Total Container Throughput 2007 - 2009

Inside this issue
06 Focus
STRENGTHENING PORT KLANG
Published by
PORT KLANG AUTHORITY
Mail Bag Service 202, Jalan Pelabuhan,
42005 Port Klang, Selangor, Malaysia
Tel: 603-3168 8211
Fax: 603-3167 0211 / 3168 8228
www.pka.gov.my
Management Team
KEE LIAN YONG
General Manager
CAPT DAVID RAJAN PADMAN
Assistant General Manager (Regulatory)
PKA General Manager explains what it takes to
strengthen Port Klang and rise to the challenge.
14 Perspectives
LATENT OPPORTUNITIES
GATEWAY speaks to MIDA & FMM on the
role trade and logistics have in the Malaysian
economy.
18 Westports
SEIZING THE OPPORTUNITY
Tan Sri G.Gnanalingam, Executive Chairman
of Westports speaks about Westports’ overall
performance and his personal aspirations for
the organisation.
IR A MURYTHARAN
Assistant General Manager (Engineering)
TN HAJI SALIHUDDIN B YUSSUF
Assistant General Manager (Administration)
AZURA BT MUHAMAD
Assistant General Manager (Corporate)
20 Northport
THE BRANDLAUREATE WINNER
Northport wins the coveted BrandLaureate
Master Award for their excellent performance.
GATEWAY is the official magazine of Port Klang Authority
(PKA). The publication covers issues, trends and
04 Port Talk
developments affecting Port Klang and the Malaysian port
News from the local front.
industry in general.
All care is exercised to ensure that facts presented herein
are correct. PKA and its editorial and design agencies
shall not be held liable for any loss, action or damages
arising from the content published in GATEWAY.
05 At a Glance
Port Klang’s performance through 2009.
23 Radar
Upcoming events for the industry.
Copyright © Port Klang Authority 2009
G ATEWAY
A P U B L I CATI O N O F P O RT K LA N G AUTH O R IT Y
Welcome again to Gateway, the official magazine of Port Klang Authority (PKA).
Since the release of the first issue in November last year, we are pleased to have
received positive feedback and this has encouraged us to put in more effort to
establish regular communication, discuss issues and also to highlight any new
information pertaining to the maritime industry.
We are happy to present the first issue of the year, and may I add, a timely
one, as we will look at reviewing the prospects of strengthening Port Klang.
We are delighted to have identified 5 Key Result Areas that will guide our
efforts to better perform our twin roles, as port regulator and also as facilitator
of business. In the bid to achieve higher standards, it is clear that we cannot
do this alone. We need the collaboration and co-operation of all stakeholders,
not only in the implementation aspect but also in identifying opportunities and
developing strategies. Hopefully with this, we can obtain better performance for
all concerned.
This is especially evident in the area of logistics. As the authority, our goal is to
develop Port Klang as a preferred logistics hub for the region. However, this will
be a monumental task given that the current logistic chain is fragmented. Having
said that, several agencies have been looking at the urgent need to resolve this
and to bring harmonisation to our logistic scene. We are privileged to share
the views on this matter from Malaysian Industrial Development Authority
(MIDA) and Federation of Malaysian Manufacturers (FMM) and we thank N.
Parameswaran and Mohd Radwan Alami for their valuable contribution
As always, we are also pleased to provide updates from Port Klang in relation
to our terminals (Westports, Northport) as well as Port Klang Free Zone (PKFZ).
On behalf of PKA, I now invite you to explore the first Gateway issue of the year.
We hope you will enjoy the publication and feel free to provide any feedback or
comments as there is always room for improvement.
welcome
TAKING IT A
STEP FURTHER
Thank you.
KEE LIAN YONG
General Manager
Port Klang Authority
G ATEWAY
A P U B L I CATI O N O F P O RT K LA N G AUTH O R IT Y
04
P o r t Ta l k
VISIT TO HARBOUR
CITY JETTY
LARGEST VESSEL CALLS ON WESTPORTS
November 26, 2009
Westports staff completed the task of handling
the CMA CGM Christophe Colomb with gross
crane productivity of 37 moves per hour. The
vessel, measuring 365.5 meters long and 51.2
meters wide with a capacity of 13,300 TEU, is the
biggest to arrive at Port Klang to date.
DEEPENING SOUTH CHANNEL
November 17, 2009
The newly completed Harbour City Jetty which
currently serves Pulau Ketam residents and
visitors.
WESTPORTS
EXECUTIVE
CHAIRMAN
HONOURED
December 2009
This navigational channel, providing access to
Port Klang from the southern part of the Straits
of Melaka, was successfully deepened to 16.5
metres and widened to 500 meters It can now
accommodate Suezmax vessels of 13,500 TEUs.
VISITORS FROM BANGLADESH
January 17, 2010
PKA hosted a visit by the Hon Minister for
Shipping, Bangladesh and his 21-person
delegation to exchange ideas and information. A
briefing session on port operations was provided
at Westports.
WHISTLE BLOWING POLICY LAUNCH
January 21, 2010
November 20, 2009
Tan Sri G Gnanalingam received the Lifetime
Achievement Award from the Malay Chamber
of Commerce at the inaugural Malaysia Business
Leadership Awards 2009.
