Preview - Port Klang

JULY 2010CERTIFIED ISO 9001:2008ADVANCING TRADEPort Klang Authority SetsClear Direction To Greater Heights

Published byPORT KLANG AUTHORITYMail Bag Service 202, Jalan Pelabuhan,42005 Port Klang, Selangor, MalaysiaTel: 603-3168 8211Fax: 603-3167 0211 / 3168 8228www.pka.gov.myManagement TeamKEE LIAN YONGGeneral ManagerCAPT DAVID RAJAN PADMANAssistant General Manager (Regulatory)IR A MURYTHARANAssistant General Manager (Engineering)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 anddevelopments affecting Port Klang and the Malaysian portindustry in general.All care is exercised to ensure that facts presented hereinare correct. PKA and its editorial and design agenciesshall not be held liable for any loss, action or damagesarising from the content published in GATEWAY.Copyright © Port Klang Authority 2010GATEWAYA PUBLICATION OF PORT KLANG AUTHORITYInside this issue06 FocusTHE PULSE OF TRADEPKA’s General Manager explains Port Klang’s contribution toMalaysia’s ranking as the world’s top 10 most competitivecountry and its future plans to strengthen Port Klang as thenation’s trading gateway.10 VistaCOMPETITIVE EDGEDatuk Dr Rebecca, Deputy Secretary General (Trade) of MITIhighlights the numerous efforts implemented by the Governmentand private sector have finally paid off as Malaysia is nowrecognised as the world’s 10th most competitive country.14 WestportsOUTSTANDING CUSTOMER SERVICEFast and reliable logistic services at competitive tariff rates withgreat connectivity and linkages all over the world sets Westportsas the top 5 port in terms of productivity.NEW 300-METER CONTAINER TERMINALWestports to resume expansion plan this year.16 NorthportMULTIPLE AWARDS FOR EXCELLENT PERFORMANCENorthport wins various awards for its excellent performance infreight, supply chain and also in its container throughput.INVESTMENT IN NEW CONTAINER TERMINALThe new container terminal is designed to serve the ultra sizecontainer ships and is poised to continue propelling the port toa higher level of service and productivity.18 PerspectivesBEING TRADE WISEThe key to ensuring that Port Klang continues to be anattractive trading gateway is rationalised by Charles Ireland,President of Malaysian International Chamber of Commerceand Industry (MICCI).20 PartnersMEETING REQUIREMENTSSAM, MASA and CRSA shares their opinions on how Port Klangcan take it further and enhance its role as trade facilitator and alsoport regulator.22 PKFZNEW OIL REFINERY IMPORTANT FOR FUTURE GROWTHCargill will be investing RM162 million to expand their existingoperations and build a new vegetable oil refinery in Port KlangFree Zone (PKFZ).04 Port TalkNews from the local front.23 RadarUpcoming events for the industry.

MOVING ON UPWelcome back to Gateway, the official magazine of Port Klang Authority(PKA). This is the mid-year publication, and as usual your positive andconstructive feedback enables us to become even better. We aim not onlyto provide you with pertinent and up-to-date information on the maritimeindustry, but also to communicate and discuss the latest issues we all face.In this issue, we examine the roles played by Port Klang (and by extension,PKA) in enhancing Malaysia’s trade and business competitiveness. We areproud of our achievements made possible only by our absolute commitmentto capitalise on our strategic advantages, in collaboration with governmentbodies, logistic players and our shipping associates.Our stakeholders have taken some time to express their views on the rolewe have played so far in this area, and share suggestions on how we mayimprove to better carry out our responsibilities. We are deeply gratefulto Datuk Dr Rebecca Fatima Sta Maria from the Ministry of InternationalTrade and Industry (MITI), Charles Ireland from the Malaysian InternationalChamber of Commerce and Industry (MICCI), Ooi Lean Hin of ShippingAssociation Malaysia (SAM), Captain Intiaz Hussein of Malaysia Shipowner’sAssociation (MASA) and Tuan Haji Abu Bakar Bin Hussein of the CentralRegion Shipping Association (CRSA), for their insights and perspectives intohow we can work closely together in moving Port Klang to greater heights.Do take time to peruse through our other regular sections, featuring updatesfrom our terminal operators Northport and Westports, as well as Port KlangFree Zone.On behalf of PKA, I invite you to review this issue of Gateway. We hope thatyou will enjoy it as much as the previous issues. As always, your feedbackand comments are welcomed.Thank you.welcomeKEE LIAN YONGGeneral ManagerPort Klang AuthorityGATEWAYA PUBLICATION OF PORT KLANG AUTHORITY

04 PORT TALKVISIT FROM MARITIME AND PORTAUTHORITY SINGAPOREMay 3, 2010The visit was led by Chief Executive of Maritime and PortAuthority of Singapore (MPA), Mr Lam Yi Young with 5others senior officers. The group visited Port Klang’s portfacilities and later exchanged ideas for improving tiesbetween both ports.SCHEDULED WASTEMANAGEMENTSEMINARVISITORS FROM SABAHMay 17, 2010An official visit by 7 member of the Board ofDirectors from “Lembaga Pelabuhan-PelabuhanSabah” The visit was led by Chairman, Datuk HajiKadzim Haji M. Yahya. The purpose was to fostercloser cooperation and exchange ideas.PKA FAMILY DAYTRIP TO LOS ANGELESMay 19 - 23, 2010Dato’ Lee Hwa Beng, the Chairman of PKA and Pn AzuraMuhamad, Assistant General Manager (Corporate) ofPKA accompanied by officials from The Ministry ofTransport. The main purpose of this visit was to studythe mechanisms in planning and handling port facilitieswith regards to issues related to public interest andenvironmental concern.May 27, 2010The seminar organised by One Stop Centre(PKA) was held at Westports Auditorium, PulauIndah from 10.00am -12.45pm. Talks was givenby Pn Siti Zaleha bt. Ibrahim (JAS,Selangor) andEn Mohd Azuan Mohamad Paudzi (Jab. DaganganBahaya, PKA). The participants consisted ofrepresentatives from Terminal Operators, ISOA,CRSA, MASA, SFFLA and PKFZ. The objectiveof this seminar was to create awareness amongPort Klang’s users who are directly involvedwith import and export activities and also theimportance of protecting the environment.The seminar also suggested appropriate waysin handling, storage and transportation ofdangerous cargo in port areas.AUCTION OFUNCLAIMED GOODSMay 31, 2010May 28-30, 2010The event was held in Bukit Gambang Resort City, Pahang. Attended by 500 family members of PKA andPKFZ. Among the events organised were telematches, waterpark games, dinner, lucky draw and also acelebration for all the staff’s children who obtained good results for UPSR, PMR and SPM 2009.DELEGATES FROMHONG KONGIAPH BOARD MEETINGAND PORT FORUMThis auction was on disclaimed goods that hadbeen placed in Free Zone area (Northport &Westport) over 4 months. It was conducted bythe- Free Zone Department and participatedby 135 registered bidders. PKA conducted anauction to disperse unclaimed goods stored in thefree zone (Northport and Westports).INVESTMENTDELEGATIONJune 6, 201030 Transport and Housing delegates from the HongKong Special Administrative Region Governmentvisited Port Klang to exchange ideas on port andtrade development cooperation. Capt David briefedthe delegates and accompanied them on a short tourof Port Klang Free Zone (PKFZ).June 7-9, 2010IAPH Mid Term Board Meeting and Port Forumthemed “Economic Recovery in The MaritimeTrade” was held in Savannah, Georgia, USA andhosted by Georgia Ports Authority. Some 150delegates, speakers and accompanying people,attended the event.June 25, 2010Thai Trade and Investment Delegation comprising30 members from the Department of Foreign Trade,Ministry of Commerce, Thailand and Trang Provincegovernment and private sectors were briefed at PortKlang Free Zone by Chairman Dato’ Lee Hwa Beng.GATEWAYA PUBLICATION OF PORT KLANG AUTHORITY

