Northport (M) Bhd’s commitment to human capital development was recognised recently when it bagged the 2009 Human Resources Ministry HR Development Award under the major employer (services sector) category.

The award, organised annually by Pembangunan Sumber Manusia Bhd, is the country’s leading event to recognise leadership and benchmark human resource practices.

Northport managing director and chief executive officer Datuk Basheer Hassan Abdul Kader said that as a service-related company, Northport placed high importance on human capital development.

Datuk Basheer Hassan Abdul Kader

This was to ensure service levels offered by the port meet global standards, he said in a statement.

“We are a global port serving the needs of more than 100 global shipping lines which connect Northport to more than 300 ports worldwide.

“Thus the expectation is very high on the delivery standards and performance levels which cannot be achieved unless we have well-trained and dedicated workforce in Northport,” he said.

Northport has 2,700 employees.

Basheer said in view of the heavy responsibility placed on the port’s workers, Northport had given considerable importance to retraining and skills upgrading.

“We have a dynamic human resources development programme which aims to equip our employees with specialised and up-to-date skills. This is especially since businesses are becoming more competitive and demanding,” he said.

Northport is Malaysia’s largest multi-purpose port. It offers the widest shipping connectivity among ports in the country.

By: The Star Online

PORT Klang Authority (PKA) is working towards diversifying its income stream in an effort to bear the costs of running both Port Klang Free Zone (PKFZ) and its own operations.

“Of course, now we are currently self-sufficient, but with the PKFZ loan to the service, we will have to come up with more revenue streams to generate income,” PKA general manager Kee Lian Yong told Business Times recently.

He was appointed in June to replace Lim Thean Shiang, who resigned earlier amid reports of a fallout with Transport Minister Datuk Seri Ong Tee Keat over the handling of the PKFZ controversy.

Lim was handpicked to take over the running of the port by the Transport Minister.

Kee, like Lim, was a member of the corporate sector, having headed listed companies such as Metroplex and Anglo-Eastern Plantations Plc.

He said the port authority is studying all options, but is mindful of its main role as trade facilitator.

“We believe there are a lot of opportunities. I would like to do more. As a man from the property sector, I can see that we have a lot of land here, and we have to look at how we can maximise the returns on that land,” Lee said.

He said rather than just concentrating on growing its bottomline, the port authority has to also consider initiatives that will enable the industry to grow.

Kee declined to reveal the amount of cash that PKA has in its coffers, claiming that its cash reserves did not correctly reflect the financial health of the regulator, considering its huge debts, because of PKFZ.

In 2008, it was reported that PKA’s main income comes from leasing of land under the port authority. The then general manager Datin O C Phang, had said that it made RM100 million per year.

Expenses on maintaining the port area, however, were said to come up to about RM80 million per year.

On his ambition for the port, Kee said he wants to create an equitable playing field for all players in the port industry.

“I don’t want to sideline any party. In fact I hope that we can build a supply chain that benefits everybody, and also promote the growth of the port industry,” Kee said.

By Presenna Nambiar

PORT Klang Authority (PKA) has decided to withdraw its scheme to provide incentives to feeder operators linking Port Klang to regional ports, with effect from this year. It will, however, still pay out the monetary incentives due to operators for the year 2007.

For the year 2008, though, feeder incentives will be based on a new formula for qualified operators. The new formula was not specified in the statement released to the press.

The feeder incentive scheme was developed and introduced by the PKA in 2000 as part of an overall strategy to further strengthen Port Klang as a national load centre and a regional hub port.

Selected local and regional feeder operators and landbridge operators enjoy a rebate of RM20 for a 20-ft container and RM35 for 40-ft container sent through Port Klang as well as a 10 per cent discount on marine charges such as pilotage and tug boat services by the respective terminals, Northport and Westports, under the old feeder incentive scheme.

While the idea had been mooted that the costs of incentivising feeder operators be transferred to terminal operators, Northport and Westports, a PKA official told Business Times, that feeder and terminal operators have instead, been left to negotiate their respective terms.

“It is not a matter of transferring the costs to the terminal operators, up to the two parties to come to an arrangement,” the official said.

In a statement released on September 17, PKA recommended that Northport (M) Bhd and Westports Malaysia Sdn Bhd play a more active role in encouraging feeder operations in Port Klang.

The feeder incentive scheme has been suspended since 2008.

By: btimes.com.my

BUTTERWORTH: (NBCT) last month handled 92,439 twenty-foot equivalent units (TEUs), which is the highest volume achieved in a single month in its 35-year history, said Penang Port Sdn Bhd general manager Obaid Mansor.

“The average volume of cargo handled in a month is between 77,000 and 87,000 TEUs.

“In August last year, NBCT handled 85,505 TEUs and in August 2007, it was 78,624 TEUs,” Obaid told StarBiz, adding that it handled 87,879 TEUs in July.

He said NBCT was now optimistic the total volume of cargo handled this year would not decline by 5.5% as forecast in July.

