Preview - Port Klang

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.