APPOINTMENTS 05New Minister of Transport - Dato’ Seri Kong Cho HaGATEWAY congratulates YB Dato’ Seri Kong Cho Ha, SPMP, DPMP on his recent appointment as the new Ministerof Transport. Prior to his appointment, he was the Minister of Housing and Local Government.Dato’ Seri Kong who hails from Sitiawan attended primary and secondary school in Sitiawan and Ipoh. Hesubsequently pursued his tertiary education at University Malaya, and was awarded a B.Sc (Hon) in 1974, and a Dip.Ed in 1975.Dato’ Seri Kong started his long, varied and illustrious career as an educator in SMJK Ayer Tawar in 1976, beforebecoming a businessman in 1981. His political involvement began in 1991, when he became a Councillor in theManjung District Council, before being elected as Member of Parliament in Lumut Constituency from 1999 to date.He was subsequently appointed Deputy Minister of Ministry of Science, Technology and Innovation from 2004 –2008, and the Deputy Minister of Finance from 2008-2009.Dato’ Seri Kong is currently the Secretary-General of Malaysian Chinese Association (MCA) as well as the Chairman of the MCA ICT (MRIC) Bureau.He was also the Deputy Chairman of the MCA Perak Liaison Committee in 2009, and Chairman of MCA Lumut Division, and of the Kg Koh Branch,since 2005 and 2004 respectively. He is also the Chairman of the SJK(C) Chinese National Kg. Koh School Management Board.Dato’ Seri Kong is a highly honoured man in his home state, having been awarded the Seri Paduka Mahkota Perak (SPMP) in 2009 and the Dato’Paduka Mahkota Perak (DPMP) in 2004, among many other awards of Perak. He was also bestowed the Ahli Mangku Negara (AMN) in 2001.New Deputy Minister of Transport- Jelaing anak MersatGATEWAY congratulates YB Tuan Jelainganak Mersat on his appointment as the newDeputy Minister of Transport. Prior to this,he was the Deputy Ministry in the Ministryof Internal Affairs.YB Tuan Jelaing anak Mersat started hiscareer in the Ministry of Education as aneducator from 1974-2000. He was alsoChief Private Secretary of the Ministry ofNational Unity and Social Development from 1997. In 2000, he wasappointed the Political Secretary to the Chief Minister of Sarawak,and became a Member of Parliament in 2004. He was subsequentlywas appointed Deputy Minister of Domestic Trade and ConsumerAffairs from 2008-2009.YB Tuan Jelaing anak Mersat holds the Ahli Bintang Sarawak (ABS)and Johan Bintang Sarawak (JBS) awards.New Deputy Secretary-General of the Ministry ofTransport - Datuk Haji Kamaruzaman b. Haji Mohd NoorGATEWAY congratulates Datuk Haji Kamaruzaman b.Haji Mohd Noor on his appointment as the new DeputySecretary-General of the Ministry of Transport. Prior to this,he was Deputy Secretary-General (Administration) of theMinistry of Education.Datuk Haji Kamaruzaman started out in the PM’sDepartment as an Assistant Secretary in 1976, becomingAssistant Director of MAMPU and Assistant Secretary of the Election Commissionin 1979. He was seconded as the first Head of the ASEAN Plant Quarantine& Training Institute Project, Chief Investigation Officer in the HQ of the AntiCorruption Agency (ACA) in 1982, and Director of Training for ACA in 1985. In1988, he was the Senior Deputy Director of MAMPU, becoming Chief DeputyDirector in the same year. Datuk Haji Kamaruzaman has worked in diverseministries, including the Ministry of Culture, Arts and Tourism (1999) and theMinistry of Defence (2003).Datuk Haji Kamaruzaman has been honoured with titles from several states,including the Darjah Mulia Seri Melaka (DMSM), Darjah Indera Mahkota Pahang(DIMP), Panglima Setia Bintang Sarawak (PSBS), Darjah Paduka Setia MahkotaKelantan (DPSK) and the federal award Panglima Jasa Negara (PJN).COURTESY VISITTO PORT KLANGTRADE MISSION TOMEDANPORT KLANG UPGRADEDITS ISO CERTIFICATIONJuly 6, 20107 delegates from Incheon MetropolitanCity, Incheon Port Authority and KoreaInternational Trade Association made acourtesy visit to Port Klang. The objectiveof the visit was to promote their port to ourlocal shippers and logistic players.July 21-22, 2010Port Klang Authority made a courtesy call to Belawan Portin conjunction with the Trade Misson to Medan, Indonesia,jointly organised by PKA & SFFLA. A seminar on “BusinessOpportunites in Port Klang, Malaysia” was also organisedand attended by 150 officials, freight forwarders, importers& exporters from Medan and Malaysia.PKA through the Free Zone and Dangerous GoodsDepartment upgraded it’s ISO9001:2000 toISO9001:2008. Certification was issued by SIRIMQAS International Sdn. Bhd. The scopes relatedwere:i. Regulating of Trade Activities in the FreeCommercial Zone;ii. Handling, Storage and Transportation ofDangerous Cargoes in the Port Premises ofPort Klang.GATEWAYA PUBLICATION OF PORT KLANG AUTHORITY

06 FOCUSTHE PULSEOF TRADEGATEWAYA PUBLICATION OF PORT KLANG AUTHORITY

FOCUS 07As a trading nation, Malaysia is ranked 10th mostcompetitive in the world, and Port Klang is a primarycontributor to that success. According to Kee LianYong, Port Klang Authority (PKA) General Manager,PKA is proud to be associated with making Malaysia apremier business location. “Of course, it is our closepartnership with government, with business, and withthe logistics industry, that has enabled us to achievethis. We are committed to improving our relationshipsand meeting all our stakeholders’ needs in order toaccelerate this forward progress, making Port Klangthe natural choice for Malaysian and internationalbusinesses alike,” he elaborates.PKA has been steadily playing a greater role as a tradefacilitator and port regulator, moving away from directport operations and focusing on setting strategic goalsfor the port. Kee explains, “PKA is the key organisationthat oversees all the players in the port community toensure that we are on the right track. We at PKA makethis happen through the implementation of strategicpolicies and practices.”KEE LIAN YONGGeneral ManagerPort Klang Authority1. WORLD-CLASS FACILITIESAs the principal port of Malaysia, it is appropriate that Port Klang boasts some of the better facilities to cope with that volume of trafficgoing through it. Port Klang is equipped to handle multiple trades and can even accommodate ships as big as 13,000 Twenty-footEquivalent Units (TEUs). In terms of productivity, Port Klang terminal operators currently have registered a record gross crane productivityof 35 moves per hour, which is higher than the industry average of 25 crane moves per hour. Besides being competitively efficient, PortKlang also has ample warehouses and space to store cargo which is an added advantage over neighbouring ports.2. TECHNOLOGICAL PROGRESSPort Klang is progressive and forward-looking in the use of technology – especially information technology (IT). Our vision is toenhance and connect all port users on an integrated communications platform that will enable seamless business transactions,thereby enhancing efficiency, productivity and ease of doing business.3. ENHANCED TRADE FACILITATIONPKA is absolutely committed to facilitating trade and making business procedures simpler and more hassle-free. We recognise theneed to streamline paperwork, expedite regulatory approvals, and remove bureaucratic obstacles. Hence, we have established the‘One Stop Centre’ department to facilitate the establishment of port-related industries and enhance throughput at Port Klang. Inaddition, value added services and distribution-type activities, which are in the early take off stages in Malaysia and South East Asia,will create more trading opportunities.GATEWAYA PUBLICATION OF PORT KLANG AUTHORITY

