ASEAN Ports Association Malaysia (MAPA)

IJM Corporation Bhd, the operator of Kuantan Port, will invest about RM2 billion to build a new deep water terminal for the berthing of vessels of up to 200,000 deadweight tonnage.

IJM Chief Executive Officer and Managing Director, Datuk Teh Kean Ming said construction of the new terminal is expected to commence in the first quarter of next year, with a 24-month completion period.

Once ready, he said the new terminal will double the size of the multipurpose port, in terms of capacity to handle 52 million freight tonnes of cargo, from the current 26 million.

“We are currently looking at the final design plan. Once our Chinese partner, Guangxi Beibu Gulf International Port Group Co Ltd, come on board in October this year, we can decide on further specifications.

“The proceeds from IJM’s 40 per cent stake disposal in Kuantan Port to Guangxi, will be used to fund the construction, together with a portion of internal funding,” Teh told Bernama.

The IJM-Guangxi sale and purchase deal of about US$102 million (about RM323.08 million), is expected to be finalised within the next three months.

Teh said the new terminal will be constructed with a water depth of 16 metres, with plans in place to dredge the waters to two more metres, in the second phase of development.

“We will construct the terminal under the first phase. The construction works will be mainly undertaken by IJM, as we have the expertise,” he added.

The expansion of Kuantan Port is part of the Malaysia-China Kuantan Industrial Park (MCKIP), in which Guangxi will invest more than RM7 billion directly or via joint ventures with Malaysian companies.

Kuantan Port is situated about 25 kilometres to the north of Kuantan city and faces the South China Sea on the east coast of Peninsular Malaysia.

Previously run by the Kuantan Port Authority, it was privatised in 1998, and is now operated by Kuantan Port Consortium Sdn Bhd.BERNAMA

AWAITING CLEARER PICTURE: Management goes ahead with expansion plans and moves to improve net profit

WHILE the cloud of uncertainty continues to hover over the fate of Penang Port Sdn Bhd (PPSB), it’s business as usual for the management of the country’s oldest port.

“We are just as anxious as you are about the new owner and their plans for Penang Port,” said PPSB’s managing director Datuk Ahmad Ibnihajar last Friday before a cocktail reception for the port’s users. Also present was PPSB’s chairman Datuk Seri Dr Hilmi Yahaya.

Confirming a Business Times report that PPSB is yet to be officially notified that Seaport Terminal (Johor) Sdn Bhd, owned by tycoon Tan Sri Syed Mokhtar al-Bukhary, had won the bid to privatise the 226-year-old port, he said:

“We have read that the government is still negotiating with the new owner, but we remain in the dark as to what is exactly happening.

“In the meantime, it’s business as usual for us, as we go about with our plans to expand the port and better the net profit of RM15 milllion which we recorded last year,” he said.

While projecting a modest growth rate of between two per cent and three per cent for this year, Ahmad cautioned that if the global economy worsens, growth could remain flat.

The Transport Ministry, in a written reply at the Dewan Rakyat this month, had confirmed that Seaport Terminal had won the bid to privatise PPSB. The ministry said that one of the conditions to be included in the privatisation agreement was that the successful company must bear the cost of dredging Penang Port.

It was reported that the RM351 million dred-ging scheme for the northern part of the Penang channel has yet to take off although the amount had been allocated under the 10th Malaysia Plan. The project to deepen the channel from the current 11.5m to 14.5m is vital to bring large transshipments into the port.

“We have a five-year plan to improve the port’s performance,” Ahmad said, “and the new machines (seven units of Super Post-Panamax cranes), which are currently under-utilised because of the much needed capital dredging, is yet to be carried out.

“We are not worried about who the port’s new owner will be as all we want is to get on with our job of realising the best that Penang Port can offer and for the good of the state, we should all get on with business and the sooner the capital dredging can be carried out, the better.”

Ahmad also said that it was unfair to blame his staff on the port’s performance and compare it with other ports. “It has been a challenge for PPSB to manage the expectation of port users who have been wanting to see the port grow for a long time.”

Penang Port was incorporated in 1993 as a wholly-owned subsidiary of the Minister of Finance Inc. The management and operations of the port were corporatised in 1994 under the government’s privatisation programme, and Penang Port took over all the facilities and services from the Penang Port Commission (the regulatory body for the port) which licensed Penang Port to operate, manage and maintain all port facilities and services. The 30-year concession period ends in 2023.

