ASEAN Ports Association Malaysia (MAPA)

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.

Accreditation by London Metal Exchange a big boost for port

LONDON: Port Klang is poised to become Asia’s leading distribution hub for the London Metal Exchange (LME) following its accreditation as the exchange’s Good Delivery Point.

The move will further enhance Malaysia’s image as a major regional logistics centre for LME trade, according to Port Klang Free Zone general manager Chia Kon Leong.

He said Port Klang’s listing was fast-tracked as it had always been LME-ready with its excellent port infrastructure, strong logistics support and sound operational systems.

Chia said the port was strategically located to capitalise on the burgeoning LME trade from producing countries like Australia and Europe to the vast consuming markets of South East Asia and China/Far East.

Datuk Seri Ong Tee Keat receiving the Letter of Accreditation from Martin Abbott (right) at the LME office in London. With them is Chia Kon Leong (left).

“We reckoned that Port Klang is targeting to receive 150,000 to 200,000 tonnes of metals within the next six months,” he said.

Chia had earlier witnessed the presentation of the Letter of Accreditation from the exchange’s CEO Martin Abbott to Transport Minister Datuk Seri Ong Tee Keat at the LME boardroom in London on Friday.

Established for over 130 years, the LME is the world’s premier non-ferrous metals market, offering futures and options contracts for aluminium and aluminium alloy, copper, nickel, tin, zinc, lead and plastics.

With a turnover in excess of US$3 trillion per annum, the LME also contributes to the UK’s invincible earnings to the tune of more than £250mil in overseas earnings each year.

Port Klang’s listing as a Good Delivery Point was approved by the LME on May 8, thereby allowing the port to receive LME-traded metals since June 10.

The accreditation is of immense significance to Malaysia as there are now only two other approved listed delivery locations in South East Asia, namely Pasir Gudang in Johor and Singapore.

LME delivery points are mainly in major ports around the world, which must meet strict criteria before they are approved for the handling of metals and plastics traded through the exchange.

Chia said Port Klang was strategically located at the crossroads of the world’s busiest shipping lane as well as being the world’s 15th busiest container port and one of Asia’s largest multi-purpose ports.

He said the port was centrally located in South East Asia, close to the huge consumer market in China which had no delivery points despite the enormous volumes of LME metals being shipped there.

“We’re close to consuming areas but away from major producers like those in Australia,” he said, citing BHP Billiton as one of the world’s largest mining companies.

Chia also said Port Klang was unique in a sense as within its free zone, there were companies which could consume such metals.

He said one firm, for instance, could actually get its copper supply from within the free zone, unlike other delivery points which were purely distribution areas.

He added that the listing had enhanced Port Klang’s resilience in facing the recessionary environment as metals needed to be stored due to lower consumption.

“We provide LME traders, warehouse companies and other users with highly competitive rates backed by cost-effective and efficient operations,” he added.

Ong said Port Klang was offering not just one port terminal but two and 405 ha of (Port Klang) free zone as a delivery location.

“And that free zone certainly has vast potentials that will suit the LME’s business purposes,” he noted.

Abbott said the LME appreciated the fact that Malaysia operated a fiscal regime that was encouraging to the international business community.

“With regards to Asia in general, as probably the biggest single growth area for the LME in the next 10 to 20 years, we’re very happy to have Malaysia and Port Klang as our strategic partners in our long-term business growth,” he added.

By CHOI TUCK WO

Datin Paduka O. C. Phang, General Manager, Klang Port Authority & APA Chairman 2004 – 2005

“It is a pleasure for me to attend our Asean Ports Association meetings, in particular, our annual Main Committee Meetings, like this one we are about to have over the next few days.

It is occasion where I get to meet again all my fellow APA colleagues and the opportunity to meet new friends. It is also an occasion to experience the generous and warm hospitality of our host country members and in this connection, on behalf of the Asean Ports Association, I thank the Government of Indonesia and the host of this 31st APA meeting, the Indonesian Port Corporation I, II, III and IV for the generous invitation, warm hospitality and invaluable assistance given to us to make our meeting and our visit a success.

To cite a brief history, in 1967 countries in the South East Asia region forged an economic and trade alliance the Association of South East Asian Nations or a ASEAN to advance their agenda for economic growth, social progress and cultural development. Since then, ASEAN has played a pivotal role in the international community and has put forward ASEAN’s.

Through these ongoing efforts, the ASEAN region, today, is the fastest growing in the world.

In terms of economic power, ASEAN comprises a market of over 500 million people and has an annual gorss production worth well over US$500 billion. Moving in the same direction, a parallel cooperation tie was formed to build a strong foundation for regional cooperation among the ports in the Asean region.

The Asean Ports Association, in short APA was conceived to provide a venue for port officials concerned to meet and share experiences that may lead to finding solutions to identified problem areas and emerging issues affecting the port sector. APA celebrated its 30th anniversary last year. On that occasion I mentioned the founders os APA and today we are very fortunate to have here with us this morning at our 31st Meeting a very distinguished member who was one of the brainchild for APA’s birth — Bapak Habibie from Indonesia.

We at APA with the latest membership from Myanmar, are now looking towards the inclusion of Laos in the Asean Ports Association. It is our fervent hope that Laos will join the Asean fraternity as an APA member which will complete the membership of all ASEAN countries in the Asean Ports Association. It will indeed be a progressive step forward together as ASEAN Ports within s single ASEAN community with one identity and one vision. We are aware that Laos os a land-locked country with no sea-frontage. But ports are not necessarily physical locations with a seafront. Dry ports and inland clearance depots making use of railway and road linkages coupled with air linkages feature prominently as multimodal operations in ports today to enable transportation of goods and services. We look forward indeed to Loas joining us in the near future.

Over the years ports roles have undergone dramatic changes. From just being an entry for goods into the country, ports have an economic role to play serving as a life line to a country.

As members of the Asean Ports Association we have broadened our horizons through regional cooperation to achieve the broad objectives originally envisioned for the Asean Ports Association. We now persue together our goals in tandem with the broader policies.

Outlined by ASEAN towards an integrated and competitive ASEAN economy. We are fortunate to have our membership comprising both the public and private sector ports and towards this end, the private sector ports have a strategic and crucial role to help us spearhead a regional competitive age in the global market in addition to being a competitive vehicle instrumental for our international export base and as a production centre responding rapidly to business opportunities and demands.

APA fosters amongst others things, networking and development of human resources. We have compiled a compendium on training needs available in ASEAN. This compendium is updated from time to time and we work with the APA permanent secretariat in Manila to look into means to see how we can maximize the usage of this information in the most effective manner in terms of human resource development in member Ports.

APA also convenes Human Resource Development Seminars, where relevant topics are presented by expert speakers in the field of Human Resourn Development.

APA is also implementing a Port Familiarization Program which constitutes a study tour of member countries which will be carried out in phases. The pilot project for this program will be initiated by Bintulu Port of Malaysia which specializes in the handling of Palm Oil, LPG and LNG. APA hopes that with this we will move toward together, learning from each other, supporting one another towards achieving the goals and objectives of the Asean Ports Association, our individual countries and our organizations.

Asean Ports Association members will continue to work together as an ASEAN nation to develop our competitive advantages to tackle the challenges confronting us. Together we will continue to realise the vision that inspired our founding fathers to create ASEAN as region of peace, prosperity and harmony.