By DAVID TAN (thestar.com.my)

GEORGE TOWN: The sea and airfreight business in Penang improved in the second quarter by about 12% and 20% respectively from the first quarter.

For the second quarter, sea throughput rose to 163,985 twenty-feet equivalent units (TEUs) from 145,854 TEUs in the first quarter, while air cargo increased to 24,196 tonnes from 19,910.

Penang Freight Forwarders Association (PFFA) president Krishnan Chelliah told StarBiz that the second-quarter results showed the import and export of goods in Penang were gradually improving.

“The last six months have shown a steady increase month-on-month.

“However, compared with the second quarter of 2008, the airfreight business is down by about 33%.

“The sea-cargo business in the second quarter is down about 19% compared with the corresponding period of 2008,” he said.

Krishnan Chelliah says the second-quarter results show the import and export of goods in Penang were gradually improving. ‘The last six months have shown a steady increase month-on-month.’

Krishnan said the air and sea-freight volumes in July were the highest this year.

“This shows that we are recovering and bottoming out. In January 2009, the airfreight volume was the lowest in many years, and from February onwards there was a steady increase of 2% to 3% every month.

“In July, there was a jump of 4%. However, in the sea-freight business the month-on-month increase was 10% to 15%,” he said.

Krishnan said PFFA expected the growth to continue in the second half of this year.

PFFA secretary-general Bryan Kor Hock Choon said the third quarter should see the sea and airfreight business in Penang improve by about 10% over the second quarter, and the fourth quarter by 5% over the third quarter.

“Generally, in December, business slows down for freight forwarders,” he said.

Krishnan also urged the State and Federal Governments to continue attracting foreign direct investments to maintain the momentum of growth and recovery.

»Exporters are doing less business because the number of regional buyers in Asia had dropped« DATUK TAN CHOO HIN

Meanwhile, Penang Importers & Exporters Association (PIEA) president Datuk Tan Choo Hin said that for the first six months this year, PIEA members imported about 33,000 TEUs of cargo against about 46,000 TEUs in the previous corresponding period.

“The exporters also exported less in the first six months, shipping about 45,000 TEUs compared with about 70,000 TEUs in the previous corresponding period,” Tan said.

He said imports by PIEA members were lower in the first half because February, March and April were generally slow months, the festive season was already over, and the local demand had weakened.

“The peak season starts from May and lasts till the fourth quarter,” he said.

“Exporters are also doing less business because the number of regional buyers in Asia had dropped.

“At the recent China Import and Export Fair in Guangzhou, the number of purchasers from South-East Asia dropped by about 30%. We see, instead, more buyers from India and the Middle East,” he said.

Tan said the third and fourth quarters should see an improvement but overall, business this year would not be better than in 2008.

He added that there was “no visibility” as to the business environment for 2010.

Penang Port Sdn Bhd (PPSB) is throwing the ball back into the court of international shipping lines who have slammed the terminal operator for not penalising shippers that overload their cargo containers on a vessel.

PPSB chief executive officer Datuk Ahmad Ibnihajar said it was based on the appeals made by shipping lines to allow overloaded vessels into the port that resulted in no enforcement made to date.

“It’s the members of the International Ship Owners’ Association of Malaysia (ISOA) themselves who have been appealing to us and now they are blaming us for not penalising the offending shippers,” he told Business Times.

Ahmad was responding to a Business Times report where international container shipping lines operating at Penang Port slammed the terminal operator for not penalising shippers who overload their cargo containers on a vessel, saying it could lead to an accident.

ISOA secretary Fong Keng Lun said requests for enforcement have been sent to PPSB as early as June last year, but so far the calls have gone unheeded.

Ahmad said PPSB will be calling a meeting of all its users soon and ask them to decide whether they want enforcement to take effect immediately.

“The ISOA members can decide if they want us to ignore their previous appeal and support the rule that any overweight containers detected by us be not allowed to be loaded onto the vessels,” he added.

Fong had claimed that ISOA had sent repeated requests to PPSB to impose the rule that any overweight containers detected by the terminal operator will not be allowed to be loaded onto the vessels.

He said apart from the risks to human lives and the transportation operators’ equipment, some of the overweight containers were subsequently detected at transshipment ports like Hong Kong and were held back until the shipping lines had repacked the overweight containers.

The maximum permissible weight of a 20-foot container is 24 tonnes, 30.48 tonnes for a 40-foot container and up to 32 tonnes for a new-generation 40-foot container.