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A P U B L I CATI O N O F P O RT K LA N G AUTH O R IT Y
Transport Minister Datuk Seri Ong Tee Keat
launched the Whistle Blowing Policy that was
jointly developed by Port Klang Authority (PKA)
and Port Klang Free Zone (PKFZ) to achieve
greater transparency and curb corruption.
P o r t Ta l k
COURTESY CALL TO PSA
January 24-25, 2010
05
CHINESE NEW YEAR
OPEN HOUSE
The PKA management team paid a courtesy
visit to Port of Singapore Authority (PSA). The
team was led by Chairman Dato’ Lee Hwa Beng,
General Manager Kee Lian Yong and Assistant
General Manager (Regulatory) Captain David
Padman.
March 2, 2010
VISITORS FROM SARAWAK
January 27, 2010
Sarawak Deputy State Financial Secretary,
Laura Lee Ngien Hion and Kuching Port Authority
General Manager Madam Liu Moi Fong visited
the Free Commercial Zones of Northport and
Westports.
ON BOARD THE USS NIMITZ
AIRCRAFT CARRIER
February 8, 2010
On a tour of the formidable US Navy vessel.
Dato’ Long See Wool, Secretary General of
the Ministry of Transport Malaysia (centre)
accompanied by Kee Lian Yong, PKA General
Manager(far right) together with other MOT
officials.
PKA and Port Klang Free Zone (PKFZ) jointly
organised the celebratory event which was held
at the PKFZ Exhibition Centre in Pulau Indah.
INTEGRITY PACT
March 19, 2010
PKA became the first government agency to
have their bidders sign an Integrity Pact against
corruption-related activities in the procurement
process.
CONDOLENCES
PORT CONSULTATIVE COMMITTEE MEETING
February 9, 2010
PKA hosted the PCC meeting, which provided
a performance update on Port Klang as well as
PKA’s aspirations for 2010. The session was very
well-attended by representatives from industry
and other stakeholder groups.
The Chairman, Board and Management of
Port Klang Authority wish to express our
condolences to the family of the late Datuk
Robert Lau Hoi Chew, Hon Deputy Minister
of Transport Malaysia, who passed away
on April 9, 2010. We are indebted to his
wisdom and counsel in years passed.
G ATEWAY
A P U B L I CATI O N O F P O RT K LA N G AUTH O R IT Y
06
FOCUS
DRIVING CHANGE
PKA re-engineers itself to take Port Klang to
the next level
G ATEWAY
A P U B L I CATI O N O F P O RT K LA N G AUTH O R IT Y
FOCUS
07
For Port Klang Authority (PKA), 2009 was a year fraught with issues, namely, the global
economic crisis and the intense media exposé surrounding the Port Klang Free Zone (PKFZ)
controversy. Admittedly, it was a bitter experience that had led to much soul-searching and
self-examination.
Now, amid encouraging signs of better conditions ahead, PKA rises again with an unshakable
resolve to strengthen itself as part of a plan to further enshrine Port Klang’s premier position
in the country and the region.
According to PKA General Manager, Kee Lian Yong, the PKFZ issue has had a severe impact
on PKA, both financially as well as in terms of its public image. He says: “Now that the
Government has established the Special Task Force Committee to handle PKFZ issues, we in
the Authority can finally start focusing our efforts on renewing and strengthening our twin
roles, as port regulator and trade facilitator, for the betterment of the industry.”
Evidently, PKA has its work all cut out. Kee explains: “We need to better understand, recognise
and regulate port users from the industry. At the same time, we are also exploring various
measures to improve the ease of doing business in Port Klang.
However, Kee adds that PKA’s biggest challenge is to increase port competitiveness. He
remarks: “We have to capitalise on Port Klang’s strategic location along the Straits of Melaka
which is one of the busiest sea trade lanes in the world. We have to remain ahead of emerging
ports, like Colombo as well as the ports in Indonesia and Vietnam. We cannot be complacent
or we will lose out.”
With the view to achieving its goals, PKA has identified 5 Key Result Areas (KRAs) for the year
2010. Kee explains: “We are working hard to put PKA and Port Klang on a higher plane in the
eyes of the world. We have a monumental task ahead. There are a lot of expectations from the
public and industry players for PKA to deliver. In order to meet these challenges, we at Port
Klang will need the support of everyone. Together we should seize this moment to create a
KEE LIAN YONG
better future for all the stakeholders of Port Klang.”
General Manager
Port Klang Authority
Strategic Management
Workshop
The management team of Port Klang Authority attended a strategic management workshop from April 2-4, 2010 that was dedicated to promoting
the understanding and adoption of KPIs (Key Performance Indicators) and KRAs (Key Result Areas). The three-day session was organised in line with
the government’s drive to enhance the performance of government agencies, including PKA. The programme covered concepts and suggestions for
incorporating performance management practices into daily operations, skills for developing action plans to achieve KPIs and better manage KRAs,
as well as strategies to overcome the challenges of adopting the performance scorecard system. The sessions ended with the formulation of key
resolutions which shall be diligently followed up and monitored to ensure their proper implementation.
G ATEWAY
A P U B L I CATI O N O F P O RT K LA N G AUTH O R IT Y
08
FOCUS
Corporate Mission 2010
KRA # 1: Improve And Strengthen
Regulatory Role
A Bolder Vision
We will engage our stakeholders in open dialogue to provide equal playing field for all. We will also
regulate and ensure adherence to high industry standards to enhance the performance of Port Klang.
