Gateway January 2011

J A N U A R Y 2 0 11

CERTIFIED ISO 9001:2008

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)

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 2011

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY

Inside this issue

08 FocusMALAYSIA’S TOPS FOR TRADEPKA’s General Manager outlines PKA’s roles in supporting trade promotion activities through the provision of service excellence within the port and building of a business platform when embarking on trade missions.

18 At a GlanceCREATING TRADING PLATFORMSPKA reports on the results of its trade missions overseas as well as reciprocal and joint trade visits.

17 Inside PKABEYOND PUBLIC RELATIONSThe Corporate Communications department elaborates on its roles in presenting PKA’s corporate messages to the public.

13 AssociatesPRESENTING A UNITED FRONTPKA business associates share their views on PKA trade mission initiatives.

20 WaterwaysPORTS: GATEWAYS TO NATIONAL ECONOMIC SUSTAINABILITYPorts are key to a nation’s economy, and to its continued growth after recovery from a recession or depression.

22 About TownPULAU KETAMAll about the small, tranquil island off the coast from Port Klang.

04 Port TalkNews from the local front.

07 Port UpdateThe latest key performance figures for Port Klang

23 RadarUpcoming events for the industry.

As 2011 unfolds, may it prove to be a prosperous, profitable and mutually beneficial year to all of us, our business associates and friends. The global position has improved from two years ago. We in Port Klang have seen a 21% increase in cargo handled, up to 8.8 million TEUs, and are very optimistic about the year ahead of us for the maritime and manufacturing community. We are looking forward to play our part in the national economy.

As always, Port Klang Authority (PKA) always has to look at the bigger picture, in terms of supporting trade and investment in Malaysia. Port Klang, being Malaysia’s principal port, fulfills an important role in the regional and international trading arena. We see our core functions in facilitating, supporting and progressing trade are to ensure a vibrant, pro-business, responsive environment for international and indigenous businesses in Malaysia. This issue shows you how we carry out our functions, working together with government agencies and business associates to support their trade marketing and promotional efforts.

We deeply appreciate the time and effort our business associates and partners have put into providing us their input for this issue. Our thanks go out to Alvin Chua Seng Wah, Acting President of the Selangor Freight Forwarders and Logistics Association (SFFLA), Benjamin Keng, Council Member of the Federation of Malaysian Freight Forwarders (FMFF), and Gan Seong Kah, Assistant General Manager of Business Development of PKFZ Sdn Bhd.

In order to carry out our primary responsibilities, we at PKA must always keep up with the latest trends and concerns in the maritime industry. Indeed, since Port Klang is one of the world’s top container cargo ports, what we do and how we act has a global impact. In our new section called Waterways, which is devoted to current and significant maritime developments, we feature the role ports play in becoming a gateway to national recovery, following the global recession of 2008-2009.

Of course, Port Klang is not bound by its geography and infrastructure, but is rather part of a larger community. We will continue to explore the various facets of this greater community in our other new section About Town. Our inaugural article in this section gives you a glimpse of Pulau Ketam.

I am confident 2011 will be an even better year than 2010 in terms of achieving greater volume throughput and profitability. I hope that you will find the changes to Gateway make it more interesting and relevant to your interests and needs. We will continue to devote our resources to ensure that Gateway can take its place among the other ‘must-read’ industry journals and magazines out there. As always, your feedback and comments are welcomed.

Thank you.

KEE LIAN YONG

General Manager

Port Klang Authority

welco

me


SUPPORTING MALAYSIAN TRADE AT HOME AND ABROAD

0 4 P O R T TA L K


APA SPORTS MEET SOUTH AFRICA COURTESY VISIT

FRANCE COURTESY VISIT

MOT VIETNAM VISIT

DELEGATION FROM THE ROYAL AUSTRALIAN NAVY

August 1-5, 2010

Seven PKA staff recently took part in the 10th ASEAN Ports Association (APA) Sports Meet held in Bangkok, Thailand. The members were from Malaysia, Indonesia, Singapore, Brunei, Vietnam and Thailand. Among the sports organised were badminton, football, sepak takraw, ten-pin bowling, mini marathon and golf.

September 2, 2010

Delegates from Transnet, South Africa paid a courtesy visit to PKA management team. Seen in the picture are the Transnet delegates with PKA Assistant General Manager, Capt David Padman.

September 9, 2010

The CMA CGM Malaysia delegation, led by Managing Director Mr. Simon Whitelaw paid a courtesy call to General Manager, Mr. Kee Lian Yong. The objective of the visit was to discuss several matters and to strengthen relationship between both parties. CMA CGM is France’s largest shipping line, and the world’s 3rd-ranked.

September 18, 2010

The Ministry of Transport Vietnam, comprising 16 delegates from port authorities, port project management and consultants, made a courtesy visit to Port Klang. The objective of the visit was to study the development plans, operations, maintenance and environment management programmes in Port Klang.

October 6, 2010

The Australian navy, led by Commander John Stavridis and Commander Anthony Rayner, accompanied by Colonel Stephen Paul, paid a courtesy call to PKA. The visit was in conjunction with the arrival of two Australian navy vessels namely HMAS Success and HMAS Arunta to the port.