“Cargo-handling activities in the fourth quarter should remain stable and NBCT should handle as much cargo this year as it did in 2008, which was 929,000 TEUs.

“We expect a lot of cargo such as furniture products and consumer electrical goods such as televisions, washing machines and refrigerators to arrive at NBCT in the fourth quarter, as wholesalers in the north would be stocking up to prepare for the festive season,” he said.

Obaid said the increased cargo-handling activities in August was due to a number of factors.

These include the greater volume of rubber-based cargo from southern Thailand exported via NBCT to other parts of Asia, the higher imports of steel scrap by steel mills in the north, and a bigger volume of empty containers coming from the Middle East and India.

“Empty containers comprised about 25% of the volume handled. They generate revenue as NBCT levies handling charges on their owners,” he said.

Export of rubber-based cargo and import of steel scrap were key indicators that the economy in the region was picking up, Obaid said.

“It shows that the effects of the stimulus packages are already kicking in. The import of steel scrap is an indicator that development projects in the north are resuming.”

Obaid said NBCT expected to handle over 80,000 TEUs of cargo this month.

He said the slight drop was expected as the bulk of restocking activities had taken place in August.

“The new seven post-Panamax gantry cranes worth RM175mil, coming in October, will increase the volume of cargo handled annually to over one million TEUs,” he said.

The cranes would be put into action in the second quarter next year, he added.

By : David Tan

Port operator will expand terminal if global economy keeps improving

PETALING JAYA: Westports Malaysia Sdn Bhd will commence its RM600mil terminal expansion next year if the global economy keeps improving and starts contributing to the growth of its container volume.

Executive director Ruben Emir Gnanalingam said the project to build container terminal six was to have started last year but was postponed as the port had not reached its internal trigger point that should prompt the expansion for extra capacity.

“Our capacity now is about seven million twenty-foot equivalent units (TEUs) and we expect to handle only 4.3 million to 4.4 million TEUs this year.

“All the tender specifications for the project are ready as they are quite similar to our previous terminal expansion projects,” he told StarBiz.

Ruben said Westports had recently revised upward its targeted volume for this year from four million TEUs due to the month-on-month steady growth from the first quarter.

“The earlier target for 2009 was lower due to the sharp slump trend started in the last quarter last year.

“But the trend has been improving in the second quarter with average monthly volume of 360,000 TEUs, and even better in the current quarter with 400,000 TEUs,” he said.

Year-on-year, he added, the current third quarter still fared behind as Westports did very well in its third quarter last year with a record-breaking 475,000 TEUs in August.

Westports handled about 4.97 million TEUs in 2008.

On the global economic crisis, Ruben said Westports managed to identify and practised sustainable cost-cutting measures during the not “too busy” period to be more resilient in the future.

“We have not been able to really study our cost-saving measures previously as we were too busy with the rapid growth. But now, once we have identified the areas where we can cut costs, we will sustain the practice.

“We also managed to focus on intensive staff training in the lull period as Westports did not retrench any workers although its volume was down earlier in the year,” he said, noting that the port employed about 3,250 workers.

He said the training and cost-cutting measures made the port even more prepared to seize opportunities when the economy picked up.

On its mission to make Port Klang a bigger hub in the region, Ruben said Westports, which recently celebrated its 15th anniversary, would continue to focus on enhancing its productivity and services.

“We will also be looking at improving bunkering and feedering activities at the port,” he said.

Feedering is a process where smaller ports feed containers to hub ports as the latter have higher connectivity due to more calls made by shipping lines, while bunkering is fuel supply services to vessels.

Westports’ feedering activities come from ports in South-East Asia and India.

He said it was important for Port Klang to strive to be a bigger hub as it would not only benefit the port but also local importers and exporters.

“There is a huge difference between the freight rates of a non-hub port and a hub port. The freight rates at the hub port is cheaper due to the competitiveness of the many shipping lines, volume and the availability of empty containers,” he said.

Ruben said Westports had come a long way from its inception in 1994 and would continue focusing on sustainable development that included the Pulau Indah community and the environment.

“Apart from making the island more industrious with job opportunities and supporting services to the port, we now want to make it more friendly with communal facilities.

“For the environment, Westports – which is already known for its ‘garden port’ concept – will try to plant more trees,” he said.

By : Sharidan M. Ali

It will institute measures to reinforce its authority as port regulator

PORT KLANG: Port Klang Authority (PKA) has come out with four proactive initiatives to further boost the efficiency and businesses at terminals and its supporting industry.

Its new general manager Kee Lian Yong said PKA would institute necessary measures to reinforce its authority as a port regulator and play a positive role in safeguarding the interest of all players in the industry. “First is the registration of all necessary logistics players in Port Klang to ensure efficiency and cooperation.

“We will also have to continue monitoring the performance of the ports closely to ensure compliance on the efficiency and performance at the ports are maintained and at par with international standards.

