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Susan Tricia Editor
Defence Minister Datuk Seri Mohamed Khaled Nordin hopes to strengthen Malaysia’s defence ties with Germany. During a visit to the German Navy frigate FGS Baden-Württemberg and support ship FGS Frankfurt am Main at Port Klang, he noted the long-standing defence cooperation between the two nations. Khaled expressed appreciation for Germany choosing Malaysia as a stopover and hopes the Royal Malaysian Navy and German Navy will deepen their relationship. He also looks forward to greater German participation in the Langkawi International Maritime and Aerospace Exhibition and future defence initiatives.
The strengthening of Malaysia’s defence ties with Germany seems like a positive step for both nations, especially in terms of enhancing cooperation in maritime security and broader defence capabilities. Malaysia’s strategic location and Germany’s technological expertise could lead to mutual benefits, including knowledge sharing, joint exercises, and stronger regional security. the involvement of German companies in the Langkawi International Maritime and Aerospace Exhibition could foster new opportunities for defence innovation and collaboration.
On a side note, Westports Holdings Bhd is expanding its container terminals (T10 to T17) to strengthen Malaysia’s role as a global maritime hub. Executive Chairman Datuk Ruben Emir Gnanalingam said the addition of eight new terminals will double Westports’ capacity from 14 million to 28 million TEUs. This expansion will meet current demand and support future growth in trade. With current terminals operating at 80% capacity, the expansion is necessary. The project is expected to contribute RM55 billion to Malaysia’s economy, according to a PwC report from December 2022.
Don’t miss our upcoming event, Malaysia International Marine Expo 2024 (MIMEX) in Hall 1, Kuala Lumpur Convention Centre (KLCC) from 12 to 13 November, 2024. On behalf of the editorial team, thank you for your massive support of Maritime Voice ASEAN. Stay in touch with us at www.maritimeasean.com for more updates.
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Malaysia’s Ports Well-Positioned to Drive Expansion
Maritime Connectivity Key to Brunei’s Economic Growth: Permanent Secretary
Maritime connectivity plays a crucial role in driving economic growth throughout the region, said Permanent Secretary at the Ministry of Transport and Infocommunications Ir Mohammad Nazri Mohammad Yusof.
He said this during the opening of the 47th Asean Maritime Transport Working Group (MTWG) meeting.
The permanent secretary highlighted initiatives, such as the Master Plan on Asean Connectivity, pivotal in strengthening logistical networks, facilitating trade and promoting tourism, ultimately fostering deeper Asean integration.
He also addressed the challenges posed by climate change and digital transformation within the maritime sector and called for enhanced collaboration among all stakeholders to ensure the safety, sustainability and resilience of maritime operations in the region.
Meanwhile, Maritime and Port Authority of Brunei Darussalam (MPABD) Chief Executive Captain (Rtd) Zil Husam Abdul Rahman reaffirmed the Sultanate’s commitment to enhancing
maritime connectivity and sustainability within the Asean region.
The meeting discussed transport development strategies, sustainable maritime transport initiatives and collaboration with the private sector to address emerging maritime challenges.
This year’s meeting aims to drive significant changes across the Sultanate and Asean by improving regional maritime cooperation, optimizing port operations and enhancing port security, which will ultimately support a robust economic growth.
The Asean Transport Action Plan 2026-2030, adopted during the meeting, is set to play a critical role in advancing sustainable and secure maritime transport systems, ensuring economic prosperity and environmental sustainability for the region.
The meeting marks a key milestone in strengthening regional collaboration and advancing maritime development in line with Asean’s goals of increased connectivity and economic integration.
MPABD’s Assistant Chief Executive Salmaya Rahayu binti Salleh chaired the meeting and welcomed delegation heads from Asean member states, dialogue partners, representatives from the Asean Secretariat and the International Maritime Organization (IMO).
Brunei Darussalam, through MPABD, will continue to lead the Asean MTWG during its two-year term, reaffirming its
commitment to shaping the future of maritime transport in the region. The chairmanship will be passed to Cambodia in 2026.
The Asean MTWG will be followed by an Asean-United States workshop on ‘Developing Sustainable Ports through Policy, Planning, Partnerships and Innovation’ on September 19-20.
Mohammad Nazri delivering his speech at the opening of the 47th Asean Maritime Transport Working Group meeting on Sept 17. - BB
PETRONAS Wins New Oil and Gas Exploration Concession
Onshore Abu Dhabi
PETRONAS Abu Dhabi, a wholly-owned subsidiary of PETRONAS, was granted a new oil and gas exploration concession in Onshore Block 2, by the Supreme Council for Financial and Economic Affairs (SCFEA).
Under the agreement, PETRONAS Abu Dhabi will hold 100% equity and assume operatorship during the exploration period.
The Onshore Block 2, located within the Al Dhafra region of Abu Dhabi covering an area of over 7300 km2, is PETRONAS Abu Dhabi’s third concession, following the Unconventional Block 5 in 2024 and the Unconventional Block 1 in 2022.
“We are excited about this new venture and extend our deepest gratitude to SCFEA for their unwavering trust and collaboration. This endeavour broadens PETRONAS Upstream’s portfolio in Abu Dhabi, incorporating both unconventional and conventional resources, offering potential for exploration growth” said PETRONAS Executive Vice President and Chief Executive Officer of Upstream, Mohd Jukris Abdul Wahab.
Westports Development to Strengthen Malaysia as Global Maritime and Logistics Hub
The development of Westports Holdings Bhd’s phase two container terminal expansion from terminals 10 to 17 is a significant step to strengthen Malaysia’s position as a global maritime and logistics hub.
Westports executive chairman and group managing director Datuk Ruben Emir Gnanalingam Abdullah said the construction of eight new container terminals will double Westports’ container handling capacity from 14 million twentyfoot equivalent units (TEUs) to 28 million TEUs.
“The construction of these new container terminals (Westports 2 expansion) is not only crucial to meet current demand but also to prepare for the anticipated growth in trade volume over the next decade,“ he said in his welcoming speech at the groundbreaking ceremony.
BERNAMApix
Ruben noted that nine terminals are currently operating at an 80 per cent capacity and are expected to reach full capacity in the coming years.
“This prompted us to make the decision to expand terminal capacity,“ he added.
He said Westports 2 expansion is expected to contribute RM55 billion to the Malaysian economy over the project’s duration based on PricewaterhouseCoopers’s economic impact assessment report dated Dec 12, 2022.
“To date, Westports has contributed nearly RM4 billion to the government through corporate taxes and lease payments,“ he said. This is projected to rise significantly over the next 30 years due to the new Westports 2 agreement.
