Port Klang, comprising Northport and Westports, has retained its title as the country’s busiest container port in the first half of this year, with a 48.3 per cent share of the total number of containers handled by all Malaysian ports.

Its rival, Port of Tanjung Pelepas in Johor, was listed second busiest, handling 35.4 per cent of the country’s total container throughput.

Port Klang moved 4.31 million TEUs (20-foot equivalent units) of cargo in the January-June 2010 period, up 29.3 per cent from 3.33 million TEUs a year earlier, as the global economic recovery boosted cargo traffic, said Port Klang Authority (PKA) general manager Kee Lian Yong.

It handled 856,110 TEUs of exports, up 25.8 per cent from a year earlier, and the volume of imports rose 18.2 per cent to 828,082 TEUs. Transshipment volume rose 34.5 per cent to 2.62 million TEUs.

Kee said Westports led the way in the first half of 2010 with a 30 per cent increase in container volume from the same period in 2009, handling 2.65 million TEUs, while Northport saw a 28 per cent increase to 1.66 million TEUs last year.

“We are on track to achieve our stretch target of 8.4 million TEUs for the whole year, where Westports is projected to handle 5.2 million TEUs and Northport 3.2 million TEUs. The fourth quarter is traditionally the busiest quarter of the year,” Kee told Business Times in an interview.

Port Klang moved 7.31 million TEUs last year, a decline of 8.3 per cent compared with 7.97 million TEUs recorded in 2008.

“The projection for 2011 is a growth of 10 to 12 per cent in container volume (from 2010),” said Kee.

Meanwhile, in terms of tonnage handled, traffic through Port Klang in the first five months (January-May) of this year increased by 36.8 per cent to 65.54 million tonnes from 47.90 million tonnes a year earlier.

“PKA and the two terminal operators (Northport and Westports) took this time of slow-paced economy and downturn to reshape our strategies. These strategies have hastened and increased our growth even more so with the global economic recovery as can be seen by our growth percentage for the first half of 2010,” said Kee.

He added that the port authority is aware that emerging ports in Asia such as Vietnam and Sri Lanka pose stiff competition to Port Klang.

“In order for us to be competitive, we are constantly looking at our operations to ensure (we offer) effective and efficient service, are service oriented, and have cost-effective operations and a commercial competitive environment,” he said.

By: Kang Siew Li

Container traffic through Port Klang, the country’s busiest container port, fell by 8.3 per cent last year, as the global economic downturn continues to hurt the country’s exports.

The port handled 7.3 million TEUs (20-foot equivalent units), the standard measurement for shipping containers, compared with 7.9 million TEUs in 2008.

In terms of tonnage handled, traffic through the port was 133.8 million tonnes, down 8.8 per cent over the previous year.

More than half, or 61 per cent of the container volume, was from Westports, which generated 4.451 million TEUs. Northport accounted for the remaining 39 per cent or 2.858 million TEUs.

Transhipment cargo took the largest share of Port Klang’s total throughput, contributing 58 per cent, with local boxes constituting the remaining 42 per cent .

However, transhipment volume also saw a 9 per cent drop to 4.3 million TEUs for the 12 months.

Port Klang Authority (PKA) general manager Kee Lian Yong said the decline in container and cargo throughput is in line with the global trend.

“(Nevertheless,) the port’s container volume was better than our earlier forecast of a 10 per cent drop. Overall Port Klang also fared better than other major ports in the world, which saw a 10-15 per cent drop in traffic,” he told Business Times.

Kee said Port Klang is expected to post throughput growth in 2010, returning to 2008 volume of 8 million TEUs.

“We remain cautiously optimistic as the shipping community is predicting that 2010 will still be a tough year,” he added.

According to Drewry Shipping Consultants Ltd’s most recent projections, the market will have to wait until 2012 before global container port volume exceeds 2008 levels again. It expects Far East and Southeast Asian container traffic to recover faster than that in other regions.

“In 2010, the market should brace for another tough year,” Shipping Association of Malaysia chairman Ooi Lean Hin had said in an earlier interview .

By: Kang Siew Li

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

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

It will institute measures to reinforce its authority as port regulator

PORT KLANG: Port Klang Authority (PKA) has come out with four proactive initiatives to further boost the efficiency and businesses at terminals and its supporting industry.

Its new general manager Kee Lian Yong said PKA would institute necessary measures to reinforce its authority as a port regulator and play a positive role in safeguarding the interest of all players in the industry. “First is the registration of all necessary logistics players in Port Klang to ensure efficiency and cooperation.

“We will also have to continue monitoring the performance of the ports closely to ensure compliance on the efficiency and performance at the ports are maintained and at par with international standards.

“Next, all direct port activities and ancillary services within the port limit should be licensed where PKA has taken steps to license and regulate private jetty operators.

“So far, PKA has approved 20 private jetty operations based on the merit that they will contribute and complement trade growth here.