Some of the key commitments that we have identified are as follows:
Always looking at the ‘big picture’, PKA has
•
•
•
•
•
keenly observed the emerging competition.
In response, the Authority has adopted a
new vision statement, namely, to “maintain
Port Klang as the national load centre while
Holding twice-yearly Port Consultative Committee Meetings with industry.
Developing the Port Klang Development Master Plan 2010-2030.
Drawing up the Port Klang Strategic Plan, focussing mainly on increasing trade.
Completing the Guidelines for Best Practices to assist and streamline industry players.
Improving the enforcement of safety, security and environmental measures.
developing it as the preferred logistics hub for
KRA # 2: Improve
& Strengthen Trade
Facilitation Role
the region.”
Kee explains: “We qualify as the National
Load Centre, seeing how our market share of
cargo exceeds that of other Malaysian ports.
As for becoming the preferred logistics hub,
As a world-class port, we need to continually look
at ways to improve the ease of doing business
do business here while ensuring our own
competitiveness. Major initiatives that are under
way include:
it will substantially expand our services to
include cargo enhancement, cargo generation,
international procurement and distribution,
and so on. It also encompasses other related
processes, like ease of doing business, a
conducive enterprise environment, Free Zone
activities, simplified documentation and every
other form of support that we can conceivably
provide in an integrated fashion.”
G ATEWAY
A P U B L I CATI O N O F P O RT K LA N G AUTH O R IT Y
•
•
•
•
•
•
•
Simplifying procedures and documentation, decreasing cost, increasing service levels and improving operational flow.
Introducing trade facilitation mechanisms (eg increasing feeder operations).
Establishing ‘think-tanks’ with relevant logistics players.
Reviewing existing Port Klang tariffs.
Improving and enhancing integrated Port Klang Net System to integrate all industry players through one unified platform.
Forming sister-port relations in the region with the aim of promoting and increasing trade.
Raising awareness and support for the strategic and business activities of PKA and Port Klang.
FOCUS
09
As part of its strategy to achieve its vision, PKA has drawn up
its Corporate Mission that centres upon the attainment of five
Key Result Areas.
KRA # 3: Improve Delivery System
KRA # 4: Strengthening
Human Capital
We strive to set high standards in terms of operational and administrative efficiency
and effectiveness. Some measures currently implemented include:
We exist to serve the needs of our stakeholders. Our efforts to
establish a trade and industry oriented corporate culture among
our staff include:
•
•
•
ISO certification of the Free Zone and Dangerous Goods departments.
Adherence to standard operating procedures to ensure prompt response and follow-up
Programmes to instill good executive practices.
•
•
•
Improving human resource planning through organisational
restructuring.
Enhancing human resource development through training, inclusive of management and leadership skills.
Ensuring good succession planning.
KRA # 5: Improve & Strengthen Integrity & Corporate Governance
Being a regulatory body, we must conduct
ourselves with the utmost integrity. We have to
exercise transparency, due diligence and care in
the execution of our role and functions. Some of
the measures we have adopted towards this end
include:
•
•
•
•
Appointment of independent directors on the
Board of PKA
Adopting a whistle-blowing policy to expose
corruption, irregularities and power abuse.
Implementing the Integrity Pact, a tool in
preventing corruption, bribery and any other
unethical practices in public contracts.
Strengthening PKA’s core values and code of
ethics.
G ATEWAY
A P U B L I CATI O N O F P O RT K LA N G AUTH O R IT Y
10
FOCUS
GREATER INTEGRITY
Over the last few months, PKA has announced the adoption of three significant measures
(please see below) to enhance its corporate governance and transparency standards. The
moves resulted from various recommendations made by the Honorable Tan Sri Mohd Sidek
Hassan, Chief Secretary to the Government as well as the Ad Hoc Committee on Corporate
Governance for PKFZ, chaired by Datuk Paul Low, President of Transparency International,
Malaysia.
The task of monitoring implementation of the said measures is placed under the purview of
the Supervisory Committee on Governance and Integrity. The Committee is chaired by Nik
Mohd Hasyudeen bin Yusoff. Members comprise Dato’ Ng Mann Cheong dan Mohamad Nor
bin Taib.
PKA Chairman Dato’ Lee Hwa Beng welcomed those positive actions, saying that they will
help improve public perception of the Authority. He remarks: “The speed with which we
DATO’ LEE HWA BENG
implemented those initiatives clearly reflect the serious commitment to fulfilling our role with
Chairman
Port Klang Authority
the utmost integrity.”
New Independent
Directors
Whistle Blowing Policy Integrity Pact
March 19: Signing of statutory declarations
with six bidders for PKA tenders.
January 21: On the Board.
Datuk Ng Mann Cheong and Nik Mohd
Hasyudein Yusuff have been appointed
as independent members on the board of
PKA. Datuk Ng is a lawyer with 30 years’
experience while Mohd Nik Hasyudeen is a
former president of the Malaysian Institute of
Accountants. They join Datuk M Rajasingam
who was appointed earlier as an independent
board member.
G ATEWAY
A P U B L I CATI O N O F P O RT K LA N G AUTH O R IT Y
www.wbs.pka.gov.my
January 21: A clear call for greater transparency.
The Whistle Blowing Policy was launched
after receiving the endorsement of the boards
of PKA and PKFZ to encourage staff and any
other party to report or tip-off any irregular
or undesirable activities or practices that may
tarnish the good name of the organisations.