By : Marina Emmanuel

International container shipping lines operating at Penang Port have slammed the terminal operator for not penalising shippers who overload their cargo containers on a vessel, saying it could lead to an accident.

International Ship Owners’ Association of Malaysia (ISOA) secretary Fong Keng Lun said requests for enforcement have been sent to Penang Port Sdn Bhd (PPSB) as early as June last year, but so far the calls have gone unheeded.

In a letter dated June 30 2008, obtained by Business Times, the association wrote that some of its members had reported that overweight containers from southern Thailand regularly slipped through the checks at Penang Port and Padang Besar Terminal and were loaded onto the vessels.

“Some of these (overweight) containers were subsequently detected at transshipment ports like Hong Kong and were held back until the shipping lines had repacked the overweight containers.

“Shipping lines have to incur repacking costs and very often, due to time constraint, the on-carrying vessels have to sail off without the containers,” ISOA said, also voicing concerns over the risks to human lives and the transportation operators’ equipment.

In the same letter, the association had requested for PPSB’s support to impose the rule that any overweight containers detected by the terminal operator will not be allowed to be loaded onto the vessels.

“A circular was also sent to all ISOA members on July 2 2008, urging them not to accept overweight containers,” Fong told Business Times.

The maximum permissible weight of a 20-foot container is 24 tonnes, 30.48 tonnes for a 40-foot container and up to 32 tonnes for a new generation 40-foot container.

Fong said more recently the association made repeated pleas on May 6 and June 4, which have been ignored by PPSB.

“The letters were issued following news that the problem of overweight containers from South Thailand via Penang had resurfaced. The problem occurred with containers delivered by barge/feeder as well as by rail from Padang Besar,” he added.

Fong said ISOA’s latest calls for immediate action to stem the overweight container issue at Penang Port was also due to a March 2009 incident at Kantang Port, Thailand, which saw two barges heading for Penang Port sank due to overweight cargo.

“Today, both the Kantang terminal and barge operator are not implementing any enforcement of regulations pertaining to overweight cargo. PPSB likewise is also not implementing any check on this issue,” he said.

Fong added that the association was baffled why no action had so far been taken by PPSB on the matter, when Multimodal Freight Sdn Bhd, which manages the Padang Besar Terminal, has responded favourably to similar calls made recently.

“Is PPSB waiting for another accident to happen before it takes any action?” said Fong.

In a letter signed by Multimodal Freight general manager Azman Ahmad Shaharbi, dated May 26 2009, Azman said the company will reject containers found to be overweight and agreed not to load them onto Keretapi Tanah Melayu Bhd’s (KTMB) trains for export via Penang Port. Multimodal Freight is a wholly-owned subsidiary of KTMB.

It also pledged to install a weighing bridge for weighing all incoming containers, which is expected to be operational by the end of this year.

By : Kang Siew Li

Besides the private finance initiative model, the government may opt to use its own coffers for the project

THE government is exploring the possibility of using a private finance initiative (PFI) model to deepen the north channel of Penang Port.

Transport Minister Datuk Seri Ong Tee Keat said besides the PFI model, another alternative is for the government to use its own coffers for the project, which is estimated to cost RM1 billion.

He said a study is being carried out to determine the feasibility and suitability of both models.

“We will decide on the matter based on the outcome of the study. This is top on my priority list and I hope the engineering working proper will kick off before September this year,” he told reporters in Penang yesterday after launching the Penang MCA’s 60th party anniversary celebration.

The government had announced last November that it would resume work on the project, which had been shelved under the Ninth Malaysia Plan (9MP) mid-term review.

Ong had said then that after studying the benefits in dredging Penang Port’s channel, his ministry felt that the project should proceed in order to enhance the port’s competitiveness.

“The Penang Port is currently a feeder port. We should not forget its glorious past and the importance of the port to the country, the state and its people,” he said, adding that what worried him was the depth of the current port, which is between 9m and 11m.

“We hope to deepen the depth to between 15m and 17m to enhance the port’s competitiveness,” he said, adding that an environmental impact assessment (EIA) report will also be carried out before the project proper.

Operator Penang Port Sdn Bhd is targeting to develop Penang Port into a premier port by 2012 if the deepening of the north channel proceeds.

The Penang Port expansion and upgrading are outlined in the Northern Corridor Economic Region (NCER) blueprint to promote it as the leading port in the Indonesia-Malaysia-Thailand Growth Triangle.