By: Business Times

3,000 ground slots will be ready in container terminal by then

GEORGE TOWN: Penang Port Sdn Bhd (PPSB) needs one month to solve the congestion problems at the North Butterworth Container Terminal (NBCT) as the new decking area with 3,000 ground slots will only be ready by then.

Penang Port Commission (PPC) chairman Tan Cheng Liang told a press conference that all the port users had agreed to wait till next month for PPSB to solve the congestion problems.

Also present were PPC general manager Noor Ariff Yusoff, PPSB chief operating officer Azlan Hamid, and the Association of Malaysian Hauliers northern region chairman R. Amaippan.

“PPSB has also identified certain key problems to be resolved to hasten the flow of cargo delivery. These entail the opening of all the four entrance gates during meal hours and improving the scanning of container cargo to speed up cargo delivery,” Tan said.

Tan spoke following a meeting with port users including hauliers, exporters, forwarders, and representatives from the transport and international trade and industry ministries.

“When the additional 3,000 ground slots at the new decking area are ready next month, PPSB will open the window frame for cargo delivery back to five days,” she said.

Due to congestion at the NBCT container yard, the window for cargo delivery was shortened to 1½ days three months ago.

Last month, StarBiz reported that 20 container haulage companies in the northern region were losing about RM18mil a month in “opportunity cost” because of the shorter window frame to deliver container cargo for export.

On Saturday, Amaippan advised customers to use Port Klang, and subsequently Penang Chief Minister Lim Guan Eng had also called for outside expertise to be brought in to assist PPC and PPPSB.

Tan said Lim should quickly give out land titles to PPC for four plots of land so that they could be used to ease congestion at the NBCT and for use by the Penang International Cruise Terminal (PICT).

“We have submitted applications for the land titles.

“Two plots of land are for use at the NBCT while the other two are for use by PICT,” Tan said.

“One plot of about 26ha has been designated for use as a container yard at the NBCT. This container yard has 4,200 ground slots to accommodate cargo.

“Another plot is for a bridge at the NBCT to facilitate cargo movement from the container yard to the decking area,” she said.

By DAVID TAN

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

Terminal operator Penang Port Sdn Bhd (PPSB) will be roping in 30 additional skilled personnel to handle vital port machinery next year, as part of efforts to boost productivity.

The port now handles an average crane productivity of 25 TEU (20-foot equivalent unit) moves per hour compared with 35 TEU moves per hour by more productive ports.

The new recruitments will handle the port’s seven new post-panamax cranes and work the extended 1.5km berth, which is due to be completed by the middle of next year, said PPSB human resources general manager Tadzaruddin Abd Manaf.

“There will also be training involved as the cranes are specialised equipment that are crucial in speeding up our operations in container services.

“We plan to get this recruitment process started once we have determined our 2011 budget which will cater for our expansion plans at the end of the year,” he told reporters after officiating at the port’s 14th blood donation campaign, which saw the participation of 140 employees, at its office in George Town yesterday. PPSB employs 1,760 people.

The port is currently undergoing expansion plans, which include the extension of the port’s existing 900m wharf to another 600m, and the deepening of the North Channel among others, to increase its productivity as an international port.

Tadzaruddin said the port has spent about RM1.6 billion over the past five years on infrastructure development, mainly for its North Butterworth Container Terminal.

“With improvements to our infrastructure and online system, we expect business to pick up. Last month alone, we handled 96,000 TEUs.

“For this month, things are looking well. Hopefully, by the end of the year we will be able to reach our one million-TEU target, make RM300 million in revenue and move forward in our efforts to join the big leagues like Port Klang that handles four million TEUs a year,” he said.

PPSB handled a total of 958,476 TEUs last year, compared with 929,639 TEUs in 2008.

The port was ranked 64th in the world this year, 36 places above its last year’s position at 100.

Tadzaruddin said PPSB will work towards improving its international ranking, or at least maintain its performance.

“We are on the right track in serving our customers locally and internationally. We are expecting business to increase in 2011,” he said.

By: Looi Sue-Chern

IN SPITE of the difficult yet challenging economic recession that it encountered recently, Penang Port Sdn Bhd has managed to keep afloat and still perform at its best.

It did experience difficulties in the beginning. However, every cloud has a silver lining and for Penang Port, abundant opportunities emerged, just waiting to be capitalised on.