“In addition, the land purchased for the development of Westports 2, valued at over RM600 million, will eventually be transferred to the government free of charge,“ he said.
Westports 2 will also include the creation of a new free zone covering 222.58 hectares. This is expected to attract foreign direct investments (FDIs) and encourage regional and global distribution centers to be set up.
A tripartite collaboration between Westports, the Federal and the Selangor State Government was also announced at the same event.
“Westports is proud to launch the Selangor environmental conservation and cultural alliance in collaboration with Selangor Maritime Getaway and Yayasan Hijau Malaysia.
The partnership is committed to sustainable environmental conservation of mangrove swamps, marine life, and community development, Ruben added.
Port Klang took the 11th spot in Lloyd’s 2023 list of top 100 ports from 13th place in 2022. Transport Minister Anthony Loke Siew Fook targeted Port Klang to be in the top 10 next year.
The port showed positive growth in container handling, with a 10.5 per cent increase in import and export trade versus a year ago. In 2023, Port Klang handled a total of 14.06 million TEUs, representing a 6.3 per cent increase from 13.22 million TEUs in 2022.
Strategic Marine Hands Over Fast Crew Boat for Maritime Neighbor’s Oil & Gas Sector
Singapore-based shipbuilder Strategic Marine has delivered a fast crew boat (FCB) to Brunei’s offshore operator Amarco.
According to the shipbuilder, the fourth-generation Amarco S1 brings advanced maritime technology and sustainability features to the Bruneian market. The vessel is intended for longterm operations in the country’s offshore oil and gas sector
The 42-meter vessel is powered by triple Baudouin 12M26.3 engines coupled with ZF3050 gearboxes, allowing it to sail at up to 28.5 knots. Furthermore, it is designed with future upgrade needs in mind, enabling the integration of a gyro stabilizer and offering the option to install a motion-compensated gangway.
Chan Eng Yew, Chief Executive Officer of Strategic Marine, said: “We are delighted and honored to be selected for this prestigious project with Amarco Sdn Bhd, which will serve the demanding Bruneian offshore oil and gas sector. We thank them for their trust in us and look forward to the vessel’s deployment.”
In line with global sustainability guidelines, the vessel is equipped with a plug-and-play hybrid system, enabling certain operating profiles to be performed entirely on battery power. This ensures the vessel can adapt to future environmental standards, contributing to greener offshore operations
The Amarco S1 includes an external firefighting system (FIFI) and an oil dispersant system, increasing its ability to respond to emergencies such as oil spills and fires, while the bow thruster and auto-trimming interceptors help increase its maneuverability, offering greater control during complex offshore operations.
Strategic Marine was recently selected by Malaysia’s Centus Marine to build new high-speed personnel transfer vessels. Their design will be based on AIRCAT Vessels’ AIRCAT 35 Crewliner platform.
Amarco S1; Source: Strategic Marine
Ex-USCG Cutter Steadfast to Be Brought to Malaysia at Year End
Ex-US Coast Guard (USCG) cutter Steadfast, which is set to be received by the Malaysian Maritime Enforcement Agency (MMEA), is scheduled to be brought to Malaysia at the end of this year.
MMEA director-general Maritime Rear Admiral Datuk Mohd Rosli Abdullah said that several key aspects will be emphasized during the process of bringing the boat back, including propulsion, power generation, structural integrity, communication, navigation and domestic operations.
“During a recent visit to assess preparations for bringing the ship back in Baltimore, the United States, it was found that the ship has very comfortable working space for MMEA officers and enforcement personnel.
There is a growing focus on environmental, social and governance (ESG) practices in the palm oil industry, with Malaysia — one of the largest palm oil producers in the world — at the forefront of this movement. The country has pledged to conserve biodiversity and prevent illegal deforestation,
committing to maintain at least 50% forest cover. True to its word, 54.9% of Malaysia remained forested as at December 2023, it published in the Fourth National Communication Report to the United Nations Framework Convention on Climate Change.
“The refurbishment process of the ship will be conducted, and its presence in MMEA’s asset inventory will soon enhance
operational enforcement capabilities in implementing the concept of ever-present operations and the right asset for the right mission in the maritime zone of Malaysia,” he said in a statement.
He, along with a delegation, also paid a courtesy call on the commandant of the USCG Admiral Linda Lee Fagan in Washington DC.
The meeting, he said, was held to strengthen the existing cooperation between MMEA and USCG.
“At the meeting, Linda Fagan also congratulated me on my appointment as the seventh director-general of the Malaysian Maritime Enforcement Agency and showed great interest in understanding my vision and strategies aimed at propelling MMEA towards greater excellence.
“As a result of the meeting, USCG expressed strong support and commitment to the efforts undertaken by MMEA in ensuring the safety and well-being of the nation’s waters while emphasizing the importance of cooperation in safety aspects as well as intelligence surveillance and reconnaissance [ISR],” he said.
He noted that MMEA is very grateful for the support provided by the USCG and believes that this cooperation will strengthen the country’s maritime security and benefit the international community.
During the visit, he said the delegation was also taken to tour the USCG Surface Acquisitions Logistic Centre in Baltimore, where discussions were held regarding the provision of ship support equipment and facilities for the crew who will undergo familiarization with the asset.
Ex-US Coast Guard cutter Steadfast
Malaysia Hopes to Strengthen Defence Ties with Germany Beyond Maritime Cooperation – Khaled
Defence Minister Datuk Seri Mohamed Khaled Nordin expressed hope that defence relations with Germany will continue to strengthen in the future.
During his visit to the German Navy frigate FGS BadenWürttemberg and the support ship FGS Frankfurt am Main, which docked at the Port Klang Cruise Terminal, Khaled noted that Malaysia and Germany have had a strong defence cooperation for many years.
Also present during the visit were the Ministry of Defence Secretary-General Datuk Lokman Hakim Ali and the Chief of Navy, Admiral Datuk Zulhelmy Ithnain.
He said Malaysia appreciates Germany for choosing it as a ‘port of call’ and hopes that the Royal Malaysian Navy and the
German Navy can use this opportunity to further enhance their relationship.
“However, I believe that this strong defence relationship is not limited to the maritime domain. I would also like to express my appreciation to Germany for choosing Malaysia as a stopover during the German Air Force’s 2024 Asia-Pacific Tour,” he said in a post on his official Facebook page.
He expressed hope that the strong defence cooperation between Malaysia and Germany would be further strengthened, including through the involvement of more German companies at the Langkawi International Maritime and Aerospace Exhibition and the “Enable and Enhance (E&E)” initiative next year.