08 FOCUS4. INFRASTRUCTURALSTRENGTHPort Klang has trading links to 180 countries and is linked by majorshipping lines to 500 ports around the world. Closer to home, Port Klangis geographically close to Malaysia’s business capital, Kuala Lumpur,the administrative capital, Putrajaya, and also the KL InternationalAirport (KLIA), giving direct access to the port for convenient exportor import of goods. The ready availability of complete multi-modaltransportation means that investors can conveniently connect viasea or air transportation to any destination in the world. Port Klang isalso easily accessible by road and rail. Three separate major highwaysconnect Port Klang with the industrial heart of Malaysia in the KlangValley, and through the highly integrated and comprehensive highwaynetwork, the rest of Peninsular Malaysia. Malayan Railways (KTM) hasregular container cargo and general cargo carriage services plying theroutes between Port Klang and 3 other ports in Malaysia (Butterworth,Pasir Gudang and Tanjung Pelepas) as well as the ‘inland port’ at Ipoh.General cargo can also be loaded and unloaded in most other KTMstations throughout Peninsular Malaysia.MOVING FORWARD2010 is shaping up to continue the general upward and growing trend in termsof container throughput. “In the first half of 2010, Port Klang saw a 29.3%growth in containers handled (4.3 Million TEUs), and we are projected tohandle 8.4 Million TEUs altogether this year,” Kee enthuses. “Port Klang hasproven to be an attractive, top-notch global port due to our high productivityrate, competitive prices and our constant efforts in upgrading and improvingour infrastructure, facilities, equipment and services.”Kee realises the importance of ensuring Port Klang remains attractive inthe face of competition from ports in Singapore, Thailand, Vietnam and SriLanka, especially over the next 5 years. “Port Klang is continuing to capitaliseon our competitive advantages such as political stability, strategic location,adequate draft, luxury of space and minimal red tape in terms of policy,guidelines, rules and regulations that hamper the ease of doing business,”he remarks. “Our drive to continually elevate our performance and enhanceour competitiveness has led to our being ranked Top 13th container port inthe world today.”As with all business processes and systems, there is always room forimprovement. Kee says, “We will and do take comments and suggestions onboard, consider the costs and benefits, and implement ideas that make sense.Then, we can bootstrap ourselves into the future, where we will be knownas Malaysia’s logistics and trading hub.” All of these changes, improvementsand developments have one end in mind – to make Port Klang an attractivelocation, synonymous with Malaysia, when thinking of seaborne cargo andmaritime logistics.Kee holds the opinion that this goal depends on exemplary performance. Heexplains, “The private sector is all about tangible results and great emphasisis placed on business profitability. Hence, people in the private sector aremarket-driven, proactive in achieving goals and always strive for excellencein all that they do. On the other hand, the work culture in the public sectoris not necessarily as competitive as the private sector. Civil servants aretypically assigned to a specific role, usually administrative, and not giventhe opportunity and exposure to grow in their careers. It is my ultimateaim to ensure that PKA, although a statutory body under the auspices ofgovernment, behaves more like a corporation in the private sector in termsof performance, innovation and leadership.”Developing the Port Klang DevelopmentMaster Plan.The Master Plan covers short-, mid- and long-term plans for theport’s infrastructure and strategic purposes. The plan will beimplemented over 20 years from 2010 until 2030.Conducting a general review of the currentport tariff structure.The existing port tariff is being reviewed and simplified. Strategicpricing will enable businesses to flourish while ensuring servicelevels and port facilities are constantly improved.Marketing advantages and services, not onlyin Malaysia, but also throughout the globalshipping and business community.We are coming up with strategic marketing, trade promotionplans and port promotion to turn Port Klang into a major regionallogistics hub. We will also develop facilities to meet the objectives.As mentioned earlier, we are also focused on creating a businessrelationship with its sister ports to enhance the port industry.We will highlight the benefits of these sister port agreements toour customers, especially in the areas of greater connectivityand trade growth. And we will be working to strengthen our tieswith maritime industry players such as the freight forwarders andhauliers to build the port business.Participating in the National Port Council.The council is set up as a platform for the development of aNational Port Policy. This is to ensure that the ports develophealthily and continue to stay competitive.GATEWAYA PUBLICATION OF PORT KLANG AUTHORITY

FOCUS 09INTO THE FUTUREThe maritime sector has always been the most important component ofMalaysia’s economy, and Port Klang Authority (PKA) Chairman Lee HwaBeng intends to see Port Klang take a quantum leap forward in captainingthe sector to more dizzying heights.A primary goal of the Malaysian maritime sector is to minimise transportcosts to exporters and importers, empowering manufacturing and trade tobecome an effective engine of growth for the Malaysian economy. Highspeednetwork connectivity to link up manufacturing establishments withforeign buyers and providers of shipping and port services is also essential.Port Klang is in an advantageous position, with infrastructure wheremanufacturers have ease of access to suppliers, warehousing, storage andconvenient, cost effective rail and road access.“This region has the potential to benefit from high trade growth both on anintra- and inter-regional basis. But the contribution of any individual maritimeplayer cannot be seen in isolation, but rather as a part of an integratedwhole. Therefore, in adopting a global approach to industrialisation, as wellas enhancing competitiveness in the maritime sector, we need to focus onimproving the links between the various players,” Lee says.Port Klang is poised for growth, and Lee believes it is crucial for itsstakeholders to wholeheartedly embrace synergistic marketing tools toleverage on its strengths. “There are many opportunities and areas in whichPort Klang can expand itself. For example, we should be making strongefforts to expound the advantages of using Port Klang as a preferred logisticshub for the ASEAN, China and Indian subcontinent regions,” he elaborates.DATO’ LEE HWA BENGChairmanPort Klang AuthorityTerminal operators should also be encouraged to carry out marketingactivities in their regional niches. Malaysian shipping companies should beencouraged to pool their resources to set up a network of feedering servicesto and from Port Klang, as this is an essential requirement if the calls ofmainline vessels are to be sustained.ONE STOP CENTREOne Stop Centre was set up to help Port Klang Authority(PKA) facilitate trade and some of its functions include: logistics industry to facilitate trade in Port Klang. Port Klang to enhance Port Klang’s throughput related to the port P l e a s e e m a i l a n y e n q u i r i e s t oonestopagency@pka.gov.myGATEWAYA PUBLICATION OF PORT KLANG AUTHORITY