P O R T TA L K 0 5


US NAVY COURTESY VISIT

DELEGATES FROM PORT OF MANTA, ECUADOR

PORT SAFETY AUDIT

October 11, 2010

The commander of USS Abraham Lincoln paid a courtesy call to PKA General Manager, Mr Kee Lian Yong. Mr Kee is shown here presenting a memento to the commander.

November 9-10, 2010

YBhg Dato’ Lee Hwa Beng received a courtesy visit by the delegates from Port of Manta, Ecuador (Port Klang’s sister port) led by HE the Ambassador of Ecuador to Malaysia. The objective of the visit was to discuss about strengthening ties between both ports.

September 27, 2010 – October 1, 2010

The annual Port Safety Audit meeting this year was hosted by Port Klang Authority. The courses spanned over 5 days and involved 33 participants from various Malaysian ports.

RUSSIAN NAVY COURTESY VISIT

KEELUNG PORT DELEGATES

August 6, 2010

The Guard Missile Cruiser Moskva, belonging to the Black Sea Fleet of the Russian Federation, paid an official visit to PKA. Seen in the picture is PKA Management led by Assistant General Manager, Capt David Padman, receiving the Russian Navy representatives.

October 7, 2010

Keelung Port and Wilhelmsen Ships Services, comprising 8 delegates and led by Mr Hsu Wen Liang, the Port Harbor Master, paid a courtesy visit to YBhg Dato’ Lee Hwa Beng and his management team. The main purpose of the visit was to foster closer cooperation and to exchange ideas.

New MITI Secretary-General - Datuk Dr Rebecca Fatima Sta Maria

New MITI Deputy Secretary-General - Zulkafli Abdul Karim

0 6 A P P O I N T M E N T S


GATEWAY congratulates Datuk Dr Rebecca Fatima Sta Maria on her recent

appointment as the Secretary-General of the Ministry of International Trade and

Industry (MITI).

Datuk Dr Rebecca started her career as an Administrative and Diplomatic

Service officer on Dec 1, 1981. She subsequently served as Assistant Secretary

of the International Trade Division in MITI from 1981 to 1992. In 2005, she

was appointed as Senior Director, Investment Policy and Manufacturing Service

Division of MITI before assuming the post of Deputy Secretary-General of the

ministry on Sept 3, 2006.

Datuk Dr Rebecca holds a PhD in Human Resource Development from the

University of Georgia, Athens, United States, Masters degree in Counselling from

Universiti Putra Malaysia, and a bachelor’s degree in English Literature from the

University of Malaya.

GATEWAY also congratulates Zulkafli Abdul Karim on his recent appointment as

the Deputy Secretary-General of the Ministry of International Trade and Industry

(MITI). Prior to this, he was the Senior Director of the ministry’s Strategic Planning

Division.

Zulkafli, 56, has a bachelor’s degree in Physics from the University of Malaya. He

joined the Civil Service as an Administrative and Diplomatic Service officer on

Jan 5, 1981.

He has extensive experience in trade and industry management through his

29-year service with MITI, including as First Secretary (Economy), Malaysia’s

Permanent Representative Office in Geneva, and as Malaysian Trade Commissioner

in Cologne.

P O R T U P D AT E 07


TOTAL CONTAINER THROUGHPUT 2008 - 2010 (’000 TEUs) Port Klang has shown an encouraging 1.56 million TEUs increase in throughput from 2008 to 2010, and this year, alongside our business partners and associates, we intend to perform even better.

NUMBER OF SHIP CALLS2008 - 2010 (’000 TEUs)

FREIGHT WEIGHT TONNES 2008 - 2010 (’000 TEUs)

IMPORT

CONTAINER

EXPORT

BREAKBULK LIQUID

TRANSHIPMENT

LIQUIDBULK DRY

DRYBULK GENERAL

OTHERS CONTAINER

4,316

4,745

12,33211,675 5,5884,7946,182

4,2465,354

119,277130,157

8,789

8,574

147,081

5,779 6,384

1,4691,419

1,485

2,100

3801,613

1,4631,682

1,3811,547400

274

11,080

5,437

1,478

1,598

1,516

1,630

1,716 1,7192010

7,310

7,974

8,872

2009

2008

2008 20082009 20092010 2010

A SPLENDIDLY SUCCESSFUL YEARPort Klang has sailed through the economic slump of 2009, and is set to charting new waters of growth, following an impressive 21% increase in total container cargo handled by the port in 2010; over 8.8 million TEUs! In addition, the number of ship calls have also improved, with almost 2000 more ship calls compared to 2009.

The amount of conventional cargo handled has also registered a significant increase, in both bulk (dry and liquid) as well as general cargo categories.


0 8 F O C U S

MALAYSIA’STOPS FORTRADE

Malaysia is one of the most advanced trading nations in the world, having a highly efficient, innovative

and sophisticated economy. With a stable political system and a skilled, multi-dimensional

workforce, Malaysia remains a very desirable trading partner and investment destination

within Southeast Asia.

The government of Malaysia has embarked on a Government Transformation

Programme, as well as an Economic Transformation Programme, in order to gain fully

developed nation status by 2020. Several initiatives and reforms have been planned

to work towards this goal, especially in transportation infrastructure, including ports.

