Gateway July 2013 by WildAge

JULY 2013

CONTENTS 02 04 06 11 16 19 20 23

GM’S LOG EVENT HIGHLIGHTS FEATURE GLOBAL MARITIME INDUSTRY PERSPECTIVES FULL SPEED AHEAD GUEST CONTRIBUTION CHARTING OUR PROGRESS

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

GATEWAY is the official magazine of Port Klang Authority (PKA). The publication covers issues, trends and developments affecting Port Klang and the Malaysian port 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. Copyright © Port Klang Authority 2013

Captain David Padman General Manager

50 Years of Excellence On 1 July 2013, Port Klang Authority (PKA) commemorated 50 years of excellence. Our long and fruitful journey has seen many phases and stages. We have evolved through times and changes.

Journey Through Time Port Klang Authority was established on 1st July 1963, as a statutory body taking over the administration and operation of the port from the Malayan Railways. The Port Authority was responsible for the development and operations of Port Klang uptill the advent of privatisation to Northport in the 80’s and Westports in the 90’s. PKA then moved away from being directly involved in port operations and remained as a regulator/landlord. Today, 50 years later, PKA has reshaped its role to 5 core functions, namely; Trade Facilitation, Port Planning and Development, Regulatory Oversight of Privatised Facilities and Services, Free Zone Authority and Assets Management. It is our vision to maintain Port Klang as the National Load Centre whilst developing it as the preferred logistics hub for the Asian Region.

Leading Port Klang Through Constant Change A sea of change has transformed the maritime and shipping industry, especially with the advent of containerisation and other equally rapidly evolving trends. Port Klang Authority has played an essential part in guiding Port Klang through these changing times over the past 50 years. Port Klang has transformed from a river port to a modern World Class Port of international standards. This has been matched by the rapid development of Malaysia from an agrarian economy to that of a developing nation with a thriving manufacturing and services sector.

PKA • GATEWAY

GENERAL MANAGER LOG

JULY 2013

1963 - 2013 : Port Klang Authority Celebrates its Golden Jubilee Our Values Embracing our rich history and progress over the years, PKA steadfastly holds to its values that define our successful future, balancing the role of a regulator and trade facilitator. We believe in: People Respect, value and care for one another in pursuit of excellence Excellence Striving for the best results at all times Community and Environment Caring for the community and greening the environment Customers Meeting customers’ needs and expectations

Partnership Port Klang is the first port in Malaysia to have handled its 100th million 20-foot equivalent unit (TEU) container this year. We are amongst the top 20 container ports in the world. All this success is attributed to our close cooperation and rapport with our business partners. Port Klang’s terminal operators Northport and Westports are the heart and soul of our operations, they work tirelessly in constantly improving their standards whilst keeping abreast with the developments in the industry establishing Port Klang as a World Class port and ensuring record-breaking performances with efficient services. Northport and Westports work in unison with us to internationally market Port Klang – and Malaysia as a whole – as a trade friendly destination and the logistics hub for the Asian region.

Our other business partners in the maritime community i.e. the logistic players are the ones working endlessly to keep an uninterrupted flow of cargo traffic in and out of the port, and using their global networking to draw cargo and trade into Port Klang. They set up their businesses and manufacturing facilities within Port Klang, thus increasing economic activity here. Our port is their main shipping hub in South East Asia. Port Klang Authority comes under the purview of the Ministry of Transport (MOT), hence our association and relationship with this Ministry is strong and the ease of our interactions as well as the support and guidance from MOT is one of Port Klang’s critical success factors. PKA also works closely with other government agencies, departments and Ministries such as the Royal Malaysian Customs, MATRADE, MITI and MIDA, and many others too. We value our partners as they help place Port Klang on the map as a top international port and maritime destination. Moving on, we intend to forge closer relationships with them, weighing their needs and their input in our decision-making processes. We strongly believe that it is our united strength that makes Port Klang a great success.

Forging Ahead PKA has grown and changed alongside Port Klang. From being the port operator, we are today the port landlord, regulator and trade facilitator. We have steadily grown closer with other ports across the continents. Our continuous involvement with international

ports and maritime associations has ensured that the name of Port Klang is one that is well known globally. Of course, we do not intend to rest on our laurels. I believe that PKA – and by extension, Port Klang – needs to be both forward and outward looking, if we are to improve on our current rate of growth. There are challenges and the way we embrace it defines our future. Port Klang and Malaysia has its strategic advantages, we will work towards capitalising and maximising our potentials. As we celebrate our Golden Jubilee, we take great pride of our past, we have the utmost confidence in our future and it is our promise to continue to serve the nation and port community to the best of our ability through the changing times ahead. Once again we would like to thank you all for your support and well wishes. Thank you.

CAPTAIN DAVID PADMAN General Manager Port Klang Authority

PKA • GATEWAY

EVENT HIGHLIGHTS

JULY 2013

Port Klang Authority: Celebrating 50 Years of Excellence! PKA began its 50th year and Golden Jubilee celebrations on 16 January 2013, with Westports’ milestone achievement in handling its 50th Million TEU (twentyfoot equivalent unit) since its inception of container operations. Westports started its journey in 1996 by handling 19,000 TEUs and since then, it has paved its way forward. Four years later, in 2000, it crossed its 1st million TEUs mark. Last year, Westports handled a total of 6.91 million TEUs, while Northport (Malaysia) Berhad, the other privatised terminal in Port Klang, handled 3.09 million TEUs bringing Port Klang’s total volume to 10.0 million TEUs handled in 2012. The 10.0 million TEU figure also marks a new milestone for Port Klang as we break into the double digits for the first time.

Gong Xi Fa Cai!

PKA ushered in the year of the Water Snake by inviting its customers and business partners to a Chinese New Year lunch on 25th February 2013. Shown here is PKA Chairman Dato’ Dr. Teh Kim Poo, senior PKA officials and other VIPs engaging in the traditional Yee Sang ritual for good luck.

Welcome to Port Klang!

PKA then continued its memorable and significant year by handling Port Klang’s 100 millionth TEU in Feb 2013 at Northport Malaysia. Port Klang began handling containers in the early 70s with the arrival of Tokyo Bay, the first large container vessel. As a finale to PKA’s Golden Jubilee celebrations PKA organised a Logistics Forum titled “Asia Engine Celebration of the 100th million TEU handled in Port for Growth”. This event provided Klang on 21 Feb 2013 at North Port. ample scope for creating synergies by bringing together Logistics Players, Government Agencies and Businesses. The highlight of the forum was the business-to-business (B2B) meetings to create linkages and business opportunities. This platform was also an excellent opportunity for interacting with Port Terminal Operators, Shipping lines, Freight Forwarders and Logistics players in the Asian Region. In addition to this a Gala Dinner hosted by PKA was held to thank each and everyone who had contributed towards the success and growth of PKA throughout the past 50 years.

Visitors from Invest Philippines on an exposure trip to Singapore and Malaysia (19th February 2013).

Students from the academic institution Universitas Trisakti in Jakarta, Indonesia (25th February 2013).

Celebration of the 50th million TEU handled in Westports on 16 January 2013.

Officials from the Royal Thai Embassy (2nd May 2013).