PKA became the first government agency to
have bidders for its contracts sign an integrity
pact against corruption-related activities in
the procurement process. The pact was a
commitment undertaken by both the Authority
and the companies not to participate in activities
linked to the payment, offering, demanding or
accepting of bribes. The parties are also to
refrain from colluding to obtain contracts as
well as from engaging in any such abuses while
carrying out the contracts. Anyone violating
the pact will face strict penalties including
termination of contracts, blacklisting and
forfeiture of a performance bond.
FOCUS
11
SETTING DIRECTIONS
On March 29, 2010, the Management Team of PKA, led by General Manager Kee Lian
Yong, attended a dialogue session with Dato’ Long See Wool, Secretary General of the
Ministry of Transport Malaysia (MOT). Also present were Abdullah Yusuff Basiron, Under
Secretary, Maritime Division of the Ministry of Transport Malaysia, and Banges Munga,
Principal Assistant Secretary (Ports), MOT.
The session provided an opportunity to update the Ministry officials on developments
such as Port Klang’s current world ranking; PKA’s desire to focus on its principal roles
as port regulator and business facilitator; as well proposals to strengthen Port Klang’s
position as the national load centre and preferred logistics hub in the region.
Specific issues discussed included the extension of Port Klang Port limits; rationalisation
of port tariffs; and by-laws; the feeder incentive scheme for 2010; inter-port competition
within the country; establishment of a Malaysian Ports Commission and sister port
agreements.
The meeting proved to be most productive, resulting in actionable resolutions which shall
be followed up in subsequent quarterly dialogue sessions.
DATO’ LONG SEE WOOL
Secretary General
Ministry of Transport
Dato’ Long See Wool, 56, possesses
a long and distinguished career with
the Ministry of Transport Malaysia.
In 1979, he was appointed Assistant
Secretary (Air Transport) of the Aviation
Division. He was then promoted to
Principal Assistant Secretary (Airport
Development) in 1983. He became
Under Secretary (Aviation) in 2002.
In
2006,
he
was
made
Deputy
Secretary General (Planning) of the
Ministry. Four years later, in 2010, he
was appointed Secretary General of
the Ministry. Dato’ Long posseses a
Bachelor of Arts (Hons) degree from
University Malaya and a Diploma in
Public Administration from INTAN. He
is married with two children and enjoys
golf as a pastime.
G ATEWAY
A P U B L I CATI O N O F P O RT K LA N G AUTH O R IT Y
12
AT A G L A N C E
WE ARE THE WORLD’S
Minister of Transport, Dato’ Sri
Ong Tee Keat graced an appreciation
lunch to honour Port Klang’s standing
as the World’s top 14th container
port recently. In his speech, the
minister congratulated Port Klang for
its achievement in taking over the
position from the Port of Los Angeles,
despite the global economic turmoil
in 2009.
In
his
speech,
Dato’
Sri
Ong
highlighted the significant positive
role the port industry plays in the
Malaysian economy. “The Malaysian
government places high importance
on our port industry. Being a maritime
state, situated next to a major
waterway, the Straits of Malacca, our
ports play a major role in connecting
Asia with the rest of the world. Our
ports are one of Malaysia’s highly
valuable assets and are synonymous
Minister of Transport, Dato’ Sri Ong Tee Keat with representatives from Port Klang,
Port of Tanjung Pelepas and Johor Port at the recent appreciation lunch
Total Container
Throughput
2007 - 2009 (’000 TEUs)
4,745
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A P U B L I CATI O N O F P O RT K LA N G AUTH O R IT Y
Total Container
Throughput
2009 By months (’000 TEUs)
with the nation’s economic and trade
growth,” he states in his speech.
AT A G L A N C E
13
TOP 14 CONTAINER PORT!
TH
As a major port, Port Klang has actively
improved its services and facilities to
continually enhance its position worldwide.
This has resulted in it being recognised by
Containerization International
– The Top 20 Container Ports By Rank
Containerisation International as one of the
world’s top container ports, according to
their global ranking system.
Over the last three years, Port Klang has
been on an up-trend, rising from 16th
position in 2007, to 15th in 2008 and now,
14th in 2009.
The latest ranking was achieved despite the
global economic downturn and attested to
resilience of our nation’s economy and Port
Klang’s own intrinsic strengths which enabled
us to take advantage of our indigenous and
transhipment cargo flows.
As the world’s top 14th container port,
we are further encouraged in our pursuit
to maintain our position as the national
load centre of Malaysia and to become the
preferred logistics hub of the region.
Number of
Ship Calls
2007 - 2009
Freight Weight Tonnes
2007 - 2009 (FWT ’000)
65,882
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A P U B L I CATI O N O F P O RT K LA N G AUTH O R IT Y
14
PERSPECTIVES
LATENT
OPPORTUNITIES
Amid mounting regional competition for
trade and investment, MIDA and FMM
echo the call for holistic improvements,
including the harmonisation of our
logistics industry.
N PARAMESWARAN
Senior Director of Services
Malaysian Industrial Development Authority
Malaysia’s economy is highly dependent on
Logistics Committee Chairman in Federation of
trade and foreign investment, particularly
Malaysian Manufacturers (FMM) on our latent
in the area of manufacturing. However, we
opportunities.
find ourselves having to compete with other
regional players on the strength of our
policies, business and investment incentives,
quality of our infrastructure, labour supply,
efficiency of services, cost-efficiencies, ease
of doing business and so on.