Being Malaysia’s principal port and national load centre, Port Klang is naturally its trading

gateway as well. Port Klang Authority (PKA) General Manager, Kee Lian Yong, elaborates

on the natural advantages and benefits that the port enjoys. “Strategically located in the

world’s busiest sea-lane, the Straits of Malacca, the ready and easy availability of multi-

modal infrastructure links Port Klang with the industrial heart of Malaysia.”

Kee is cognizant of the port’s importance to Malaysian trade. “Port Klang is capable

of handling all kinds of cargo. It also counts some of the most heavily industrialised

regions of Peninsular Malaysia as its hinterland. With large free zones situated within the

port’s boundaries, manufacturers and trading concerns can literally locate themselves

right next to all of the port’s facilities,” he enthuses. “As the port authority and regulator,

we need to work towards strengthening our position in the world and bring everyone

together in line with our mission and vision.”

PKA plays both a regulatory role as well as a trade facilitation role. The challenge of

ensuring that PKA remains balanced between the two roles while increasing cargo

volumes is of the highest priority, according to Kee. He explains, “Aside from ensuring

that the port operators are in compliance and working to the highest levels of efficiency,

and continually improving port facilities and infrastructure, PKA also promulgates

regulations that are more business-friendly, while working with government agencies

such as MIDA and MATRADE in their efforts to increase Malaysia’s profile abroad.”

F O C U S 0 9


KEE LIAN YONGGeneral ManagerPort Klang Authority

1 0 F O C U S


IMPROVING PORT FACILITIES AND EQUIPMENTPort Klang is a supply-driven port, ensuring that there is always excess capacity and capability to handle increased traffic and cargo handled.

• Oversee the two main cargo terminal operators and ensure they have enough equipment such as cranes and infrastructure).• InvestinICTimprovements,intheformofPortNet.

PLANNING TRANSPORTATION INFRASTRUCTURE IMPROVEMENTSReady availability of multi-modal logistical infrastructure is a main driver for trade. While much of the world’s cargo is seaborne, ensuring that the cargo gets to and from the ports that link the world together quickly requires a comprehensive transportation network.

• Negotiate with relevant government authorities ways and means of improving transportation linkages, not only on the high seas but also road and rail transport.• EnsureMASKargohasanofficeinPortKlangtohandleLCLanddelayed cargo, which need to be transported quickly via the airways.


F O C U S 11

STREAMLINING PROCESSES AND ENHANCING COMMUNICATIONSAs an international port, Port Klang’s livelihood depends on attracting more shipping lines and shippers to use the port. Hence, providing high quality and efficient services to the port customers is of paramount importance.

• Reviseprocessandprocedures,reduceredtapeandincreasethroughput.• Simplifytransshipmentdocumentationandrequirements.• Updateexistingregulationstoreduceburden

Making various bureaucratic processes more streamlined is only part of the solution. The other part is in ensuring that the various users of the port (as well as its surrounding facilities) are made aware of the simpler procedures.

• Create a documentation flowchart for Port Klang, along with MITI, the various terminal operators, and the freight forwarders for all port-related processes.• Updateuserguidebasedondocumentationflowcharttobedistributedto whomever calls at the port.

OVERSEEING FREE TRADE ZONE DEVELOPMENTSOver the past few decades, free trade zones have become a significant factor in encouraging investment in manufacturing and trade. Malaysia classifies the free trade zones as Free Commercial Zones (FCZ) for trading activities and Free Industrial Zones (FIZ) for manufacturing activities.

• ManagethePortKlangFreeZonethroughPKAsubsidiary,PortKlangFreeZoneSdnBhd.• Overseetheotherfreezonesattachedtotheterminals.

PKA recognises the need to be more customer-focussed, as well as the need to facilitate trade but also regulate the activities that take place within the free zones.

• Reducebureaucraticprocessesandincreaseaccuracyofdatacollectedbyhavingasingleformprovideinformationacrossseveraldepartments and agencies.• Registerallwarehouseoperators,consolidatorsandotherfreezoneusers.• Createacondusiveandsafeenvironmenttocarryoutallactivitiesandoperations.• Undertakejointinspectionsandotherriskmanagementinitiativeswithrelevantgovernmentagencieswithinthefreetradezones.


1 2 F O C U S

The success o f Por t K lang a s a who le canno t depend on Por t K l ang Au thor i t y (P K A) a lone , P K A Cha i rman Lee Hwa Beng be l i eves . “P K A and te rm ina l opera to rs mus t work toge the r fo r the same goa l s , t o marke t Por t K l ang and cement i t s p l ace amongs t the wor ld ’s bes t and mos t heav i l y used por t s , ” he adds .

Accord ing to Lee , P K A in i t s pos i t i on o f be ing por t l and lo rd , po r t r egu l a to r and t r ade f ac i l i t a to r , has to p l ay the d r i v ing ro l e , pu l l i ng Nor thpor t and Wes tpor t s a s the ma in ca rgo t e rm ina l opera to rs i n tow. “P K A bea rs the heav y respons ib i l i t y o f cha r t i ng the por t ’s way fo r ward in to the fu tu re , and mus t no t a l l ow the t e rm ina l opera to rs to p ropose the i r own agendas , poss ib l y to the de t r imen t o f the por t a s a who le , ” he e l abora tes .