Asean SecretaryGeneral Calls for Enhanced Maritime Cooperation
Asean secretary-general Dr Kao Kim Hourn (pic) has stressed the urgent need for regional cooperation in addressing major maritime challenges facing Southeast Asia, including rising geopolitical tensions and environmental threats.
In his pre-recorded address at the 8th Jakarta Geopolitical Forum, he emphasized that enhancing dialogue and trust, committing to international law, and coordinating action are essential for the region’s effective response to these shared challenges.
“We must stand firm in our dedication to fostering dialogue, cooperation, and the peaceful resolution of disputes to ensure that our waters serve as a source of peace and prosperity rather than a breeding ground for insecurity, competition, confrontation, and conflict,” he said.
The three-day forum, which concludes on Thursday, is hosted by Indonesia’s National Resilience Institute under the theme ‘Addressing Geo-Maritime Resilience Challenges in the IndoPacific’.
Kao highlighted Asean’s commitment to peacefully resolving disputes under international law, particularly the 1982 United Nations Convention on the Law of the Sea (UNCLOS), which he described as a cornerstone of the region’s stability.
He also stressed the importance of recognizing that many maritime challenges, such as environmental degradation, transnational maritime crime, as well as illegal, unreported, and unregulated (IUU) fishing, transcend national boundaries.
“Coordinated action on these fronts is not only desirable but imperative,” he said, referring to the Asean Framework of Action on Marine Debris.
“Combating marine plastic pollution requires both robust national efforts and regional cooperation, as marine debris moves freely across borders.”
Addressing IUU fishing and maritime piracy, he said it requires joint civilian and enforcement efforts across jurisdictions.
“Asean’s whole-of-community approach ensures that these shared challenges are tackled collectively, with the active participation of all relevant member states, stakeholders, and external partners,” Kao added.
Southeast Asia is a strategically important maritime region where economic growth, environmental sustainability, and security intersect.
With 66 per cent of its territory covered by maritime waters, it acts as a crucial link between the Pacific and Indian Oceans, housing essential sea lanes for global trade.
The region is rich in biodiversity and sustains a thriving maritime economy that includes international shipping, tourism, hydrocarbons, and fisheries.
Canada Reforms Regulations to Attract Offshore Wind Investments
Canada has passed new legislation that will open up its East Coast to offshore wind investments. Bill C-49 created a framework to develop offshore wind energy in the provinces of Nova Scotia and Newfoundland and Labrador.
The Bill introduced amendments to the Accord Acts, allowing the federal government and the provincial governments to work together in the joint management of offshore wind resources. The Atlantic Accords Acts have been in existence since the 1980s, making it possible for Canada, Nova Scotia and Newfoundland to jointly manage offshore petroleum resources. With the new changes, the scope has been expanded to include offshore wind.
In this case, the Canada-Nova Scotia Petroleum Board’s name changed to the Canada-Nova Scotia Offshore Energy Regulator (CNSER), and the Canada-Newfoundland and Labrador Petroleum Board’s name changed to the Canada-Newfoundland and Labrador Offshore Energy Regulator (C-NLOER)
“Bill C-49 enables Atlantic Canada to seize the generational economic opportunity presented by offshore renewable energy. It will strengthen the economy, enable the creation of thousands of jobs and attract billions in investments in Nova Scotia and Newfoundland and Labrador,” said Jonathan Wilkinson, Minister of Energy and Natural Resources.
According to Tory Rushton, the Minister of Natural Resources for the Government of Nova Scotia, the call for offshore wind tenders could open as early as next year. Nova Scotia is looking to harness offshore wind power for production of green energy, and major industrial manufacturers in the province are already pursuing the use of green hydrogen as the transition from fossil fuel gains traction.
India Gets Re-elected to International Maritime Organization (IMO) Council
The council is the executive organ of IMO and is responsible, under the assembly, for supervising the work of the organization.
India re-elected to the International Maritime Organization (IMO) Council with the highest tally, and the term of council will be for the biennium 2024-25. India’s re-election falls under the category of 10 states with “the largest interest in international seaborne trade”, alongside Australia, Brazil, Canada, France, Germany, the Netherlands, Spain, Sweden, and the United Arab Emirates (UAE).
Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said the highest votes are indicative of the government’s determination to strengthen India’s varied contributions to international maritime operations.
The council is the executive organ of IMO and is responsible, under the assembly, for supervising the work of the organization.
Between sessions of the assembly, the council performs the functions of the assembly, except that of making recommendations to governments on maritime safety and pollution prevention.
According to the statement, under the MIV 2030 to enhance representation at IMO, India aims at appointing permanent representatives at IMO London.
The Indian delegation was led by Secretary, Ministry of Ports, Shipping and waterways, T K Ramachandaran, with members including DG Shipping Shyam Jagannathan, officers of DGS, High Commission of India at London, and industry representatives.
Gasum Partners with Wasaline to Build Commercial FuelEU Maritime Pooling Service
Nordic energy company Gasum has joined forces with Finnish shipping company Wasaline to build the first large-scale commercial FuelEU Maritime pooling service, providing a way for conventional fuel vessels to save on compliance costs as the regulation enters into force in January 2025.
Gasum bunkering Wasaline’s ferry Aurora Botnia. Courtesy of Gasum
Established to increase the use of renewable and low-carbon fuels and limit greenhouse gas (GHG) emissions, FuelEU Maritime regulation will apply to all ships over 5,000 gross tonnage calling EU ports, starting in 2025.
The shipowners will need to reduce the carbon intensity of purchased fuel initially by 2% with the required reduction growing incrementally to as much as 80% by 2050.
The regulation permits the voluntary pooling of emission reductions between vessels to make compliance easier for shipping companies.
To this end, Gasum and Wasaline have signed a letter of intent (LoI) to work on the large-scale commercial pooling service as “the easiest and most reliable way for shipping companies to save on compliance costs and promote the production of lowemission fuels at the same time”.
Wasaline, an operator of a hybrid ferry that can run on batteries, LNG, and bio-LNG, would provide over-compliance to the pool by running its daily route on bio-LNG.
Gasum would manage the pool, supply the ultra-low emission bio-LNG, and offer over-compliance to shipping companies with conventional fuel vessels.
As an established bio-LNG producer and distributor, Gasum said it would be able to guarantee the required supply of ultralow emission fuel to Wasaline. Additionally, the regular route of the ferry is expected to bring predictability to the pooling service.
“We at Wasaline are excited by the opportunity to participate in a solution that has the potential to increase the production and use of renewable biofuels. We prioritize innovation and sustainability in shipping and are happy to be able to help others reduce emissions and drive the green transition forward in our industry,” stated Wasaline’s CEO, Peter Ståhlberg.