PKA • GATEWAY

EVENT HIGHLIGHTS

JULY 2013

Distinguished Service Awards On 5th April 2013, PKA held its Distinguished and Special Service Awards ceremony. These awards recognise and celebrate PKA employees who have exceeded expectations in their line of duty over the previous year. Pictured here are PKA GM Capt. David Padman and the recipients of the Distinguished Service Award.

Marco Polo visits Port Klang

Performance & Development Networking Session

The world’s largest containership, The CMA CGM Marco Polo made its maiden call to Westports, Port Klang on the 19th November 2012. The first of three 16 000 TEU vessels, it is named after the great explorer, Marco Polo and was built by Daewoo Shipbuiding and Marine Engineering (DSME), South Korea. The vessel is owned by French- based CMA CGM Group.

On 2nd April 2013, Port Klang Authority organised Port Klang’s Performance and Development Networking Session with Port Community in conjunction with the Port Klang Authority’s Golden Jubilee Celebrations. The networking session was held at a local hotel in Port Klang.

With a total of 25 berths and handling capacity of 14 million TEU’s, Port Klang is equipped and ready to receive the 16 000 TEU vessel and is continually progressing to receive larger vessels. The vessel recorded a crane productivity of 31.52 MPH and vessel productivity of 190.38 MPH.

The aim of the event was to disseminate information related to the Performance and Development of Port Klang as well as to serve as a dialogue session with the port community. 400 people representing the port community such as government agencies, port operators, shipping agents, freight forwarders, depot operators, haulier companies, importers and exporters as well as residents in Port Klang attended the event.

Naval Courtesy Visits to Port Klang

Courtesy call from Cdr. Jason Boyd of the H.M.C.S. Regina and Cdre Scott Bishop, Pacific Fleet of the Royal Canadian Navy. (5th February 2013)

Courtesy call from the Royal Thai Navy (7th March 2013)

Courtesy call from the Ports And Harbours Bureau of the Ministry Of Land, Infrastructure, Transport And Tourism (MLIT) in Japan as well as Cdr. Kuriyama Toshibumi of J.S. Hatakaze (DDG 171) from the Kaijo Jieitai, or Japanese Maritime Self-Defence Force. (20th February 2013)

Courtesy call from the Pakistan Navy (7th May 2013)

PKA • GATEWAY

FEATURE

JULY 2013

STEADY AS SHE GOES PKA steers Port Klang through 50 years of eventful times, preparing to go the distance for another 50 and beyond

History and Establishment The need for a separate port management was glaringly obvious within 2 decades of the establishment of Port Swettenham (Port Klang). The FMS Railways (Malayan Railways) saw port operations and management as adjunct to their real functions of running the trains and maintaining the rail systems. The previous bodies that looked at port matters neither has the real authority to make necessary changes nor to run optimally. In addition, as road transport became more prevalent, Port Swettenham remaining under the control of the Malayan Railways was less and less of a viable option. Hence, the Malayan government formed the Port Swettenham Authority (later known as Port Klang Authority or PKA) to separate Port Swettenham’s administration from the Malayan Railways. On the 1st of July 1963, Port Swettenham Authority was established to own and operate Port Swettenham, the principal port of the Federation of Malaya, freeing it to be developed independently of the rail system in Malaya. This marked the beginning of a new era and five decades down the road, Port Swettenham – now Port Klang – is amongst the top 20 ports in the world, moving

PKA • GATEWAY JULY 2013

forwards amidst a time of great global economic uncertainty with its record-breaking services and facilities of world class standards; this is indeed a testament to Port Klang Authority (PKA)’s inspiring leadership.

Anchors Aweigh! The Authority Begins Its Odyssey From its inception, the port authority began charting the way for Port Klang to be a leader in the maritime world. PKA’s responsibilities started almost instantaneously when it took over the port in 1963. Earlier that year in May, the North Klang Straits (NKS, the site of today’s Northport) project was completed and opened entrusting the Port Authority with two operational terminals, one at the original site (now Southpoint) and the other one at NKS.

FEATURE

When the Federation of Malaysia was formed, Port Swettenham became the main port of a much larger nation. With Singapore subsequently leaving the Federation in 1965, Port Swettenham found itself in heated competition with an older, far more established and better-equipped Port of Singapore, which was already handling much of Malaysia’s seaborne trade. This did not faze the port authority, which executed well-made plans to encourage trade through Port Swettenham.

PKA • GATEWAY

FEATURE

JULY 2013

The port authority was in charge of all port operations throughout the 60s and 70s.

Sailing across the 1970s The Authority also weathered the sea changes in the 1970s very well. Two major changes that affected the port in the 70’s were firstly the advent and adoption of containerisation and secondly a name change. Containerisation was hitting the shipping industry, with the International Standards Organisation (ISO) having standardised the sizes of intermodal containers by 1970. The Malaysian government expedited the decision that the nation’s ports had to be containerready, designating Port Swettenham as the country’s main container port. In 1973, the port handled its first fully containerised vessel, M.V. Tokyo Bay. In doing so, it marked the beginning of the containerisation era in Malaysia. Despite the massive logistical, infrastructural and personnel challenges involved, PKA had successfully transitioned Port Klang from a conventional port to one that could handle the latest in maritime developments. It had done so by adding modern infrastructure, expanding the terminals (especially the Northport), and dealing with the ongoing labour issues. PKA took over the stevedoring and cargo handling services from private companies,

absorbing the workers into its workforce and helping in improving worker relations. At the same time, it dealt with the inevitable ‘teething problems’ associated with any new development, which arose from equipment breakdown and lack of trained dockyard personnel. The second change effecting Port Swettenham in the 70’s was its name change. Following a proclamation by the Sultan of Selangor in 1971, Port Swettenham officially changed its name to Port Klang. This name change took effect on 12 January 1972. The Port Swettenham Authority was subsequently renamed Port Klang Authority (PKA) in July the same year.

The world’s first third-generation container ship, M.V. Tokyo Bay.

Malaysia’s first national car the Proton Saga, readied for export in their thousands through Port Klang.

PKA • GATEWAY JULY 2013

Navigating through port privatisation PKA continued to move on with the times as the ‘70s turned into the ‘80s. It continued to focus on – and was recognised internationally for – expanding and upgrading the port’s infrastructure and services rendered. PKA was also busily adopting new computerised systems and processes to streamline operations, and working on breaking into new markets and seizing new trade opportunities. Meanwhile, momentous events were happening in the background. In an effort to improve the efficiency, productivity and profitability of many Malaysian public sector utilities, the federal government embarked on an ambitious “Malaysia, Inc.” plan, aimed at privatising several public utilities. Port Klang was chosen both to spearhead this plan, and to serve as a pilot project for future privatisation initiatives. It is to PKA’s credit that the whole port privatisation exercise went off smoothly. Despite initial reservations from the dock workers, PKA managed to complete the privatisation of the Northport container terminal with Klang Container Terminal (KCT) taking over container operations in March 1986. In September 1988, after the demonstrably successful proof-of-concept in the privatisation of Port Klang’s container operations, the Ministry of Transport began to prepare the way for privatisation of all other PKA operational sectors.