However , Lee a l so s t resses the impor t ance o f the t e rm ina l opera to rs p l ay ing g rea te r ro l es i n the marke t ing o f the por t i n a un i f i ed manner. He con tends tha t the two te rm ina l opera to rs can come

toge the r and p l an and imp lement va r ious i n i t i a t i ves to improve Por t K l ang ’s s t and ing in the wor ld , th rough jo in t po r t p romot iona l ac t i v i t i e s , i nves tmen t i n o the r por t s , and g rea te r respons i veness to cus tomer demands and requ i remen ts .

Lee a l so s t rong ly be l i eves tha t p l aye rs i n the l og i s t i c s i ndus t r y , a s ma jo r s t akeho lde rs i n Por t K l ang , a l so mus t p l ay the i r pa r t . Accord ing to h im , i t i s no t enough to accompany Por t K l ang on these t r ade m iss ions and o the r ove rseas j aun t s . Ra the r , t he i ndus t r y needs to p rov ide K P I s fo r measur ing the RO Is f rom each m iss ion t r i p p l anned , and to fo l l ow up w i th regu l a r r epor t s , so tha t P K A can eva lua te the use fu lness o f the excurs ions .

WORKING TOGETHER

MOVING BEYOND THE PORTUltimately, PKA shoulders the responsibility of ensuring that Port Klang, as Malaysia’s premier port, continues to boast excellent standards of service excellence,andremainscapableofhandlinganever-increasinginfluxoftradeinto the port. While the terminal operators and other business associates within the confines of Port Klang work at improving their own equipment and infrastructure, it is PKA that drives the strategic direction of the port.

However, PKA’s duties do not stop there. Building one of the world’s best ports is paired with promoting Port Klang as such, and usually this is done in conjunction with various international trade missions. At these missions and other similar expeditions, PKA supports the principal parties who drive them, whether government agencies or the business sector.

Lately, PKA has started working closely with its business associates to organise such mission trips on its own initiative. It continues to support other marketing and promotional initiatives by its partners under the Port Klang banner. PKA will go on working ensure that Malaysia remains an attractive trading partner and investment destination.

DATO’ LEE HWA BENGChairmanPort Klang Authority


A S S O C I AT E S 1 3

PRESENTING A UNITED FRONTPromoting Port Klang for Trade

The highly developed transportation infrastructure in Malaysia is a critical component of promoting the country abroad as an ideal trade partner, especially sea transportation. International ports with world-class infrastructure, efficient workforces and high cargo handling capacity are one of Malaysia’s strongest selling points. In addition to serving as import and export points, ports also serve as transshipment hubs. Port Klang, being Malaysia’s most important port, figures greatly in any effort to promote Malaysian trade and industry.

PKA as port landlord plays a pivotal role in readying and equipping Port Klang to become a premier trading gateway in South East Asia, but it also recognises the need to market and promote the port overseas. PKA explores many avenues to heighten the international shipping

industry’s awareness of the port, including going on trade mission trips, speaking at international maritime conferences and establishing sister port relationships.

One of the roles that PKA plays in promoting Malaysia and Port Klang as an ideal trading partner is through providing a platform by which its business associates can strike new partnerships at a global level. In its capacity as port regulator and statutory government body, PKA is able to reach out to other port authorities in the world and arrange for bilaterally profitable trade missions. These missions, organised either by MATRADE or PKA, are a starting point for an increased drive in promoting Malaysian trade and Port Klang.

While PKA does conduct background research before embarking on trade missions, seeking

new trade opportunities, it relies on its business associates, especially SFFLA, to initiate such missions. These trade missions have as their main emphasis the cargo terminals, the PKFZ, and various ancillary facilities. When embarking on them, whether jointly organised by MATRADE or on its own initiative, PKA is not Port Klang’s lone standard-bearer. Usually accompanying PKA’s senior management officials are high-level representatives from the terminal operators, PKFZ, as well as the major logistics players in the port. While these disparate parties have different reasons for participating in these efforts, together they present a single face of Port Klang.

So what do the various players who go along on these trips think about PKA’s involvement in the trade missions? Gateway speaks to a few of them to find out.

1 4 A S S O C I AT E S


Highlighting Industrial DevelopmentIn the decades since its formation, Malaysia has moved from being a primarily agriculture-based economy exporting commodities and raw materials to being an industrialised economy trading in electrical and electronic goods. Rubber and tin, once the mainstay of Malaysia’s trade with the world, have been replaced with air conditioners and microprocessors. Successive governments have paved the way for Malaysia to move forwards developing high-end industrial capabilities and capacity, spearheaded by the Malaysian Industrial (now Investment) Development Authority (MIDA).

MIDA plays an important role in ensuring significant increases in both foreign and domestic investments, especially from the private sector, under the 10th Malaysia Plan. As such, the government has provided MIDA with a great deal of authority, designating it the central investment promotion agency for most of the manufacturing and services sectors. It will also undergo corporatisation to provide it additional flexibility and competitiveness.

