ASEAN Ports Association Malaysia (MAPA)

SINGAPORE: Port of Tanjung Pelepas (PTP), Malaysia’s largest container terminal, is confident of double-digit growth next year despite a challenging economic environment.

“We are expanding under a three-year modernisation plan, which will be completed around May next year,” said chief executive officer Glen Hilton.

PTP is investing RM1.4 billion over three years in a modernisation plan designed to meet the docking requirements of mega-container vessels.

Hilton noted that PTP’s overall capacity, with the first 12 berths, amounted to 8.5 million twenty-foot equivalent units (TEUs).

“Last year, we did 7.7 million TEUs. The market fluctuates up and down but we know we can grow. We have the capacity. With the new berths next year, we expect to record double-digit growth. The future is bright,” he said after welcoming the world’s largest container vessel, the Tripple-E “Maersk Mc-Kinney Moller”, on Sunday.

“Although we are in tough economic times, we will continue to work well with our customers like Maersk Line to attain continued growth.”

The newly built vessel called at PTP, which serves as Maersk Line’s Southeast Asia Transhipment Hub, on its maiden voyage between Far East Asia and Europe.

Being in the transshipment market, Hilton said the majority of the business was from other countries.

“We are in a great position, given PTP’s location in the heart of Asean, which is a growth market.

“We see some impact (of the economic downturn) from countries like Japan and South Korea, but the growth is there,” he explained.

In terms of the local market, Hilton said: “We are seeing a little bit of growth here. We are expecting the market to grow primarily on the back of great global shipping access. This is one of the benefits for the people in Johor and for companies that are importing and exporting goods into Malaysia.

“This is because they have access to bigger ships and the biggest network in the world, right at their front door,” he said, adding that it was also good for the local economy.

When asked on competition, Hilton said: “We have been in the transhipment market and face competition from Singapore.

“We also have competition with Port Klang and another port, which is literally beside us,” he said.

However, he said competition is good.

Saying that each port has its own challenges, including PTP, Hilton said: “We are committed to being the most efficient port in the region and that is our goal and we are very focused on it.”

On new shipping lines, he said: “We always have shipping lines typically for the local market calling at PTP.” Bernama

NCB Holdings Bhd expects the construction of Wharf 8A in Port Klang by its subsidiary Northport (Malaysia) Bhd to be operational in September this year.

NCB Holdings chairman Tun Ahmad Sarji Abdul Hamid said Northport would be able to gradually handle close to 5.6 million twenty-foot equivalent units (TEUs) of containers once the wharf is completed.

“Wharf 8A, which will inject an additional container handling capacity of 600,000 TEUs, is important for Northport to retain its customers.

“The wharf will contribute to the efforts in strengthening the institutional capacity at Northport,” he told a media briefing on the progress of Wharf 8A at Northport here today.

Wharf 8A, which forms part of Container Terminal 4 at Northport involving an investment of nearly RM350 million, will be able to berth vessels with deeper draft of up to 17 metres which in turn will improve connectivity.

The wharf, together with the planned re-development of container wharves eight, nine and 10, will eventually offer seamless container wharf configuration to support ultra large vessels (14,000 TEUs and above) which are being deployed by main line operators currently.

Ahmad Sarji said the contractors of the wharf took three mitigation plans to ensure the smooth progress of the wharf including increasing the number of workers, extending the working hours and having additional team to work from southern end of the wharf.

He said he was confident in the integrity part of the wharf structure based on the proven track record shown by the contractor.

Ahmad Sarji said Northport aimed to handle about 3.4 million TEUs of containers this year compared with 3.09 million TEUs last year. BERNAMA

Port Klang will have the capacity to handle almost 20 million twenty-foot equivalent units (TEUs) of containers by 2016 as both Northport Malaysia Bhd and Westports Malaysia Sdn Bhd are undergoing expansion plans.

Port Klang Authority Chairman Datuk Dr Teh Kim Poo said the authority was also in the midst of obtaining relevant approval to deepen the existing channels to 18 meters.

“This will make Port Klang competitive and a preferred choice to our customers,” he said at a logistics forum and exhibition here Monday.

Earlier, he said Northport would be able to handle 5.6 million TEUs this year after the conversion of Wharf 8A.

Northport was also in the process of expanding its break bulk and dry bulk handling facilities towards the North of Wharf 25.

Meanwhile, Wesport can handle 14 million TEUs after container terminal (CT) six is completed this year.

“Today, Port Klang handles almost 50 per cent of Malaysia’s sea-borne container trade,” Teh said, adding that, ports in the country handled about 20 million TEUs last year.

Port Klang has trade connections with over 120 countries worldwide and dealings with more than 500 ports throughout the globe, Teh added. BERNAMA

PORT KLANG: Container volume moving through Westports Malaysia Sdn Bhd rose by 15 per cent or 6.4 million twenty foot equivalent units (TEUs) last year, compared with 5.6 million TEUs in 2010.

In a statement, Westports said the better-than-expected container volume throughput comes from both transhipment and indigenous boxes, registering positive increases of 22 per cent and 13 per cent respectively.