Malaysia as a Trade
and Investment
Destination
Going by general consensus, we tend to fare
Parameswaran points out that Malaysia is
respectably on most of the factors, especially
currently ranked 19th as a trading nation
when
individually.
and aims to be among the world’s top 10
However, it is clear that we stand to gain much
trading nations by 2020. In fact, Malaysia has
more by addressing prevailing weaknesses in
been one of the most successful Southeast
a holistic manner.
Asian countries in attracting Foreign Direct
they
are
considered
Investment (FDI).
Gateway speaks with N Parameswaran, Senior
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A P U B L I CATI O N O F P O RT K LA N G AUTH O R IT Y
Director of Services for Malaysian Industrial
He says: “However, Malaysia faces intense
Development Authority (MIDA) and Mohd
competition from other emerging economies
Radwan Alami, Council Member 2009/2010 &
in the region, like Vietnam and India. Our
PERSPECTIVES
competitiveness is being challenged and these
advanced delivery systems, knowledge and
have to be immediately addressed or we will
financing. Our logistics players, however,
continue to lose out.”
are disparate, fragmented and, in some
15
MOHD RADWAN ALAMI
Council Member 2009/10 & Chairman,
Logistics Committee
Federation of Malaysian Manufacturers
cases, poorly regulated. It is vital that we
According to Parameswaran, there are several
unify them into an efficient and streamlined
niche areas in the New Economic Model that
logistic chain that will be able to bring about
can help us get ahead, such as improving
new levels of speed, efficiency and cost-
the trade-facilitation system, increase labour
efficiency. The service providers need to be
productivity and also an enhanced public
upgraded, consolidated and supported with
sector delivery system. Additionally, other
continuous training and education. Better
key services factor such as freight logistics,
logistics is crucial to business viability as far
can be leveraged upon together with our good
as the business and investment community
transport infrastructure.
are concerned.”
The Logistics Industry
Mohd Radwan concurs and adds: “There
Parameswaran says that there is an urgent need
comprehensively at, and develop cohesive
to develop our logistic industry. He elaborates:
standards for the whole logistic process flow.
“The current logistic chains in Singapore,
The board will be the registration authority
Thailand and Indonesia are well equipped with
that will also foster relationships within the
is a need for a logistic service provider
registering board specifically tasked to look
G ATEWAY
A P U B L I CATI O N O F P O RT K LA N G AUTH O R IT Y
sector and with all parties concerned as well. However, currently the
As Parameswaran puts it: “Our ports must respond to market developments
Malaysia Logistics Council (MLC) is providing leadership in the overall
and trends to create a business-friendly environment where traders will be
consolidation and development of the logistics industry.”
assured of good and timely service.” He also points to the need to look at
the state of peripheral factors, such as road and traffic conditions, railroad
Accordingly, MLC views the problems, not as compartmentalised
connectivity and adequacy of port facilities.
issues, but as systemic weaknesses that require logistical integration
with the global supply chain. He remarks: “Logistics impacts all the
industries that depend upon it.”
MOT and Port Standards
Mohd Radwan continues: “Over 90% of Malaysia’s imports and exports
are seaborne. This underscores the importance of ensuring world-class
MOT has come out with positive suggestions and initiatives under the
standards in our ports and maritime industry. However, also having
government’s Key Result Area (KRA) approach. Parameswaran thinks that
a strong and harmonised logistics industry would significantly value-
these are important to keep any business ahead of its competitors.
add our port capabilities and thus enhance Malaysia’s international
competitiveness.”
However, he cautions: “In reality, the initiatives can only succeed if the KPIs
involve all stakeholders. We would all benefit from greater dialogue to acquaint
ourselves with the needs and problems of all parties. With open collaboration,
Malaysian Ports
we will be able to resolve the issues.
Mohd Radwan highlights that, over the past 10 years, more than 70% of
to link with different agencies and to follow a universal parameter to achieve
exports and imports have been directly loaded on mother vessels. “We can
results.”
Mohd Radwan echoes the point: “The ports cannot think solo. There is a need
be proud of such an achievement as not many countries can claim the same.”
He adds that MOT can be more proactive in helping to develop the ports
Parameswaran also enthuses that Malaysian ports are among the most
by having continued sessions and dialogues involving all sectors including
competitive in Asia, based on our relatively low costs of haulage, warehousing,
logistics, shippers and the port management itself. He stresses: “This will not
forwarding fees, port charges, wages and so on. He adds: “Port Klang as well
only greatly benefit the port, but will help boost the economy of Malaysia as
as our other ports are well managed. This has resulted in the fact that many
well.”
shipping lines are now using Malaysia as a hub.”
However, both gentlemen stress the importance of benchmarking ourselves
against other leading ports in terms of efficiency.
PKA & Port Klang
Parameswaran applauds PKA for its efforts in bringing the relevant parties
together to implement world-class standards in Port Klang. He says: “By taking
the lead in engaging its different stakeholders to improve port operations in a
fair and inclusive manner, PKA would be able to further strengthen the success
of Port Klang as the biggest port in the country and also one of the busiest in
the region.
“PKA is also helping to facilitate the requirements of the industry with other
relevant authorities, especially in terms of reviewing port procedures and
regulations, such as 24-hour custom clearance and commercially sensitive
port tariffs and charges.