The work of MIDA in enhancing investment towards the industrial development of Malaysia is inextricably linked with promoting Malaysia as a desirable trading partner to the world. While MIDA works on continuously improving Malaysia’s knowledge-based industries and promoting it as an investor-friendly country, there is a need for Malaysia to also be promoted globally as both easily accessible as well as a good market for both raw materials as well as intermediate goods. For this, MIDA works closely with MATRADE to market Malaysian industry and trade in the international arena.

For more information on MIDA and its services, call +603-2267-3633 or email to [email protected]. Or you can go to their website at http://www.mida.gov.my.

Expanding Trading HorizonsThe Malaysia External Trade Development Corporation (MATRADE) has a vision of turning Malaysia into a premier exporting nation as part of its mission of developing and promoting Malaysia’s exports regionally as well as globally. Amongst other functions, MATRADE represents Malaysia in international forums where any matter relating to trade is brought up. As part of its activities, therefore, MATRADE embarks on trade missions to both new and existing markets, in order to further develop trading relationships, as well as to deepen current bilateral ties.

There are many factors that make Malaysia an ideal trading partner, many of which also make it a desirable investment option. Malaysia has a large and stable population that is growing more affluent, making it a good market for many goods. Malaysia also has a large number of Free Zones, as well as Free Trade Agreements with many countries, making it one of the more liberal economies within the Asian region. And with the myriad chambers of commerce and trade associations, as well as the assistance of government agencies such as MATRADE, businesses will find doing business with and in Malaysia a breeze.

For more information on MATRADE and its services, call +603-6207-7077 or email to [email protected]. Alternatively, you may also visit their website at http://www.matrade.gov.my.


ALVIN CHUA SENG WAHActing PresidentSelangor Freight Forwarders and Logistics Association (SFFLA)

A S S O C I AT E S 1 5

Freight Forwarders Can Play a Greater RolePort Klang is in a very advantageous and enviable position currently. Over the decades, Port Klang has transformed from a feeder port to becoming a major transshipment hub in the SEA region. Port infrastructure and superstructure improvements have made Port Klang an attractive option for major shipping lines.

The excellent shipside performance and productivity rates, backed by state-of-the-art cargo handling equipment, well-planned operations and planning, have propelled Port Klang into the ranks of the major container terminals in the world. Today Port Klang is highly visible and is recognised globally. Port Klang has done well to attract many main and feeder lines over the years through various strategies including monetary incentives such as volume rebates and so forth.

However, alongside PKA and the terminal operators, SFFLA can do even more to enhance Port Klang’s standing given the right opportunities. Many freight forwarders have the perception that only the shipping lines are important to Port Klang, and that they themselves are hardly given any regard at all. I encourage Port Klang to recognise our vital role in creating and building cargo mass at the Port. If we are empowered and enabled as ‘Cargo Ambassadors’, we can assist Port Klang to build sustainable cargo volumes through the terminals. Our members can promote and sell Port Klang as a logistics hub for South East Asia, and promote our facilities and services as a multi-country consolidation and distribution centre.

Together with the terminal operators, PKA can create an innovative program to enhance our capabilities and competitiveness. They can contribute to foster and upgrade logistics infrastructure and linkages, provide incentives to help kick-start freight forwarders to be global consolidators and contribute to human capital development in the logistics industry. In this manner, freight forwarders can work as an integral part of Port Klang and contribute to its continuing success.

It is in this spirit of togetherness that SFFLA follows PKA to the trade missions, and also because PKA has high visibility and recognition. Our members have the opportunity to promote our logistics business, look for reliable partners and form smart partnerships for trade facilitation. This is a good avenue to promote our members’ business at the international level, and is much faster than going it alone.

I think these international trade missions are good initiatives and should be continued. The symbiotic relationship between Port Klang and SFFLA necessitates the need to collaborate for mutual benefit. The port provides the infrastructure and facilities while we as ‘cargo ambassadors” market the port and facilitate trade through it.

Generally, these international trade missions have met our objectives. While some missions have yielded useful contacts, we have also been able to establish a better relationship with them and get to know them and their business better. Both parties have become more confident with each other. Some of our members have business enquiries already, while others have formed partnerships with their corresponding partners. Overall, these trade missions have yielded positive results and assisted our members in securing network partners across the region and expand our business outreach.

1 6 A S S O C I AT E S

Reaching Out and Expanding Our HorizonsPKA provides an excellent platform through these trade missions to meet up with many fellow businessmen, get to understand their culture better, figure out how to grow together with them in their business relationships, learn more about foreign port capabilities and bring those learnings back to Malaysia.

It is very good of PKA to take these initiatives and give the various logistics companies the chance to be exposed in the global environment. Because going under the PKA banner increases recognition and credibility, there is an increased participation from the foreign side simply due to PKA’s presence, which very successfully creates conducive business environments.

These trips were a resounding success. Our objectives for going were met. Firstly, it was an eye-opener, allowing us to prepare better for future trade missions. Secondly, it increased our profile and widened our experience by going out there rather than just being at the port. Finally, these missions allowed us to explore the many opportunities out there.