Facilitating trade and marketing Port Klang internationally This trend of privatisation carried on into the ‘90s, in December 1992, Klang Port Management (KPM) took over the rest of the port services from PKA under the second phase of the privatisation programme. (note: in 2000, KCT and KPM merged to form Northport Malaysia Berhad). In July 1991, PKA revelead a new terminal to Port Klang, Westports, to be situated on Pulau Indah. The Westports project was launched in 1992 and began operations in 1994. The operations of Westports was privatised to Westports Malaysia Sdn Bhd (formerly known as Kelang Multi Terminal or KMT). With port operations no longer its core responsibility, PKA was free to concentrate on issues at a higher level. PKA viewed its new responsibilities seriously with long-term aspirations. It constantly and consistently worked with the Federal Government, to both cut down on bureaucratic processes that often delayed port operations, as well as to modify or relax other policies which hindered the competitiveness of Port Klang within the region. It worked with the terminal operators closely to synergise each other’s strategic plans and common objectives. PKA also began its efforts to increase Port Klang’s participation and prominence in the international shipping and maritime arena. Since the ‘90s, PKA has been involved actively with the ASEAN Ports Association (APA), the International Association of Ports and Harbors (IAPH) and the International Maritime Organisation (IMO). In the latter half of the 2000s and into this decade, PKA has continued along this line of action by establishing sister-port relationships with various ports worldwide, and arranging for reciprocal trade missions and port visits. In addition, it has joined forces with its stakeholders, promoting and marketing Port Klang overseas as an integrated entity with one-stop facilities and services.

FEATURE

PKA • GATEWAY JULY 2013

Full steam ahead PKA is geared up to face whatever may lie in its future. Its most recent Port Klang Development Master Plan (PKDMP) charts a course from 2010 – 2030, presenting various potential scenarios and PKA’s best course of action for the future. It is an integrated plan, taking into consideration the needs and wants of Port Klang’s community – both in the port, as well as the surrounding township.

be as vibrant and as pulsing with energy as other port cities in the world that are also tourist destinations, such as Dalian Port in China, Port of Rotterdam in the Netherlands and Sydney Harbour in Australia. Already, PKA has collaborated with the local municipal council and other organisations to redevelop not only its own assets, but other areas served by the port as well.

Underlying its future plans are the twin foundations of ecological considerations and the need to have an integrated development strategy involving the entirety of Port Klang – and indeed, the nation. PKA’s vision is not only focused on the development of infrastructure within Port Klang, and between the port and its hinterland. Indeed, PKA looks beyond its own boundaries and foresees the establishment of a single port policy within the country, and eventually a single national port authority. With the global attention on climate change and the environmental consequences of various human endeavours, PKA is also working towards limiting its carbon footprint. PKA works closely with its terminal operators in its effort to achieve ‘green’ operations across the board.

Port Klang’s future looks bright, and it can only get brighter with PKA at its helm, getting it under weigh into the future.

Not is all its planning limited to port affairs. Current PKA Chairman Dato’ Dr. Teh Kim Poo has constantly reiterated the need to revitalise the surrounding townships. He views a time when Port Klang will

PKA • GATEWAY

GLOBAL MARITIME

JULY 2013

CHARTING THE CHANGING ROLE OF

PORT AUTHORITIES WORLDWIDE For most of their history, port authorities were purely public authorities – usually government statutory bodies – responsible for all port operations. They focussed largely on the loading and unloading of cargo, as well as other sundry port operations, with little consideration for the wider roles a port and its surroundings could play. The increase in container shipping, and the evolution of ports to nodes in a wider logistical chain, have caused port authorities to

evolve. In many countries across the world, port authorities have gone from state-backed operators to managers and facilitators of cargo movement. This new authority have little to do with the day-to-day of cargo handling. Although port authorities retain control over some certain aspects of general operations, they have largely become visionaries – managing the future direction of the facility under their care, and ensuring that all of its components work together like a well-lubricated machine.

Conventional cargo handling at Port Swettenham; at the jetty, the docks and the railways.

PKA • GATEWAY

GLOBAL MARITIME

JULY 2013

Conventional cargo handling at Port Swettenham; at the jetty, the docks and the railways.

Cargo handling used to be a laborious, yet technically simple process. “If you’ve seen Marlon Brando in On the Waterfront, you’ve seen how cargo used to be unloaded. It used to be stevedores picking up cargo on their shoulders and carrying it,” says Dr. Thomas K. Vitsounis, an independent logistics consultant and member of PortEconomics.eu, a web-based initiative studying sea logistics. But changes in maritime and logistical technologies, as well as severe damage to numerous European ports as a result of World War II, this scenario has changed this dynamic. Cash-strapped ports under state control could no longer afford the necessary improvements to stay competitive. Port authorities began to lease certain operations to private firms capable of investing in the necessary upgrades, in

return for profits generated through larger amounts of cargo processed. The slow change from public to private handling of cargo operations continued on until the 1980s, when privatisation picked up pace globally. As port authorities divested themselves from of the actual day-to-day running of cargo operations, they began to evolve and take on other roles. This was both to avoid becoming irrelevant and to meet the changing needs of industry. “They became facilitators of cargo movement,” Dr. Vitsounis explains. “They started to focus on overall management, strategy, public relations and relationships with the private operators, instead of the core business of handling cargo.”

For example, port authorities started to lease land to private operations firms, confining themselves to controlling onward movement from the port and providing public services essential to port safety, such as pilotage, says Dr. George Vaggelas, advisor to the President & Chief Executive Officer of Thessaloniki Port Authority and research fellow in European Port Policy (EPP) at the University of the Aegean, Greece. This works out well for both parties. Port authorities can concentrate on marketing and strategic planning, while private firms can make a decent return on their (often substantial) investments in infrastructure. This can be seen in Port Klang, where both the Port Klang Authority, and Northport and Westports, the terminal operators, have won a number

PKA • GATEWAY JULY 2013

of awards and certifications for efficiency and productivity over the past decade. “Some of the private terminal operating companies are also shipping companies,” adds Dr. Vaggelas. “For example, the Chinese conglomerate China Ocean Shipping (Group) Company (COSCO) operates some container terminals around the world, but also has a significant fleet of container vessels, so it’s easy to divert the traffic to COSCO’s terminals and pay less than at a port operated by another company.” The role of the port authority is likely to continue to develop along much the same path. For the next decade, authorities will generally have most of the same duties, but may consign certain aspects of management – such as pilotage – to private enterprise, says Dr Vaggelas. Beyond that time, it is difficult to determine the direction port authorities will take. Perhaps they will start to commission and run their own vessels. If shipping firms move towards super vessels serving only a limited range of ports, it may make sense for some authorities and operators to invest in cargo ships of their own, in order to encourage traffic through the ports they manage. This is not an unusual direction for port authorities to make; many already own and operate smaller support ships for salvage and emergency response operations. In addition, port authorities may start acting as consultants to younger, less experienced ports or branch out. Already, many dry (or ‘inland’) ports have been set up across the world, with port authorities set up to oversee their development.

