ASEAN Ports Association Malaysia (MAPA)

CMA CGM’s first dedicated On Dock Depot (ODD) in Asia officially opened recently at Westports in Port Klang.

The ODD facility, located at CT5, is aimed at providing good customer service to the French liner’s customers, especially in the local market which has grown tremendously this year.

Witnessing the milestone event were Westports Malaysia Sdn Bhd executive chairman Tan Sri G. Gnanalingam, executive director Ruben Emir Gnanalingam and CMA CGM ANL Malaysia managing director Simon Whitelaw as well as representatives from the local CMA CGM office and Westports.

Speaking at the opening, Whitelaw said plans for the ODD facility were looked into for sometime as a means to support its growing domestic business.

He said the ODD would provide fast turnaround of empties, quick delivery and better quality boxes.

“The ODD facility would provide another strategic base for our customers at Westports to help meet the growing demand generated by ever increasing levels of trade. Besides providing cleaning and repairs of empties, we also provide free inspection,” he added.

He also pointed out that the ODD, which has access to the Free Zone and with a current capacity of 12,000 TEUs (20-foot equivalent units), has the potential to become a regional hub.

CMA CGM, the world’s third largest shipping line, is Westports’ number one customer.

By: btimes.com.my

PETALING JAYA: A number of port operators in the country have reported higher throughput volume for March but are cautious about volume going forward as the signs of recovery are still weak.

According to them, imports and exports as measured by twenty-foot equivalent units (TEUs) were up for March while transhipments – the shipment of goods to an intermediate destination before moving to another destination – were also up.

Westports Malaysia Sdn Bhd executive chairman Tan Sri G. Gnanalingam had noted earlier in a commentary that in March, Westports’ total volume, including imports, exports and transhipments, was up 10% compared with the previous three months.

He said the immediate question that came to mind was whether these were signs of recovery or if this was due to inventory corrections after managers cancelled their orders between October and December last year.

“As such, between April and June, we’ll begin to notice that the world will not only reinstate its inventory levels but also increase its orders simply because life must go on,” Gnanalingam said.

Captain Ismail Hashim, chief executive officer of Port of Tanjung Pelepas Sdn Bhd, which operates the number one transhipment port in the country, said volume grew 23% to 469,000 TEUs for March compared with February.

He said it was tricky to accurately predict the underlying reasons behind the recent increase in volume. “Whether the increase is sustainable over the longer term remains to be seen,” Ismail told StarBiz in an e-mail reply.

He said if the recent upturn was due to restocking of manufacturers’ orders as a result of them halting production abruptly earlier on when the crisis first started then the spike in volume could be “just a temporary pattern.”

Penang Port Sdn Bhd general manager Obaid Mansor said the Butterworth container terminal saw a bottoming in January when throughput was 30% lower than October 2008.

“The upturn in business was really registered in the export transhipment trade provided by our industrial hinterland,” he said, adding that a combination of improved demand for manufactured products, re-stocking, trade credit availability and demand from China and India could be the factors that contributed to an improvement in volume.

By FINTAN NG

MALAYSIA’S major ports should be able to withstand the onslaught of the global economic crisis, at least for this year.

In fact, many are still projecting growth in volume although business may not be as robust as in previous years.

There are about seven major container ports in the country – Northport and Westports in Port Klang; Penang Port; Port of Tanjung Pelepas and Johor Port in Johor; Bintulu Port in Sarawak; and Sapangar Bay Container Port in Sabah.

The harsh impact of the global economic crisis has resulted in declining world trade. However, healthy intra-Asian trade and higher local public spending growth is expected to spur more imported goods and raw materials.

OSK Research, which has lowered the country’s gross domestic product forecast for this year to 1.1% from 2.7%, says the RM7bil economic stimulus plan by the Government should be able to support high public spending this year.

Most analysts say the ports’ stellar performance in past years has boosted their resilience to sail through the choppy waters.

Moreover, they are somewhat “protected” from the economic storm due to their location, particularly those along the Straits of Malacca, the main maritime trade route in Asia.

Ports in east Malaysia are also strategically placed in the Brunei, Indonesia, Malaysia, Philippines-East Asean Growth Area (BIMP-EAGA).

It helps, too, that the ports have a mixed portfolio of handling transhipment as well as exports and imports. Most of the Malaysian ports managed to meet volume targets last year although by the fourth quarter, early signs of a trade decline were evident.

Northport (M) Bhd and Westports Malaysia Sdn Bhd, the two terminal operators at the country’s maritime gateway Port Klang, are confident of maintaining volumes this year.

Northport posted slightly more than three million 20ft equivalent units (TEUs) last year, up 5% from 2007. It also expects to continue its RM585mil expansion plan which will be funded with internal funds.

On the other hand, Westports recorded around 16% volume growth in 2008 to slightly under five million TEUs. The positive forecast this year is supported by Westports’ biggest customer, CMA-CGM. Similarly, the global slowdown has not thrown a spanner in the works for Westports’ RM800mil expansion. The port’s container terminal five has been completed, adding a capacity of 1.2 million TEUs to a total of 7.2 million TEUs.

Its executive director Ruben Emir Gnanalingam, in his New Year’s message to the staff of Westports, says the company will embark on plans to consolidate its business in terms of processes, staff skills and initiatives given the relatively quieter period.

“Our manpower strength is currently at 3,650, which is sufficient to see us through the expected volume.

“Our next batch of recruits would probably come in during the second quarter of next year,” he said.

The country’s main transhipment port, Port of Tanjung Pelepas (PTP), expects to break even this year at 5.6 million TEUs.

“The current situation is unprecedented,” says chief executive officer Capt Ismail Hashim, adding that the best and worst-case scenario would see a 15% rise or 10% drop in cargo volume for the year.