He stresses that while Port Klang is hailed as Malaysia’s premier world-class
port and is ranked as one of the top 15 container ports in the world, a lot can
still be improved upon.
“Realising our latent opportunities takes time and effort. PKA has taken the first
step in driving change for Port Klang and I hope all parties will rally together to
collectively plan out the next steps to be taken.”
Mohd Radwan wraps up by noting: “PKA should not only act as business
authority, but also as a legal voice to help standardised the different terms and
conditions that are currently set by the various industry players.”
MALAYSIA LOGISTICS COUNCIL (MLC)
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Established in January 2007 by the Ministry of International Trade and Industry (MITI) under the Third Industrial Master Plan
(IMP3: 2006-2020).
Chaired by YB Ng Lip Yong, Deputy Minister, MITI
Scope: to develop and coordinate the implementation of strategies, policies, regulations and rules related to the development
of the logistics industry.
Members comprises representatives from the private sector (17), public sector (11) and academia (3)
For further information, please contact: Ahmad Khairuddin Abd Rahim
Malaysian Logistics Council Secretariat
Tel: (603) 2267 3422/3420 Fax: (603) 2273 4216 E-mail: [email protected]
MALAYSIAN INDUSTRIAL
DEVELOPMENT AUTHORITY
(MIDA)
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•
•
•
The Government’s principal agency for promoting the
manufacturing and services sectors in Malaysia.
Chaired by Tan Sri Dr Sulaiman Mahbob, former director
general of the Economic Planning Unit.
Scope: assists potential investors and facilitates the
implementation of their projects.
For further information, please contact: Tel: (603) 22673633 Fax: (603) 2274 7970
www.mida.gov.my
FEDERATION OF MALAYSIAN
MANUFACTURERS
(FMM)
•
•
•
•
•
An industry organisation, dedicated to supporting the Government’s
aspirations to enhance the nation’s growth and modernisation.
Represents over 2,000 manufacturing and industrial service
companies at international, regional, national, state and industry
sub-sector levels.
Governed by the FMM Council consisting of the President,
Immediate Past-Presidents, 4 Vice-Presidents and 24 elected
members.
Scope: FMM offers a wide range of services and activities to
facilitate business operations.
For further information, please contact: Tel: (603) 6286 7200 Fax: (603) 6274 1266 / 7288
www.fmm.org.my
18
www.westportsmalaysia.com
THE JOURNEY AHEAD
Since beginning operations in 1996, Westports has handled a cumulative
container volume of 30 million TEUs (as at September 2009). Given
this astonishing achievement, it is no surprise that Westports currently
commands 62% share of the container volume in Port Klang.
Not resting on its laurels, Westports has set its sights on strengthening its
transshipment business within the next five years while also reinforcing
its position as the preferred port for local boxes.
This aspiration reflects the innovative spirit of Westport’s Executive
Chairman, Tan Sri G Gnanalingam, and his penchant for simplifying
intricate port procedures so as to greatly improve port performance while
continually enhancing public regard for this home-grown success story.
In this issue of Gateway, we speak to Tan Sri G about the journey thus far
and the challenges ahead.
TAN SRI G GNANALINGAM
Executive Chairman
Westports Malaysia
Q: How did you get involved in the port industry?
Q: Did you have to downsize your workforce?
Tan Sri G: It was in 1993 when I came to realise that RM300 billion
Tan Sri G: I’m happy to say that we didn’t. We had been achieving
worth of Malaysian cargo was being transshipped through other ports
continuous growth for over 15 years and by early 2009, we had in
every year. I felt that we would change the situation if only Malaysia
excess of 1,000 personnel. When the economic downturn came, we
could offer a place where vessels could be turned around faster.
took it as an opportunity to re-train and strengthen our staff so that
Inspired by that belief, I set about establishing Westports. With good
we would be better prepared for the next turnaround. Our employees
marketing, coupled with a highly motivated workforce, we managed to
responded positively to the idea which was supported by various in-
bring the vision to fruition. Today, Westport’s productivity is around 35
house training programmes to upgrade their skills and improve their
to 40 moves an hour and that goes to show that we are as productive
productivity rate.
as Hong Kong or Singapore.
Q: How did Westports perform last year given the economic
downturn that the whole industry was facing?
Q: It was recently reported that Westports is poised to handle 5.2
million container boxes by the end of 2010. What measures are
being taken to ensure that this target is reached?
Tan Sri G: In 2008, we handled almost 5 million boxes. In 2009, our
Tan Sri G: We are well-positioned for continued prominence as a
volume dropped 10% to 4.5 million TEUs. This was Westports’ first-
major load centre for Southeast Asia. As such, we adopt a supply-
ever decline in container throughput since 1996 and it was brought
driven approach to stay prepared to handle more boxes in the future.
on by the sharp contraction in world trade last year. We also did
We have 5 container terminals now and have embarked on the 6th.
7.5 million metric tonnes of conventional cargo. Notwithstanding
We make sure the berths are available for the ships. Additionally,
the difficulties, we took advantage of the relatively quieter period to
we have commenced hiring again and recruited close to 100 new
consolidate our business in terms of processes and other company-
employees during the past 3 months.
wide improvements.
G ATEWAY
A P U B L I CATI O N O F P O RT K LA N G AUTH O R IT Y
WESTPORTS
19
Q: As the Executive Chairman of Westports, what are your personal
aspirations for Westports in the future?
