility and offered a far lower cost of operation compared with other ports.

TLP is the third port in Johor, designed to complement the Port of Tanjung Pelepas and Johor Port.

Positioning itself as Southeast Asia’s premier speciality terminal, it handles bulk cargo such as liquefied petroleum gas and dangerous chemicals.

“PTL’s strategic location in South East Asia will make it the leading port for bulk liquid cargo handling.

“Besides being very spacious with a 4.5 kilometre shoreline fronting the Straits of Johor and depths of 12.8 metres, the port can accommodate large vessels,” he said.

Johor Corporation, which owns PTL, has invested RM300 million to develop five liquid cargo berths.

Its President and Chief Executive, Tan Sri Muhammad Ali Hashim, said another RM600 million would be invested to install additional berth facilities at the port.

By 2012, Johor Corporation would have invested more than RM1 billion and, todate, has invested about RM500 million to develop itself to complement the nearby Tanjung Langsat Industrial Estate.

With the completion of the PTL’s liquid cargo berth, the port can now handle 26 million metric tonnes of liquid cargo annually, making it the biggest liquid cargo port in the country and region.

The PTL berth will also serve Langsat Bulkers Sdn Bhd, a joint-venture between PTL and Felda Johor Bulkers.

As for activities at the complex, Abdul Ghani said Asiaflex Products Sdn Bhd which was in the midst of completing a RM500 million flexible pipe factory, was planning additional investments to produce high-tech “Umbilical Cords”.

Besides, South Korea’s Kiswire Neptune is planning to invest RM250 million to manufacture steel wire ropes at the integrated complex.

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

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