“As a major bio-LNG producer and supplier, Gasum is in a unique position to provide a reliable full-service pooling solution to shipping companies. Customers have shown a strong interest in a pooling service offered by Gasum. Our long experience and strong relationships in the maritime market give us a competitive advantage that few other companies can provide,” said Jacob Granqvist, Gasum’s Vice President, Maritime.
Mohd Rosli Abdullah is New MMEA Director-General
Acting deputy director-general of operations of the Malaysian Maritime Enforcement Agency (MMEA), Rear Admiral (Maritime) Datuk Mohd Rosli Abdullah, has been appointed as the seventh MMEA director-general.
Rear Admiral (Maritime) Datuk Mohd Rosli Abdullah has been appointed as the seventh MMEA director-general, effective 17th Sept — Picture from Facebook/Agensi Penguatkuasaan Maritim Malaysia
MMEA said in a statement that he has nearly three decades of experience in maritime security and is an expert in planning and executing maritime operations, particularly in combating crossborder crimes such as illegal immigration, drug and contraband smuggling, and sea piracy.
“One of his major achievements was leading Ops Pelantar Merah, which resulted in high-profile arrests and a reduction in crime around the oil platforms in the country’s waters.
“Most recently, he has been leading the development of the Sea Surveillance System (SWASLA) in the waters off Sarawak and the East Coast of Peninsular Malaysia, aimed at enhancing radar accessibility to monitor all suspicious vessel movements in national waters, particularly in the South China Sea,” MMEA said.
MMEA also noted that Mohd Rosli is highly committed to his duties, having held various key positions within the agency.
“These important positions include Selangor Maritime director, Maritime Intelligence director, Maritime Strategic Planning director, Sabah and Federal Territory of Labuan Maritime director, and Maritime Security and Surveillance Division director.
“Through this appointment, he is expected to bring new synergy to further strengthen the role of MMEA as the primary agency in enforcing maritime law, as well as saving lives and property at sea, for the well-being of the nation’s waters,” the statement added.
Quad Nations Join Forces in Malabar 2024 Naval Exercises
Australia, India, Japan, and the US, collectively known as the “Quad,” have commenced the 28th Malabar Naval Exercises.
Initially launched as a bilateral naval drill along India’s Malabar Coast between the US and India in 1992, the exercise has since expanded to include Australia and Japan, fostering greater cooperation on shared maritime concerns in the Indo-Pacific region.
Each country’s special operations forces are participating in the joint exercises alongside Australia’s HMAS Stuart, MH-60R helicopter, and P-8 maritime patrol aircraft, Japan’s JS Ariake, and the US’ USS Dewey, integral helicopter, and P-8.
Meanwhile, India has deployed the INS Delhi, INS Tabar, INS Kadmatt, INS Kamorta, INS Shakti, and P-8I, among other naval platforms.
With India as the host nation, the allied vessels convened at the port city of Visakhapatnam near the Bay of Bengal.
The Quad will engage in various operations — including antisubmarine warfare, air defense, and joint tactical maneuvers — in two stages: the Harbor Phase from October 8 to 12 and the Sea Phase from October 13 to 18.
This display of maritime cooperation aims to boost interoperability among the participating countries while promoting a “Free and Open Indo-Pacific” amid rising maritime threats from China.
In a World First, an Autonomous Underwater Vehicle Inspects Offshore Wind Farm
Beam, which provides high-tech offshore wind services, has deployed the world’s first autonomous underwater vehicle driven by AI or Artificial intelligence.
The technology was used to inspect jacket structures on the Seagreen offshore wind farm in Scotland, a joint venture partnership between SSE Renewables, TotalEnergies, and PTTEP.
Though such inspections are usually manual and timeconsuming, AI helps perform complicated tasks without human intervention, boosting the efficiency and cost-effectiveness of surveys and underwater inspections.
It also improves inspection data quality, is more precise and allows for 3D reconstruction of structures along with getting visual data.
Brian Allen, CEO of Beam, said that this technology has massive potential and wouldn’t be possible without clients like SSE Renewables.
Seagreen has been operating since October 2023 and is the world’s deepest fixed-bottom offshore wind farm.
The Beam project has offered important observations for autonomous tech on offshore wind structures. The data garnered by Beam will help maintain operational reliability at the wind farm and offer important insights into marine growth and erosion at the foundations.
Matthew Henderson, technical asset manager—Substructure and Asset Lifecycle at SSE Renewables, said this technology shows that autonomous inspections can decrease the workforce needed for planned inspections.
It is also less time-consuming and the data is precise and helps in integrity planning. The data is also collected at a low risk.
Beam will roll out this new technology throughout 2025 and 2026 across its fleet of DP2 ships and underwater vehicles.
Norway Completes First Commercial Storage Site for Captured Carbon
The first phase of the Northern Lights CO2 storage project is ready to receive liquefied CO2 deliveries with a capacity of 37.5m tons over its first 25 years.
Carbon capture and storage (CCS) technologies have a new endpoint for captured CO2 with the completion of phase one of Norway’s Northern Lights project, which has been declared ready to receive deliveries.
The first phase of the project has an annual capacity of 1.5m tons of CO2 injection capacity for a total of 37.5m tons of storage over 25 years. A phase two plan is underway to expand capacity to over 5m tons per annum.
The project will take delivery of liquefied CO2 by ship and pipe it 110 km offshore for permanent storage 2,600 m beneath the North Sea in a reservoir named the Aurora storage complex. The process has a net abatement rate of 97.4% when considering emissions across its supply chain, the company said.
Around 1bn tons of CO2 need to be captured and stored each year by 2030 to reach mid-century net zero targets. Estimates place the storage capacity of the Norwegian Continental Shelf at around 80bn tons of CO2.
The completion of onshore and offshore infrastructure for Northern Lights was marked by a celebration with members of the local community and Norwegian Minister of Energy, Terje Aasland.
“Today’s ceremony marks a significant milestone—one that fills us with great pride and hope for the future. This is a proud moment not just for Northern Lights as a company, but for Norway and for the advancement of CCS worldwide”, said Aasland.
Northern Lights MD Tim Heijn added: “The whole world is looking to Norway to learn about CCS. Since construction started, we have welcomed more than 10,000 visitors from more than 50 countries.”
Four purpose-built CO2 transport ships are under construction for the project. Construction of the first two ships began in 2023 at Dalian Shipbuilding Industry, with two more contracts
awarded to Dalian Shipbuilding Offshore later the same year. The fourth ship will be owned and operated by Bernhard Schulte, while the first three will be owned by Northern Lights and managed and operated by K Line.