10 AT A GLANCEGLOBAL CONNECTIVITYPort Klang Connected to Over 500 PortsIn More Than 180 CountriesARCTIC OCEANConnectivity is the hallmark of a successful port.NORTH PACIFICOCEANNORTHALANTICOCEANSOUTHATLANTICOCEANINDIANOCEANNORTH PACIFICOCEANSOUTH PACIFICOCEANAs one of the major ports in the world thanksto its strategic location along Straits of Malaccawhich handles 25% of global maritime trade, itis not surprising that Port Klang is continuallydeveloping to be the national load centre andtransshipment hub for the region. Port Klangwas recently announced as the World’s Top13th Container Port, a testament to the port’sintrinsic strengths in its vision to become theregion’s preferred logistics hub. Today, theport and has trade connections with over 180countries and dealings with more than 500ports around the world.Currently, Port Klang Authority (PKA) together with SFFLA, Northport, Westports, PKFZ, FMM and MATRADE are organising a Specialised Trade MarketingMission to several countries. MATRADE is taking the lead in two of the trade missions, which is the Yangon and Luka Koper (Slovenia). The trade missions arenot just confined to Port Klang’s sisterports, but are also directed at areas where there are trade opportunities and also possibilities in enhancing trade linkagesand forming smart partnerships. The main objectives of the mission are to explore business opportunities, establish and strengthen useful business contacts andalso to create greater awareness and visibility among the global business community on Malaysia’s capabilities and expertise in providing world-class facilities.Port Klang is always actively seeking out business alliances with other ports and had made trade agreement with 8 ports from all over the world. Port Klangstrongly believes that the collaborative relationship will enhance the development of port traffic and ultimately, benefit the customers of the port.To know more about the on-going trade missions, please refer to the inner back page for the complete schedule and details.Dato’ Lee and the BOD, PKA visited Port of RotterdamPort Klang Authority made a courtesy call to Belawan Porton 21 July 2010 in conjunction with the Trade Misson toMedan, Indonesia organised by PKA & SFFLACampaign Team showing thumbs up afterannouncement of IMO council results.Kee Lian Yong, General Manager of Port Klang Authority,giving a speech at the seminar “Business Opportunities inPort Klang, Malaysia” in Medan, Indonesia organised by PKA& SFFLA on 22 July 2010.Seminar “Business Opportunites in Port Klang, Malaysia”organised by PKA & SFFLA in Medan, Indonesia on 22July 2010 attended by 150 officials, freight forwarders,importers & exporters from Medan and also Malaysia.GATEWAYA PUBLICATION OF PORT KLANG AUTHORITY

PORT UPDATE 11Acquisition Set to PlacePort Klang as World-classDestination of ChoiceThe understated yet hugely promising cruise terminal operations here at Port Klang is set to be boosted by the recent takeover of GlennCruise Terminal (formerly Star Cruises Terminal) by Glenn Marine Group (“GMG”) in June 2010. The cruise terminal is part of Port KlangCruise Centre (“PKCC”), which is now set to undergo radical development to boost passenger traffic and place it as a prime destination inits own right.GMG is the leading marine husbanding and logistics provider in the region, providing a comprehensive range of services to a globalcustomer base. The group is now extending its own brand of impeccable service to cruise ships, other passenger vessels and eventually tothe tourism industry as a whole.As Malaysia’s primary gateway for maritime cargo, Port Klang’s status as a bustling cruise hub is often overlooked. At its peak the cruiseterminal received over 300,000 cruise passengers in a year. Cruise passengers can generate strong economic impact due to their greaterspending power and thus bring exponential benefits by creating spin-off opportunities. Realising the great potential of the port in thissector, GMG plans to both invest their own capital and collaborate with business partners and strategic investors to develop PKCC intoan integrated cruise hub. This will place Port Klang as a world-class destination of choice not only for merchant vessels but also for cruiseships and passenger vessels alike.GATEWAYA PUBLICATION OF PORT KLANG AUTHORITY

12 VISTACOMPETITIVE EDGEFrom its 18th ranking in 2009, Malaysia has emerged as the 10thmost competitive nation in the world, according to the 2010 WorldCompetitiveness Yearbook (WCY). It is published by the Swiss-basedInstitute for Management Development (IMD) which assesses a country’scompetitiveness based on four factors, namely economic performance,government efficiency, business culture (in terms of productivity, labourmarket, finance, management practices, attitudes and values) as well asthe quality of national infrastructure.According to Datuk Dr Rebecca Fatima Sta Maria, Deputy Secretary General(Trade) of Ministry of International Trade and Industry (MITI), Malaysia haddone particularly well on the government and business fronts.She enthuses: “We managed to achieve such a feat because of strongimprovements in our economic fundamentals, positive changes in theway business is conducted and also our own government transformationefforts. All these measures reflect the tagline, 1Malaysia, People First,Performance Now.”Datuk Dr Rebecca firmly believes that there is still much room forimprovement in terms of facilitating trade. She elaborates: “Currently, thegovernment is aggressively pursuing reforms on many fronts. For example,we have instituted the New Key Economic Activities, as outlined in theNew Economic Model. They are expected to further accelerate Malaysia’seconomic development. However, we still need to strive for furtherreforms, such as, revamping outdated policies and re-engineering businessprocesses to shape a truly dynamic business environment.”The Deputy Secretary General stresses that the responsibility of makingMalaysia more competitive and efficient does not solely lie on theshoulders of the Government. She says: “We not only welcome theviews and feedback of all stakeholders but also the direct participation inefforts to improve performance in any given arena.“Take, for example, the trading activities in a port. All parties involvedin the entire value chain must play their respective roles. The portauthorities, terminal operators, freight forwarders, importers as wellas exporters must all be highly competent so that business can runsmoothly and easily. Quality of service will improve and this will enhancethe ease of doing business”.DATUK DR REBECCA FATIMA STA MARIADeputy Secretary General (Trade)Ministry of International Trade and Industry (MITI)www.miti.gov.myENHANCING PORT KLANGDatuk Dr Rebecca feels that, as Malaysia’s principal port, Port Klanghas contributed greatly to the nation’s economy especially in relationto supporting international trade. However, she adds: “Port Klang canGATEWAYA PUBLICATION OF PORT KLANG AUTHORITY

