gateway april 2010

Published by

PORT KLANG AUTHORITYMail Bag Service 202, Jalan Pelabuhan, 42005 Port Klang, Selangor, MalaysiaTel: 603-3168 8211Fax: 603-3167 0211 / 3168 8228www.pka.gov.my

Management Team

KEE LIAN YONGGeneral Manager

CAPT DAVID RAJAN PADMANAssistant General Manager (Regulatory)

IR A MURYTHARANAssistant General Manager (Engineering)

TN HAJI SALIHUDDIN B YUSSUFAssistant General Manager (Administration)

AZURA BT MUHAMADAssistant General Manager (Corporate)

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 2009

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY

Inside this issue06 FocusSTRENGTHENING PORT KLANGPKA General Manager explains what it takes to strengthen Port Klang and rise to the challenge.

04 Port TalkNews from the local front.

05 At a GlancePort Klang’s performance through 2009.

23 RadarUpcoming events for the industry.

14 PerspectivesLATENT OPPORTUNITIESGATEWAY speaks to MIDA & FMM on the role trade and logistics have in the Malaysian economy.

18 WestportsSEIZING THE OPPORTUNITYTan Sri G.Gnanalingam, Executive Chairman of Westports speaks about Westports’ overall performance and his personal aspirations for the organisation.

20 NorthportTHE BRANDLAUREATE WINNERNorthport wins the coveted BrandLaureate Master Award for their excellent performance.

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.

Thank you.

KEE LIAN YONGGeneral ManagerPort Klang Authority

TAKING IT A STEP FURTHER

welco

me


0 4 P o r t Ta l k

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.

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.

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.

January 21, 2010

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.

VISIT TO HARBOURCITY JETTY

WESTPORTS EXECUTIVE CHAIRMAN HONOURED

LARGEST VESSEL CALLS ON WESTPORTS

DEEPENING SOUTH CHANNEL

VISITORS FROM BANGLADESH

WHISTLE BLOWING POLICY LAUNCHNovember 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.

November 17, 2009

The newly completed Harbour City Jetty which currently serves Pulau Ketam residents and visitors.


P o r t Ta l k 0 5


January 24-25, 2010

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.

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.

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.

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.

CHINESE NEW YEAR OPEN HOUSE

INTEGRITY PACT

COURTESY CALL TO PSA

VISITORS FROM SARAWAK

ON BOARD THE USS NIMITZ AIRCRAFT CARRIER

PORT CONSULTATIVE COMMITTEE MEETING

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.

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.

March 2, 2010 PKA and Port Klang Free Zone (PKFZ) jointly organised the celebratory event which was held at the PKFZ Exhibition Centre in Pulau Indah.

CONDOLENCES


0 6 F O C U S

DRIVING CHANGEPKA re-engineers itself to take Port Klang to the next level

F O C U S 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

better future for all the stakeholders of Port Klang.”KEE LIAN YONGGeneral 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.

A Bolder VisionAlways 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

developing it as the preferred logistics hub for

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,

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.”


0 8 F O C U S

Corporate Mission 2010

KRA # 1: Improve And Strengthen Regulatory Role

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:

• Holdingtwice-yearlyPortConsultativeCommitteeMeetingswithindustry.• DevelopingthePortKlangDevelopmentMasterPlan2010-2030.• DrawingupthePortKlangStrategicPlan,focussingmainlyonincreasingtrade.• CompletingtheGuidelinesforBestPracticestoassistandstreamlineindustryplayers.• Improvingtheenforcementofsafety,securityandenvironmentalmeasures.

KRA # 2: Improve & Strengthen Trade Facilitation RoleAs 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:

• Simplifyingproceduresanddocumentation,decreasingcost,increasingservicelevelsand improving operational flow.• Introducingtradefacilitationmechanisms(egincreasingfeederoperations).• Establishing‘think-tanks’withrelevantlogisticsplayers.• ReviewingexistingPortKlangtariffs.• ImprovingandenhancingintegratedPortKlangNetSystemtointegrateallindustryplayers through one unified platform.• Formingsister-portrelationsintheregionwiththeaimofpromotingandincreasingtrade.• RaisingawarenessandsupportforthestrategicandbusinessactivitiesofPKAandPortKlang.