The initial pair of ships are due to enter service this year, and first steel has been cut for the third ship.
Northern Lights was launched in 2017 as a joint venture between Equinor, TotalEnergies and Shell. The first phase receives state support as part of Norway’s Longship project, and funding has been approved from the European Union.
Offshore and Maritime Firms Ride Recovery Wave
Offshore and marine (O&M) companies listed here have bright prospects ahead, as they are well positioned to take on projects in the growing renewables space while also benefitting from their existing order books, experts say.
These companies revealed good results in the latest earnings season, when many reported profits for the April to June quarter and the first half of 2024 (1H24).
This trend is expected to continue in the months ahead, experts added, with the firms enjoying a strong pipeline of work and the capabilities to take on greener projects as well.
OCBC Investment Research head Carmen Lee said: “In general, the O&M sector has seen a continued recovery and this is also seen in the share price performance of a number of names in the sector.”
For example, Dyna-Mac and Yangzijiang Shipbuilding have delivered total returns of 74% and 64% respectively year to date, based on Sept 6’s closing prices.
She noted that other names such as Beng Kuang Marine and Mermaid Maritime have also performed well.
Maybank Securities analyst Jarick Seet pointed out that the floating production storage and offloading (FPSO) space continues to be robust, as well as offshore support vessel charters for oil and gas. He added that renewable energy (RE) opportunities, such as wind farms, continue to be bright spots for Singapore’s O&M companies.
DBS analyst Ho Pei Hwa said O&M firms are positioning themselves to benefit from the clean energy transition by leveraging their offshore engineering capabilities in wind farms and other offshore renewables projects.
Investors also continue to focus on Seatrium, which returned to profitability with a net profit of S$36mil in the 1H24. It has secured S$13.4bil worth of new orders from new and repeat customers over that same period.
Ho noted that Seatrium is active in areas like providing highvoltage direct current transmission systems.
“Combining the strength of former Keppel Offshore and Marine and Sembcorp Marine, Seatrium is uniquely positioned as a leading globally competitive clean energy solutions provider, with distinctive competencies – a world-class, global network of yards, strong offshore engineering capabilities and innovation,” she said in a note in August.
Ho has a 12-month price target for Seatrium of S$3. It closed at S$1.56 on Sept 6.
OCBC analyst Ada Lim noted that Seatrium’s share price saw some correction after the authorities in Brazil asked for information related to Operation Car Wash, a probe into allegations of payoffs to secure energy-related contracts in that country.
“Nonetheless, we think its fundamental industry outlook remains constructive, and we see positive momentum especially for offshore platforms being contracted at improving margins in the current upcycle.
“However, investors may need to be patient as it will take time for Seatrium’s management to execute on its order book and deliver the performance necessary to restore market confidence in the stock,” she said.
Other O&M companies also posted strong results and have good prospects, experts noted.
Dyna-Mac, a leading fabricator of offshore topside modules and facilities such as FPSO vessels, saw its profit surge 283.9% to S$38.8mil for the 1H24 on higher productivity, revenue and project completion.
Lim said its strategy to remain focused on constructing niche topside modules and to differentiate itself through quality and timely deliveries positions it well to capture demand for such modules amid a shortage in capacity to build them.
A topside module refers to the structures and equipment on the upper section, or top side of an offshore platform, such as an oil rig or FPSO vessel.
Dyna-Mac is also listed among RHB’s top Singapore small-cap companies in its 2024 edition.
RHB analyst Alfie Yeo said in the note that the company has been adding yard capacity and that it also plans to move up the value chain by diversifying into liquefied natural gas and renewable hydrogen or ammonia modules, among others.
Seet said: “We expect Dyna-Mac to win larger contracts, boosting its revenue and order book, which is already at a high.”
Other companies like Marco Polo Marine also face better prospects. For one thing, robust demand for offshore wind
farms in Asia and the transition to RE give these players vast opportunities, experts said.
Yeo said in the report on top small caps that the outlook is “buoyant” for Marco Polo Marine, as its ship-chartering business continues to support offshore oil and gas projects, especially in South-East Asia, and wind farms in Taiwan.
But experts also highlight risks to O&M companies, including a steep learning curve when venturing into new business segments.
“Sustainable projects could also get competitive in a more mature market, pressing down project returns. The decarbonization drive is also heavily dependent on government policies, especially subsidies,” said Ho.Seet also pointed to global economic risks, such as a recession, or an escalation in geopolitical conflicts. Offshore services provider Beng Kuang Marine saw its revenue surge 88.1% for the 1H24, compared with the same period in 2023.
Seet expects the 2H24 to likely replicate or even improve its 1H24 performance, due to the robust tailwind in the FPSO sector.
“However, much higher than expected administration expenses hampered operating margins but we believe this will improve going forward,” he added.
Green projects: A general view of the offshore wind farm Hywind Tampen, North Sea. — Reuters
Strohm’s TCP Jumpers Installed at Deepwater Sabah Project Offshore Malaysia
Strohm, the world’s first and leading thermoplastic composite pipe (TCP) company, has overseen the successful installation of its TCP Jumper technology at the Deepwater Sabah project offshore Malaysia.
Installed by contractor McDermott on behalf of an international operator, it is the second time the firm’s TCP product has been deployed in Malaysia, after a TCP Flowline and static riser were installed at the shallow water West Lutong field for operator Petronas in 2017.
During installation the project team took maximum advantage of the flexibility of the Jumper on Demand concept; delivered in 2021, the two, 150-meter-long TCP Jumpers were stored until associated infrastructure at the field was installed.
The TCP Jumpers were spooled onto subsea pallets for installation from the transport reel, during which time the
ancillaries were fitted by the Strohm field services team; that the Jumpers had been kept in storage for several years did not result in residual bends as the pipe does not have a strong memory effect.
Moreover, spooling from a vertical drum to horizontal pallet does not induce notable torsional effects, making installation subsea easy, fast and first time right. The TCP Jumpers were installed subsea from the pallets, with field service support provided by Strohm.
Strohm’s Vice President for Africa, Middle East & AsiaPacific, Fabienne Ellington, said: ‘It is brilliant that we have been able to complete the installation phase of this project for an international operator, a success that reaffirms TCP as the ideal solution for deepwater projects and further strengthens our leading position in the market.
‘We were able to extend the warranty for the two TCP Jumpers, as testament to the confidence we have in our technology, as well as the proven value that our products are delivering.’