Meanwhile, Ong who was also asked on a proposal by Bukit Bendera MP Liew Chin Tong for the Penang state government to take over the ferry operations which were reported to have suffered RM20 million losses last year.

“Anyone can propose anything but it should not be just a mere statement. Show us the proposal and we will see whether its viable or not,” Ong said, adding that he had received numerous inputs on the matter by various parties including the state MCA and individuals.

He added that so long as the proposal was genuine and for the benefit of the people, he was willing to consider it.

By : Audrey Dermawan

THE delayed RM55.4mil Port Swettenham expansion project will be completed in September, says Penang Port Commission (PPC) chairman Tan Cheng Liang.

She says PPC is managing the project, which is 86% completed.

“The main building, now 99% completed, will accommodate shops, a Customs inspection and quarantine centre, and sufficient space for 40 taxis and five buses to pick up passengers.

“After that, the main contractor (of the project) will have to issue a two-year warranty for the entire project,” she told a press conference yesterday.

Tan Cheng Liang with an artist’s impression of the extended Port Swettenham pier.

The expansion, to enable international cruise liners with over 3,000 passengers to berth at Port Swettenham, was originally scheduled for completion by November 2007, 18 months after it kicked off in May 2006.

Due to technical problems related to design and finance faced by the main contractor, PPC extended the deadline to late last year.

“Since they were still not able to meet the extended deadline, PPC has decided to manage the project jointly with the main contractor.

“This will allow PPC to deal directly with the sub-contractors. We will use some new sub-contractors to complete the more specialised aspects of the expansion,” she said.

Tan adds that another option would be to terminate the main contractor and re-tender the whole project.

“This would take time and cost the Federal Government a further RM21mil.

“The approach that we are taking offers the best solution as it ensures the port redevelopment will be ready soon to help boost the local tourism industry,” she said.

By DAVID TAN

PENANG Port Sdn Bhd (PPSB) is carrying out a rebranding exercise which will see it enhancing its facilities and services to clients while positioning its entire port operations under a new image.

Its managing director, Datuk Ahmad Ibnihajar said the entire rebranding process will not only involve the services the port is offering but also the image, delivery and the work structure of the organisation and its employees.

He said the changes are in order for PPSB to play a bigger role in driving the region’s logistics industry, in line with the government’s aspirations to make Penang the logistics hub for the Northern Corridor Economic Region (NCER).

When met by Bernama recently, he said that PPSB so far has identified several image solutions that were suited for the company to adopt for its rebranding exercise and hoped to finalise them by the first quarter of next year.

A rebranding programme could then be carried out to give workers a fresh inspiration and encourage them to work harder and make Penang Port relevant to the region’s logistics industry.

“We also want to attract users in the northern region including Southern Thailand to use the Penang Port as a main hub for exporting halal products to the rest of the world,” Ahmad said.

He said PPSB was also working to attract bigger ships from the Middle East and India to use the Penang Port as their cargo delivery and loading centre in the future.

“To enable the bigger ships to call here, we need to deepen the Pulau Pinang Straits and this will need a huge amount of money,” he said.

Ahmad also said that people often had a wrong view of PPSB and thought of it as being only a provider of ferry services and used the services to measure the entire capability of the company.

“That is not accurate, as besides the ferry (services), we are also involved in cargo handling, landing of cruise ships and others. We recorded profit in all the other services except the ferry services,” he added. – Bernama

By: btimes.com.my

Within the kaleidoscope of fast changing global logistics scenario, Penang Port Sdn Bhd has formulated a strategic approach to serve our customers at the peak level, in line with our new corporate vision to make Penang Port to be the PREMIER PORT AND LOGISTICS CHAIN INTEGRATOR IN THE REGION.

Under New Business Plan, for container operations, the North Butterworth Container Terminal will be expanding by another 600 meters to accommodate seven vessels at any one time.  The north channel entrance will also be dredged to 13.5 meters from the current depth of 11.5 meters to accommodate bigger drafted vessels.

In addition, the port is also planning a 1500 meter storage deck located directly to the back of the present berth.  This will enhance the handling of export containers and improve port productivity performance by up to 30%.  This deck will be able to handle 873,900 teus and together with the current capacity of 961,300 teus, total yard capacity at the port will be 1,835,200.

The new expansion plan will be equipped with six new super post panamax gantry cranes and 15 rubber tyred gantry cranes.  These new superstructures and equipment will certainly enhance our strategy of being supply driven port instead of being driven by demand.  With these new developments in plan, productivity at the port will be increased, with a new target of at 35 teus moves per hour.  The cost of construction is expected to be RM380.7 million.