F O C U S 0 9


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

We strive to set high standards in terms of operational and administrative efficiency and effectiveness. Some measures currently implemented include:

• ISOcertificationoftheFreeZoneandDangerousGoodsdepartments.• Adherencetostandardoperatingprocedurestoensurepromptresponse and follow-up • Programmestoinstillgoodexecutivepractices.

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:

• Appointmentofindependentdirectorsonthe Board of PKA• Adoptingawhistle-blowingpolicytoexpose corruption, irregularities and power abuse.• ImplementingtheIntegrityPact,atoolin preventing corruption, bribery and any other unethical practices in public contracts. • StrengtheningPKA’scorevaluesandcodeof ethics.

We exist to serve the needs of our stakeholders. Our efforts to establish a trade and industry oriented corporate culture among our staff include:

• Improvinghumanresourceplanningthroughorganisational restructuring.• Enhancinghumanresourcedevelopmentthrough training, inclusive of management and leadership skills.• Ensuringgoodsuccessionplanning.

KRA # 4: Strengthening Human Capital

KRA # 5: Improve & Strengthen Integrity & Corporate Governance


1 0 F O C U S

DATO’ LEE HWA BENGChairmanPort Klang Authority

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

implemented those initiatives clearly reflect the serious commitment to fulfilling our role with

the utmost integrity.”

GREATER INTEGRITY

New Independent Directors

Whistle Blowing Policy Integrity Pact

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.

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.

March 19: Signing of statutory declarations with six bidders for PKA tenders.

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.

www.wbs.pka.gov.my

F O C U S 11


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.

SETTING DIRECTIONS

DATO’ LONG SEE WOOLSecretary GeneralMinistry 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.


1 2 AT A G L A N C E

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

with the nation’s economic and trade

growth,” he states in his speech.

Total Container Throughput2007 - 2009 (’000 TEUs)

Total Container Throughput2009 By months (’000 TEUs)

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

4,745

WE ARE THE WORLD’S


AT A G L A N C E 1 3

TOP 14TH CONTAINER PORT!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

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.

Freight Weight Tonnes 2007 - 2009 (FWT ’000)

Containerization International – The Top 20 Container Ports By Rank

Number ofShip Calls2007 - 2009

65,882


1 4 P E R S P E C T I V E S

Amid mounting regional competition for trade and investment, MIDA and FMM echo the call for holistic improvements, including the harmonisation of our logistics industry.

Malaysia’s economy is highly dependent on

trade and foreign investment, particularly

in the area of manufacturing. However, we

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.

Going by general consensus, we tend to fare

respectably on most of the factors, especially

when they are considered individually.

However, it is clear that we stand to gain much

more by addressing prevailing weaknesses in

a holistic manner.

Gateway speaks with N Parameswaran, Senior

Director of Services for Malaysian Industrial

Development Authority (MIDA) and Mohd

Radwan Alami, Council Member 2009/2010 &

N PARAMESWARANSenior Director of ServicesMalaysian Industrial Development Authority

Logistics Committee Chairman in Federation of

Malaysian Manufacturers (FMM) on our latent

opportunities.

Malaysia as a Trade and Investment DestinationParameswaran points out that Malaysia is

currently ranked 19th as a trading nation

and aims to be among the world’s top 10

trading nations by 2020. In fact, Malaysia has

been one of the most successful Southeast

Asian countries in attracting Foreign Direct

Investment (FDI).

He says: “However, Malaysia faces intense

competition from other emerging economies

in the region, like Vietnam and India. Our

LATENT OPPORTUNITIES


P E R S P E C T I V E S 1 5

MOHD RADWAN ALAMICouncil Member 2009/10 & Chairman, Logistics CommitteeFederation of Malaysian Manufacturers

competitiveness is being challenged and these

have to be immediately addressed or we will

continue to lose out.”