A non-metallic, durable solution, TCP offers a robust, corrosion free and field-proven solution for operators. TCP Jumpers can be manufactured and shipped in long continuous lengths, stored onsite for long periods of time, cut to length when required and terminated within hours, with no change to its properties or lifespan. TCP for subsea jumpers as well as flowlines and risers have proven to reduce the CO2 footprint of pipeline infrastructures by more than 50%.
MOL to Merge Three Companies into Technical Hub for Driving Maritime Decarbonization
Japanese shipping major Mitsui O.S.K. Lines (MOL) has revealed the decision to merge three group subsidiaries responsible for maritime technology and engineering to form a technical hub that will aid the maritime industry on the decarbonization path.
Namely, MOL Marine & Engineering (MOLMEC), MOL Ocean Expert (MOLOX), and MOL Ship Tech (MOLST) will be merged to form the new company effective April 1, 2025.
As explained, MOL has proposed an absorption merger with MOLMEC as the surviving company. The official name of the new company will be announced in March 2025.
As a technical group, the new company will offer services such as maritime and new shipbuilding consulting, maritime human resources training, and crew support to operational support and maintenance.
While providing these services, the company will focus on the use of digital technology to support MOL’s businesses, including the wind power generation business, a key area targeted for investment and expansion.
“Through its wide-ranging lineup of services, the new company will contribute to the realization of a carbon-neutral maritime industry,” MOL said.
In other recent decarbonization endeavors, MOL, through its wholly-owned subsidiary MOL Clean Energy, announced plans to invest in U.S.-based e-fuels producer HIF Globalaiming to reduce carbon emissions by promoting the establishment of a ‘robust’ e-fuel and CO2 supply chain.
Ship handling simulator room; illustration only. Courtesy of MOL
MMHE Bags RM43m Subcontract from Uzma for Offshore Unit Conversion
Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) has secured a subcontract from Uzma Bhd worth RM43 million to convert a mobile offshore drilling unit (MODU) into a mobile water injection facility (WIF).
The project involves demolition, refurbishment, life extension, and conversion of the MODU, which will be deployed offshore Sabah by 2025 to support enhanced oil recovery.
The facility, equipped with Uzma’s advanced water injection technology, aims to optimize reservoir pressure, boost oil recovery, and minimize environmental impact.
This marks MMHE’s first floater conversion project for Uzma.
“During its conversion at MMHE West Yard in Pasir Gudang, Johor, Malaysia, the MODU will be equipped with Uzma’s mobile WIF, a state-of-the-art solution for efficient and sustainable water management in oil and gas operations,” said MMHE and Uzma in a joint statement.
“This system is designed to optimize reservoir pressure, enhance oil recovery rates, and reduce environmental impact,” he added.
(TMR File Photo)
Interview with Simon Honeybone, Regional Director, Asia Pacific,Teignbridge Propulsion Asia
1. Can you provide an overview of Teignbridge and its role within the marine propulsion industry?
Teignbridge Propellers International is a global leader in the design and manufacture of high-quality marine propulsion systems. With over 50 years of experience, Teignbridge is committed to providing innovative solutions and exceptional service to customers worldwide. The new facility in Batam, Indonesia, reinforces Teignbridge's dedication to serving the Asia Pacific market with excellence.
We collaborate with approximately 2,600 shipyards worldwide, with a strong focus on the Indonesian market, where we serve around 50 shipyards. Our Batam factory was strategically established to bolster local industry, enhance local content, and ensure faster, more economical production and manufacturing.
We specialize in designing and engineering propulsion systems for a wide range of vessels, from high-speed ferries, crew boats, and super yachts to navy and military vessels. While we do not cater to large container ships, our expertise covers nearly all other vessel types.
In Indonesia, we are proud to work with the Indonesian Navy, the Coast Guard, and various other government entities. Our Batam facility is a key part of our commitment to upskilling our local workforce—all of whom are Indonesians—enabling them to communicate seamlessly with our Indonesian customers and deliver superior service.
2. What are the core products and services offered by Teignbridge?
Our core expertise lies in propellers, but we go beyond that by offering a complete propulsion package, from the engine all the way back. This includes shaft couplings, shafting, stern tubes, brackets, propellers, and rudders. While many of our competitors focus on individual components or source parts from various suppliers, we are one of the few companies in the world that designs and manufactures the entire system in-house.
3. How does Teignbridge ensure high levels of customer satisfaction and support throughout the lifecycle of your products?
We specialize in custom designing and engineering solutions for each vessel, ensuring that every project is tailored to the unique needs of our customers. Unlike companies that offer standard packages, we create specialized designs for every product, delivering a truly bespoke solution. While we can accommodate repeat orders, the initial design is always customcrafted, often beginning with a customer approaching us with a specific challenge or project that requires a unique solution.
For our Asian clients, all designs are meticulously crafted in our Batam facility, then rigorously double-checked and reviewed by our head office in the UK before moving into production.
4. Can you discuss the importance of having offices and agents in key locations like Batam? Are there any new markets or regions where Teignbridge is planning to expand its presence?
I am proud to announce the grand opening of our new stateof-the-art facility in Batam, Indonesia. This milestone marks a significant expansion for Teignbridge Propellers International and enhances our ability to serve the Asia Pacific market with faster and more economical marine propulsion solutions.
The opening ceremony was a great success, with VIP customers, prospects, suppliers, local government dignitaries,
and media representatives attending. We were able to showcase the capabilities of the new facility and reaffirm our commitment to the region.
David Hunt, our Co-Founder and Group Chairman, expressed his excitement about this new chapter, especially as we celebrate 50 years of Teignbridge Propellers. It's an incredible milestone for the company, and as David mentioned, the founding team always believed in innovation and quality. The Batam facility is a testament to our continued commitment to the Asia Pacific market, enabling us to provide cost-effective and faster responses to meet the region's growing demands.
At Teignbridge Propulsion Asia, we are especially excited about the opportunities this facility brings. We will host final inspections here, allowing our customers to visit and view their projects firsthand. Research & Development, Engineering, and Quality Control will still be managed by our world-leading facility in the UK, ensuring the same level of excellence in everything we do.
I am personally grateful to all the stakeholders who helped make this facility a reality. After extensive research and careful consideration of various locations across Asia, we chose Batam as the perfect site for this facility. The support we received from BP Batam and Ms. Sasa at Indo-Consult was instrumental in bringing this vision to life. Our goal at Teignbridge Propulsion Asia is to provide faster and more economical solutions, not just for new projects but also for repair and servicing needs.
The Batam facility is equipped to repair all types of Fixed Pitched Propellers in-house, up to 2.0 meters in diameter. For larger propellers, we offer a mobile onsite repair service. Additionally, we produce sterngear packages up to 400mm in diameter and 14 meters in length. We will continue sourcing bronze castings from Teignbridge’s Certified ISO 9001 foundries in the UK and India, ensuring we maintain the highest quality standards.
