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

One of the world’s largest containership, the 13,300-TEU CMA CGM Christophe Colomb, made its maiden call at Westports on November 22.

The vessel represents the biggest to arrive at Port Klang to date.

Although it was an ad hoc call, Westports Malaysia Sdn Bhd said its operations staff were fully prepared to meet the challenge, recording a gross crane productivity of 37 moves per hour.

“The arrival of Christophe Colomb proves the CMA CGM group’s confidence in the ability of Westports to handle mega-sized vessels. Our skillful workforce and state-of-the-art port facilities can handle the growing sizes of container vessels which are likely to make more calls at our port next year onwards,” Westports executive director Ruben Emir Gnanalingam said in a statement yesterday.

“Christophe Colomb also proves CMA CGM’s ability to move forward in the current economic context.

“This new giant is a strategic asset for the group (CMA CGM), while volume and freight rates on the Asia to Europe market are recovering. This modern vessel enables CMA CGM to meet its growing customer demand on this key market while ensuring economics of scale,” Ruben added.

The 365.5-metre long, 51.2-metre wide eco-friendly vessel is fully equipped with the latest technology, designed to optimise hydrodynamics and maximise propulsion. Use of an electronically controlled engine meanwhile helps reduce oil consumption by 25 per cent, resulting in a 2 to 4 per cent cut in greenhouse gas emissions.

In addition, Christophe Colomb is equipped with a fast oil recovery system, which enables bunkers to be rapidly recovered at any time, hence significantly limiting the environmental consequences should there be an incident at sea.

The Christophe Colomb is part of the FAL 7, a European service operated jointly by CMA CGM and Maersk.

By: btimes.com.my

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

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

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

PORT operator Westports Malaysia Sdn Bhd and its executive chairman Tan Sri G. Gnanalingam each walked away with an award this year at the Brand Laureate Awards held in Kuala Lumpur on March 31.

Westports won the award for the Best Brand in Logistics – Ports while Gnanalingam won the award for Brand Personality.

Presented by the Asia-Pacific Brands Foundation, the Brand Personality is equivalent to the Grammy Award for Branding.

The award was presented by former prime minister Tun Abdullah Ahmad Badawi.

In a statement issued last week, Gnanalingam attributed the two awards to his staff who “have continued to innovate and provided the best services to our customers”.

He said winning the awards was further proof of the port’s capabilities and a testament to its quality of work.

“Westports was founded around innovation and the pursuit of excellence, and those core values have continued to be at the heart of everything we do,” he added.

By: btimes.com.my

PETALING JAYA: A number of port operators in the country have reported higher throughput volume for March but are cautious about volume going forward as the signs of recovery are still weak.

According to them, imports and exports as measured by twenty-foot equivalent units (TEUs) were up for March while transhipments – the shipment of goods to an intermediate destination before moving to another destination – were also up.

Westports Malaysia Sdn Bhd executive chairman Tan Sri G. Gnanalingam had noted earlier in a commentary that in March, Westports’ total volume, including imports, exports and transhipments, was up 10% compared with the previous three months.

He said the immediate question that came to mind was whether these were signs of recovery or if this was due to inventory corrections after managers cancelled their orders between October and December last year.

“As such, between April and June, we’ll begin to notice that the world will not only reinstate its inventory levels but also increase its orders simply because life must go on,” Gnanalingam said.

Captain Ismail Hashim, chief executive officer of Port of Tanjung Pelepas Sdn Bhd, which operates the number one transhipment port in the country, said volume grew 23% to 469,000 TEUs for March compared with February.

He said it was tricky to accurately predict the underlying reasons behind the recent increase in volume. “Whether the increase is sustainable over the longer term remains to be seen,” Ismail told StarBiz in an e-mail reply.

He said if the recent upturn was due to restocking of manufacturers’ orders as a result of them halting production abruptly earlier on when the crisis first started then the spike in volume could be “just a temporary pattern.”

Penang Port Sdn Bhd general manager Obaid Mansor said the Butterworth container terminal saw a bottoming in January when throughput was 30% lower than October 2008.

“The upturn in business was really registered in the export transhipment trade provided by our industrial hinterland,” he said, adding that a combination of improved demand for manufactured products, re-stocking, trade credit availability and demand from China and India could be the factors that contributed to an improvement in volume.

