THE year 2010 will be a big year for Penang Port.

The extension to its container wharf will be completed and the six new cranes built by ZPMC and delivered in December 2009 will commence service.

As the Penang Port managing director Datuk Ahmad Ibnihajar puts it: “There will be new operational options including on wharf storage serviced by high speed rail mounted gantry cranes, a new access bridge to the wharf and more storage yard space.”

Business overview

For the next three years, the Penang Port will continue to embark on its capacity building and productivity improvement to support its aim to be a premier port and logistics chain integrator in the IMT-GT economic region as well as for Bay of Bengal.

As container handling will continue to be its main revenue contributor, the Penang Port has invested more than RM1 billion for a few major projects since 2008.

North ButterworthContainer Terminal (NBCT) Phase 3

The expansion of NBCT Phase 3 will be undertaken in two phases.

Phase 3A – The first phase in the expansion of dedicated container terminal will include a new 600-metre wharf extension to the existing 900-metre wharf.

A new decking area for export container and support by a third access bridge is under construction.

This project is expected to be completed ahead of schedule before end of 2010.

Phase 3B – Construction of a new back stacking area to the existing 900-metre wharves.

To compliment this expansion project, the Penang Port has taken delivery of seven ZMPC Post-Panamax cranes.

Four cranes were delivered in November 2009, while the remainder arrived in early December.

The cranes, which cost RM25 million each, were delivered fully assembled. A Post-Panamax crane can reach 18 rows of containers on board a ship.

The new cranes with its twin-lift capabilities will speed up handling operations as it can pick up two containers at a time.

In line with these new projects, productivity at the port will be enhanced with a new target of crane productivity at more than 25 moves per hour per crane.

With this expansion plan in place and supported by a programme to deepen the access channel at north channel, to be carried out in 2011, it will enable Penang Port to attract more mainline call and direct services.

The port can be positioned as a regional transshipment hub and upgraded to be one of the major container ports in Bay of Bengal.

Cargo services

“The Penang Port continues to build its capacity to cater for existing and potential growth in bulk cargo,” said Ahmad.

“We are also in the midst of planning to re-develop the old Prai wharf into a fully dedicated modern bulk terminal to handle limestone, iron ore and cement clinkers.

“The amount of investment is expected to be about RM224 million,” he said.

The new terminal will be 14 metres deep and will be able to handle panamax vessels.

It will have a state-of-the-art conveyor belt, which will be linked directly to the customer’s premises.

The terminal will also be connected directly to KTMB’s national grid and will initially be expected to handle two million tonnes of bulk limestone and iron ore.

Ahmad said the Penang Port would continue to strengthen its cargo base by further increasing its land bank through the reclamation of an additional 404 hectares for various business activities and niche cargo such as free zone activities, halal hub and possibly to set up auto port and metal exchanges.

By: Lee Keng Fatt

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.

New attraction: Star Pisces, seen docked at the Penang International Cruise Terminal at Swettenham Pier, has made Penang its home base.

AFTER much anticipation, the Star Cruise Pisces has arrived in Penang.

The 177m cruise liner docked at the Penang International Cruise Terminal at Swettenham Pier, that is set to serve as the vessel’s home port, on Wednesday.

Penang Port Commission (PPC) chairman Tan Cheng Liang said the cruise ship had organised a three-day “familiarisation” event on board to introduce the Pisces to its new home.

“This event is the run-up to Pisces embarking on its scheduled cruises which will start after these three days.

“Starting Wednesday, it was opened up to invited guests, tour clients and agents, PPC top officials, government officers as well as related industry players so everyone could get a feel of the vessel,” Tan told reporters after handing over Chinese New Year goodies to children at The Salvation Army Penang Children’s Home on Logan Road on Thursday.

She added that the ship had a 2,200-passenger and 800-crew capacity.

She added that each guest who participated in the familiarisation event experienced a one-night stay on board and had free access to all the ship’s facilities and activities which included line dancing and a variety of sports.

Tan said some 3,000 guests from all over the country’s northern region, and some from as far as Thailand, had signed up for the event.

By ANDREA FILMER

Photo by K.E. OOI

Penang Port Commission (PPC) chairman Tan Cheng Liang (left) leading Bangladesh Shipping Minister Shahjahan Khan on a visit to the Penang International Cruise Terminal at the Swettenham Pier.

PENANG and Bangladesh Chittagong ports are currently in discussions to become sister ports in an effort to enhance co-operation between the two harbours.

Penang Port Commission (PPC) chairman Tan Cheng Liang said both parties had discussed the proposal and the commission hoped that a memorandum of understanding could be inked soon.

She said the move was an initiative to foster a closer relationship among ports elsewhere.

She said this in her speech during a visit from Bangladesh Shipping Minister Shahjahan Khan to the Swettenham Pier and North Butterworth Container Terminal yesterday.

Shahjahan said he welcomed the sister port suggestion to enhance the relationship between the both states.

“Bangladesh is a developing country and the purpose of the visit is to have a greater understanding in running a modern port. Based on the knowledge, we hope to develop our own maritime sector, especially our two main seaports,” he said.

Chittagong is the bigger of Bangladesh’s two main seaports, the other is Mongla port.

Speaking to reporters during a tour of Penang International Cruise Terminal at Swettenham Pier, Tan said a sister port agreement with Chittagong would allow both parties to have a better understanding with each other.