VISTA 13The numerous efforts implemented by the Government and privatesector have finally paid off as Malaysia is now recognised as theworld’s 10th most competitive countryembark on strategies to attract more cargo and vessels. By pursuing aproactive marketing plan, we can encourage more main line operators(MLOs) to call at the port. At the same time, entry and egress need to beeffectively managed and more lanes can be opened to avoid congestion.Above all, efficiency is key in determining business sustainability.”In relation to maintaining Port Klang as the national load centre, DatukDr Rebecca highlights the importance of improving the infrastructure,accelerating the development of the logistics industry and strengtheningsupply chain management. She elaborates: “Port Klang Authoritycan enhance its role as trade facilitator by promoting the provision ofsufficient skilled ancillary services and seamless interface between landand sea transportation modes within the Klang Valley area. It shouldalso continuously set up linkages with other domestic ports includingestablishment of a more efficient feeder network.”Last but not least, Datuk Dr Rebecca firmly advocatescollaboration between Government agencies and the shippingindustry. “I would encourage PKA and all its stakeholders tocontinue engaging in dialogues and discourses to identify greateropportunities that will help enhance Port Klang’s standing asMalaysia’s principal trading gateway.”PEMUDAHFACILITATING BUSINESSThe Special Task Force to Facilitate Business (PEMUDAH)was formed on February 7, 2007 out of the need for closercollaboration between the public and private sectors to enhancedelivery levels and improve Malaysia’s business environment.Reporting directly to the Prime Minister, PEMUDAH comprisesa panel of 23 highly respected individuals from both the privateand public sectors. It is co-chaired by YB Tan Sri Mohd SidekHassan, Chief Secretary to the Government of Malaysia andYBhg Tan Sri Datuk Yong Poh Kon, Immediate Past President ofthe Federation of Malaysian Manufacturers (FMM).PEMUDAH aims to drive the nation’s economic growth withsubstantive improvements to essential processes that createmajor impact on the nation’s competitiveness. Apart from theIMD World Competitiveness Yearbook, PEMUDAH also tracks theWorld Bank Ease of Doing Business Report (WBDB). Currently,Malaysia is ranked 23rd in the world but is among the top fivecountries in Asia. PEMUDAH’s plans include continually strivingto place Malaysia among the top 10 nations in the WBDB.Towards this end, a special Focus Group is set up under thePEMUDAH umbrella to engage relevant Government agenciesand industry associations in identifying issues and best practicesfor export and import process flows. Supervised by MITI, theGroup addresses gaps and barriers to improve the efficiency ofinternational trade.Additionally, PEMUDAH also serves as the consultative forumon issues concerning the public service delivery system andGovernment policies impacting businesses. To date, PEMUDAHhas implemented various measures to improve efficiency in areasranging from starting a new business and registering property totrade facilitation, construction permits, employing workers andimmigration matters.For more information, please contact:PEMUDAH Secretariat OfficeMinistry of International Trade and Industry5th Floor, Block 10, Government Offices Complex,Jalan Duta, 50622 Kuala Lumpur, MalaysiaTel: (603) 6203 3373Fax: (603) 6201 9459Website: http://www.pemudah.gov.myGATEWAYA PUBLICATION OF PORT KLANG AUTHORITY

14 PERSPECTIVESTrade is the lifeblood of any nation and seaports are vital to trade.In its quest to continually improve Port Klang as Malaysia’s tradinggateway, it is imperative that Port Klang Authority (PKA) work veryclosely with the various stakeholders, including the trade industry.As Malaysia’s longest established trade association, the MalaysianInternational Chamber of Commerce and Industry (MICCI) is animportant stakeholder representative.According to MICCI President Charles Ireland, Malaysia has beena major exporting nation for many years, and hence has been asignificant component of the global shipping community. “Importsand exports have grown with the Malaysian economy, and Malaysiais now one of the top 20 trading nations in the world with aspirationsfor further growth. This has led to an active port scene with a numberof ports in Peninsula and East Malaysia offering access points forgoods,” he explains.Ireland maintains that the key to ensuring that Port Klang continues to bean attractive trading gateway in terms of productivity, cost effectivenessand innovation is competition. The proximity of Singapore, another majorworld class port, has required Malaysian ports to match the standards andpricing of its neighbour in order to secure a good share of the availablemarket. “Sustaining the highest service standards at competitive rateswill ensure that Malaysian ports continue to flourish as load, dischargeand transshipment hubs,” he remarks.CHARLES HENRY IRELANDPresidentMalaysian International Chamberof Commerce and Industrywww.micci.comMICCI acknowledges the primary roles and responsibilities playedby PKA as the regulatory authority and trade facilitator in drivingthe various initiatives and improvements to Port Klang. “The clearleadership of PKA in setting the direction of Port Klang has ensuredthe smooth running of the whole system,” Ireland explains. “Wewelcome PKA’s promotion of Port Klang as Malaysia’s trading gateway,and would be pleased to advise on any areas of common interest toaid in this endeavour.”CONSULTATION ANDCOMPETITIVENESSModern ports require a wide range of services to be attractive, as portsare more than a collection of quays, cranes and warehouses. FromMICCI’s perspective, Port Klang needs to examine likely changes inthe Malaysian import/export pattern of the future so as to anticipateGATEWAYA PUBLICATION OF PORT KLANG AUTHORITY

PERSPECTIVES 15ABOUT MICCInew services that can be offered. Additionally, the association urgesPKA to consider possible expansionary opportunities in the form ofno-hassle free zones and extended vehicle storage and transshipmentfacilities. Also, PKA can consider additional facilities for the storageand export of bio-diesel, as well as facilities for receiving and degassingLNG to facilitate the import of gas for industry, andtemperature controlled facilities to support halal food exports.MICCI further believes that while high quality and cost effective portservices are key to satisfying both shipping lines and importers/exporters, the port is only one part of the total supply chain, andland-side services can significantly influence the movement of goods.While ports may not be directly involved in road haulage or externalwarehousing or consolidation services, they must recognise thattheir own performance will be tarnished by flaws in other parts of thetotal transport chain. It is therefore in PKA’s interest and that of theshipping industry to pay greater attention to the cost and efficiencyof haulage services and that of the supporting forwarding and agencyservices. Commerce and Agriculture in 1837. improvement. in Malaysia, and strongly supports its significant manufacturing andexporting sectors. government. sectors, manufacturing, services and professional. and domestic multinationals to smaller SMEs, representing in excess of110 billion ringgit of investment in Malaysia and employing some Chambers around the world. human capital, sustainable development, international affairs and others. as Certificate of Origin and ATA Carnet export documentation services, He goes on to state that while Malaysia is served by a wide rangeof vessels, both local and foreign owned, covering all kinds ofcargo including specialised vessels for Liquid Natural Gas (LNG)transportation, Malaysia itself is not a very large player in terms ofship-owning; relying predominantly on foreign flag vessels for thetransportation of its goods. Thus, Malaysian exporters are to someextent subject to the variability of international shipping both in termsof supply (container availability) and cost (freight).Ireland notes that because ports and the shipping industry generallysupports global trade but do not drive it, it is essential that PKAworks with business to identify the needs for the future and deliverthe widest range and most cost competitive services. “Looking attoday’s shipping scenario, and its impact on business under the NewEconomic Model for Malaysia (NEM), it is obvious that Port Klang’scontinuing growth depends on these two things – consultation (withbusiness) and competitiveness (in service offerings),” he elaborates.PKA’s recent reengineering is also of great interest to MICCI, Irelandreveals. “We find it very encouraging that under new leadershipand management, PKA has embarked on a revamping scheme in aneffort to change its working style,” he remarks. “We are monitoringthese changes, and we await the results of the newly-identified 5Key Result Areas with anticipation. We have great expectations forthe future of Port Klang as a whole, and for PKA in its quest to drivethe port ever forward.”GATEWAYA PUBLICATION OF PORT KLANG AUTHORITY

