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
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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
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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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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.
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06
FOCUS
DRIVING CHANGE PKA re-engineers itself to take Port Klang to the next level
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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.
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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.”
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• • • • • • •
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.
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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.
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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.
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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.
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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.
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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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Total Container Throughput 2009 By months (’000 TEUs)
with the nation’s economic and trade growth,” he states in his speech.
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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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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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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
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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) • • • • •
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: khairuddin@mida.gov.my
MALAYSIAN INDUSTRIAL DEVELOPMENT AUTHORITY (MIDA) • • • •
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.
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WESTPORTS
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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: onestopagency@pka.gov.my 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.