As the remaining machinery and inventory arrive in the next one to two months, we are on track to deliver our first project during Q3 of this year, marking the start of an exciting new era for Teignbridge Propulsion Asia.
Looking ahead, we anticipate a stronger focus on the U.S. market in the next five years. However, our current priority remains Asia, where we are committed to enhancing our distribution and presence across the Asia-Pacific region. Our coverage in the Middle East, India, and Europe is already wellestablished, so our immediate focus is on improving our reach and service in Asia.
5. How does Teignbridge stay at the forefront of innovation in propeller and sterngear design? What are Teignbridge’s strategic goals for the next decade?
In the UK, we have a dedicated research and development team that occasionally receives funding from the UK Government for specific projects, such as reducing fuel consumption or making vessels quieter. Innovation is at the heart of everything we do, and we constantly strive to enhance and improve our products.
While our R&D efforts are centered in the UK, the knowledge and advancements generated there are shared across our four factories globally.
We take pride in being a leader in the propulsion industry, particularly in the area of sustainability. Our focus is on continuous improvement, always pushing the boundaries to make our products better, more efficient, and environmentally friendly.
Enhancing Drilling Efficiency: How PT Pertamina Drilling Services
Transformed Operations with igus® Solutions
Exclusive Interview: Fauzan Rofiq of PT igus Indonesia in Conversation with Zakaria Abidin, Top Drive Superintendent at PT Pertamina Drilling Services
Pertamina, officially known as PT Pertamina (Persero), is an Indonesian state-owned oil and natural gas corporation headquartered in Jakarta. The company was established in August 1968 through the merger of two earlier entities, Pertamina (founded in 1961) and Permina (founded in 1957). Pertamina is crucial in Indonesia’s energy sector, managing activities from upstream exploration and production to downstream refining and distribution. The company is structured into several sub-holdings, each focusing on different aspects of the energy industry, including upstream operations, gas, refinery and petrochemicals, power and new renewable energy, commercial trading, and integrated marine logistics. Pertamina’s history is deeply intertwined with Indonesia’s national development. Initially, it was created to manage oil fields in Sumatra, but later, it expanded its operations nationwide. Over the decades, Pertamina has been instrumental in ensuring energy availability across Indonesia and has contributed significantly to the country’s infrastructure and economic growth.
1. Can you describe your initial challenges before implementing igus® chainflex® cables and energy chains® in your operations?
Before implementing of chainflex® cables and energy chains®, the primary challenge faced was the frequent short circuit issues within the service loop on the top drive at Pertamina. This not only led to operational downtimes but also incurred significant expenses due to the extensive replacement process and the high cost of the replacements themselves. The adoption of igus® solutions aimed to address these critical reliability and costefficiency concerns in the operations.
2. How has the integration of igus® chainflex® cables and energy chains improved the efficiency of your drilling services?
The integration of igus® e-loop has significantly enhanced the efficiency of our drilling services. The streamlined installation process is a major benefit, as it reduces setup time and minimizes potential errors. Additionally, the incorporation of the e-loop into our service loop has resulted in a tidier arrangement, which not only improves the appearance but also contributes to better organization and reduces the risk of damage during operation. This orderly setup ensures that our equipment operates more reliably, leading to fewer interruptions and a more efficient drilling process overall.
3. In terms of durability and reliability, how do igus® products compare to previous solutions you have used?
When discussing the durability and reliability of igus® products, it’s noteworthy to mention the e-loop system. This particular product stands out in comparison to previous solutions due to its unique design that incorporates a single-core cable within the
e-loop ring. This design choice contributes significantly to the overall reliability of the system, offering a robust solution that enhances performance and longevity. The e-loop’s innovative approach to cable management ensures a secure and stable connection, which is essential in dynamic applications where consistent operation is critical. This advancement represents igus® commitment to developing products that not only meet but exceed expectations in terms of durability and reliability.
4. Can you provide specific instances where igus® chainflex® cables and energy chains significantly benefited a drilling project?
For instance, the E-loop system has been a game-changer, particularly for the installation of rigs on the top drive. Its innovative design not only streamlines the setup process but also accelerates the overall rigging work. This results in a significant reduction in downtime and increases the productivity of drilling operations. The E-loop’s ability to manage cables and hoses effectively ensures that they are protected during the rigorous movements of drilling, which is crucial for maintaining the integrity of the equipment and the safety of the operations.
5. How has the customer support from igus® impacted the implementation and maintenance of their products?
The customer support provided by igus® has been instrumental in both the implementation and the maintenance phases of their product lifecycle. They have established a responsive and efficient system for addressing any issues that arise. This includes handling complaints and non-conformities related to the e-loop, ensuring that any concerns are not only heard but also acted upon promptly. This level of support has significantly enhanced the overall customer experience with igus® solutions.
6. Have you noticed a reduction in maintenance costs or downtime since switching to igus® chainflex® cables and energy chains?
Indeed, the adoption of igus® e-loop has led to a noticeable reduction in cable replacement costs. This is primarily because it eliminates the need for a cable clamp, which in turn minimizes the damage typically associated with service loops, resulting in lower overall maintenance costs compared to previous solutions.
7. Could you share details on the longevity and performance of the chainflex® cables and energy chains in the demanding environments of drilling services?
Certainly! igus e-loop stands out. It’s designed to endure the stresses of such environments, and its durability is evidenced by its performance at Pertamina, where the e-loop has been operational for over a year without any significant wear and tear. This indicates that the e-loop not only meets but potentially exceeds the lifespan of previous service loop top drives, maintaining its condition and suitability for continued use in demanding settings.
8. What feedback have your technicians and engineers provided about working with igus® solutions?
In regions like Indonesia, where high humidity levels can lead to equipment corrosion, it’s crucial to select materials that can withstand such conditions. Technicians and engineers have found that working with igus® products allows for a proactive
approach to this challenge. By collaborating with the igus® team, they’ve been able to replace vulnerable parts, particularly in the bolt and nut areas, with materials that offer better resistance to corrosion. This not only enhances the longevity of the equipment but also ensures its reliability and performance in demanding environments.
9. Are there any particular features of the chainflex® cables and energy chains that stand out in supporting your daily operations?
The collaborative effort between igus® and Pertamina, ensures a tailored fit to our specific requirements. This partnership approach to installation has allowed for seamless integration of the chainflex® cables and energy chains into our operations, without any particular feature overshadowing another in terms of importance.
