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

THERE are many ships are operating in Malaysian waters but few of them are owned by Malaysians and this needs to be addressed, said Minister of Transport Datuk Seri Ong Tee Keat.

To increase the registration of Malaysian ships, there is a need to ensure that the aspects of development and sea services infrastructure are implemented holistically, sustainably and well planned, he said. “We must be able to compete internationally,” he said.

Towards this, the Malaysia International Ship Registry (MISR), a body for the registering of international ships, has given an alternative option to the shipping community as a whole, he said.

Today, the MISR registered the first Malaysian international ship, “PUTERISIME 786″ under its list in the Labuan Registry Port.

The MISR has been established to encourage individual and foreign shipping companies to register their ships in Malaysia without having to comply with the requirement of Malaysian majority share holder, he said at the registration of PUTERISME 786 in Labuan on Saturday.

The MISR would enable the placing Malaysia on the international maritime map.

“I am also fully confident that the MISR will be able to stimulate the shipping economic activities in the country,” Ong said.

Under the ship registry, foreigners are allowed to hold 100 per cent equity in line with the government’s effort to encourage foreign investments in the country.

With the registration of international ships, it would help increase the ships registry capacity and that to be able to handle the country’s transportation trade.

“This would in turn help to develop the maritime industry and create employment opportunities to graduates and Malaysian seamen, be it on ships or with shipping companies,” he said.

Ong said the government would also ensure the registry package is attractive from its company registration composition as well as financing of owning fund

By : btimes.com.my

Plans are underway to increase the capacity of the newly-completed Sepanggar Container Port Terminal (SPTC) in order to meet growing demand.

According to Infrastructure Development Minister Datuk Seri Joseph Pairin Kitingan, ever since the container port was open for business, it has been recording an upward trend in performance.

Speaking after attending a briefing cum work visit to SPTC, Thursday, he said Sabah Port Sdn Bhd (SPSB) has been mulling over the expansion plan.

This is to further improve the port’s capacity to enable it to handle more containers coming into Sabah.

“The port has been recording a commendable increase in terms of operational performance and an expansion plan is necessary and something to look forward to,” he said.

This despite the port with a capacity of 500,000 TEUs (twenty foot equivalent units) handling only about 200,000 TEUs last year as said by its Chief Operating Officer Mohd Sahid Nawab Khan.

Pairin said the privatisation of ports in Sabah has resulted in their management becoming more efficient as reflected by the steady increase of operational performance.

He said that positive performance displayed by the container port showed that it was heading in the right direction.

Explaining the expansion plan, he said it would be carried out based on projected future needs. “The plan would include increasing the size of the container yard and docking areas.”

Costing RM400 million over 22ha in Sepanggar opposite the Naval Base, the port commenced operations on June 9, 2007.

Plan for expansion of the newly completed Sepanggar Container Port Terminal (SPTC) is being foreseen.

Infrastructure Development Minister, Datuk Seri Joseph Pairin Kitingan yesterday said Sabah Ports Sdn Bhd (SPSB), the government-linked company managing the port, was already mulling on expansion plan to further improve the port’s capacity.

The port, sitting on a 22 hectare land started operation June 9, 2007, has a capacity of 500,000 TEUs but last year it handled only about 200,000 TEUs, as revealed by its Chief Operating Officer, Mohd Sahid Nawab Khan.

However, according to Pairin, since commencing operation it has recorded a commendable increase in terms of operational performance and thus an expansion plan was something to look forward to.

He said the move to privatize the ports in Sabah has resulted in a more efficient management where a steady increase in operational performance has been noticeable.

“Operation wise, the privatization is showing a desirable result as the performance of our port continues to improve. We are heading towards the right direction,” he told reporters here yesterday during a visit to SPTC yesterday.

He said the scale of the expansion would depend on future needs and it would involve increasing the size of the container yard and docking areas.

Pairin who was in his first work visit to the port since taking over the Ministry of Infrastructure Development in May, however regretted that high percentage of empty containers going out from the port has continued.

He said this was due to Sabah still not producing sufficient manufactured product for export.

In the mean time, SPSB Chairman Datuk Karim Bujang explained that Sabah currently exports mainly crude palm oil which does not require the usage of containers.

Sahid added that 70 per cent of the total containers handled that entered through the port last year returned empty and the figure has increased slightly this year.

Other ports around the globe, he noted, were showing similar trend due to global economic slowdown.

Most of the cargos it handles are from Peninsular Malaysia with a small percentage of transit cargos.

By :  Sabah Times

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

MARSEILLE: Malaysia’s liberalisation of 27 local services sub-sectors, including the transport sub-sector, prompted French shipping giant, CMA CGM to mull over plans to strengthen its foothold in the country.

Transport Minister Datuk Seri Ong Tee Keat had during a visit to the headquarters of the world’s third largest container shipping company in the French city last Thursday shared the Malaysian Government’s policy to liberalise the transport sub-sector, including the opening of 30% restriction in foreign ownership.

CMA CGM has had a presence in Port Klang since 1994 and is one of the largest customers of Port Klang. It has since June 1 also served the port of Tanjung Pelepas.

In welcoming the move, the company’s president Jacques R. Saade said “such liberalisation will change the strategy (of the company) in Asia.”

The shipping giant also welcomed Ong’s announcement of gradual liberalisation of cabotage of key sectors such as from Peninsular Malaysia to three major ports in east Malaysia, namely Sepangar, Kuching and Bintulu. (See also page 7)

Saade said the company would seriously explore the opportunities available from such a move. He also said the company would expand its dry port bonded warehouses, which include the Port Klang Free Zone.

Later, Ong visited the Port of Marseille, one of the oldest and busiest sea ports in France.

Marseille Port also raised its interest to establish an in-house university specialising in shipping and maritime as part of its education and training project.

Ong took the opportunity to test-drive its state-of-the-art port simulator.

By SHARIDAN M. ALI

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

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 cruise terminal is expected to be completed by September 30, says Transport Minister Datuk Seri Ong Tee Keat

PENANG is set to welcome larger cruise ships and passenger vessels by September, when the much-delayed redevelopment of Swettenham Pier is finally completed, Transport Minister Datuk Seri Ong Tee Keat says.

The project, which took off in May 2006, was originally scheduled for completion in April last year. Among its components is an international cruise terminal.

“The cruise terminal is expected to be completed by September 30. As of April 1, the project was 86.5 per cent completed,” Ong told Business Times via e-mail.

Last year, the Transport Ministry unveiled a discrepancy of RM3.5 million in a claim for progressive payment from the contractor of the redevelopment project for the pier.

Ong said in August that the contractor had sought RM5.4 million as progressive payment in documents dated March 21 last year when the value of the work was RM1.92 million.

He said the discrepancy was discovered a few days after he took over as minister.

It is now learnt that the project is likely to only exceed its RM65 million tag slightly, and that the original contractor is seeing to the completion of the project.

Sources said the contractor was not terminated because the project would be further delayed if new tenders are to be called, and there was a likelihood of the work costing considerably more.

“However, the ministry has laid very strict conditions on the contractor now, and one of them is that all sub-contracting jobs and payment are to be made by the Penang Port Commission (PPC),” a source said.

“The PPC is seeing to the necessary arrangements to ensure that the project is back on track,” Ong said.

“Liquidated and ascertained damages of RM15,000 per day are also being imposed on the contractor for the delay,” he added.

On when the new terminal will be open, Ong said: “It will be operational when it receives the occupational certificate from the local authorities.”

By : times.com.my