GLOBAL MARITIME

PKA • GATEWAY

GLOBAL MARITIME

JULY 2013

As many ports across the globe struggle to adjust to the new Panamax – the largest vessels capable of going through the expanded Panama Canal when it opens in 2014 or 2015 – and the even larger ‘Triple E’-class container ship, port authority management and strategic direction is going to become even more important. Everchanging commercial trends and technological developments, both in shipping and in the wider maritime industry, call for forward-looking port authorities, capable of keeping pace and even staying ahead of the pack. It is true that experts are unsure whether the global economy will be able to sustain the amounts of cargo necessary to make these large ships economically viable – or what adjustments will need to be made in order for the shipping lines to make the most of them. The health of the EU and Chinese economies will likely play an important role in determining the success of these new types of ships. However, with shipping being one of the few truly global sectors, it is exceedingly unlikely that the global economic downturn will take too big a bite out of general business.

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ABOHAN SW ET T

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ENHAM AU

IL SIL VER JUB

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Our Logo Milestones

ANG AUTH

Our Golden Jubilee

Celebration in Pictures

To commemorate its Golden Jubilee this year, PKA organised several events over a 3-day period, kicking off with a charity golf tournament on 30 June 2013 for various VIPs and invited guests. Proceeds from the charity golf were given to 3 charity homes in the Klang Valley.

From left : Capt. David Padman, General Manager of PKA, Y. B. Datuk Ab. Aziz Kaprawi, Deputy Minister of Transport, Malaysia and Dato’ Dr. Teh Kim Poo, Chairman of PKA at the Launching of Port Klang’s History Book : Port Klang’s Journey Through Time.

The celebrations continued with the Logistics Forum and Exhibition: “Asia – Engine for Growth”, launched by Deputy Minister of Transport Y. B. Datuk Ab. Aziz Kaprawi, on 1 July 2013. About 250 participants from the logistics and maritime industry attended the forum. Over 50 additional special guests from Thailand, Vietnam, Slovenia and France were invited for the forum’s opening ceremony, during which PKA’s new corporate video and a history book titled “Port Klang’s Journey through Time” were launched. An array of distinguished speakers, led by two prominent figures of Port Klang’s history and growth; Y. Bhg. Dato’ Abdul Samad Mohamed, Group Managing Director, NCB Holdings and Y. Bhg. Tan Sri G. Gnanalingam, Executive Chairman, Westports Malaysia Sdn. Bhd, made the forum a fruitful and engaging one, providing ample scope for creating synergies by bringing together logistics players, governments and businesses. An exhibition was also held simultaneously with this forum, featuring participation from other Malaysian ports; PKA’s sister ports, the Port of Koper (Slovenia) and the Port of Marseilles (France); Port of Thailand and Vietnam Port Authority. Later in the evening, a Gala Dinner was organised and hosted by PKA, with about 700 guests entertained with various activities and performances. A photo wall showcasing pictures of Port Klang since its inception was one of the eye catchers for guests at the dinner. A photo booth was opened for guests to take snapshots and keep it as a remembrance of the event. It was a night filled with fun and entertainment for all. On 2nd July 2013, a Business to Business (B2B) session was conducted in a planned environment, to create business opportunities by involving 70 participants from 42 companies in various fields such as terminal operators, shipping agents, and logistics players in Asia. These companies were given the opportunity to meet potential business partners and discuss possible ways to collaborate together for better business opportunities in the near future. PKA’s Golden Jubilee celebrations were unforgettable events for our management, staff and business partners. We hope for a better and brighter future in the next 50 years to come.

Y. B. Datuk Ab. Aziz Kaprawi, Deputy Minister of Transport, Malaysia cutting the ribbon during the launch of the exhibition booth witnessed by, from left : Tan Sri G. Gnanalingam, Executive Chairman of Westports Malaysia Sdn Bhd, Dato’ Dr. Teh Kim Poo, Chairman of PKA and Capt. David Padman, General Manager of PKA.

Delegates at PKA’s Logistics Forum & Exhibition “Asia: Engine for Growth”

Y.Bhg. Datuk Seri Long See Wool, Secretary General, Ministry of Transport (MOT) cutting PKA’s 50th anniversary cake witnessed by, from left: Capt. David Padman, General Manager of PKA, Dato’ Dr. Teh Kim Poo, Chairman of PKA, Tn Hj. Abi Sofian Abdul Hamid, Chief Executive Officer of Northport (Malaysia) Berhad and Mr. Ruben Emir Gnanalingam, Chief Executive Officer of Westports Malaysia Sdn Bhd.

Business to Business session held in a planned environment.

PKA • GATEWAY

INDUSTRY PERSPECTIVES

JULY 2013

Golden Jubilee Congratulations! On behalf of the Ministry of Transport, Malaysia, I would like to offer my sincere congratulations and best wishes to Port Klang Authority (PKA) on this joyous occasion of their 50th Anniversary.

Y.Bhg. Datuk Seri Long See Wool Secretary General of Ministry of Transport (MOT)

Port Klang plays an important role in Malaysia’s economy as it is an integral part of our commercial transportation network. Organisations such as PKA are the ones that ensure that the Government’s vision of our ports and maritime sector are realised in accordance with the policies and strategies that we have put forth. PKA is the one that ensures standards

are maintained and is a critical player in developing Port Klang whilst ensuring that the port community and the country progresses as a whole. Thus far, PKA has done a stellar job, first in operating the port and now, post privatisation, at regulating, trade facilitation and marketing Port Klang to the world. The Ministry looks forward to working closely with PKA towards propelling Port Klang to greater heights in years to come. Once again Well Done Port Klang Authority and our best wishes for a bigger and brighter future!

PURSUING CLOSER COLLABORATION BETWEEN PKA AND ITS BUSINESS PARTNERS Port Klang Authority post privatization concentrated on setting Port Klang’s strategic direction and concentrating more on the dual roles of a port regulator and trade facilitator. PKA’s Roles and Responsibilies 1. Asset Management 2. Port Regulator 3. Trade Facilitation 4. Free Zone Authority 5. Port Planning

6. 7. 8. 9.

Northport and PKA are involved in… promoting the port internationally as the main maritime hub in the region.

Port Promotion Performance Standards Safety and Security Environment Needs

Port Klang under the leadership of PKA has reached great heights. However, all this would not have been possible without the close cooperation of our business partners mainly our dynamic private port operators Northport and Westports.

Streamlining Terminal Operations As port landlord and regulator, PKA and its terminal operators Northport and Westports liaise with each other on a regular basis. PKA sets general tariff rates and performance standards, as well as various other ordinances and regulations to ensure the smooth, safe and secure running of the port. It is responsible for overseeing the compliance of its operators to these guidelines. The terminal, in turn, regularly feedback to PKA concerning their processes and procedures, as well as recommending proposed changes and actions that may significantly impact them. Both parties then work out ways in which they can be streamlined, or otherwise come to mutually agreeable decisions. CEO of Northport, Abi Sofian Abdul Hamid, views PKA as a strategic partner, who works closely with (and is deeply cognisant of the needs of ) the various stakeholders within the port community. “PKA‘s role in regulating port safety and operations is vital to ensure strict compliance of the requirements, as stipulated in the Port Klang Authority (PKA) bylaws,” he explains.