Congratulations to PKA for taking the initiative, and I highly encourage the industry to be aligned with the government vision of reaching out and not be constrained to the port area. PKA has done tremendously well; it’s never easy to plan and prepare for these trips and yet PKA have done so many of them. I am very happy that these trips attract higher local participation each time, and hope more of PKA’s business partners and associates will take the time to attend in the future.

Showcasing Malaysia’s Halal Hub ConceptI have been on a trade mission organized by MATRADE to the Ports of Marseilles (France) and Luka Koper (Slovenia) simultaneously. I see the purposes of the trade mission as generally being given the opportunity to share information, promote the logistics services, become more global, foster greater networking, and boost com-petitiveness, which is quite crucial to enhance the connectivity of Port Klang and the growth of the national maritime industry. For PKFZ, we participate in this trade mission to promote the facilities at PKFZ to foreign investors. We also want to promote the halal hub concept, where both the foreign ports could be our distribution hubs to the Muslim market while Port Klang would be the procurement hub. We have already signed an MoU with Marseilles, so we are following through to promote the Halal Hub2Hub (HHH) concept in a more aggressive way, especially in terms of bilateral trade. We at PKFZ mutually support Port Klang, through promoting more export-oriented trade to maintain and sustain port growth by increasing the volume of cargoes. These objectives are being met; we have 72 tenants as of Nov 2010 with over RM1.3 billion’s worth of capital investment and a total workforce of about 2,000. We are seeing growth in the level of activities and awareness of the PKFZ at an encouraging pace.

GAN SEONG KAHAssistant General Manager of Business Development

PKFZ Sdn Bhd

BENJAMIN KENGCouncil MemberFederation of Malaysian Freight Forwarders (FMFF)


I N S I D E P K A 17

As well as being Port Klang’s landlord and regulator, Port Klang Authority (PKA) is also a trade facilitator. It not only provides a platform & facilities for trade, it also embarks on trade missions, supporting both government agencies and its business partners. One of the most important factors to consider when PKA sets off on these missions is to ensure that a unified and consistent image is projected. This gives maritime industry players confidence that Port Klang is well-managed and regulated.

PKA recognises the importance of projecting the correct image, which is why it has set up the Corporate Communications department, which is run by a manager reporting directly to the GM. The Corporate Communications department has to transcend the normal role of such departments. It runs port promotional activities, prepares content for trade missions, organises reciprocal trade visits, and coordinates dialogue sessions, all the while performing its day-to-day duties (see boxed article).

As part of the Corporate Communications Plan 2010, the department engaged in activities aimed at creating awareness and support for the strategic and business activities of Port Klang and PKA. Corporate Communications aspires to reinforce PKA’s stand as a port authority and port regulator that is pro-active and strong. It serves as contact point for businesses wishing to know more about Port Klang, or to do business within the port.

Roles and Functions• Writes press releases, articles, reports, presentations etc for publication in the mass media.

• Contact point and information hub to journalists and the outside world.

• Content developer and manager for the PKA website.

• Manages PKA image; co-ordinates between the PR agency and the General Manager in creating and maintaining the image of PKA.

• Liaises with stakeholders including terminal operators, freight forwarders and government agencies on various joint activities.

• Briefs and supervises the production of facilities literature and advertising, co-ordinates with printers, film producers, and

creative agencies to ensure adherence to the standards of the Authority and its identity.

• Enhances internal communications, working closely with HR to inculcate the PKA work culture and two-way communication

within PKA.


BEYOND PUBLIC RELATIONS

For more information, call +603-3168-8211 or

email [email protected]


1 8 AT A G L A N C E

CREATING TRADING PLATFORMSPort Klang is an internationally recognised logistics hub thanks to its strategic location, world-class infrastructure and efficient workforce. Port Klang Authority (PKA) recognises the significance and contribution it can bring to the efforts in Malaysian trade promotional activities. Therefore, along with its business partners and associates, PKA has embarked on trade missions with the primary objectives of forming new partnerships and promoting the port internationally. So successful have these visits been that reciprocal visits are often the result! In addition, PKA on its own initiative seeks out world ports with which it can become sister ports, providing logistics players at both ends with substantial benefits. Here is a sample of the various trade outreach and reciprocal visit activities carried out in 2010.

August 12-13, 2010

Malaysian delegates led by PKA

General Manager Mr Kee Lian Yong,

visited the Guangdong Association of

Garment and Article Industry. During

the visit, they took the opportunity

to explore the Kapok International

Fashion City, one of the biggest

fashion wholesaler centres in China.

September 19-21, 2010

MATRADE Deputy Chief Executive

Dato’ Mohamad Kamarudin Hassan

led a high-powered delegation

of logistics companies to host a

joint seminar on Malaysia-Slovenia

Business Opportunities in the

Logistics Sector. The seminar was

organised by MATRADE, CCIS, JAPTI

and Port of Koper.

PKA Sister PortsPort Autonome De Marseille, France since year 2001

Ningbo Port Group Limited of the People’s Republic of China since year 2004

Port of Dalian Authority, P.R. China since year 2005

Port of Manta Authority, Ecuador since year 2006

Port of Koper – Luka Koper d.d., Slovenia since year 2006

Kenya Ports Authority since year 2006

Incheon Port Authority since year 2007

The National Ports Administration of Uruguay (ANP) since year 2007

AT A G L A N C E 1 9


October 10-12, 2010

PKA representatives, in a joint trade promotion with sister port Luka Koper,

briefing Vietnamese officials on Port Klang and the benefits of collaboration

with the sister ports.