16 PARTNERSMEETING REQUIREMENTSShipping AssociationMalaysia (SAM)OOI LEAN HINChairmanShipping Association Malaysia (SAM)www.sam.org.myIMPROVING TRADELast year, the global container shipping industryreported a total loss of more than USD15 billion(RM48 billion) due to overcapacity and price wars.During the crisis, shipping lines have cut capacity,laid up vessels, laid off people and all this hasalso affected shipping’s supporting industries.However, in recent times, Malaysia’s containershipping rates have returned to near pre-crisislevels and the shortage of containers for exportand vessel capacity has been of concern.Ooi Lean Hin, Chairman of Shipping AssociationMalaysia (SAM) points out: “There is recovery in theshipping industry now, but we cannot automaticallyget everything back up as it was. It takes time. Thechallenge for exporters now is to find equipmentMalaysiaShipowner’sAssociation (MASA)CAPTAIN INTIAZ HUSSEINExecutive SecretaryMalaysia Shipowner’s Associationwww.malaysiashipowners.orgLIBERALISATION OFINCENTIVES AND TARIFFSIn 2009, the world economic downturn affectedall trade regardless of business sector andthe shipping industry was not spared as well.Captain Intiaz Hussein, Executive Secretaryof Malaysia Shipowner’s Association (MASA),explained that although the shipping demand hasimproved, some shipping companies have yet tofully recover from the impact of the economicdownturn and are still plagued by problems. CaptIntiaz elaborates: “These shipping companies arefinding it hard to keep ‘afloat’, and the biggestissues they face are of financial nature whichincludes cash-flow, loan repayments, decline inship value as well as low freight revenue.”Central RegionShipping Association(CRSA)TUAN HAJI ABU BAKAR BIN HUSSEINPresidentCentral Region Shipping Association(CRSA)GLOBAL STANDARDSFOR PORT KLANGBeing the top 10th most competitive nationin the world, it is only instinctive to say thatMalaysia is progressively improving andpositioning itself as a formidable tradingnation in the world map. Tuan Haji Abu BakarBin Hussein, President of Central RegionShipping Association (CRSA), feels proud andrelates how the shipping industry has alsoseen a positive uptrend in terms of volumein the first half of this year as compared toits correspondent period in 2009. Abu Bakarattributes this success to the perseverance ofthe ports and the initiatives taken to improveperformance and productivity.

PARTNERS 17Shipping associations are formed to promote and protect the interests of its members, and hence theirTherefore, it is only right that we speak to our associates, who are the ultimate end users of the port.and/or vessel space to ship their cargo. We shouldfocus on this issue, rather than harp on rates.Speaking about some of the past initiatives thatSAM has implemented to improve Malaysia’sshipping industry, Ooi explains: “In 1996, SAM(at that time known as ISOA) submitted a positionpaper to Ministry Of Transport (MOT) providingspecific recommendation on incentives andrates for transshipment traffic and a strategicgame plan. The plan was later adopted by PKAand the terminal operators and provided thebasic foundation for the growth of transshipmentbusiness at Port Klang.”Other activities were also carried out to developPort Klang as Ooi further elaborates: “SAM togetherwith terminal operators, MOT and the carriercommunity also did a number of road shows inthe region to promote load-centering at Port Klang.Our members lobbied hard with their respectivePrincipals to promote Port Klang and also helpedto build the feeder connectivity. We are proud tosay that in 1996, transshipment volumes were onlyaround 20,000 TEUs per annum but had growntremendously to 4.3 million TEUs in 2009.”For the future development of Port Klang, Ooihopes all relevant parties involved in the shippingindustry can work together to improve feederconnectivity and resolve common operationalissues faced by the ports. Citing an example,Ooi continues: “The Inter-Terminal Transfer (ITT)between Northport and Westports should beaddressed. It is also to facilitate its members on mattersconcerning the shipping industry and tocontribute views and recommendations to therelevant Malaysian authorities Ministry of Trade & Industry, port authorities,customs Marine Department and other relevant Several strategies were initiated to improve theshipping industry, one of it being the need for anew and improved finance instrument while anincrease of Government-supported preferentialfunds can help finance fleet acquisition. CaptIntiaz adds: “We need to re-look at some of thefiscal incentives plus the rules and regulations,including the Merchant Shipping Ordinance(1952). We also need to reassess ship mortgagesand guarantees to further strengthen and developthe industry.”Currently, MASA and the Feeder OperatorsAssociation are in discussion with Port KlangAuthority (PKA) to re-introduce the FeederIncentive Scheme. Capt Intiaz feels that by havingthis incentive, it will attract more transshipmentin Port Klang. He points out: “The source ofgrowth at Port Klang is expected to be fuelledby transshipment. When the scheme wasimplemented in the past, it had attracted a lotof investors and we strongly believe that it willfurther promote cargo in Port Klang.”Apart from the incentive proposal, Capt Intiazhopes that PKA will take the lead in modernisingthe tariff structure especially for empty containerships that return to Port Klang. Port Klang shouldintroduce benchmarked market-responsivecharges for both Westports and Northport. CaptIntiaz continues to say: “When both the portsare equally competitive in their rates, intra-portcompetition can be reduced and they can focusmore on productivity enhancement.” and to the shipping industry. As of April 2010,total membership stands at 226, with 103Ordinary members and 123 Associate members. promote the interests of Malaysian shipowners,assist in the development of the Malaysianmaritime industry as well as to collaboratein efforts towards continuous improvement ofmaritime standards. fleet tonnage Shipowners’ Association However, Abu Bakar insists that we shouldnot be complacent and should always striveto be better. He elaborates: “Shipping is aninternational business and Malaysia shouldbe seen as a globally-competitive country. Toachieve that, we should adopt the requirementsof the International Maritime Organisation(IMO) as a benchmark for port regulations. Infact as the 10th most competitive country, weshould be actively participating in coming upwith the regulations by providing our expertiseand knowledge in the international arena.”Apart from setting world standards, it is alsocrucial that Malaysia standardise the regulations,both in the international and regional forums,for example the Single Window initiative. AbuBakar points out: “Currently, we do havecertain international protocols, but it can beimproved upon as the flow of informationis not as smooth as it should be. Port KlangAuthority’s (PKA) role as trade facilitator shouldbe to ease business procedures and this can beachieved with standardised documentation andprotocols between countries.”Abu Bakar applauds PKA’s initiative in theimplementation of the new free storageperiod and its ability to get the whole logisticschain to work together. Moving forward, AbuBakar hopes that PKA will be able to drive amore conducive business environment toenable formation of smart and collaborativepartnerships rather than competing with otherports. central region promote the common interests of themembers, and particularly to enter intomeaningful consultations, discussions,dialogues, communications and generally to establishments.