By FINTAN NG

MALAYSIA’S major ports should be able to withstand the onslaught of the global economic crisis, at least for this year.

In fact, many are still projecting growth in volume although business may not be as robust as in previous years.

There are about seven major container ports in the country – Northport and Westports in Port Klang; Penang Port; Port of Tanjung Pelepas and Johor Port in Johor; Bintulu Port in Sarawak; and Sapangar Bay Container Port in Sabah.

The harsh impact of the global economic crisis has resulted in declining world trade. However, healthy intra-Asian trade and higher local public spending growth is expected to spur more imported goods and raw materials.

OSK Research, which has lowered the country’s gross domestic product forecast for this year to 1.1% from 2.7%, says the RM7bil economic stimulus plan by the Government should be able to support high public spending this year.

Most analysts say the ports’ stellar performance in past years has boosted their resilience to sail through the choppy waters.

Moreover, they are somewhat “protected” from the economic storm due to their location, particularly those along the Straits of Malacca, the main maritime trade route in Asia.

Ports in east Malaysia are also strategically placed in the Brunei, Indonesia, Malaysia, Philippines-East Asean Growth Area (BIMP-EAGA).

It helps, too, that the ports have a mixed portfolio of handling transhipment as well as exports and imports. Most of the Malaysian ports managed to meet volume targets last year although by the fourth quarter, early signs of a trade decline were evident.

Northport (M) Bhd and Westports Malaysia Sdn Bhd, the two terminal operators at the country’s maritime gateway Port Klang, are confident of maintaining volumes this year.

Northport posted slightly more than three million 20ft equivalent units (TEUs) last year, up 5% from 2007. It also expects to continue its RM585mil expansion plan which will be funded with internal funds.

On the other hand, Westports recorded around 16% volume growth in 2008 to slightly under five million TEUs. The positive forecast this year is supported by Westports’ biggest customer, CMA-CGM. Similarly, the global slowdown has not thrown a spanner in the works for Westports’ RM800mil expansion. The port’s container terminal five has been completed, adding a capacity of 1.2 million TEUs to a total of 7.2 million TEUs.

Its executive director Ruben Emir Gnanalingam, in his New Year’s message to the staff of Westports, says the company will embark on plans to consolidate its business in terms of processes, staff skills and initiatives given the relatively quieter period.

“Our manpower strength is currently at 3,650, which is sufficient to see us through the expected volume.

“Our next batch of recruits would probably come in during the second quarter of next year,” he said.

The country’s main transhipment port, Port of Tanjung Pelepas (PTP), expects to break even this year at 5.6 million TEUs.

“The current situation is unprecedented,” says chief executive officer Capt Ismail Hashim, adding that the best and worst-case scenario would see a 15% rise or 10% drop in cargo volume for the year.

Noteworthy is that PTP has experienced a 6% contraction in cargo volume in the final quarter of 2008 against the corresponding period a year earlier.

“But we are keeping our hopes up as our main-line operators, such as Maersk and Evergreen, are anticipating marginal growth this year,” he says. “The non-decline forecast is largely based on our exposure to the still healthy intra-Asian trade.”

Penang Port, according to its chief operating officer Mohd Niana Merican Abd Kadir Merican, expects a flat growth this year given the uncertainties going forward while Sapangar Bay Container Port (SBCP), managed by Sabah Port Sdn Bhd (a wholly-owned subsidiary of Suria Capital Holdings Bhd), is not expecting volumes to fall.

Sabah Port also manages seven other ports in Sabah. Suria Capital group managing director Datuk Abu Bakar Abas is optimistic of the outlook for this year due to the Government’s stimulus package to boost economic activity in the country.

By SHARIDAN M. ALI

PETALING JAYA: Three major ports in Malaysia are confident they will meet their volume targets this year but are bracing for slower growth next year due to the global economic downturn.

Ports that have been recording substantial growth over the years have not been spared the whiplash from the global economic crisis.

Datuk Basheer Hassan Abdul Kader

Northport (M) Bhd managing director and chief executive officer Datuk Basheer Hassan Abdul Kader told StarBiz the port would be able to achieve its volume target of slightly less than three million 20-foot equivalent units (TEUs) this year, up 4.9% from 2.86 million TEUs recorded last year.