November 1-3, 2010

Representatives from the Port of Belawan in Medan, under the banner

of Indonesian Forwarders Association, paying a return visit to PKA to

formalise partnership and agreements made when PKA went over to

Medan earlier in the year.

September 22-25, 2010

PKA General Manager Kee Lian Yong with Dirk Bequart from Port of

Marseilles, after signing a memorandum of understanding.

November 9-11, 2010

PKA Chairman YBhg Dato’ Lee Hwa Beng and other PKA officials entertain

an official delegation from the Port of Manta, Ecuador, including the

Ambassador of Ecuador to Malaysia, HE Lourdes Puma Puma.


2 0 WAT E R WAY S

In the past three decades, the region’s – and indeed the world’s – economy has weathered three major global economic and financial crisis from the 1980’s through to the financial crunch of 2009. Malaysia was no exception, as evidenced by a decline in total imports (from RM520 billion to RM435 billion) and exports (from RM663 billion to RM553 billion) as compared with 2008. In addition, our GDP shrunk by 1.7% in 2009 compared to a 4.6% growth in 2008, and per capita income dropped from RM25,800 to RM 23,400.

Global GDP, which declined by 2.2% in 2009,

was projected to grow 2.7% in 2010 and 3.2

percent in 2011. World trade volumes, which

fell by a staggering 14.4% in 2009, were

predicted to expand by 4.3% and 6.2% for

2010 and 2011 respectively, according to

PKA’s Annual Report 2009.

Developing countries were expected to make

PORTS: GATEWAYS TO NATIONAL ECONOMIC SUSTAINABILITY

a relatively robust recovery, with 5.2% GDP

growth in 2010 and 5.8% in 2011 – up from

1.2% in 2009. First World countries, which

declined by 3.3% in 2009, were expected to

grow less quickly – by 1.8% and 2.3% over

the same periods.

Performance across the developing world had

been varied. The recession had been severe

GLOBAL AND REGIONAL GDP REPORT AND FORECASTin Europe and Central Asia, while, in contrast,

growth continued to be relatively strong in

East Asia and the Pacific; aptly dubbed the

“Tiger Economies”**.

**INSEAD eLab Report 2010.

INSEAD eLab is a research centre to one

of the world’s leading and largest graduate

business schools.

WAT E R WAY S 2 1


AN OPTIMISTIC OUTLOOKDespite this, Malaysia has staged a remarkable comeback. The International Monetary Fund

(IMF)’s World Economic Outlook October 2010 survey estimated a real GDP growth rate of

6.7% in 2010, and a forecasted growth of 5.3% this year. Other countries in the world are also

expected to recover from the global recession (see sidebar).

It is the ports, logistics and maritime industries, forming a sizable sector of our economy, that

were highly regarded as ‘the gateway to our nation’s economic rebound’. Ports support regional

economic development, specifically in terms of improving investment and foreign trade. It can be

said that movement of trade will not be possible without the existence of ports making them a key

component in Malaysia’s economy. This being so, both the federal government as well as the Port

Klang Authority (PKA) have made port development a core part of their overall strategies.

FOCUSED FEDERAL GOVERNMENT INVESTMENTSThe Economic Transformation Programme (ETP), an initiative aimed at transforming Malaysia

into a high-income nation by 2020, highlighted the logistics industry in one of its twelve National

Key Economic Activities (NKEAs).

In the 10th Malaysian Plan 2011 – 2015, the Malaysian government has allocated RM4.6 Billion

for port infrastructure development which will be shared by Penang, Port Klang and the Port

of Tanjung Pelepas. This is in addition to whatever monies the private terminal operators have

earmarked for development of their own sections of the ports.

PKA INITIATIVESMeanwhile, PKA and the terminal operators had been taking stock of the current scenario and

their future strategic plans during 2009. Some of the plans included:

• Analysing and reviewing the port’s target markets.

• Upgrading of facilities and equipment through maintenance and refurbishment to ensure the

port would be ready for the upsurge when the economy recovered.

• Retraining and movement of workforce, which produced an increase in work efficiency and

productivity. There was no large-scale retrenchment or VSS during that time.

• Keeping within compass with all its expansion projects; however, it has started planning for

the short term, intermediate and long-term future of the port.

Currently, PKA has commenced on the Port Klang Development Master Plan study 2010 – 2030.

The objectives of the study are to analyse the current port capacity and capabilities as well as

to plan for future expansion. In 2009, PKA embarked on Aggressive/Proactive and Strategic

marketing efforts to lure more business and trade to Port Klang and capture new markets.

PARTNERSHIPS PAVING THE WAY FOR SUCCESSTogether with its business associates and

logistics partners – terminal operators, freight

forwarders, hauliers, shipping agents and other

related members of Port Klang community –

PKA took this time of slow movement to review

the port’s current policies, operational practices

and procedures, to see what improvements

could made. Although the economy is in a

much better position today than it was in

2009, these reviews will continue. If ports are

the gateway to national and global economic

recovery, then surely they will also prove to be

engines for increased economic growth.