The robust performance in 2011 has made Westports one of the fastest growing ports in the world.

“The port has been well-known to the shipping industry as one of world’s best productivity terminal operator in container handling.

“Barring unforeseen circumstances, we expect to see a strong growth trend in volumes moving forward albeit uncertainty in eurozone, we have set a target of seven million TEUs in 2012,” Westports chief executive officer Ruben Emir Gnanalingam said.

Ruben said expansion plan to further improve the port’s capacity is underway with the current development of expanding the existing 3,700m container terminal to 4,600m, making Westports Malaysia a 10-million-TEU handling capacity port within the next two years.

The new terminal is designed to handle 18,000-TEU capacity vessel, which will be the largest container vessel in the world come 2013.

He said the company’s investment in expansion works is to accommodate the needs of its customers as well as meeting the increasing demands of domestic and international trade.

by: Business Times

3,000 ground slots will be ready in container terminal by then

GEORGE TOWN: Penang Port Sdn Bhd (PPSB) needs one month to solve the congestion problems at the North Butterworth Container Terminal (NBCT) as the new decking area with 3,000 ground slots will only be ready by then.

Penang Port Commission (PPC) chairman Tan Cheng Liang told a press conference that all the port users had agreed to wait till next month for PPSB to solve the congestion problems.

Also present were PPC general manager Noor Ariff Yusoff, PPSB chief operating officer Azlan Hamid, and the Association of Malaysian Hauliers northern region chairman R. Amaippan.

“PPSB has also identified certain key problems to be resolved to hasten the flow of cargo delivery. These entail the opening of all the four entrance gates during meal hours and improving the scanning of container cargo to speed up cargo delivery,” Tan said.

Tan spoke following a meeting with port users including hauliers, exporters, forwarders, and representatives from the transport and international trade and industry ministries.

“When the additional 3,000 ground slots at the new decking area are ready next month, PPSB will open the window frame for cargo delivery back to five days,” she said.

Due to congestion at the NBCT container yard, the window for cargo delivery was shortened to 1½ days three months ago.

Last month, StarBiz reported that 20 container haulage companies in the northern region were losing about RM18mil a month in “opportunity cost” because of the shorter window frame to deliver container cargo for export.

On Saturday, Amaippan advised customers to use Port Klang, and subsequently Penang Chief Minister Lim Guan Eng had also called for outside expertise to be brought in to assist PPC and PPPSB.

Tan said Lim should quickly give out land titles to PPC for four plots of land so that they could be used to ease congestion at the NBCT and for use by the Penang International Cruise Terminal (PICT).

“We have submitted applications for the land titles.

“Two plots of land are for use at the NBCT while the other two are for use by PICT,” Tan said.

“One plot of about 26ha has been designated for use as a container yard at the NBCT. This container yard has 4,200 ground slots to accommodate cargo.

“Another plot is for a bridge at the NBCT to facilitate cargo movement from the container yard to the decking area,” she said.

By DAVID TAN

Northport (Malaysia) Bhd has emerged as winner of the Asian Freight and Supply Chains awards (AFSCA) 2010, beating seven other ports in the region.

Terminal operator Penang Port Sdn Bhd (PPSB) will be roping in 30 additional skilled personnel to handle vital port machinery next year, as part of efforts to boost productivity.

The port now handles an average crane productivity of 25 TEU (20-foot equivalent unit) moves per hour compared with 35 TEU moves per hour by more productive ports.

The new recruitments will handle the port’s seven new post-panamax cranes and work the extended 1.5km berth, which is due to be completed by the middle of next year, said PPSB human resources general manager Tadzaruddin Abd Manaf.

“There will also be training involved as the cranes are specialised equipment that are crucial in speeding up our operations in container services.

“We plan to get this recruitment process started once we have determined our 2011 budget which will cater for our expansion plans at the end of the year,” he told reporters after officiating at the port’s 14th blood donation campaign, which saw the participation of 140 employees, at its office in George Town yesterday. PPSB employs 1,760 people.

The port is currently undergoing expansion plans, which include the extension of the port’s existing 900m wharf to another 600m, and the deepening of the North Channel among others, to increase its productivity as an international port.

Tadzaruddin said the port has spent about RM1.6 billion over the past five years on infrastructure development, mainly for its North Butterworth Container Terminal.

“With improvements to our infrastructure and online system, we expect business to pick up. Last month alone, we handled 96,000 TEUs.

“For this month, things are looking well. Hopefully, by the end of the year we will be able to reach our one million-TEU target, make RM300 million in revenue and move forward in our efforts to join the big leagues like Port Klang that handles four million TEUs a year,” he said.

PPSB handled a total of 958,476 TEUs last year, compared with 929,639 TEUs in 2008.

The port was ranked 64th in the world this year, 36 places above its last year’s position at 100.

Tadzaruddin said PPSB will work towards improving its international ranking, or at least maintain its performance.

“We are on the right track in serving our customers locally and internationally. We are expecting business to increase in 2011,” he said.

By: Looi Sue-Chern

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

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.

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