“Finally, PKA is enforcing enhanced security and safety within the port limit and pilotage district where it has ugraded the Vessel Traffic Management System which now includes the Automatic Identification System in line with the International Maritime Organisation’s safety of life at sea convention,” he told reporters at a briefing on PKA’s strategies for growth and improved services yesterday.

Kee added that Port Klang was also equipped with scanners at both Northport and Westports together with megaport initiatives with the US Customs.

Kee said PKA would also set out a strategic port master plan which would map out the direction of Port Klang for short- and long-term planning for the next 10 to 20 years.

The current port master plan expires next year.

He said the prospect of strengthening Port Klang’s competitiveness could be via better cooperation between the two terminals.

“Whilst healthy competition is encouraged, I believe there’s room for enhanced cooperation between the two that will lead to better services for port users, optimisation of port capacity and mutual long-term benefit for the industry as well as the nation,” he said.

PKA is the trade facilitator, regulator and landlord of the terminals in Port Klang.

To further enhance the port’s efficiency, Kee said PKA’s effort to deepen and widen the south entrance to Port Klang was 60% to 70% completed.

The dredging project will see a deeper south entrance of 16.5m from 15.5m previously, and width of 500m from 365m previously.

“The RM100mil project is set to be completed by December,” he said.

In terms of container volume, Kee said the volume in the second quarter of this year showed significant improvement of 7.8% quarter-on-quarter, reflecting signs of recovery going foward.

“But, the container throughput declined by 15.4% in the first six months this year against the same period last year.

“Hence, Port Klang’s full year volume is expected to contract by 10% this year against 7.9 million twenty-foot equivalent units in 2008.

“From the positive indications, we hope to fare better next year,” he said.

Additional initiatives according to Kee would include gearing the industry for the implementation of reduction of free storage period for import and export containers at the terminals to three days effective Jan 1. The free storage time at present is five days.

Kee said PKA would also step in to resolve issues in the industry such as depot gate charges and feeder incentive scheme.

On Port Klang Free Zone, Kee said PKA would announce its business turnaround plan in two months after securing approval from relevant stakeholders.

Kee, who is an accountant by profession with about 25 years of experience in the corporate world, took the helm of PKA two months ago replacing former general manager Lim Thean Shiang.

By SHARIDAN M. ALI

THE Port Klang Authority (PKA), which now holds the roles of trade facilitator, regulator and landlord aims to turn Port Klang into a hub for national and regional traffic.

PKA, established as a statutory corporation in 1963, was the port operator before the privatisation of port services which started in 1986.

With the divestment of the operational facilities and services of the port to three distinct entities under three separate privatisation exercises, PKA’s core functions under the re-shaped role are trade facilitation, port planning and development, regulatory overview of privatised facilities and services, free zone authority and asset management.

PKA is also involved in port promotion to turn Port Klang into a major regional transshipment hub and to develop facilities to meet the objectives.

Among PKA’s initiatives were the development of the country’s first inland port, the Ipoh Cargo Terminal and the first distripark, the Port Klang Distribution Park (now known as Northport Distripark). PKA is also the free commercial zone authority and overseer of the port’s Vessel Traffic Management System.

In line with its objective of developing Port Klang as a regional hub, it has also set up a one-stop agency to facilitate the establishment of businesses that will generate cargo for the port.

PKA is the owner and developer of the Port Klang Free Zone (PKFZ), which is located on a 1,000 acre site in Pulau Indah.

PKFZ is the first free zone in the country to integrate industrial and commercial activities within the same area and is designed to facilitate the growth of regional distribution or international procurement centres.

PKA also has jurisdiction over the Port of Malacca at Tanjung Bruas. Its functions, powers, duties and jurisdiction was extended to Malacca Port in July 1983.

PKA board members consist of a chairman appointed by the King and ten directors (including the general manager), appointed by the Transport Minister.

By : biz.thestar.com.my

Port Klang handled 7.97 million TEUs last year, ie, 48.5 per cent of the total number of containers carried by all Malaysian ports

PORT Klang, the home of Westports and Northport terminals, remained the leading port in the country last year, holding a 48.5 per cent share of the total number of containers carried by all Malaysian ports.

It handled 7.97 million TEUs (20-foot equivalent units) last year, against the 16.4 million TEUs handled by all Malaysian ports last year.

Westports led the way with a 15.2 per cent increase in container volume from 2007, handling some 4.96 million TEUs, while Northport saw a 7.1 per cent increase to three million TEUs last year.

Conventional cargo movement for last year saw a 0.2 per cent increase to 22.2 million tonnes for Port Klang.

In terms of numbers carried by individual terminals, however, Port of Tanjung Pelepas (PTP) in Johor remained the top port, handling 5.6 million TEUs last year.

PTP was followed by Westports and then Northport.

Of all Malaysian port terminals, only one, Kuantan Port, registered a contraction in container volume last year.

Kuantan Port recorded a 0.4 per cent decline in container volume, from 127,600 TEUs in 2007 to 127,061 TEUs last year.