18www.northport.com.myNORTHPORT GETS MULTIPLENorthport which registered a total volume of 2.858 million TEUs in 2009is poised to record a significant increase in its throughput exceeding threemillion TEUS in 2010, based on current growth trend. The growth in the firstfive months of 2010 has been historic with 30 per cent growth in the volumeof containers handled compared with the same period in 2009. Total trafficbetween January and May this year totaled 1.37 million TEUs, while a dramaticincrease was recorded in transshipment containers which soared 41 per centtotaling 570,016 TEUs in Jan-May 2010 compared with 404,899 TEUs duringthe same period last year.Besides container traffic, Northport, which handles about 60 million tonnesannually, is also the largest multipurpose port in the country handling thewidest variety of cargo and ship types. Northport, operated by Northport(Malaysia) Bhd, receives annually more than 7,500 ship calls from a varietyof ships ranging from some of the world’s largest containerships, to tankershandling palm oil, chemicals, crude oil, clean products, bulk cargo shipshandling sugar, fertilizers, cereals, general cargo ships carrying raw materialsand industrial commodities, steel, machineries and equipment, as well asbarges and car-carriers.Mr S.Kumaran, Board Member of Northport (Malaysia)Bhd and the Under Secretary of Ministry of Finance,receiving the 2010 Asian Freight Supply ChainAwards for the Best Container Terminal - Asia FromMr. Caesar Yiu - CEO of Thermo King, Hong Kong.Northport has a total of 27 berths stretching 5.4 km. The progress anddevelopment of Northport has been well-acknowledged by the industry andmedia, having won various accolades and awards in recent years. For thesecond time, the Asia-wide freight logistics industry selected NorthportMalaysia as the winner of the Asian Freight & Supply Chain Awards 2010.Northport Malaysia was cited for usefulness of its product range, containerhandling rates, timely and adequate investments, effective use of IT systemsand efficient turnaround of trucks delivering or picking up containers at theport.Northport was also awarded the Asian Supply Chain Award for the bestcontainer terminal by the Hong Kong-based Cargonews Asia, signalingits success in integrating into the globalisation process. The award was areaffirmation of the successful transformational path taken by the premierMalaysian port from an interface into integrating itself into the logistical chainto meet the needs of the global supply chain management by shippers andport users.Other awards bagged by Northport include the Technical Business ReviewExcellence award in the logistics services for conventional cargo hub category,Ansted Social Responsibility International Award, The Brand Laureates forSME chapter award and The Brand Laureates for best brands logistics portAsia Pacific entrepreneurship award.GATEWAYA PUBLICATION OF PORT KLANG AUTHORITY

REVIEW 19NORTHPORT INVESTS INNEW CONTAINER TERMINALNorthport Malaysia deferred its major investment plan totalingabout RM500 million following uncertainties in the shipping demandprecipitated by the impact of the global economic slow-down in 2008.However, following the strong showing of its performance in 2009,the company has now reviewed this postponed project involving thedevelopment of Container Terminal 8A and re-tendering process isnow underway with the contract expected to be awarded before endof 2010.The new container terminal is designed to serve ultra size containerships. The 370 metre long terminal will be supported by three superpost panamax cranes capable of lifting two 40-foot containers or four20-foot containers in a single move between ship and quay. The craneswill have a span outreach of 22 containers across the beam and willbe capable of stacking six containers high. The quayline at the newterminal (which will initially serve one ultra large container ship a time)and will be extended into CT3 to handle more of such vessels shouldthe need arise.During 2009, RM48.19 million were invested in upgrading equipmentand yard facilities. Investments totaling RM420.8 million were approvedfor implementation during the year but were not contracted out. Beloware the details of acquisitions in 2009/2010Details of equipment acquisitions in 2009/2010:2009 2010QUAY CRANE 26 -RTG 57 5 UNITS WILL BEIN DECEMBER 2010STRADDLE CARRIERS 67 -TRAILER 112 -PRIME MOVERS 158 -GATEWAYA PUBLICATION OF PORT KLANG AUTHORITY

20www.westportsmalaysia.comWESTPORTS PROVIDES GOODCUSTOMER SERVICEWestports constantly interface with many groups of people such asshipping lines, shippers, forwarding agents, hauliers, vendors andlogistics companies. They provide total logistics solutions for allplayers and offer extensive connectivity to exporters and importers –all at an affordable rate. Westports has made many contributions to theindustry. They are among the top 5 in the world in terms of productivityand they currently own world records for port productivity. Above all,they have assisted Port Klang to become the top 13th container port inthe world with 8 million TEUs. In transforming Port Klang into a tradinggateway, they have helped exporters and importers lower their freightcosts by providing greater connectivity.In this issue of Gateway, we speak to Executive Director, Mr. RubenEmir Gnanalingam about the facilities provided by Westports forcustomers including Small and Medium Enterprises (SMEs).Q. What services does Westports provide for customers/SMEs?From the very beginning, we have had a very strategic approach towardsInformation and Communication Technologies (ICT). We always aim tooffer better value to all our customers including SMEs such as Westportse-terminal, which allows our customers direct benefit from Westports useof ICT. Our systems connect to customers regardless of the size of theorganisation while the enhanced security and the premium quality servicewe provide will no doubt enhance the logistics capabilities of our customers.Through the use of our e-terminal and our call centre, customers can makebookings, enquiries on the status of their cargo and also track them. Thiswill assist them in the supply chain planning. We provide greater flexibility,reliability and cost efficiency in the running of their businesses.Q. How is Westports attracting customers to use their ports?With the increasing linkages it is making around the world, Westports hasthe connectivity for all players to take their goods all over the world. Overthe past few years, we have been working with the Royal Malaysian Customsand other government agencies. As a result, we have together improvedthe quality of service provided to port users over the past 10 years. Ourclose proximity to facilities on Pulau Indah such as PKFZ, Selangor HalalHub, MISC Logistics Hub, smooth connectivity to Kesas Highway as well asKLIA gives us a distinctive advantage. We also take security very seriously,thus ensuring no lost boxes or theft of cargo. We are also ISP compliant,OSHA accredited and ISO certified.Q. Why should customers and SMEs use Westports services?At Westports, customers will be accorded fast and reliable transport andlogistics services to get their goods across the globe as they can find instantaccess to more than 300 ports around the world and all at competitivetariff rates. We are helping to grow the import and export trade, particularlyamong customers who want to expand their businesses to new marketsespecially India, Indonesia, Myanmar, Bangladesh, Vietnam and Thailand.However Westports main logistics solutions are in its value added services.We have developed solutions to meet all our customers’ requirementssuch as Distripark, warehousing, on dock depots, and reefer facilities, DGStorage Zone and Freight stations, among others.Q. Since you took over as Executive Director of Westports in 2006,what have you done differently for Customers/SMEs?IT being my main KPI for the port, I ensure the staffs embrace technologyas a culture and as an innovating factor to improve services with customers,especially SMEs in mind. Our drive has been to ensure all customers, big orsmall, gets superior service with regards to port handling issues. We havealso gone beyond our borders to assist them in any logistics issues theymay have. We now have managers who solely look at assisting customers orSMEs ship through Westports. Any readers are encouraged to contact ourMarketing Department for assistance they need. With regards to vendors,we employ electronic bidding solutions and electronic procurements toensure transparency and also to make sure every company, big or small,has a chance to be one of our partners.GATEWAYA PUBLICATION OF PORT KLANG AUTHORITY