This was due to the following factors:

* Marketing strategy

In line with the Penang Port’s strategy to be supply-driven and make Penang Port a mainline port, it has embarked on several key projects.

Presently, Penang Port captures more than 90 per cent of the market share in port handling for trade by sea within the hinterland of four northern states of the peninsular and more than 50 per cent of the market share for the southern Thai region.

Its market assessment was clear – the hinterland generates cargoes and Penang is an important link for exporters and importers ensuring they remain competitive and connected in world markets.

* Continuous demand and ample resources

With continuous support from the existing hinterland and future hinterlands such as Medan, Myanmar, Bangladesh and the Indian sub-continent, Penang Port is capable of performing at its best.

Ample resources from Penang Port’s skilled and motivated employees as well as loyal and supportive stakeholers contributed to its growth and sustainability as a major port in the northern region.

In line with this, the expansion and acquisition of state-of-the-art equipment also helps to propel it to be a world-class port.

* Geographical location

Thanks to its strategic geographical location as well as being within the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT), the Penang Port manages to stay ahead, providing the best for its customers.

“Penang Port can be positioned as a regional transshipment hub and upgraded to be one of the major container ports in the Bay of Bengal,” said its managing director Datuk Ahmad Ibnihajar.

PORT THROUGHPUT

For the year 2009, Penang Port handled a total of 929,639 twenty-foot equivalent units (TEUs), a growth of 3.1 per cent from 958,476 TEUs in 2008.

This was quite an achievement as many other ports in the region were registering negative growth then.

As a multi-purpose port, Penang Port handles dry bulk cargo, liquid bulk cargo, break bulk cargo and also containerised cargo.

Cargo handling performance in 2009 registered a marginal decrease of 6.69 per cent to 24,278,244 tonnes compared with 26,019,903 tonnes in 2008, but for the year to date for 2010, cargo handling recorded a growth rate of 51.59 per cent to 4,361,478 tonnes compared with 2,877,082 tonnes the previous year.

Swettenham Pier Cruise Terminal

“Penang Port was proud to receive the RMS Queen Mary 2, one of the world’s largest ocean liners, when it made its maiden call at the Swettenham Pier Cruise Terminal on February 4.

“It marked a new milestone for the port operations in handling cruise liners.

“With more international cruises berthing at the Swettenham Pier, we aim to achieve higher and better revenue in the near future,” said Ahmad.

With the continuous support of anchor customers, Ahmad said Penang Port managed to handle cruise vessels in spite of the economic downturn in recent times.

Port Achievements

Penang Port has also embarked on a corporate branding exercise.

“Our objective is to elevate the port into a powerful and influential name as well as the brand ambassador for Malaysia, and at the same time ensure the achievement of its long-term objectives.

“This is in line with our infrastructure expansion and attaining the latest port equipment to ensure that Penang Port achieves the efficiency of a world-class port,” said Ahmad.

Penang Port also aims to enhance its image and services and at the same time send out the right message of what it represents or stands for and what it aims to be in the future.

“The whole idea of corporate branding is not only about image building but also about culture and vision.”

Penang Port also strives to deliver on its promises to its customers.

The year 2009 marked another milestone in the history of the port.

It was the first port in Malaysia to receive the MS1900-2005 Quality Management System – Requirement from Islamic Perspective on Provision of Container Handling Services and Warehouse certification from Sirim.

“In order to enhance our safe working environment, we are also undertaking a programme for the OSHAS 18001-2007/MS1722-2005 certification which is expected to be completed by this year,” Ahmad said.

PENANG: Bangladesh is keen to make the Penang port its sister port as part of efforts to enhance trade and relationships between the two nations, its Minister of Shipping, Shahjahan Khan, said.

He said Bangladesh, a developing country, was keen to have a greater understanding of the operations of a modern port such as the Penang port.

“We do not have any sister port and we feel that the Penang port will be ideal,” he told a media briefing after a tour of the newly-completed Swettenham Pier International Cruise Terminal here on Tuesday.

Shahjahan is leading a delegation on a visit to Penang port.

Accompanying them were Penang Port Commission chairman Tan Cheng Liang and Penang Port Sdn Bhd chairman Datuk Seri Dr Hilmi Yahaya.

He said he would discuss the matter with Bangladesh prime minister soon.

“I hope to sign the memorandum of understanding (MOU) with Penang port soon. We are impressed with the development of the port here,” he said.