10. How do igus® products align with the safety and environmental regulations at PT PERTAMINA?
igus® solutions are designed to meet stringent safety and environmental regulations. The innovative e-loop system simplifies installations at height by reducing the need for technicians to work at elevated positions for extended periods. Traditionally, service loops required the installation of clamp cables, which was a time-consuming process. With the e-loop system, a simple shackle installation is sufficient, enhancing safety and efficiency on-site.
11. Can you provide any data or metrics that highlight the benefits of using igus® products in your drilling operations?
For instance, the compact design of the cable top drive significantly minimizes the risk of entanglement or obstruction within the tower. This not only enhances the safety of the operations but also streamlines the process. Moreover, the efficiency of igus® products is evident during the installation phase of the rig up top drive, where the setup time is reduced by 3 to 4 hours. This reduction in time leads to a more efficient operation, allowing for quicker transitions and less downtime. Such metrics underscore the tangible benefits that igus® products bring to drilling operations, optimizing both time and safety.
12. Looking forward, how do you see igus® products continuing to play a role in the growth and development of PT PERTAMINA Drilling Services?
In the context of PT PERTAMINA Drilling Services’ ongoing growth and development, igus® envisions a significant role for its products. The company recognizes the challenges posed by the aging cables at Pertamina, which are likely to cause issues due to wear and reduced service life. Igus® Indonesia is confident that it can offer solutions through its range of durable and reliable products, designed to address, and prevent such problems, ensuring smoother operations and potentially reducing maintenance costs and downtime in the long run.
Malaysia’s Ports WellPositioned to Drive Expansion
Malaysian ports are set to drive trade and economic growth in the coming quarters, having demonstrated resilience despite disruptions caused by the Red Sea crisis.
As Malaysia continues to attract foreign direct investments (FDIs) from global technology giants, port operators are planning long-term expansions to reinforce the country’s status as a global maritime and logistics hub.
Malaysian ports are set to drive trade and economic growth in the coming quarters, having demonstrated resilience despite disruptions caused by the Red Sea crisis. -
Agyl & Partners managing partner, Wan Agyl Wan Hassan, said that Port Klang (including Northport and Westport) and the Port of Tanjung Pelepas (PTP) have shown impressive resilience this year, despite challenges from the Red Sea crisis.
Port Klang, the second largest port in Southeast Asia, advanced to 11th place in the 2023 rankings of the world’s top 100 busiest container ports, according to Lloyd’s List.
PTP, meanwhile, was the fifth most efficient container port in the world and secured the first place in the Southeast Asia region, according to the 2023 Container Port Performance Index (CPPI).
Wan Agyl said that these ports are well-positioned to play a key role in driving trade growth in 2024 and stand to benefit from the recovery of the global economy
However, Wan Agyl cautioned that while Malaysia’s strategic location and its ports’ ability to manage increased traffic have provided an advantage during the crisis, this temporary surge could revert to its original routes, potentially slowing the current momentum
He also noted that global supply chain disruptions are affecting major industries such as chemicals and automotive, while high shipping costs to Europe continue to challenge exporters, potentially impacting the competitiveness of Malaysian goods.
“While the ports are capitalizing on the current situation, it’s crucial for Malaysia to remain proactive, preparing for potential shifts in global trade and ensuring that infrastructure and capacity keep pace with growing demands,” he told Business Times.
Fierce competition from regional ports
Malaysia’s ports face intense competition from Singapore, which boasts advanced technology, strong global partnerships, and a well-established reputation, making it challenging for Malaysia to narrow the gap.
Wan Agyl noted that Malaysia’s ports are also contending with rising competition from Vietnam and Indonesia. These countries are rapidly modernizing their ports, offering lower labor costs, and upgrading infrastructure, which intensifies the competitive landscape.
He said that external risks, such as global economic slowdowns and the increasing focus on sustainability in shipping, add another layer of uncertainty.
To stay competitive, he said that Malaysia’s ports must focus on more than just expansion.
“They need to invest in technology, improve operational efficiency, and develop a unique value proposition to attract global shipping lines and stay ahead of regional rivals.”
Wan Agyl added that infrastructure and investment plans like the New Industrial Master Plan 2030 offer long-term growth potential.
However, delays in project implementation and rising operational costs could limit short-term gains.
“High inflation and reduced consumer spending could also slow down trade volumes, making it crucial for the ports to focus on improving efficiency, expanding capacity, and adapting to new global trade realities to stay competitive,” he added.
Port operators gearing up to tackle challenges through expansion
MMC Corp Bhd’s Johor-based subsidiary, PTP, is set to invest RM3 billion over the next five years to boost its capacity by an additional 3.5 million TEUs.
Similarly, Penang Port has allocated RM2 billion to expand the North Butterworth Container Terminal, aiming to increase its quayside capacity to 4.1 million TEUs by 2050.
Beyond these expansions, Malaysia is also looking forward to new port developments, including projects at Carey Island in Selangor and Sanglang in Perlis.
Penang Port Sdn Bhd chief executive officer, Datuk Sasedharan Vasudevan, recently noted that container throughput growth at the port is expected to be slower this year due to the ongoing Red Sea crisis.
The port’s TEU forecast has been adjusted from 1.55 million to 1.5 million, a 4.0 per cent decline, following the crisis’ escalation in April, which forced ships to reroute around Africa.
The
“We lost 50,000 to 60,000 containers because of this. We don’t think it’s going to go on forever because it’s not sustainable,” he said.
To counter the impact, Penang Port is focusing on more stable markets, such as the Bay of Bengal, and has introduced incentives to encourage transshipment activity.
He added that a recovery is anticipated by next year once stability returns or excess capacity enters the northern region.
Meanwhile, Westports Holdings Bhd announced the launch of its Westports 2 container terminal expansion, which will add eight new terminals.
Executive chairman and group managing director, Datuk Ruben Emir Gnanalingam Abdullah, said that the expansion will double the port’s container handling capacity from 14 million to 28 million TEUs.
Ruben emphasized that the Westports 2 project is essential not only to meet current demand but also to prepare for the expected growth in trade volume over the next decade.
He noted that the expansion is projected to contribute RM55 billion to the Malaysian economy, based on an economic impact assessment report by PricewaterhouseCoopers (PwC) dated December 12, 2022.
Additionally, Ruben highlighted that Westports has contributed nearly RM4 billion to the government through corporate taxes and lease payments, a figure expected to increase over the next 30 years under the new Westports 2 agreement.
The expansion will also include a new 222.58-hectare free zone, aimed at attracting foreign direct investment (FDI) and facilitating the development of regional and global distribution centers.
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