According to Parameswaran, there are several

niche areas in the New Economic Model that

can help us get ahead, such as improving

the trade-facilitation system, increase labour

productivity and also an enhanced public

sector delivery system. Additionally, other

key services factor such as freight logistics,

can be leveraged upon together with our good

transport infrastructure.

The Logistics IndustryParameswaran says that there is an urgent need

to develop our logistic industry. He elaborates:

“The current logistic chains in Singapore,

Thailand and Indonesia are well equipped with

advanced delivery systems, knowledge and

financing. Our logistics players, however,

are disparate, fragmented and, in some

cases, poorly regulated. It is vital that we

unify them into an efficient and streamlined

logistic chain that will be able to bring about

new levels of speed, efficiency and cost-

efficiency. The service providers need to be

upgraded, consolidated and supported with

continuous training and education. Better

logistics is crucial to business viability as far

as the business and investment community

are concerned.”

Mohd Radwan concurs and adds: “There

is a need for a logistic service provider

registering board specifically tasked to look

comprehensively at, and develop cohesive

standards for the whole logistic process flow.

The board will be the registration authority

that will also foster relationships within the

sector and with all parties concerned as well. However, currently the

Malaysia Logistics Council (MLC) is providing leadership in the overall

consolidation and development of the logistics industry.”

Accordingly, MLC views the problems, not as compartmentalised

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.”

Mohd Radwan continues: “Over 90% of Malaysia’s imports and exports

are seaborne. This underscores the importance of ensuring world-class

standards in our ports and maritime industry. However, also having

a strong and harmonised logistics industry would significantly value-

add our port capabilities and thus enhance Malaysia’s international

competitiveness.”

Malaysian PortsMohd Radwan highlights that, over the past 10 years, more than 70% of

exports and imports have been directly loaded on mother vessels. “We can

be proud of such an achievement as not many countries can claim the same.”

Parameswaran also enthuses that Malaysian ports are among the most

competitive in Asia, based on our relatively low costs of haulage, warehousing,

forwarding fees, port charges, wages and so on. He adds: “Port Klang as well

as our other ports are well managed. This has resulted in the fact that many

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.

As Parameswaran puts it: “Our ports must respond to market developments

and trends to create a business-friendly environment where traders will be

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

connectivity and adequacy of port facilities.

MOT and Port StandardsMOT has come out with positive suggestions and initiatives under the

government’s Key Result Area (KRA) approach. Parameswaran thinks that

these are important to keep any business ahead of its competitors.

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,

we will be able to resolve the issues.

Mohd Radwan echoes the point: “The ports cannot think solo. There is a need

to link with different agencies and to follow a universal parameter to achieve

results.”

He adds that MOT can be more proactive in helping to develop the ports

by having continued sessions and dialogues involving all sectors including

logistics, shippers and the port management itself. He stresses: “This will not

only greatly benefit the port, but will help boost the economy of Malaysia as

well.”

• EstablishedinJanuary2007bytheMinistryofInternationalTradeandIndustry(MITI)undertheThirdIndustrialMasterPlan (IMP3: 2006-2020).• ChairedbyYBNgLipYong,DeputyMinister,MITI• Scope:todevelopandcoordinatetheimplementationofstrategies,policies,regulationsandrulesrelatedtothedevelopment of the logistics industry.• Memberscomprisesrepresentativesfromtheprivatesector(17),publicsector(11)andacademia(3)• Forfurtherinformation,pleasecontact:AhmadKhairuddinAbdRahim Malaysian Logistics Council Secretariat Tel: (603) 2267 3422/3420 Fax: (603) 2273 4216 E-mail: [email protected]