Abi Sofian Abdul Hamid Chief Executive Officer, Northport Abi Sofian also sees PKA and Northport working towards the same goals in marketing Port Klang and cementing its place amongst the world’s best and busiest port. “Northport and PKA are involved in joint trade missions, exhibitions, both locally and at international levels to form new partnerships and promoting the port internationally as the main maritime hub in the region. Joint promotions are also held with shipping companies, forwarding companies and trade related organisations. Apart from this, PKA also conducts sessions with Northport and its customers on a regular basis, in simplifying documentation, improving procedures and acts as a coordinator in resolving issues related to the industry.” Westports’ CEO, Ruben Emir Gnanalingam, highlights PKA’s role in Port Klang’s meteoric rise in global ports rankings; from being 57th largest

Ruben Emir Gnanalingam Chief Executive Officer, Westports

PKA has... distinguished itself... by actively getting involved in trade delegations to attract investors and businesses to Port Klang

PKA • GATEWAY JULY 2013

INDUSTRY PERSPECTIVES

port in the world in 1980 to reach the 12th position in 2012 in terms of container handling volume. He adds, “The role PKA has played successfully since its inception, in terms of regulating the port environment in which the whole logistics industry was involved, was the main factor which has allowed Port Klang to achieve all the glittering successes it has been accorded so far.” Ruben further clarifies the impact PKA has had on port regulation and trade facilitation, its two primary roles post-privatisation. “Shipping lines bring their largest vessels in the world to berth at our wharfs, underlying their full confidence in our safety standards. This is further testimony to PKA’s role in regulating the marine sector, which has continuously risen to every new challenge. PKA has also clearly distinguished itself from other common port authorities by also actively getting involved in trade delegations to attract investors and businesses to Port Klang. Port Klang today has builds bridges around the world through the sister port tie-ups PKA has entered into, which allows business people from both end to look at opportunities at the other side, with PKA providing the platform for such interaction.” According to Ruben, Westports has always leveraged the expertise of PKA when it comes to working together to attract the largest global shipping lines in making Port Klang their main hub. “PKA’s unflagging support and willingness to listen allowed WP to be competitive not only in rates and productivity levels, but also in terms of ease of doing business. Such cooperation has seen Port Klang reaching 10 million TEUs and will be the catalyst for Port Klang to double that to 20 million TEUs in the next 10 years.” Ruben also points out PKA’s coordinating role with other parties in the port. “PKA has always been a respected figure among all government agencies, and their intervention gives assurance and confidence to agencies such as Customs that these businesses are legitimate and would not negatively affect our country, but in actual fact, will only add value to our industry. Westports is proud to have such an enterprising Authority like PKA leading the way forward for Port Klang to achieve more in the coming years.”

Attracting Greater Shipping Traffic In addition to ensuring efficiency and effectiveness in terminal operations and performance, in its efforts to develop transshipment traffic, PKA relies greatly on Malaysian freight forwarders and other logistics partners, as well as ship-owners and shipping companies, to bring in traffic to Port Klang. As such, PKA often carries out its role as trade facilitator and government intermediary (for Malaysia’s logistics industry players) to foreign ports. While PKA does conduct its own trade missions and other port promotional activities, it also primarily serves as a platform through which industry players such as the Selangor Freight Forwarders and Logistics Association (SFFLA), or the Federation of Malaysian Freight Forwarders (FMFF), Shipping Association of Malaysia (SAM), Malaysia Shipowners’ Association (MASA) and the Central Region Shipping Association (CRSA), can better position Port Klang’s key advantages internationally. Nor are PKA’s efforts concentrated on the local maritime industry – it has also established sister-port relationships with several ports throughout Europe, South America, Africa and Asia. As the statutory body overseeing Port Klang, PKA can often reach out to its fellow port authorities worldwide, arranging multilateral trade visits, along with its sister-port representatives, government agencies dealing with trade, commerce and industry, as well as the local logistics associations.

According to Ir. Nordin Mat Yusoff, Chairman of MASA, the Association’s members depend on the infrastructure and facilities available at Port Klang to support their shipping activities, and PKA successfully delivers efficient, convenient service as these amenities are constantly upgraded. Nordin adds, “Together, MASA and PKA have worked together in resolving several issues, by attending PKA’s technical meetings and dialogues to discuss methods of improving the port’s performance.” Alvin Chua, President of SFFLA, is equally effusive. “SFFLA is deeply appreciative of the excellent and cordial relationship we have with Port Klang Authority over the years. Particularly, in these last few years, where PKA effectively demonstrated the exercise of its powers, functions and responsibilities as a regulatory authority in the post-privatisation environment.”

Ir. Nordin Mat Yusoff Chairman, Malaysia Shipowner’s Association

Alvin Chua President, Selangor Freight Forwarders and Logistics Association

INDUSTRY PERSPECTIVES

PKA • GATEWAY JULY 2013

Santharasagaran Kannu, President of CRSA, concurs. “The progress and developments at both Westports and Northport speak for themselves,” he elaborates. “In a relatively short time, they have come a long way in putting Port Klang on the map; from being a remote port, it is now an internationally-recognised, world-class port. PKA has surely played a large role in this growth.”

Smoothing Out Trade and Commerce Pathways Santharasagaran Kannu President, Central Region Shipping Association

PKA also maintains close ties with various industrial and commercial associations, such as the Federation of Malaysian Manufacturers (FMM) and the Malaysian International Chamber of Commerce and Industry (MICCI). These associations represent the bulk of Malaysia’s value-adding manufacturing and services sectors, and hence account for the majority of the import/export cargoes moving through Port Klang. As such, maintaining constant communication with these associations minimises the feedback loop and enables PKA to move effectively and efficiently in response to developing trends and issues. According to Simon Whitelaw, President of MICCI (the longest established trade association in Malaysia), from its establishment in 1963, PKA has consistently supported the private sector, as part of its mandate to develop Port Klang as a cost-efficient and competitive gateway for goods in and out of Malaysia. “Our members have long relied on the services available at Port Klang to support their various businesses, and to enable both domestic and foreign investors to choose Malaysia as their preferred investment and production centre,” he adds.

Simon Whitelaw President, Malaysian International Chamber Of Commerce & Industry (MICCI)

Simon believes that Port Klang has matured greatly since PKA was established, becoming the sophisticated multi-terminal port that serves the Klang Valley and central region of Malaysia today. “All these developments have required close cooperation between the Authority and private sector port users, and MICCI has been pleased to have been able to participate, in an open and constructive way, with PKA for the continuous improvement of port facilities,” he further clarifies.

It is MICCI’s strong belief that the critical role that Port Klang continues to play in Malaysia’s successful economic development means that engagement between PKA and businesses must remain a key element in ongoing development. In the future, PKA - and the port terminals – must meet the challenges of receiving larger vessels, handling more cargo and seeking faster turnaround times, while containing costs for both shipowners and exporters/importers. Regional hub development is yet another area which MICCI anticipates as a growth sector, as more developing nations expand their industrial base in the Asian region. “MICCI continues to champion Malaysian business interests and looks forward to a continued partnership with PKA in order to ensure that Port Klang delivers the very best service to all stakeholders in this modern and increasingly competitive global trade environment,” he concludes.