“Next, all direct port activities and ancillary services within the port limit should be licensed where PKA has taken steps to license and regulate private jetty operators.

“So far, PKA has approved 20 private jetty operations based on the merit that they will contribute and complement trade growth here.

“Finally, PKA is enforcing enhanced security and safety within the port limit and pilotage district where it has ugraded the Vessel Traffic Management System which now includes the Automatic Identification System in line with the International Maritime Organisation’s safety of life at sea convention,” he told reporters at a briefing on PKA’s strategies for growth and improved services yesterday.

Kee added that Port Klang was also equipped with scanners at both Northport and Westports together with megaport initiatives with the US Customs.

Kee said PKA would also set out a strategic port master plan which would map out the direction of Port Klang for short- and long-term planning for the next 10 to 20 years.

The current port master plan expires next year.

He said the prospect of strengthening Port Klang’s competitiveness could be via better cooperation between the two terminals.

“Whilst healthy competition is encouraged, I believe there’s room for enhanced cooperation between the two that will lead to better services for port users, optimisation of port capacity and mutual long-term benefit for the industry as well as the nation,” he said.

PKA is the trade facilitator, regulator and landlord of the terminals in Port Klang.

To further enhance the port’s efficiency, Kee said PKA’s effort to deepen and widen the south entrance to Port Klang was 60% to 70% completed.

The dredging project will see a deeper south entrance of 16.5m from 15.5m previously, and width of 500m from 365m previously.

“The RM100mil project is set to be completed by December,” he said.

In terms of container volume, Kee said the volume in the second quarter of this year showed significant improvement of 7.8% quarter-on-quarter, reflecting signs of recovery going foward.

“But, the container throughput declined by 15.4% in the first six months this year against the same period last year.

“Hence, Port Klang’s full year volume is expected to contract by 10% this year against 7.9 million twenty-foot equivalent units in 2008.

“From the positive indications, we hope to fare better next year,” he said.

Additional initiatives according to Kee would include gearing the industry for the implementation of reduction of free storage period for import and export containers at the terminals to three days effective Jan 1. The free storage time at present is five days.

Kee said PKA would also step in to resolve issues in the industry such as depot gate charges and feeder incentive scheme.

On Port Klang Free Zone, Kee said PKA would announce its business turnaround plan in two months after securing approval from relevant stakeholders.

Kee, who is an accountant by profession with about 25 years of experience in the corporate world, took the helm of PKA two months ago replacing former general manager Lim Thean Shiang.

By SHARIDAN M. ALI

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

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

PORT operator Westports Malaysia Sdn Bhd and its executive chairman Tan Sri G. Gnanalingam each walked away with an award this year at the Brand Laureate Awards held in Kuala Lumpur on March 31.

Westports won the award for the Best Brand in Logistics – Ports while Gnanalingam won the award for Brand Personality.

Presented by the Asia-Pacific Brands Foundation, the Brand Personality is equivalent to the Grammy Award for Branding.

The award was presented by former prime minister Tun Abdullah Ahmad Badawi.

In a statement issued last week, Gnanalingam attributed the two awards to his staff who “have continued to innovate and provided the best services to our customers”.

He said winning the awards was further proof of the port’s capabilities and a testament to its quality of work.

“Westports was founded around innovation and the pursuit of excellence, and those core values have continued to be at the heart of everything we do,” he added.

By: btimes.com.my

THE Port Klang Authority (PKA), which now holds the roles of trade facilitator, regulator and landlord aims to turn Port Klang into a hub for national and regional traffic.

PKA, established as a statutory corporation in 1963, was the port operator before the privatisation of port services which started in 1986.

With the divestment of the operational facilities and services of the port to three distinct entities under three separate privatisation exercises, PKA’s core functions under the re-shaped role are trade facilitation, port planning and development, regulatory overview of privatised facilities and services, free zone authority and asset management.

PKA is also involved in port promotion to turn Port Klang into a major regional transshipment hub and to develop facilities to meet the objectives.

Among PKA’s initiatives were the development of the country’s first inland port, the Ipoh Cargo Terminal and the first distripark, the Port Klang Distribution Park (now known as Northport Distripark). PKA is also the free commercial zone authority and overseer of the port’s Vessel Traffic Management System.

In line with its objective of developing Port Klang as a regional hub, it has also set up a one-stop agency to facilitate the establishment of businesses that will generate cargo for the port.

PKA is the owner and developer of the Port Klang Free Zone (PKFZ), which is located on a 1,000 acre site in Pulau Indah.

PKFZ is the first free zone in the country to integrate industrial and commercial activities within the same area and is designed to facilitate the growth of regional distribution or international procurement centres.

PKA also has jurisdiction over the Port of Malacca at Tanjung Bruas. Its functions, powers, duties and jurisdiction was extended to Malacca Port in July 1983.

PKA board members consist of a chairman appointed by the King and ten directors (including the general manager), appointed by the Transport Minister.

By : biz.thestar.com.my