Malaysia’s leading port, Westports Malaysia Sdn Bhd, posted a healthy 27 per cent surge in its container volume for the first quarter of this year compared with the corresponding period of last year

Improvements were seen in both performance and productivity, especially in container operations, Westports said in a statement.

Westports container throughput was 1.244 million TEUs compared with 981,000 TEUs in the first quarter of 2009.

Local volume increased by 24 per cent while transshipment was up by 22 per cent.

“If we compare our first quarter figures with that of 2008, which had a stronger performance compared with the slower and weaker 2009, we have actually grown by 7 per cent and this puts us on a stronger platform to achieve 5.2 million TEUs for 2010,” said Westports executive director Ruben Emir Gnanalingam in the statement.

Westports recorded a container volume of 1.166 million TEUs in the first quarter of 2008.

“Looking forward, the outlook for 2010 will be generally better than in 2009. There has been an uptrend in Westports’ throughput in past months and that could well be extended into the rest of the year,” Ruben said.

Most encouraging was the growth of local boxes, which saw Westports market share in Port Klang rising to 44 per cent while that for transshipment growth was retained at 71 per cent.

Overall, Westports commanded a market share of 61 per cent in Port Klang.

A significant development in Q1 was the new world benchmark for productivity recently.

“Westports’ operations team yet again showed its dexterity and skills in container handling when it managed to hit crane productivity of 734 moves in a single hour of operations with nine-crane deployment, erasing the earlier mark of 665 mph done on a CMA vessel in 2008,” the statement said.

This feat was performed on March 9 while working on CSCL Pusan, a 9,600-TEU (Twenty-foot Equivalent Unit) vessel belonging to China Shipping.

A total of 5,244 moves were achieved on this vessel, which sails on the AEX 7 service (eastbound).

The productivity achieved over such a large volume of moves across the vessel continues to boost the port’s status as the World’s Best 5 for Productivity and a leading mega transshipment hub in the region.

On port expansion works, Ruben said: “We will build a new 300m wharf when we hit 450,000 TEUs consecutively for three months.

“This would be followed by the acquisition of additional equipment and manpower. Our current capacity is 7.2 million TEUs.” – Bernama

It will reactivate berth expansion plan on economic recovery

PETALING JAYA: NCB Holdings Bhd projects a volume increase of 10% to 15% and will reactivate its expansion plan at Northport (M) Bhd this year in line with the current economic recovery trends.

Northport, a port operating subsidiary of NCB, posted a 5% decline in volume to 2.9 million twenty-foot equivalents units (TEUs) last year due to the global economic downturn.

Chairman Tun Ahmad Sarji Abdul Hamid said the positive volume outlook this year was for containerised and conventional cargo.

We only expand to commensurate the business that we have: NCB HOLDINGS BHD CHAIRMAN TUN AHMAD SARJI ABDUL HAMID

“And since there are perceptible trends in economic recovery, the group has decided to reactivate the expansion of berth 8A this year,” he told reporters after the company AGM yesterday.

The expansion of berth 8A or container terminal 3 is part of Northport’s RM585mil five-year expansion plan announced in 2008. The project was postponed due to the global economic meltdown.

Ahmad Sarji said works on berth 8A would commence in two months for completion in about 18 months.

“The capital expenditure (capex) on the project has been revised where the cost will be determined by tendered price.

“Northport will continue to be prudent. We only expand to commensurate the business that we have and to retain our customers,” he said, adding that Northport’s 30-year lease agreement would expire in 2013 and it was doing the necessary to renew the lease.

Northport managing director and chief executive officer Datuk Basheer Hassan Abdul Kader said the revised capex on berth 8A was line with the drop in raw materials prices and construction cost.

He also forecast closing the port’s first quarter this year with a 24% year-on-year volume increase.

“But, it must be noted that the previous corresponding period was the worst quarter that the port recorded last year in tandem with the global economic downturn,” he said.

On NCB’s other business in container haulage and logistics via Kontena Nasional Bhd (KN), Ahmad Sarji said the company now was on the fast track to fully utilise its sizeable assets in an effort to move into third-party logistics (3PL) business.

“The move into 3PL is considered a natural progression for a haulage company like KN. Besides our prime movers, we also have over three million sq ft of open yard and 500,000 sq ft covered warehouse.

“About 50% to 60% of our 3PL customers last year were our current haulage customers,” he said.

NCB recorded a 12.1% drop in total revenue to RM831.4mil in its last financial year ended Dec 31.

However, its pre-tax profit was 2.3% higher at RM167.9mil.

NCB has also declared final and special dividend of 21 sen per share.

Northport recorded a pre-tax profit of RM148mil on revenue of RM611.9mil last year.

Meanwhile, KN posted a pre-tax profit of RM9.7mil and revenue of RM219.5mil for the year under review.

NCB Holdings Bhd’s direct subsidiary, Northport (Malaysia) Bhd, is expected to register an increased cargo volume of between 10 per cent and 15 per cent this year.

Northport Managing Director and Chief Executive Officer, Datuk Basheer Hassan said the company sees an increase in both the container and cargo business segments amid an improving economy.

“Northport registered a total volume of 2.858 million TEUs in 2009, a decrease of five per cent compared to 3.006 million previously,” Basheer told reporters after NCB Holdings” annual general meeting (AGM), in Petaling Jaya today.

He said the container mix at Northport stood at 50 per cent for both import and export containers.

Transshipment containers made up 38.6 per cent of the total volumed handled by Northport.

Under the conventional cargo business, Northport handled a combined volume of 6.53 million freight weight tonnes (FWT) last year.

Meanwhile, NCB Holdings Group”s chairman, Tun Ahmad Sarji Abdul Hamid said Northport continued to be the leading gateway for indigenous trade, handling 58.6 per cent of the country”s import and export volume passing through Port Klang.

He said the total volume of containers under all classes handled through Port Klang during 2009 was 7,309,779 TEUs, reflecting a decline of 8.3 per cent compared with 7,973,579 TEUs recorded in 2008.

On the planned construction of Wharf 8A, Ahmad Sarji said the group remained ready to re-activate the plan.

It would be to meet its customers’ demand for enhanced capacity to service their growth in business.

“Given the current growth, we are quite optimistic that we need to expand the capacity. This was held back in 2009 in the last quarter because of economic downturn.”

With the indication of growth now, it would be sustainable to invest, said Basheer.

He said Northport will call for tender in one or two weeks for building of the wharf.

The size of the wharf will be 300 meters in length and 17 meters in depth.

This will allow ships to berth at any one time there, he added. — Bernama

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