Noteworthy is that PTP has experienced a 6% contraction in cargo volume in the final quarter of 2008 against the corresponding period a year earlier.

“But we are keeping our hopes up as our main-line operators, such as Maersk and Evergreen, are anticipating marginal growth this year,” he says. “The non-decline forecast is largely based on our exposure to the still healthy intra-Asian trade.”

Penang Port, according to its chief operating officer Mohd Niana Merican Abd Kadir Merican, expects a flat growth this year given the uncertainties going forward while Sapangar Bay Container Port (SBCP), managed by Sabah Port Sdn Bhd (a wholly-owned subsidiary of Suria Capital Holdings Bhd), is not expecting volumes to fall.

Sabah Port also manages seven other ports in Sabah. Suria Capital group managing director Datuk Abu Bakar Abas is optimistic of the outlook for this year due to the Government’s stimulus package to boost economic activity in the country.

By SHARIDAN M. ALI

PETALING JAYA: While Westports Malaysia Sdn Bhd leads the industry in terms of productivity, its success does not solely rely on advanced equipment and facilities, but more importantly, its workforce.

“The port business is in a service-oriented industry where people are the most important asset,” its executive director Ruben Emir Gnanalingam told StarBiz.

“Every port can acquire the most advanced cranes, berths and system but what makes a terminal better than the rest is how it manages its people.”

In scouting for talents, Gnanalingam said Westports offered attractive remuneration packages and staff benefits.

“As there are not that many applicants with prior port experience, we basically train our employees from scratch.

Ruben Emir Gnanalingam

Ruben Emir Gnanalingam

“Experience is a not a necessary pre-requisite, what is more important is finding the suitable person for the right position,” he said.

Gnanalingam said Westports’ young executives programme would include training in various departments to evaluate and identify the areas that an employee could excel in.

“And if an employee feels jaded doing the same job for a long time, we will try to move him around,” he said.

Westports averagely recruits 12 young executives every six months as part of its succession plan.

Gnanalingam said via the recruitment plan, Westports ensured that when a person left or were promoted, the vacant position would be filled by another experienced employee.

Another interesting talent management practice at Westports is its focus on key competence indicators (KCIs).

“Alongside our key performance indicators (KPIs), we also have KCIs that measure and describe an employee’s competence and character.

“This will identify a person’s talent to be placed in the most suitable position,” he said.

Westports also values leadership potential at every level of its operations.

“Every employee is encouraged to develop and train newer and less experienced subordinates. For me, I am constantly developing 30 to 40 of my senior managers to be better,” he said.

Westports is one of the key sponsors alongside Sime Darby Bhd and StarBiz for the Asia Strategic Talent Management Forum 2008 on Nov 13.

The forum, which will be held at Sime Darby Convention Centre, is organised by Leaderonomics Sdn Bhd.

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 success of Westport is a true reflection of the great team effort put forth by the workforce that we have today” enthuses Westports Malaysia’s executive Chairman, Tan Sri G. Gnanalingam.

Making a reference to The Taj Mahal, the Executive Chairman says, ”Many people assume that this magnificent monument was built by the Emperor Shah Jahan, but not many realize the monument has been brought to form by the pool of highly skilled craftsmen and dedicated workers. That is why I believe that if Westports has carved a name for itself in the international port arena, then it is solely because of the energy that is unleashed by the workers who have relentless worked towards a common goal of positioning Westports Malaysia as a gateway and transshipment hub”.

In return, the management has offered excellent career advancement opportunity and developed an enriching company culture that provides both professional and personal rewards. Westports unique company culture has been the driving force in attracting and retaining some of the brightest and most dedicated professionals in its pool of workforce.

In its efforts to boost staff development and job satisfaction, various training programs have been designed. Besides in-house trainings, staff is sent for overseas port visits such as to Hong King International Terminals, Le Harve and Felixstowe. These efforts have, as a matter of fact, kept staff motivation high and in turn increased efficiency and productivity of the port.

Aside from investing in a productive and committed workforce, the port has also invested heavily in the latest terminal equipment and introduced new work practices that have resulted in the port’s improved efficiency and throughput. The most recent accomplishments for the port have been the clocking of 35 moves per hour on ship to shore productivity. Landside activity has also improved tremendously, with its hauliers turnaround time clocking an average of 14 minutes.

The timely expansion plan that has been carried out to cater for looming unprecedented boom in the industry is expected to further boost the port’s container volume. It has been projected with the completion of its latest expansion of CT (Container Terminal) 4 that consists of 600 meters wharf extension together with a 60 acres yard area, the port would have an additional capacity of 1 million TEUs. CT4 is equipped with world-class facilities and services, which will enable more vessels of the next generation to make Westports as its preferred port of call. With its latest acquisition of two new Super Post-Panamax Twin Lifters and its natural alongside draft of 15.5 meters, Westports will no doubt be able to meet the changing needs of the customers.

Westports was among the first port in Malaysia introduced and incorporate cutting-edge IT solutions in the national port business to enhance efficiency. Being a customer-oriented port, it is also the pioneer port in the country in setting up a Call Center. Well-known for its unconventional methods, Westports Malaysia has also made headlines with its unique “Garden Port”. Westports beautifully landscaped areas dotted with blossoms of myriad hues and cascading waterfalls add charm, beauty and tranquility, all of which aim to provide a better work environment for staff.

Westports plays a vital role in contributing to the success of Malaysia’s economy. To maintain this momentum, it continues to seek ways in which it could enhance its services and maintain its competitiveness, the secret of Westports success lies in its world-class terminal facilities, highly skilled workforce, and the successful collaborations and partnerships it has made with employees, customers and stakeholders. Westports Malaysia is set to perform exceptionally and achieve double-digit growth for many years to come.

By: Westports Malaysia Bhd.