Meanwhile, Tan said she hoped the MOU could be signed soon as it would help enhance the development of the ports.

“If we sign the MOU with the port, especially Chittagong port, it will help strengthen the relationships between the two nations in terms of port operations,” she said.

She said Penang port has made a steady progress since it was privatised in 1994 and its throughput increased by 3.1 per cent to 958,476 twenty-foot equivalent (TEUs) last year from 929,639 TEUs in 2008.

Tan said the Penang port would undertake projects including the acquisition of container equipment and increase the post-Panamax gantry cranes to 16.

She said the newly-completed international passenger ship terminal at the Swettenham Pier International Cruise Terminal was expected to attract one million passenger arrivals this year.

“With the capabilty of the terminal to receive bigger ships it is expected that the number of passengers staying over in Penang will increase.

“The terminal also has facilities for ferries plying between Penang and Langkawi and between Penang and Medan, Indonesia,” she said.

The 15,000 sq ft terminal also has houses the Customs and Immigration offices and quarantine area. – Bernama

Terminal operator Penang Port Sdn Bhd (PPSB) plans to boost productivity this year, newly appointed chairman Datuk Seri Dr Hilmi Yahaya said yesterday.

Although shipping companies and ports were hit hard by the global economic downturn, Penang Port’s volume rose 3 per cent in 2009.

In a statement issued yesterday, Dr Hilmi said in 2009, Penang Port handled a total of 958,476 twenty-foot equivalent units (TEUs) compared with 929,639 TEUs in 2008.

“Our main priorities now are to continually improve our productivity, provide a range of diverse supporting port services and monitor our expansion plans in great detail”, he said.

PPSB has embarked on several key projects.

“The first phase in the expansion of dedicated container terminal will include a new 600m wharf extension to the existing 900 metre wharf, with new decking area for export container. A third access bridge is under construction. Simultaneously, for the second part of this project, a new back decking area will be built parallel to the existing 900m wharf.”

Construction for this project is 65 per cent done and four months ahead of schedule.

To complement the expansion, Penang Port has taken delivery of seven Post-Panamax cranes, each costing RM25 million.

While four of the cranes were delivered in November 2009, Dr Hilmi said the remainder arrived last month.

“A Post-Panamax crane,” Dr Hilmi noted, “can reach 16 rows of containers on board the ship. The new cranes with its twin-lift capabilities will speed up handling operations as it can pick up two containers at a time.

“With these new projects, productivity at the port will be enhanced with a new target of crane productivity at more than 25 TEUs moves per hour.”

By: Btimes.com.my

MMC Corp Bhd’s subsidiary, Johor Port Bhd (2194) is selling its 75 per cent stake in Bernas Logistics Sdn Bhd to Padiberas Nasional Bhd (Bernas) for RM11.76 million.

Upon completion of the sale, Bernas Logistics will become a wholly-owned subsidiary of Bernas.

In a separate statement, Johor Port said it has also terminated its sub-lease agreement with Bernas, which both parties had entered into on October 6 2005.

The agreement saw Johor Port sub-leasing land measuring 24,510.60 sq m together with two warehouses, to Bernas, from October 6 2005 to December 31 2022 at a sub-lease rental amounting to RM26 million.
As such, RM20.7 million as at March 31 2009, representing the full and final settlement for the termination of the agreement will be refunded by Johor Port to Bernas and Bernas to surrender the two warehouses to Johor Port.

By: Btimes.com.my

The North Butterworth Container Terminal (NBCT) registered some 13% increase in the volume of cargo it handled in October.

NBCT handled 94,570 twenty-foot equivalent units (TEUs) in October, compared with 83,103 TEUs in September.

Penang Port Sdn Bhd general manager Obaid Mansor told StarBiz that the higher cargo volume was driven by goods from southern Thailand, rise in local businesses’ imports and exports, and an increase in the volume of empty containers from India and the Middle-East.

“We are confident of achieving our target of 930,000 TEUs by the year-end, matching the volume of cargo handled in 2008,” he said.

On the expansion of NBCT, he said the work to extend the 900m berth to 1,500m would be completed a year earlier.

“The original schedule for completion was October 2011. We have finished adding 400m to the berth,” he said.

He also said NBCT had already received four of the seven post-Panamax gantry cranes that it had ordered. “The other three cranes will arrive in the first week of December. Each crane costs RM25mil,” he said.

By: The Star Online