“Aside from increasing trade between the two ports, a sister port relationship could also give us a boost in pooling together our experience and data resources, human resource training and would enhance our bilateral relationship,” she said.

Penang has previously signed a sister port pact with the Siam seaport in Thailand while the Penang port will be Chittagong’s first sister port if an agreement is signed.

By:  The Star Online

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

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

PENANG: Penang Port Sdn Bhd (PPSB), the port operator, has invested RM1.1 billion over the last five years to upgrade infrastructures at the port and Container Terminal as part of initiatives to pump-prime the state economy, Chief Minister Lim Guan Eng said on Wednesday.

He said the huge investment had indirectly bolstered operations of the port and the terminal, key revenue contributors to the state economy.

Continuous upgrading of infrastructures at the Penang Port and Container Terminal is to provide shipping companies and other port users user-friendly facilities, a crucial element to woo more shipping lines and container vessels to the port and the terminal, he told reporters after a briefing by the port management on Wednesday.

To realise Penang Port’s mission to provide world-class shipping services, Guan Eng said the port’s latest and efficient logistics would be the yardstick to increase the number of merchant ships and containers anchoring at the port.

The Chief Minister also called on the Federal Government to re-start the RM353 million project to deepen the North Channel at Penang Port to facilitate smooth sailing-in of container vessels.

“If the deepening work is not done in compliance with environmental requirements, it will harm plans to turn Penang into a green state,” he said.

He also hoped projects promised for Penang under the current Ninth Malaysia Plan but have not been implemented due to various reasons would be carried forward to the 10th Malaysia Plan. – Bernama

PART of Penang Port will be turned into a halal section with halal concept facilities by mid-October.

State Domestic Trade and Consumer Affairs Committee chairman Abdul Malik Abul Kassim said yesterday the Penang Port was discussing with a Syariah compliance logistics company plans to brand Penang as a halal port.

“The Penang Port has already obtained the Syariah family compliance approval in May.

“The state is now having direct discussions with the Rotterdam Port in Holland and with other related logistics companies,” he said.

Abdul Malik said although Penang Port had allocated certain portions of the port area to be turned into a halal port, the areas would be expanded progressively depending on the demand for halal shipments.

“The state will also embark on a drive to create awareness among exporters on the port halal facilities to enable them to trace where the raw materials were obtained from, their packaging and the company used to transport the products,” he said.

He added that once operational, the halal port could take advantage of the opportunites provided by the halal industry in southern Thailand.

Halal products from southern Thailand are currently being exported via Bangkok.

Abdul Malik said the halal port in Penang would be similar to the one in Rotterdam.

It will have cold room facilities, storage areas and other related facilities to store halal products.

He said the state would look into tapping the Indonesia-Malaysia-Thailand Growth Triangle (IMTGT) to attract investors for the halal industry.

“The state is keen to take advantage of the growing US trillion-dollar halal products industry worldwide,” he said.

By : The Star Online

By forming a new subsidiary to manage its ferry business, Penang Port can make strategic moves at turning around the unit, says its managing director

The Economic Planning Unit (EPU) has given the much-awaited nod to terminal operator Penang Port Sdn Bhd (PPSB) to separate its loss-making ferry operations from its core port business, and make it a subsidiary of the company.

The move by the EPU, a body established under the Prime Minister’s Department, is part of a major restructuring plan aimed at facilitating the port operating unit’s listing on Bursa Malaysia.

PPSB managing director Datuk Ahmad Ibnihajar said the separation of the two businesses, which is likely to take place this year, will create distinct identities for PPSB’s ferry and port operations.

“This restructuring exercise is expected to be endorsed by PPSB’s board when it meets on October 9 and we are looking at positioning the ferry operations as a public transport provider like Rapid Penang and the light rail transit service,” he told a press conference in Penang yesterday.

Present was PPSB’s newly-appointed chief operating officer Azlan Hamid.

Ahmad said by forming a new subsidiary to manage its ferry business, PPSB can make strategic moves at turning around this unit.

“One way to fill our fleet of eight ferries up and ensure that they run optimally is to team up with Rapid Penang.

“We plan to load their buses on our ferries – which currently operate at only 25 per cent capacity – and allow passengers to travel on a single ticket,” he added.

He said discussions on the fare structure for this proposed merging of services between PPSB and Rapid Penang will be held with Rapid Penang’s chief executive officer Azhar Ahmad soon.

The ferry service, which links Penang island to the mainland, has been a stumbling block to the port opera-ting company’s initial public offering.

Last year, ferry losses stood at RM24.6 million, a 71 per cent increase over RM14.4 million in 2007.

“The massive losses last year were due to fuel cost. We are looking at losses of RM14 million this year,” Ahmad said.

In July this year, Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadziah was reported as saying that state infrastructure company Syarikat Prasarana Negara Bhd had been given the mandate by the Finance Ministry to carry out a study on the viability of taking over the ferry service from PPSB.

The public ferry service was absorbed into PPSB as part of its corporatisation deal with the Penang Port Commission in January 1994. Some 6,500 passengers and 3,000 vehicles use the service daily. Passengers pay RM1.20 each, while the fare for a car is RM7.70.

Meanwhile, Ahmad said Penang Port’s container throughput for 2009 is expected to match the 2008 volume of 929,639 TEUs (20-foot equivalent units).

By Marina Emmanuel