Penang Port Sdn Bhd also has formulated a strategic approach to provide information services in tandem the company’s long term business plan, PELKON III, PPSB’s newest container terminal management system was official launched on 1 September 2006.  The objective is to make the port intelligent and move to   the paperless era with a host of new features and functionalities that will enable port customers to do business in an easier and faster way.

In the pipe line after marina project completion, is the development an international cruise passenger terminal at Swettenham Pier, that is estimated to cost RM65 million.  The project is already kicks off in May 2006 and targeted to complete in 2007.  The present Swettenham Pier will be upgraded as world class cruise terminal to revitalize the Georgetown Waterfront.  The scope of work involves the redeveloped of Swettenham Pier into an ultra-modern international cruise Terminal with a T-shaped berth 450 meters long and 9 meters deep.  Upon completion, the berth will be able to cater for cruise vessel carrying more than 2,000 passengers.

We believe that with these developments in place, we will be able to fulfill our customer’s expectations, thereby strengthening our market position and company performance.  Thus enhancing our capability to make Penang Port Sdn Bhd a truly regional huh for the Indonesia, Malaysia and Thailand growth triangle.

Malaysia’s First Inner City Marina

The Malaysia Tourism Policy Study, 1992 noted that providing suitable facilities such as those available in Penang, Langkawi, Tioman and Pangkor helps in making longer stays in coastal areas and islands more attractive. The island of Penang, well known as the ‘pearl of the orient’ and is a well-received tourist destination with rich diversity of history, social mix, politics, economy as well as healthy environment and a vibrant daily way of life.

From the City’s earliest days, Georgetown waterfront in Penang Island has been an important centre of commerce, transport and social interaction. While much has changed along the waterfront over the past century, the value and basic needs that made this coastal area essential to the community remains. It is also seems self-evident that Georgetown waterfront has and will continue to change, responding to meet new social and economic conditions as they arise. Uses and activities along the waterfront to provide a diversity of opportunities and choices regarding recreation, tourism commercial and other water-dependent and upland reliant activities was identified.

Penang Port envisaged that the redevelopment of Georgetown’s waterfront will enhance Penang as a tourist destination and serve as a catalyst for revitalizing the inner city of Georgetown. It has proposed two projects to the Government namely ‘The Redevelopment of Swettenham Pier’ and ‘The Development of Public Marina’. This development will be a feature attraction and complimentary to the overall waterfront redevelopment to increase tourist arrivals to Penang by sea. The intended waterfront development shall be in harmony with the unique nature of Georgetown’s background of rich heritage as well as a shopping and leisure destination. Georgetown with its Ancillary and Service Buildings historic background which dated back to 19th century will be a nostalgic brand. Thus the proposed development will draw similarities to such existing waterfront development in the world.

Penang is viewed by many to be a suitable location for a marina that will anchor itself as the flag ship for all marinas along the west coast of peninsula Malaysia. Loacated in the midst of historic Georgetown, integrated with its other well known attractions, it will compliment other recreational marine detinations in the region such as Phuket, Thailand and Singapore.

The proposed marina facility is also part of a larger national program for stimulating marine recreational activities for Malaysians and regional and international yachters, where there are many marinas at various stages of development along the coastal towns and cities of both peninsula and east Malaysia.

Visualised as a world-class marina with world-class facilities, the objective of this project is to be the first port of call for boats coming in from the Indian Ocean and also to be developed as a hub for super yachts. It also will complement Langkawi and neighbouring islands. It is located at the Church Street Pier with maximum capacity of 102 boats or yachts ranging between 10 to 40 metres. The RM 44 million marina which commissioned in mid October 2005 had been chosen as one of the main stop-over for the 16th Raja Muda Selangor International Regatta held on 21st till 24th November 2005.

The whole development is aimed at improving the public realm. The main building components are:-

* The marina building
* The refurbished pier
* Pier edge restaurants
* Ancillary and Service Buildings

The development of Tanjung City Marina WIII nave great aavantage in boosting Penang Island’s image as a tourist city. The tourism industry will receive the bulk of the development and the nation will benefit in terms of the increase of visitors from the world over. Apart from being a revenue earner it will also generate spin-offs business to develop. There is no doubt that the country’s coastal areas have tremendous potential for the tourism industry. Translating these potentials into real life will benefit the county in terms of economic, social and environmental points of view.

By: Penang Port Commission and Penang Port Sdn. Bhd.