Making Port Klang Malaysia’s Trading Gateway To The World Because of Port Klang’s strategic significance and importance to Malaysia, PKA is often at the forefront of the federal government’s efforts to promote Malaysia as a trade-friendly destination to the world. It is joined in this endeavour by several government agencies and bodies that are tasked with encouraging foreign trade investment in the nation. Under the aegis of the Ministry of International Trade and Industry (MITI), these agencies include the Malaysian Investment Development Authority (MIDA), the Malaysia External Trade Development Corporation (MATRADE), and the Special Task Force to Facilitate Business (PEMUDAH). Datuk Dr. Rebecca Fatima Sta Maria, Secretary-General of MITI, is very clear about the importance of Port Klang to Malaysia’s economy. When asked about PKA’s current and future roles in promoting international trade to Malaysia, she remarked, “Going forward, we see the global economic environment becoming even more challenging. I am sure we can count on PKA to rise up the challenges facing us ahead.”

Datuk Dr. Rebecca Sta Maria Secretary-General, Ministry of International Trade and Industry

As a consequence of its role in promoting Malaysia’s global trade, PKA also works with other government departments in enforcing various domestic and international maritime and trade regulations at the port. These include the Police and Customs. Badaruddin bin Mohd Rafik, Director of Selangor State Customs, expounds the role PKA plays. “Royal Malaysian Customs has always worked very closely with PKA for the betterment of the Malaysian economy and the nation as a whole. In this respect, PKA has always kindly accommodated the Customs Department in its effort to collect Customs duties and to carry out enforcement activities. Royal Malaysian Customs is grateful to the PKA for this cooperation and assistance.”

Badaruddin Mohd Rafik Director, Selangor State Customs

PKA • GATEWAY

FULL SPEED AHEAD

JULY 2013

Congratulations On Your Golden Jubilee! Congratulations, and carry on!

Well done, PKA!

Happy Anniversary, PKA!

On behalf of the Royal Malaysian Customs – Selangor, I take this opportunity to extend my heartiest congratulations on the occasion of the 50th anniversary of your esteemed organisation, the Port Klang Authority, and wish every success in the future. May your organisation’s unremitting endeavour in the service of the port go on with undiminished vigour.

Northport is pleased to extend our sincerest and heartiest congratulations on PKA’s 50th Anniversary celebration.

In conjunction with the 50th Anniversary of Port Klang Authority, Westports congratulates PKA for the great work it has done to bring the whole logistics fraternity together in making Port Klang one of the best ports in the world.

PKA has built a solid reputation and achieved remarkable milestones in the shipping and maritime industry since 1963. This moment is indeed a fitting recognition for the significant contribution over the years in this industry. Our best wishes for your continued success!

Congratulations on reaching your 50th Anniversary! 50th Anniversary Congratulations! The Malaysia Shipowners’ Association (MASA) wishes to congratulate and send its best wishes to the Port Klang Authority (PKA) on this occasion. All these years, PKA has played a significant role in Port Klang’s development, and we expect that our cooperation will strengthen our mutual goals and open new gateways for more advanced shipping services. Indeed, PKA has successfully contributed in shaping the development of Malaysia’s shipping ports and cargo hubs. MASA extremely values and appreciates all efforts made by PKA from the very beginning. Congratulations again on the milestone. “Towards Maritime Excellence”

With the continuous changes and challenges faced in today’s business world, it is important for understanding and collaboration to be achieved by every player in the logistics industry, and PKA has earned the respect and admiration from everyone in the industry, both local and international, in terms of managing all aspects of safety, regulatory matters and even commercial aspects to launch Port Klang to where it is today. We hope that PKA will continue playing the role it has played so successfully these past 50 years and we hope that PKA will keep aiming for the skies in the coming 50 years.

The Malaysian International Chamber of Commerce and Industry (MICCI) is pleased to extend its congratulations and best wishes to the Port Klang Authority (PKA) on its 50th anniversary. As the authority responsible for the development and effectiveness of Malaysia’s principal gateway for goods, PKA has over the years played a significant role in the development of Port Klang as a major port and cargo hub. Without these efforts, Malaysia’s stature as a world-class exporting nation and its economic progress could not have been as rapid as it has been, and the Chamber looks forward to more years of development and modernisation in Port Klang under the guidance of PKA.

All the best! Congratulations on clocking 5 decades of service to Malaysia! Keep Steaming On! On behalf of CRSA I wish to congratulate PKA on the occasion of their 50th anniversary. CRSA has always been in a good working relationship with PKA, and we hope it will remain our partner for the betterment of the shipping community.

The Port Klang Authority has been a key player in the facilitation of trade and has contributed significantly to Malaysia’s economic development. We wish you all the best and look forward to continuing our collaboration in the interest of our logistics sector, specifically, and the expansion of Malaysia’s trade, in general.

The Selangor Freight Forwarders and Logistics Association (SFFLA) extends its heartiest congratulations to Port Klang Authority on the occasion of its Golden Jubilee, celebrating its 50th anniversary. Our sincere and best wishes to Port Klang Authority as they celebrate their Golden Jubilee and we wish them all the best in the years to come.

PKA • GATEWAY

GUEST CONTRIBUTION

JULY 2013

PKA: SAILING TOWARDS GLORY Nazery Khalid Senior Fellow, Maritime Institute of Malaysia (MIMA) 2013 marks a milestone in PKA’s history, as it celebrates its 50th anniversary from the time Port Swettenham Authority was established in 1963. Since then, PKA has become synonymous with the growth and success of Port Klang. It has played an immense role in steering the port to the great heights and reputation it enjoys today. Through its multi-faceted roles as a landlord, trade facilitator, planner, developer and asset manager, PKA embodies the modern port authority of the 21st century; it is as much a partner to its terminal operators as it is their regulator. As Malaysia’s premier seaport, Port Klang has made an enormous contribution to the nation’s economic success and the development of its maritime industry. From its humble beginnings as a port that facilitated the exports of the nation’s commodities, namely tin and rubber, Port Klang has grown by leaps and bounds in terms of capacity, productivity and efficiency. Since handling its first container ship (the 2,961TEU Tokyo Bay) in 1972, Port Klang has shown itself capable of taking on anything coming its way. This was proven when in January 2013, it hosted CMA-CGM’s 16,000-TEU Marco Polo, the world’s largest container ship at the time. In 2012, Port Klang was ranked the world’s 12th busiest container port in the list compiled by Containerisation International (an improvement from its 13th position in 2011). The port has consistently made it to the list of Top 20 in the last decade; no mean feat when one considers that many ports around the world – especially in China and in South East Asia – have been going on a capacity drive to handle more cargoes and attract more shipping lines and users. The 10-million-TEU throughput handled by Port Klang in 2012, a 4.1% growth compared to the previous year, is commendable. This was