Tan Sri G: I have three main areas of focus. First, to continuously
maintain our ‘best employer’ status. As Malaysia’s leading port with
exponential growth in more than 15 years, we constantly strive to
invest in our people. Through our highly-regarded talent management
framework, we hope to help improve performance and employee
productivity.
My second focus would be on enhancing our customer-oriented
culture. ‘Proven, trusted and friendly’ are three words that perfectly
encapsulate the ideals of Westports. To our customers, these values
would represent the hallmarks of a great port, one with a proven
track record of delivering world class efficiency, a trusted partner
dedicated to meeting their every requirement and providing customer
friendly services.
The third focus is to develop a glocal centre of logistics excellence.
As a cradle for world-class maritime professionals, Westports would
continue to generate top-notch performers who will ultimately realise
their true potential and become the pride and envy of the global port
industry.
Q: What is your outlook for Port Klang itself?
Tan Sri G: Port Klang currently ranks as the top 15th container port in
the world and has every potential to join the top 10 premier league.
But this would require that the simplification and standardisation of
policies, procedures, processes and practices. Ensuring the availability
of education programmes to enhance maritime and logistics capability
are also a must to support Port Klang’s continued enhancement.
G ATEWAY
A P U B L I CATI O N O F P O RT K LA N G AUTH O R IT Y
20
www.northport.com.my
THE FRONTIER
BRAND IN PORTS
Northport wins the coveted
BrandLaureate Master Award
2009-2010
Ravindran Raman Kutty
Head of Corporate Communications
receiving the award on behalf of Northport
at the Gala Dinner held on March 26, 2010.
Northport was recently conferred The BrandLaureate Master Award 2009-2010, a prestigious
recognition reserved for organisations with globally-recognised brands that contribute to the
economic growth of their respective countries.
Selected based on brand strength, strong management and good corporate governance, winners
are role models at the forefront of their respective industries, defining the standards of excellence
and leading in terms of innovative products and processes.
As such, the win reaffirms Northport’s success, as Malaysia’s largest multipurpose port, at
continuously delivering the best possible service and maximum convenience to its customers
and the industry.
With its real time smart information system designed to guarantee operational and cost efficiency,
Northport offers faster vessel turnaround time.
Apart from offering feeder services to neighbouring countries, Northport has increased
connectivity to worldwide ports including China, India, Intra Asia, US ports, the Mediterranean
and Europe making it one of the most important hub ports in the Asian region, connecting 300
ports worldwide.
Northport received several other major awards in 2009 for its commendable performance,
including The BrandLaureates for SME Chapter Award; the Asia Freight & Supply Chain Award;
and the Frost & Sullivan Award.
G ATEWAY
A P U B L I CATI O N O F P O RT K LA N G AUTH O R IT Y
NORTH PORT
21
COMMENDABLE
PERFORMANCE
Despite the economic uncertainties in the year 2009, the NCB
Holdings Group has attained a commendable profit before tax of
RM167.9 million.
Both its direct subsidiaries, Northport (Malaysia) Bhd and Kontena
Nasional Bhd, registered higher profits (compared with the previous
year) of RM148.0 million and RM9.7 million, respectively. The
The NCB Holdings Group AGM held on March 29, 2010
remaining profit came from investment income that was generated
by the holding company.
All this was achieved against a 12.1% reduction in revenue at the Group level – from RM946.2 million in 2008 to RM831.4 million in
2009. Revenue for Northport (Malaysia) Bhd and Kontena Nasional Bhd were RM611.9 million and RM219.5 million, respectively.
According to Group Chairman Tun Ahmad Sarji bin Abdul Hamid, the commendable performance resulted from intense efforts at
controlling operating cost throughout the Group. This was further aided by a recovery in container trade seen in the latter half of 2009.
He pointed out that, despite the environment of negative growth, Northport was able to register a fairly impressive volume of 2,858,341
TE Us, a decrease of 5.0% as compared with the 3,005,920 TE Us recorded in 2008. Under its conventional cargo business, Northport
handled a combined volume of 6.53 million FWT for the year 2009.
Tun Ahmad Sarji added that the Group was ready to re-activate the planned construction of Wharf 8A subject to the economic environment
showing sustainable signs of improvement. He said: “This is to meet our customers’ demand for enhanced capacity to service their
growth in business.”
As for Kontena Nasional, he said efforts to streamline low-yield activities and re-align business processes clearly secured improved
margins for the haulage and logistics subsidiary. The Group Chairman expressed his optimism over in-roads being made into the contract
logistics business.
The first few months of 2010 have revealed encouraging signs of business recovery as the Group continues to respond to the challenges
– of meeting changing customer needs and re-aligning its business strategies – to deliver another year of strong performance.
AN EVENING WITH
CUSTOMERS
On March 19, 2010, Northport organised a get-together to honour
more than 80 valued container customers from the shipping
industry. Hosting the event, Northport’s Deputy CEO Mohd Haris
Ab Aziz said that, by improving the mutual relationship with the
business community would lead to improved service efficiency.
He thanked everyone present for their continuous support and
commitment to Northport.