• TheGovernment’sprincipalagencyforpromotingthe manufacturing and services sectors in Malaysia. • ChairedbyTanSriDrSulaimanMahbob,formerdirector general of the Economic Planning Unit.• Scope:assistspotentialinvestorsandfacilitatesthe implementation of their projects.• Forfurtherinformation,pleasecontact: Tel: (603) 22673633 Fax: (603) 2274 7970 www.mida.gov.my

• Anindustryorganisation,dedicatedtosupportingtheGovernment’s aspirations to enhance the nation’s growth and modernisation.• Representsover2,000manufacturingandindustrialservice companies at international, regional, national, state and industry sub-sector levels. • GovernedbytheFMMCouncilconsistingofthePresident, Immediate Past-Presidents, 4 Vice-Presidents and 24 elected members.• Scope:FMMoffersawiderangeofservicesandactivitiesto facilitate business operations.• Forfurtherinformation,pleasecontact: Tel: (603) 6286 7200 Fax: (603) 6274 1266 / 7288 www.fmm.org.my

MALAYSIA LOGISTICS COUNCIL (MLC)

MALAYSIAN INDUSTRIAL DEVELOPMENT AUTHORITY

(MIDA)

FEDERATION OF MALAYSIAN MANUFACTURERS

(FMM)

PKA & Port KlangParameswaran 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.”


1 8

www.westportsmalaysia.com

TAN SRI G GNANALINGAMExecutive ChairmanWestports Malaysia

THE JOURNEY AHEADSince 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.

Q: How did you get involved in the port industry?Tan Sri G: It was in 1993 when I came to realise that RM300 billion

worth of Malaysian cargo was being transshipped through other ports

every year. I felt that we would change the situation if only Malaysia

could offer a place where vessels could be turned around faster.

Inspired by that belief, I set about establishing Westports. With good

marketing, coupled with a highly motivated workforce, we managed to

bring the vision to fruition. Today, Westport’s productivity is around 35

to 40 moves an hour and that goes to show that we are as productive

as Hong Kong or Singapore.

Q: How did Westports perform last year given the economic downturn that the whole industry was facing?Tan Sri G: In 2008, we handled almost 5 million boxes. In 2009, our

volume dropped 10% to 4.5 million TEUs. This was Westports’ first-

ever decline in container throughput since 1996 and it was brought

on by the sharp contraction in world trade last year. We also did

7.5 million metric tonnes of conventional cargo. Notwithstanding

the difficulties, we took advantage of the relatively quieter period to

consolidate our business in terms of processes and other company-

wide improvements.

Q: Did you have to downsize your workforce?Tan Sri G: I’m happy to say that we didn’t. We had been achieving

continuous growth for over 15 years and by early 2009, we had in

excess of 1,000 personnel. When the economic downturn came, we

took it as an opportunity to re-train and strengthen our staff so that

we would be better prepared for the next turnaround. Our employees

responded positively to the idea which was supported by various in-

house training programmes to upgrade their skills and improve their

productivity rate.

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: We are well-positioned for continued prominence as a

major load centre for Southeast Asia. As such, we adopt a supply-

driven approach to stay prepared to handle more boxes in the future.

We have 5 container terminals now and have embarked on the 6th.

We make sure the berths are available for the ships. Additionally,

we have commenced hiring again and recruited close to 100 new

employees during the past 3 months.


W E S T P O R T S 1 9

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.


2 0

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.

Ravindran Raman KuttyHead of Corporate Communications receiving the award on behalf of Northport at the Gala Dinner held on March 26, 2010.

THE FRONTIER BRAND IN PORTSNorthport wins the coveted BrandLaureate Master Award 2009-2010

www.northport.com.my


N O R T H P O R T 2 1

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.

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

remaining profit came from investment income that was generated

by the holding company. The NCB Holdings Group AGM held on March 29, 2010

Renewing and strengthening bonds

COMMENDABLE PERFORMANCE

AN EVENING WITH CUSTOMERS

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

TEUs, a decrease of 5.0% as compared with the 3,005,920 TEUs 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.