Nazery Khalid assesses where Port Klang has been and where it is heading, on the occasion of the Port Klang Authority (PKA) Golden Jubilee achieved amidst the debilitating impact of the global recession on seaborne trade volumes and port throughput worldwide. Much of this is attributed to the robust intra-ASEAN and intraAsian trades, which Port Klang is in a strategic position to capitalise on, given its location along the Straits of Malacca and South China Sea, two of the world’s busiest and most strategic shipping lanes connecting east and west trade. Although commendable, this figure almost pales in comparison to the 32.5 million TEUs handled by Shanghai Port, the world’s busiest last year, and the 29.29 million processed by Singapore Port, the world’s 2nd busiest. Port Klang may never attain these volumes given its capacity limitations. To attain greater heights, Port Klang must benchmark itself against the best in class, namely these two ports. However, when one considers that Port Klang handled only 4.5 million TEUs in 2002, the achievement of more than doubling the throughput volume within a decade is a remarkable one. Underscoring the importance of regional trade to Port Klang, 60% of its throughput volumes handled in 2012 was transshipment trade. Increasing volume of this trade is a reflection of the flow of seaborne trade in the region, with China as the centre of gravity. The managements of both Westports and Northport have identified transshipment trade as a key source of growth for their ports. They and PKA have done well to increase Port Klang’s share in this growing trade. Port Klang was designated as National Load Centre in 1983 to encourage the development of a critical mass of cargoes, and to attract shipping lines and other maritime industry players to the port and its vicinity. This would not have been achieved without PKA’s relentless efforts, and the Malaysian government’s support, to create

a maritime cluster in the port. Today, Port Klang has emerged not only as the nation’s main trade gateway but also hosts some of the world’s largest shipping lines. This was achieved by leveraging its excellent location and advantages such as good infrastructure, connectivity with other ports, good intermodal connections, and sizeable indigenous cargoes generated by its hinterland.

An Efficient Port Various factors contribute to Port Klang’s impressive performance and commanding position. Port Klang would not have emerged as the world’s 12th busiest container port by virtue of its strategic location alone. An important factor in its success - often overlooked – is its efficiency. The efficiency of terminal operations at Westports and Northport makes Port Klang a superior port in terms of overall performance, compared to most other ports in South East Asia. This is underscored by the fact that some of the world’s top main line operators (MLOs) hub at the port, and by its ability to handle the world’s largest container vessels efficiently. Port Klang’s efficiency is largely due to the availability of a wide range of services such as pilotage, towing, tug assistance and cargo handling (to name a few), which are carried out effectively. This helps lower handling costs (one of the main components of shipping costs) at the port. In this regard, PKA can take credit for overseeing the development and regulatory aspects of the two terminals at the port, as well as coordinating their development. This has contributed immensely to their attaining a very high level of efficiency rivalling the world’s best container ports. Such ancillary

PKA • GATEWAY

GUEST CONTRIBUTION

JULY 2013

services, available at Port Klang at competitive rates, have made a huge difference in terms of ship turnaround time, and in the time taken for cargo loading and offloading at the port. Port Klang’s efficiency can also be attributed to its proximity to – and connectivity with – the hinterland it serves. Being located in the Klang Valley, Malaysia’s most industrialised and populous region, and the best in terms of infrastructure and trade facilitation, the port enjoys tremendous advantage over other ports in the country. The ease of moving goods between Port Klang and their end users, and along the supply chains it serves, combined with the relatively low costs involved, makes it a port of choice for many major shipping lines.

Reducing cost is a near-obsession to port users, especially in these lean times for seaborne trade, and in the face of high oil prices. They will give their business to ports that provide a wide variety and high service standards at competitive costs. In this regard, PKA has done well to helm the development of Port Klang in a way that has enabled its terminal operators to increase their cost competitiveness while providing international-class services. This comparative advantage has enabled Port Klang to close the gap with Singapore Port in terms of the overall costs of using terminal facilities. This augurs well for Port Klang to command bigger slices of the intra-ASEAN and transshipment trades, earmarked by many ports in the region as attractive and lucrative

sources of growth for their throughput. Port users also covet value-adding services in deciding their ports of call. Such services include integrated logistics services and free zones that can add value to their business. PKA is to be lauded for providing such services at Port Klang, namely through Port Klang Free Zone (PKFZ). Such initiative is expected of today’s port authorities, which not only act as regulators but as business and trade facilitators for the terminals under them. In this regard, PKA has done well to not only provide a range of value-adding services to its users but also to foster entrepreneurism at the port.

The Journey Ahead What lies ahead for Port Klang and how far can it go? This is the milliondollar question for both the owners and operators of the two terminals and PKA itself to answer. Amidst intense competition from other regional ports to lure shipping lines, Port Klang has to compete on all fronts to ensure it remains attractive and competitive. Not only are existing ports going all-out to expand their capacity and handling capabilities, new ones are also being built to foster trade and economic development of their host countries. These old and new ports offer good infrastructures and services at increasingly attractive rates. The ever-changing dynamics of trade flows, driven by – amongst other things – the locations of raw materials and population centres, demographics, supporting logistical infrastructures, investment patterns, and production and consumption trends, reflect a world in constant flux. The flows determine the strategies of shipping companies and other port users, and therefore port development and strategies. Port authorities and terminal operators slow to react to these dynamics will risk being left behind. Those unable to rise up to both the challenges and opportunities they portend will lose out in the ultra-competitive race to attract port users and handle more cargoes. This is the unforgiving environment in which Port Klang operates and has to continuously prove its worth. Reputation and past glories mean little in this business. Take the transshipment trade which is at the mercy of the trade flow and business strategies of the main line operators, where superior performance, efficiency, productivity and cost competitiveness reign supreme. Port Klang has to fight hard to retain and enlarge market share in this trade, given the multiple external factors driving and influencing it. Competition is also keen in the domestic trade from other national ports and transport modes, and Port Klang cannot take its National Load Centre status for granted amidst the competition. PKA has its work cut out to ensure Port Klang remains the port of choice in the region. Its strategic location no longer guarantees that shipping lines will call at the port. Shipping lines are spoilt for choice, always seeking to call at ports which are efficient, cost competitive and have extensive connectivity with other ports. Meanwhile, MLOs look to call at only a few hub ports as part of their strategy to optimise their cargo load and exploit economies of scale from their immense vessels. Hence, PKA must complement Westports’ and Northport’s investments to increase their

capacity and to improve their productivity and efficiency by aggressively promoting and marketing these terminals to MLOs and other users. As Port Klang continues its supply-driven strategy, and equips itself with state-of-the-art facilities, it must be equally mindful that the huge capital expenditures on improving capacity and facilities at the port are justified by commensurate demand. This implies that PKA must work hard to retain existing users, attract new customers and identify new growth areas for the port. It must continually improve the port’s delivery systems and performance, ease its processes, lower the cost of doing business at the port, and explore new areas of growth and opportunities. Crucially, PKA must continually engage its users and stakeholders to ensure that the port’s running and development are in line with their needs and aspirations. PKA must continuously enhance its customer service by lending a keen listening ear to the grouses of the port’s customers, addressing their complaints and resolving their issues. Customers make or break ports – port authorities which constantly engage and collaborate with them will have an edge in retaining customers and attract new ones. Amidst the ever-changing and complex operating environment of seaborne trade and the maritime industry, it is heartening to see that PKA has developed a long-term strategy to further develop Port Klang. Such a plan provides a roadmap for its long-term growth and development. As the variety and volumes of cargoes handled by the port grow, PKA will face a multitude of challenges which calls for it to have in place business continuity planning and disaster recovery, and quick and efficient responses to emergencies and resolution of crises. There are also challenges emanating from high fuel prices, CSR obligations, high expectations of integrity, transparency and corporate governance, and an increasing demand for ports to be environmentally friendly. PKA has to steer Port Klang to meet these challenges while ensuring it remains attractive, efficient, cost competitive and business-friendly all the while. Underlying all this is the need to develop port-related human capital. An adequate, well-trained, skillful and innovative workforce is required in today’s modern port. As seaborne trade volumes grow and supply chain management become increasingly sophisticated, ports are expected to play an increasingly prominent role in facilitating trade and linking supply chains, and providing good, timely and cost-competitive services to its

PKA • GATEWAY

GUEST CONTRIBUTION

customers. Port Klang must attract more users, especially MLOs, to hub at the port, and to enlarge its market share in intra-ASEAN, intra-Asian and transshipment trades. At the same time, Port Klang must continue to fulfill its role as National Load Centre and facilitate Malaysia’s tradedependent economy and foster its socio-economic development. As the regulatory authority of the country’s main port, PKA must also be seen to lead from the front in efforts to simplify and standardise processes, procedures and policies to help enhance Malaysia’s seaborne trade capability and its overall efficiency in logistics. These roles can only be fulfilled with a team of skilled and innovative personnel at the port who can leverage on the use of technologies and IT to ensure optimal productivity, efficiency and performance.