KEYS TO BUSINESS SUSTAINABILITY The volume handled in Port Klang has

spurred the entire logistics industry in

Port Klang, which eventually led to the

swift revival of the nation’s economy.

The efficiency of the entire logistics

chain supported by cost effective port

operations has assisted in increased

growth for our domestic importers and

exporters.

The port operations and pricing

mechanism are very competitive,

supporting cost effective transshipment

activities for this region.


2 2 A B O U T TO W N

PULAU KETAM

Things to DoEat – Pulau Ketam’s speciality is seafood, and there are a few restaurants that

are worth your while trying out.

Ecotourism – If you would like to experience the ‘natural’ side of Pulau

Ketam, then aside from fishing, you can go jungle trekking, fishing and bird

watching. Homestay facilities are available to make your experience that

much more authentic.

Places of interest – In addition to the temples that dot the village landscapes,

there is also the Kongsi House, which stores the history of Pulau Ketam, as

well as a fishing boat factory and a fish farm.

About Pulau KetamA small island located 30 nautical miles off the coast of Port Klang, Pulau

Ketam, (Crab Island in English), was founded circa 1880. The residents are

mostly ethnic Chinese of Teochew and Hokkien origin. Aside from the two

dialects, many residents also speak Mandarin. The island is a quiet, peaceful,

tranquil spot that has been mainly left untouched by time and the frenetic

pace of mainland lifestyle.

How to Get ThereThe island is easily accessible from the Port Klang passenger jetty by ferry. The ferry ride takes anywhere from 45 minutes to 1 hour, and in relatively air-conditioned comfort.

Getting AroundThere are no cars in Pulau Ketam, only bicycles, some of which are motorised. Bicycles can be rented for RM5/day, and the more adventurous can opt to walk around the island.

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 NORTHPORT WESTPORTS TOTAL

BERTHS

NUMBER OF BERTHS 12 11 23

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

DRAFT (METRES) 11.0 - 15.0 16 11 - 16

STORAGE

ANNUAL CAPACITY (MILL TEU) 5 6 11

REEFER POINTS 751 1,236 1,987

EQUIPMENT

QUAY CRANES 26 34 60

RUBBER TYRED GANTRY CRANES 57 92 149

STRADDLE CARRIERS 67 - 67

PRIME MOVERS 158 273 431

TRAILERS 112 277 389

HIGH STACKERS 8 25 33

LIQUID BULK NORTHPORT WESTPORTS TOTAL

BERTHS


LENGTH (METRES) 779 1,305 2,084

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

DRY BULK NORTHPORT WESTPORTS TOTAL

BERTHS


LENGTH (METRES) 426 850 1,276

DRAFT (METRES) 12 14 - 15 12 - 15

STORAGE

COVERED STORAGE (SQ. METRES) 36,623 11,630 48,253

OPEN STORAGE (SQ. METRES) 17,520 - 17,520

BREAK BULK NORTHPORT WESTPORTS TOTAL

BERTHS


LENGTH (METRES) 1,286 1,000 2,286

DRAFT (METRES) 6.0 - 12.5 15 6.0 - 15

STORAGE

WAREHOUSES (SQ. METRES) 47,169 33,740 80,909

OPEN STORAGE (SQ. METRES) 57,805 80,357 138,162

On 7 October 2010, Port Klang Authority (PKA) made a charitable

contribution in the form of duit raya and some gifts to the orphans

from Al-Munirah Orphanage. The contribution was presented by PKA

Chairman Dato’ Lee Hwa Beng and PKA General Manager Kee Lian

Yong.

The charitable event was held in conjunction with PKA’s annual Hari

Raya Aidilfitri ‘open house’ gathering at the Port Klang Free Zone (PKFZ)

Exhibition Centre. The gathering was well-attended by VIPs and senior

management from PKA, PKFZ, terminal operators, other government

agencies and PKA associates. Also in attendance was Dato’ Roslan bin

Yusuf, the director of Royal Selangor Customs.

In his welcome speech, Dato’ Lee highlighted some of the key

improvements in terms of Port Klang’s and PKFZ’s performance.

According to Dato’ Lee, Port Klang had seen a 27% increase in volume

as of August 2010, compared with the same period in 2009. PKFZ

was expected to double its operating surplus to over RM10 million in

2010. He attributed these successes to the support and cooperation

of “every single entity of our Port Klang community”.

A GIFT FOR ORPHANS

As Malaysia’s principal port, Port Klang is well situated to handle your every need, be it in manufacturing, trade or logistics. Strategically positioned within the busiest sea-lane in the world, Port Klang has three state-of-the-art terminals capable of processing any type of cargo. Free zones and trade facilitation services means your ease of doing business. With an excellent multi-modal transportation network, Port Klang is linked to the entire nation. And with links to 600 ports in over 180 countries, Port Klang is also excellently connected globally. PORT KLANG, enabling you to explore whole new horizons of trading opportunities.

Reaching New Horizons

Gateway January 2011

Documents

Transcript of Gateway January 2011