REVIEW 21WESTPORTS BREAKS FIRSTHALF YEAR RECORD WITH 2.65MILLION TEU’SMalaysia’s leading port, Westports Malaysia Sdn Bhd, has recordedits highest first half year throughput ever, handling 2.65 million twentyfootequivalent units (TEUs) in the first six months of this year. This is astaggering 30% increase compared with the same period last year when ithandled 2.03 million TEUs. The uptrend in volume continued from the firstquarter of this year. Westports posted an all time high monthly throughputof 484,000 TEUs in June 2010, moving a total of 1.4 million TEUs in thesecond quarter, which is a 33% increase from the same period last year.Additionally, local container volume posted a strong 25% growth, up fromthe 579,000 TEUs handled in the first half of last year to reach 724,000TEUs in the first six months of this year while transshipment was up by 26%.Positive improvements were seen in both performance and productivity,especially in container operations.Westports conventional business achieved an overall growth of 18% ingeneral cargo and bulk cargo. As for RoRo, the port witnessed an increaseof 45% in vehicle handling compared to 2009. The contributing factorsin growth were an increase in steel products, both imports and exportswhile for Bulk Cargo, the contribution came from an increase in fertilizerimports. With this growth, Westports is in line to achieve its overall targetof 8.5 million metric tonne for conventional business in 2010.WESTPORTS NEW 300-METER CONTAINER TERMINALWestports Malaysia Sdn Bhd will resume the initial phase of its expansion this year that will see the construction of the 300m-container terminal 6 (CT6).Westports was supposed to have begun its expansion about two years ago but was slowed down by the global economic downturn. The cost is unknown untilthe bid comes in. However it is estimated that based on previous experience, the cost could be more than RM200mil inclusive of construction, equipment,logistics and dredging. The construction of CT6 comprises an additional 300m berth, 1,500 additional ground slots of yard space and four new quay cranes.It is expected to be ready by second quarter next year. This will see the increase of the port’s capacity to 7.5 million TEUs (twenty-foot equivalent units).Executive Director Ruben Emir Gnanalingam said when completed, CT6 would see the berth length of about 600m. However, Westports wouldconstruct half of the project first as the remaining development would require land reclamation. The reclamation tender is already out and it will startdevelopment as soon as possible. Ruben said Westports planned long-term expansion would see capital expenditure of RM3.5bil to RM4bil to bedeveloped over the span of 15 to 20 years. It will involve about 3km of berth length for five terminals. Again, the speed of the expansion plan willdepend on the trend of the future economy.GATEWAYA PUBLICATION OF PORT KLANG AUTHORITY

2 2NEW OIL REFINERY IMPORTANTFOR FUTURE GROWTHtheir commitment to the continued developmentof the palm oil industry in Malaysia. BramKlaeijsen, Cargill Asia-Pacific Regional Director,elaborates: “Cargill is committed to providinghigh-quality and nutritious products to the foodindustry. We are confident this refinery will bringsignificant benefits to meet the diverse needs ofour existing customers and provide opportunitiesto new customers.”Mr Chia Kon Leong, General Manager ofPKFZ Sdn Bhd welcomed Cargill’s decision toinvest in PKFZ. “It augurs well for PKFZ that amultinational company like Cargill has chosen tolocate its new refinery here and take advantageof its strategic location within a seamless portenvironment coupled with well-supportedinfrastructure, readily available labour marketand most importantly, the conducive investmentclimate and attractive incentives offered by theGovernment”.Over the years, the palm oil industry hasimmensely strengthened the nation’s economicdevelopment. In 2009, the palm oil sectorcontributed RM17 billion or 3.3 per cent (onethird) to the Gross Domestic Product (GDP) andaccounted for RM49.6 billion in exports. Underthe 10th Malaysian Plan (2011-2015), Malaysiaaims to boost palm oil industry’s GDP’s outputto RM21.9 billion, with RM69.3 billion in exportsearnings. To achieve the target, Malaysia will bepromoted as a global hub for palm oil and thepreferred destination for foreign investments inthe development of value-added products andsustainable supply of raw materials to support thedownstream activities.As the way forward for the industry, the RM162million invested by Cargill is to expand their existingoperations and build a new vegetable oil refinery inPort Klang Free Zone (PKFZ). This demonstratesIn addition, it is also worthy to note that thelocation of the refinery is within the areagazetted as Halal Industry Zone. The Halalindustry commands an annual market value ofabout RM6.7 trillion globally, and the fact thatMalaysia’s Halal certification is world-recognisedespecially in the OIC countries as Malaysia setits sight to capitalise on it. Chia added: “Thiswill encourage other companies to locate theiroperations here and help contribute to Malaysia’svision to become a global Halal hub.”ABOUT CARGILL in the United States, Cargill now employsmore than 153,000 people in about 66countries. services. Cargill is committed to using customers’ unique needs and helpthem succeed.GATEWAYA PUBLICATION OF PORT KLANG AUTHORITY

ON THE RADARGATEWAY magazine invites you to announceyour upcoming industry events here.Email us at:onestopagency@pka.gov.myOr mail us at:Port Klang AuthorityMail Bag Service 202, Jalan Pelabuhan Utara,42005 Port Klang, Selangor MalaysiaPORT KLANG FACILITIESPORT KLANGCONTAINER NORTHPORT WESTPORTS TOTALBERTHSNUMBER OF BERTHS 12 11 23LENGTH (METRES) 2,679 3,200 5,879DRAFT (METRES) 11.0 - 15.0 16 11 - 16STORAGEANNUAL CAPACITY (MILL TEU) 5 6 11REEFER POINTS 751 1,236 1,987Trade Mission On LogisticsServicesLIST OF MISSION TRADE CO-ORGANISED BYPORT KLANG AUTHORITY AND LOGISTIC PARTNERSDateVenue29-31 Aug 2010 Yangon, Myanmar(Led by MATRADE and FMFF)16-25 Sept 2010 Koper, Slovenia and Marseille, France(Led by MATRADE and FMFF)Oct 2010Nov 2010Dec 2010Vietnam(Co-organised by Luka Koper - PKA sister port)ThailandIndiaEQUIPMENTQUAY CRANES 26 34 60RUBBER TYRED GANTRY CRANES 57 92 149STRADDLE CARRIERS 67 - 67HIGH STACKERS 8 25 33LIQUID BULK NORTHPORT WESTPORTS TOTALBERTHSNUMBER OF BERTHS 4 5 9LENGTH (METRES) 779 1,305 2,084DRAFT (METRES) 10.5 - 11.5 10 - 16.5 10 - 16.5DRY BULK NORTHPORT WESTPORTS TOTALBERTHSNUMBER OF BERTHS 2 4 6LENGTH (METRES) 426 850 1,276DRAFT (METRES) 12 14 - 15 12 - 15The objectives of these mission are in relation to thelogistics services sector and includes:i) Explore business opportunities for collaboration.ii) Strengthen useful business contacts and networkwith local freight forwarders, shippers, portauthorities as well as government agencies andassociations.iii) Create greater awareness and visibility amongthe business community and the local public onMalaysia’s capabilities and expertise in providingworld-class logistics services.STORAGEOPEN STORAGE (SQ. METRES) 17,520 - 17,520BREAK BULK NORTHPORT WESTPORTS TOTALBERTHSNUMBER OF BERTHS 9 5 14LENGTH (METRES) 1,286 1,000 2,286DRAFT (METRES) 6.0 - 12.5 15 6.0 - 15STORAGEWAREHOUSES (SQ. METRES) 47,169 33,740 80,909OPEN STORAGE (SQ. METRES) 57,805 80,357 138,162GATEWAY sincerely apologises for the misprint for Port Klang Facilitiesthat was published on the April 2010 issue. The information reflectedin this issue is correct at the time of printing.GATEWAYA PUBLICATION OF PORT KLANG AUTHORITY

equippedfor yourSUCCESSWith a maritime tradition hailing back to 1901, Port Klang is today a major gateway that’s connected to over 500 ports in more than 180countries. As Malaysia’s national load centre and a fast-emerging regional trans-shipment hub, we link manufacturers with the markets of Asiaand the rest of the world. Enabling seamless cargo transfers with state-of-the-art facilities at two award-winning terminals and a fully-integratedindustrial and commercial free zone. A world-class port pulsing with pro-business sensibilities, matched with the customer service excellence thatwill delight you. Now you know why we’re the world’s top 13 container port. The winning formula is here, in PORT KLANG.