JULY 2013

PORT KLANG FACILITIES Jan-Dec 2012

CONTAINER

PORT KLANG NORTHPORT WESTPORTS

TOTAL

BERTHS NUMBER OF BERTHS LENGTH (METRES) DRAFT (METRES)

12 2,679 11.0 - 15.0

13 3,700 15 - 17

25 6,379 11 - 17

5 1,111

9 1,236

14 2,347

STORAGE PKA has all the ingredients and potential to attain greater heights. Fulfilling this potential is a monumentally challenging task which requires huge resources, unbridled commitment, teamwork and passion from its staff as well as its terminal operators. But with hard work guided by visionary leadership and the support from the Government and other stakeholders such as the shipping community, shippers and logistics service providers, PKA can realise its goal of making Port Klang the preferred logistics hub for the region.

ANNUAL CAPACITY (MILL TEU) REEFER POINTS

There is a saying among sailors : You know who the good seamen are when the storm comes. In the same mould, PKA will be called upon – and expected to – provide the leadership to steadily helm Port Klang amidst the plethora of challenges and the fiercely competitive environment of port business and seaborne trade in which it operates. PKA boleh!

LIQUID BULK

EQUIPMENT QUAY CRANES RUBBER TYRED GANTRY CRANES STRADDLE CARRIERS PRIME MOVERS TRAILERS HIGH STACKERS

43 69 115 197 0 41 332 485 347 484 0 16

NORTHPORT

WESTPORTS

TOTAL

4 779 10.5 - 11.5

5 1,365 9.5 - 16.5

9 2,144 9.5 - 16.5

NORTHPORT

WESTPORTS

TOTAL

2 426 12

4 935 15

6 1,361 12 - 15

36,623 17,520

8,361 9,290

44,984 26,810

NORTHPORT

WESTPORTS

TOTAL

9 1,286 6.0 - 12.5

4 1,000 15

13 2,286 6.0 - 15

47,169 80,272

23,226 18,580

70,395 98,852

BERTHS NUMBER OF BERTHS LENGTH (METRES) DRAFT (METRES)

DRY BULK Nazery Khalid is senior Fellow at Maritime Institute of Malaysia (MIMA). The opinions expressed are his own.

26 82 41 153 137 16

BERTHS NUMBER OF BERTHS LENGTH (METRES) DRAFT (METRES)

STORAGE COVERED STORAGE (SQ. METRES) OPEN STORAGE (SQ. METRES)

BREAK BULK BERTHS NUMBER OF BERTHS LENGTH (METRES) DRAFT (METRES)

STORAGE WAREHOUSES (SQ. METRES) OPEN YARD (SQ. METRES)

PKA • GATEWAY

CHARTING OUR PROGRESS

JULY 2013

CELEBRATING A YEAR OF RECORD ACHIEVEMENTS 2012 was an incredible year for Port Klang and PKA. We continued to improve our performance and efficiency, delivering outstanding results and achieving several key milestones along the way. Our actions have been reflected and recognised in our improved World Container Port League standing; from 13th in 2011, we are now 12th, surpassing the Port of Kaohsiung in Taiwan.

Transshipment

2010 - 2012 THROUGHPUT RATIO 104,651

100000 80000

92,028 74,035

83,945

133 41 157 238 1,535

124 33 144 180 1,416

130 30 132 221 1,439

946

935

926

128 38 1,494 174 211 943

140 36 167 177 1,466

151 39 162 179 1,507 976

966

125 32 176 213 1,503 957

1,443

40 1,512 181 225 134

827

816

843

509

160 158 525

800 151 163 486

160 147 509

830 537

882

874

169

786

163 552

Jan

Feb Mar Apr

Export

May Jun Jul

154 164

152 141

547

400

Aug Sept Oct Nov Dec

Import

(’000 FWT)

IMPORT

159

2012 Total: 10,002

2011 Total: 9,604

(’000 TEUs)

600

200 2010 Total: 8,872

166

1,822

842

6,307

162 154 526

6,089

1,721

Others

TOTAL CONTAINER THROUGHPUT by month

511

1,719

136 133 517

5,437

1,873

1,795

816

2012

TOTAL CONTAINER THROUGHPUT (’000 TEUs)

800 1,716

Dry Bulk

823

Liquid Bulk

160 152

Break Bulk

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

147 135 533

Container

2010 - 2012

2012 Total: 17,721

932

500 862

11,241

1,539

12,387

2011 Total: 18,117

2010 Total: 17,910

by month

2,018

1,543

960

12,332

863

1,485

1000

133 34 182 197

2,510 413

2,216

166 143 554

2,100

897

1,560 411

1,613 380

125 27 175 222 1,490

1500

941

107 29 1,523 195 232

2012 SHIP CALLS 109 34 1,393 173 215

2010 - 2012 SHIP CALLS

EXPORT

107,355

100000

86,303

80000

78,929

EXPORT 89,516

90,551

82,632

83,521

4,222 704 1,959

4,245 855 1,930

73,047

60000

40000

20000 0

5,226 8,219 4,548

2010

5,608 9,307 5,792

2011

Liquid Bulk

20000

6,128 9,458 5,467

2012

Dry Bulk

3,389 643 1,850

2010

General

2011

2012

Container

We begin to see the effects of the super post-Panamax container ships coming into service, with slightly fewer ship calls as compared to 2011. These new vessel classes with ever-increasing size were produced with the intention of capitalising on economies of scale by accommodating more cargo on each ship, reducing the number of ship calls for the same total volume of cargo. Port Klang surpassed the 10-millionTEU mark for the first time last year, an increase of nearly 400,000 TEUs over 2011. Most of the increase came from a 5% jump in transshipment traffic, with more modest growth in both import and export cargo. This is in line with PKA’s aim to make Port Klang the preferred logistics hub in South East Asia. In terms of non-containerised cargo, both dry bulk and break bulk cargo registered increases. In crossing the 10-million-TEU mark, Westports has simultaneously handled its 50th million TEU since its inception, while in February this year, Port Klang as a whole is the first Malaysian port to have handled over 100 million TEUs. These are noteworthy achievements in their own right, and we intend to move on further from now on to continue posting record numbers and passing more key milestones along the way.