2 2

MOVING UPWARDSIN THE YEAR OF THE TIGERAt the recent Chinese New Year Open House

jointly organised by Port Klang Free Zone

(PKFZ) and Port Klang Authority (PKA),

Transport Minister Dato’ Seri Ong Tee Keat

applauded PKFZ for attracting more than

RM900 million in investments, and offering

more than 1,600 jobs.

In his speech (read by PKA Chairman Dato’

Lee Hwa Beng), the minister was pleased with

PKFZ’s performance in attracting more than

50 investors that were involved in various

activities, including manufacturing, trading,

logistics and general services.

Dato’ Seri Ong noted that the potential

growth of cargo volumes in PKFZ arising from

the continuous inflow of investments and the

spin-off activities is expected to contribute

substantially to the future throughput of Port

Klang and overall economic development in

Pulau Indah.

He thanked all the investors for their confidence

and support in making PKFZ as their base and

expressed his wish that they would continue to

prosper and expand their operations in PKFZ.

The minister went on to say that the government

is fully aware of the importance of improving the

ease and cost of doing business, especially under

the current fast changing and highly competitive

environment. He stressed that various initiatives

have been implemented towards this end,

including revamping the One-Stop Agency and

reviewing procedures relating to investment

facilitation and cargo movements between PKFZ,

the port terminals and principal customs area.

Evidently, this has facilitated ease of cargo

movements between PKFZ and Northport by

rail and road mode resulting from adoption

of the simplified DMP6 form (instead of the

normal K8 form), effective February 1, 2010.

This was made possible by the cooperation

from the Ministry of Finance/Selangor

Customs Department and Northport.

Dato’ Seri Ong also lauded the Royal Customs

of Malaysia for implementing the Authorized

Economic Operator (AEO) scheme for

investors in PKFZ. The AEO status,

specially accorded to investors in PKFZ,

is internationally recognised by Customs

worldwide and serves to provide a green lane

facility for goods exported from Malaysia.

The minister concluded his speech by

thanking all government agencies for their

continue cooperation and support to Port

Klang in general and PKFZ in particular. He

said: “I believe all these initiatives will in

fact be a boost for all existing and potential

investors in PKFZ as this will facilitate the

ease for international trade.”

GATEWAY magazine invites you to announce your upcoming industry events here.

ON THE RADAR

Email us at:[email protected]

Or mail us at:Port Klang Authority Mail Bag Service 202, Jalan Pelabuhan Utara, 42005 Port Klang, Selangor Malaysia

PORT KLANG FACILITIES

PORT KLANG

CONTAINER WESTPORTS NORTHPORT TOTAL

2009 2009 2009

BERTHS

NUMBER OF BERTHS 11 12 23

LENGTH (METRES) 3,200 2,679 5,879

DRAFT (METRES) 16 11.0 - 15.0 11-16

STORAGE

CONTAINER YARDS (HECTARES) 113 93 207

HOLDING CAPACITY (TEU) 100,000 5 100,005

ANNUAL CAPACITY (MILL TEU) 6 44,077 44,083

CFS (Sq. METRES) 18,580 751 19,331

REFER POINTS 1,236 19,370 20,606

TOTAL GROUND SLOTS 25,000 245,309 270,309

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

HIGH STACKERS 25 8 33

LIQUID BULK

BERTHS


LENGTH (METRES) 1,305 779 2,084

DRAFT (METRES) 10 - 16.5 10.5 - 11.5 10 - 16.5

DRY BULK

BERTHS - - -

PASSENGER TERMINAL

BERTHS


LENGTH (METRES) 660 43 703

DRAFTS (METRES) - 5.5 -


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, 2010Venue : Savannah Marriott Riverfront, Savannah, Georgia Theme : “Economic Recovery in the Maritime Trade”

PKA will be collaborating with Jabatan Alam Sekitar to host a seminar on managing scheduled waste (Dangerous Goods) at Port Klang.

Date : May 2010Venue : Westports Auditorium

IAPH Board Meeting

Seminar on Management of Scheduled Waste (Dangerous Goods)

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.

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