“This is because we had done well in the first half of this year but the last quarter is a little bit slow,” he told reporters after delivering a talk the Selangor Freight Forwarders and Logistics Association in Port Klang recently.

Northport’s November volume stood at 261,251 TEUs, down 7.3% against the same month last year.

Going forward, Basheer said Northport would be very concerned about the country’s economy as it depended a lot on trade.

“If Malaysian trade is affected, of course it will have some impact on our business. But with low gearing of almost 0%, we are quite robust to withstand the onslaught,” he said, adding that Northport had survived the Asian financial crisis of 1997/98.

He added that Northport would continue to operate prudently and would look into postponing taking on less important costs, such as advertising, next year.

Echoing a similar oulook, Westports Malaysia Sdn Bhd will not be expecting the usual double-digit volume growth next year that it had been enjoying previously.

But the port is still expecting to post a 16.3% volume growth to five million TEUs this year.

Ruben Emir Gnanalingam

For the month of November, Westports still recorded a growth of 5.4% to 390,000 TEUs against November last year.

Executive director Ruben Emir Gnanalingam said the port industry would see some decline in volume next year.

“Looking at the current global economy and its prospects going forward into 2009, it will take a long time to recover, maybe until 2010,” he told StarBiz.

Malaysia’s leading transhipment terminal operator, Port of Tanjung Pelepas Sdn Bhd (PTP), is also on track to meet its volume target of 5.8 million TEUs this year, an increase of 6.2% against last year, although it has felt a slight volume contraction in the last quarter of this year.

PTP recorded a decrease of 2.5% to 449,000 TEUs in November compared to the same month last year.

The port expects to achieve commendable growth next although it has acknowledged that it would not be as robust as in previous years.

Alan Tan

Transways Logistics (M) Sdn Bhd, a logistics provider in Port Klang, expects the volume of exports to decrease further after the first quarter of next year.

Its managing director Alan Tan told StarBiz that based on the current situation where furniture and food exporters were facing shrinking demand, the export volume at Port Klang was expected to fall between 20% and 30% next year, especially after the first quarter.

“But local logistics companies such as Transways are currently experiencing a surge in demand from multinationals as they open more tenders to other players which ignite competitive pricing rather than depending on one or two logistics providers.

“This is in tandem with the cost cutting measures of the multinationals in this gloomy economy.

“Warehouse business is also doing well to store commodities that are currently having price downtrend such as scrap metal,” he said.

By SHARIDAN M. ALI

PETALING JAYA: While Westports Malaysia Sdn Bhd leads the industry in terms of productivity, its success does not solely rely on advanced equipment and facilities, but more importantly, its workforce.

“The port business is in a service-oriented industry where people are the most important asset,” its executive director Ruben Emir Gnanalingam told StarBiz.

“Every port can acquire the most advanced cranes, berths and system but what makes a terminal better than the rest is how it manages its people.”

In scouting for talents, Gnanalingam said Westports offered attractive remuneration packages and staff benefits.

“As there are not that many applicants with prior port experience, we basically train our employees from scratch.

Ruben Emir Gnanalingam

Ruben Emir Gnanalingam

“Experience is a not a necessary pre-requisite, what is more important is finding the suitable person for the right position,” he said.

Gnanalingam said Westports’ young executives programme would include training in various departments to evaluate and identify the areas that an employee could excel in.

“And if an employee feels jaded doing the same job for a long time, we will try to move him around,” he said.

Westports averagely recruits 12 young executives every six months as part of its succession plan.

Gnanalingam said via the recruitment plan, Westports ensured that when a person left or were promoted, the vacant position would be filled by another experienced employee.

Another interesting talent management practice at Westports is its focus on key competence indicators (KCIs).

“Alongside our key performance indicators (KPIs), we also have KCIs that measure and describe an employee’s competence and character.

“This will identify a person’s talent to be placed in the most suitable position,” he said.

Westports also values leadership potential at every level of its operations.

“Every employee is encouraged to develop and train newer and less experienced subordinates. For me, I am constantly developing 30 to 40 of my senior managers to be better,” he said.

Westports is one of the key sponsors alongside Sime Darby Bhd and StarBiz for the Asia Strategic Talent Management Forum 2008 on Nov 13.

The forum, which will be held at Sime Darby Convention Centre, is organised by Leaderonomics Sdn Bhd.

By SHARIDAN M. ALI