All ports in Sabah and Sarawak recorded positive growth in container volume, with Miri registering the biggest jump, growing by 30 per cent to reach 28,094 TEUs from 21,618 TEUs in 2007.

Bintulu Port managed to record robust growth last year, increasing to 286,013 TEUs from 251,800 TEUs in 2007.

For 2009, the local port industry is expected to experience a drop in cargo volume handled as import and export activities fall, amid slowing demand for goods.

Last week, Port Klang Authority (PKA) general manager Lim Thean Shiang had said that this year’s contraction would see Port Klang’s container throughput fall to levels experienced in 2007 to 7.118 million TEUs.

By : btimes.com.my

NORTHPORT is considering to delay the upgrading of one of its wharfs due to the economic slowdown.

“I understand that Northport is considering holding back the upgrade but whether they should hold it or not is another question,” Port Klang Authority general manager Lim Thean Shiang said during a briefing in Port Klang last Tuesday.

He said certain developments were necessary to cater to continued growth even though there may not be an immediately need for it.

“During recession one can only position oneself to be ready for the up and coming growth cycle, and if we do not have the adequate facilities available, how do we capitalise on such opportunities?” Lim said.

He said Port Klang would monitor the situation and hold consultations with ports on issues involving the development of the ports.

Northport managing director and chief executive officer Datuk Basheer Hassan Abdul Kader was quoted as saying in November last year that it would keep its RM500 million expansion plans on track.

The plan includes the development of a 350m container berth, bringing the container quayline at the port to a total of 3.4km.

By : btimes.com.my

… due to bleak outlook

PORT KLANG: Port Klang, the national maritime gateway, projects a 10% fall in cargo volume due to the bleak outlook for the economy this year.

Port Klang Authority (PKA) general manager Lim Thean Shiang said both port operators, Northport and Westports, started to feel the contraction in volume last month with a 16% drop in cargo volume against the same month in 2008.

“In an effort to cultivate and sustain the port business this year, especially import and export activities, PKA has decided on a blanket waiver for those who have difficulties in adhering to the three-day container free storage period at the port,” he told a press conference yesterday.

Port Klang previously had a five-day free storage period but this was cut to three days effective Jan 1.

Lim said the continuation of the waiver would be reviewed in July based on the economic climate then.

Lim Thean Shiang

Lim Thean Shiang

“But, the Port Klang community must continue to upgrade their efficiencies to operate under the three-day free storage period when the economy revives,” he said.

Additionally, PKA will also continue the feeder incentive scheme by April but with a new pre-qualification criteria.

The feeder incentive is given to feeder operators that help bring cargo to Port Klang from other places in the region.

The incentive was frozen in October for PKA to re-study its contribution to the cargo growth at Port Klang.

A total sum of RM37mil in incentive had been given to feeder operators since 10 years ago.

On Port Klang’s performance, Lim said it had recorded a 12% increase in cargo volume to 7.97 million 20-ft equivalent units (TEUs) last year from 7.11 million TEUs in 2007.

“This achievement has propelled Port Klang to be ranked the 15th-busiest port of the world in terms of volume last year from number 16 the previous year,” he said.

By SHARIDAN M.ALI

In June this year, the port community in Port Klang was surprised by the entry of little known Lim Thean Shiang as Port Klang Authority’s general manager.

Coming to a post that has traditionally been reserved for long-serving government employees, Lim was worried of only two things – the acceptance of PKA employees and the port community.

“They (PKA staff) were sceptical of me, because I was from the private sector and therefore had doubtful management skills,” Lim quipped.

He said direct and indirect feedback gathered has been very encouraging.

“I feel that they have taken to my management style. I believe in empowering the staff, have them chair meetings, make decisions… it’s a new culture for them.”

Lim was handpicked by Transport Minister Datuk Ong Tee Keat to head Port Klang Authority after the March general elections. The official appointment, how-ever, came two months later on June 6.

He put the two months to good use by visiting both Northport (M) Bhd and Westports Malaysia Sdn Bhd, as well as meet up with logistics players to get a better understanding of the industry.

The 37-year-old lawyer by training is not daunted by the mammoth task ahead of him though, as he points out that his task is to make sure that plans for Port Klang are on track.

“The plans for Port Klang still remain the same. The way I look at it… what is important is to put Port Klang back on the world map, to promote Port Klang and not the port operators.

“Both port operators must assist Port Klang in promoting us as Port Klang not as Northport or Westports,” Lim said

Besides continuing with the goal of making Port Klang the transshipment hub of the region, Lim plans to set out a 15-year strategic port development plan, which will map out the direction of both port operators in Port Klang and the kind of facilities and technology needed to develop both ports.

“I realise the efficiency of both ports are mainly reliant on the transportation infrastructure, especially the road infrastructure. So, we will put up the proposal to the Ministry of Transport, which will be most likely tabled in the 10th Malaysia Plan, to see how we can link up both ports,” Lim said.

He said the linkage would reduce internal transfer time as well as divert the movement of cargo trucks away from the public road system.

By : Presenna Nambiar