Renewing and strengthening bonds
G ATEWAY
A P U B L I CATI O N O F P O RT K LA N G AUTH O R IT Y
22
MOVING UPWARDS
IN THE YEAR OF THE TIGER
At the recent Chinese New Year Open House
have been implemented towards this end,
jointly organised by Port Klang Free Zone
including revamping the One-Stop Agency and
(PKFZ) and Port Klang Authority (PKA),
reviewing procedures relating to investment
Transport Minister Dato’ Seri Ong Tee Keat
facilitation and cargo movements between PKFZ,
applauded PKFZ for attracting more than
the port terminals and principal customs area.
RM900 million in investments, and offering
more than 1,600 jobs.
Evidently, this has facilitated ease of cargo
movements between PKFZ and Northport by
In his speech (read by PKA Chairman Dato’
rail and road mode resulting from adoption
Lee Hwa Beng), the minister was pleased with
of the simplified DMP6 form (instead of the
PKFZ’s performance in attracting more than
normal K8 form), effective February 1, 2010.
50 investors that were involved in various
This was made possible by the cooperation
activities, including manufacturing, trading,
from
logistics and general services.
Customs Department and Northport.
Dato’ Seri Ong noted that the potential
Dato’ Seri Ong also lauded the Royal Customs
growth of cargo volumes in PKFZ arising from
of Malaysia for implementing the Authorized
the continuous inflow of investments and the
Economic
Operator
spin-off activities is expected to contribute
investors
in
substantially to the future throughput of Port
specially accorded to investors in PKFZ,
Klang and overall economic development in
is internationally recognised by Customs
Pulau Indah.
worldwide and serves to provide a green lane
the
Ministry
PKFZ.
of
Finance/Selangor
(AEO)
The
scheme
AEO
for
status,
facility for goods exported from Malaysia.
He thanked all the investors for their confidence
and support in making PKFZ as their base and
The minister concluded his speech by
expressed his wish that they would continue to
thanking all government agencies for their
prosper and expand their operations in PKFZ.
continue cooperation and support to Port
Klang in general and PKFZ in particular. He
The minister went on to say that the government
said: “I believe all these initiatives will in
is fully aware of the importance of improving the
fact be a boost for all existing and potential
ease and cost of doing business, especially under
investors in PKFZ as this will facilitate the
the current fast changing and highly competitive
ease for international trade.”
environment. He stressed that various initiatives
G ATEWAY
A P U B L I CATI O N O F P O RT K LA N G AUTH O R IT Y
ON THE RADAR
GATEWAY magazine invites you to announce
your upcoming industry events here.
Email us at:
[email protected]
Or mail us at:
Port Klang Authority
Mail Bag Service 202, Jalan Pelabuhan Utara,
42005 Port Klang, Selangor
Malaysia
PORT KLANG FACILITIES
CONTAINER
WESTPORTS NORTHPORT
2009
Number of berths
Length (metres)
Draft (metres)
11
12
23
3,200
2,679
5,879
16
11.0 - 15.0
11-16 113
93
207
100,000
5
100,005
6
44,077
44,083
18,580
751
19,331
1,236
19,370
20,606
25,000
245,309
270,309
Annual capacity (mill TEU)
CFS (sq. metres)
Refer points
Date :May 2010
Venue:Westports Auditorium
2009
Storage
holding capacity (teu)
PKA will be collaborating with Jabatan Alam Sekitar to host a
seminar on managing scheduled waste (Dangerous Goods) at
Port Klang.
TOTAL
2009
Berths
Container yards (hectares)
Seminar on Management of
Scheduled Waste (Dangerous
Goods)
PORT KLANG
total ground slots
Distripark (sq. metres)
no. of Equipment
& capacity (tones)
Quay cranes
34
26
60
Rubber tyred gantry cranes
92
57
149
mobile harbour cranes
-
-
-
Straddle carriers
-
67
67
prime movers
273
158
431
trailers
277
112
389
25
8
33
LIQUID BULK
5
4
9
1,305
779
2,084
10 - 16.5
10.5 - 11.5
10 - 16.5
DRY BULK
High stackers
Berths
Number of berths
IAPH Board Meeting
The International Association of Ports and Harbors will be
holding their board meeting at the time and date stated below.
Savannah is home to the fourth largest volume container port
in the U.S, which moved more than 2.4 million TEUs in fiscal
year 2009. The Port of Savannah’s two terminals handle
containerized, RoRo and breakbulk cargos. The IAPH committee
aims to provide participants with a well diversified program that
enhanced by powerful content and outstanding speakers.
Date :7-9 June, 2010
Venue: Savannah Marriott Riverfront, Savannah, Georgia
Theme:“Economic Recovery in the
Maritime Trade”
Length (metres)
Draft (metres)
-
-
PASsenger terminal
Berths
-
Berths
Number of berths
3
1
4
Length (metres)
660 43
703
Drafts (metres)
-
5.5
-
G ATEWAY
A P U B L I CATI O N O F P O RT K LA N G AUTH O R IT Y
equipped
for your
SUCCESS
With a maritime tradition hailing back to 1901, Port Klang is today a major gateway that’s connected to over 500 ports in more than 120
countries. As Malaysia’s national load centre and a fast-emerging regional trans-shipment hub, we link manufacturers with the markets of Asia
and the rest of the world. Enabling seamless cargo transfers with state-of-the-art facilities at two award-winning terminals and a fully-integrated
industrial and commercial free zone. A world-class port pulsing with pro-business sensibilities, matched with the customer service excellence that
will delight you. Now you know why we’re the world’s top 15 container port. The winning formula is here, in PORT KLANG.