Gateway

SPECIAL E DITION 2009

P

SHAPING MALAYSIA’S

REMIER PORT Seizing the potential

Inside this issue 04 Focus

PORT KLANG - MALAYSIA’S PREMIER PORT PKA’s Chairman & new General Manager lay down the ground rules for pushing Port Klang to a higher level of performance.

Published by

10 Northport

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

THE AWARD WINNING PORT Northport is Malaysia’s largest multi-purpose port operator & one of the most important hub ports in the region.

12 Westports

15 YEARS OF EXCELLENCE An outstanding Malaysian achievement, having moved 30 million boxes and saved billions for the country in the last 15 years.

Management Team

14 Port Klang Free Zone

KEE LIAN YONG General Manager

YOUR SMART INVESTMENT

Loaded with a unique bundle of competitive advantages for manufacturing, trading and logistic activities.

CAPT DAVID RAJAN PADMAN Assistant General Manager (Regulatory) IR A MURYTHARAN Assistant General Manager (Engineering)

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TN HAJI SALIHUDDIN B YUSSUF Assistant General Manager (Administration)

Associates

FORWARDING INTO THE FUTURE Selangor Freight Forwarders & Logistics Association prepares its members through training & education.

AZURA BT MUHAMAD Assistant General Manager (Corporate)

18 Perspectives

RESPECTED, RECOGNISED & WORLD-CLASS In Port Klang, the Royal Malaysian Customs is not only present but playing an active role to help enhance the reputation of Malaysia’s premier port.

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.

News from the local front.

International port and maritime industry updates.

Upcoming events for the industry.

All care is exercised to ensure that facts presented herein are correct. PKA and its editorial and design agencies shall not be held liable for any loss, action or damages arising from the content published in GATEWAY. Copyright © Port Klang Authority 2009

03 Port Talk

05 Across the Seas 23 Radar

More than a century ago, Sir Frank Swettenham envisaged the emergence of Port Klang as a robust centre for trade and commerce. That vision has since been amply realised with Port Klang ranking as one of the world’s top ports today, an emblem of pride for Malaysia.

Indeed, Port Klang bustles with all the excitement and dynamism of a major port. Yet, there is still a vast ocean of business and economic potential to be realised. Determined to steer Port Klang to a higher level of performance, we at Port Klang Authority are confident of success with the support and cooperation of all our stakeholders.

This spirit of collaboration is the essence of our way forward. It is reflected by the new GATEWAY that we proudly bring you. Up until a year ago, the publication took the form of a newsletter. Recently, we decided it was time to upgrade it into a magazine format to allow discussions of pertinent industry issues, trends and developments, while giving voice to the policy makers, statutory bodies and private sector players who collectively define Port Klang.

I am happy to say that our maiden effort met with enthusiastic response. As a result, we are able to present you with a variety of stories that, together, reintroduce Port Klang as she stands today – one world-class port constituted by several outstanding components in their own right, namely, Northport, Westports and Port Klang Free Zone. We are also grateful to Selangor Freight Forwarders & Logistics Association and the Customs Department of Selangor for speaking on their roles vis-à-vis the continued growth and development of Port Klang.

On behalf of PKA, I now invite you to peruse the maiden magazine issue of GATEWAY. We hope you will not only enjoy the publication but also feel free to give us your feedback and suggestions for improvement.

Thank you.

KEE LIAN YONG General Manager Port Klang Authority

welcome

A BRAND NEW GATEWAY

04

FOCUS

HISTORY OF GROWTH On July 1, 1963, the administration of Port Klang was transferred from MRA to Port Klang Authority (PKA), a statutory corporation established for this purpose. Growing with the nation, the port recorded tremendous traffic volume increases that necessitated the expansion of port facilities and services.

In August 1973, Port Klang joined the ranks of container ports with the arrival of its first cellular vessel, the Tokyo Bay. Port Klang (formerly known as Port Swettenham) came into being at the dawn of the 20th century as a gateway for exporting rubber and tin from the Malayan peninsula to the world. Port Klang – then owned and operated by the Malayan Railway Administration (MRA) – was already imbued with a host of distinct geo-economic advantages that would spur its rapid growth which, in turn, necessitated the progressive addition of new berths and other facilities.

In tandem with national policy, PKA subsequently facilitated the privatisation of certain operational facilities and port services to three principal parties – Klang Container Terminal, Klang Port Management Sdn Bhd and Kelang Multi Terminal Sdn Bhd. As landlord, regulator and trade facilitator, PKA focussed on port planning and development, regulatory oversight of privatised facilities,

trade facilitation and asset management.

The Authority also sought to promote port growth through the establishment of proper performance standards, and safety and pricing policies.

In response to changing times, PKA also expanded its services. These included handling the declaration of dangerous goods passing through Port Klang and the implementation of a highly sophisticated vessel traffic management system to ensure greater navigational safety.

Under PKA, Port Klang has demonstrated its success by becoming the national load centre, accounting for more than 49.3 per cent of the total trade handled by selected ports in the peninsula last year. Port Klang is now vigorously evolving into a regional cargo trans-shipment hub, defying earlier predictions that such a role was totally inconceivable.

STRATEGIC LOCATION Port Klang is located on the West Coast of Peninsular Malaysia, about 40 km from Kuala Lumpur. It is ideally placed to capitalise on domestic and international markets. Port Klang enjoys excellent access to a strong indigenous cargo base, thanks to its close proximity to the commercial and industrial hub of Klang Valley. This is an outstanding advantage that attracts Main Line Operators to call on Port Klang. Its ideal geographical location makes it the first port of call for ships on the eastbound leg and the last port of call on the westbound leg of the Far East-Europe trade route.

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PORT KLANG

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Malaysia’s Premier World-class Port Port Klang is today ranked as one of the top 15 container ports in the world, connecting Malaysia with more than 500 ports in over 120 countries across the globe. The latest technology and facilities at Port Klang are supply driven and are designed to meet the growth and demands of the shipping industry.

TWIN GATEWAYS

Services at a Glance

Port Klang features two port terminals which are privately owned and managed, and well-served by excellent infrastructure.

Northport is Malaysia’s largest multi-purpose port operator, handling 60% of the nation’s trade. It is also Malaysia’s pioneer port, bringing with it 103 years of rich heritage in port dynamics. (see page 10 for more information)

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Container Conventional Liquid Bulk Dry Bulk Free Commercial Zone Distribution Parks Dangerous Goods Passenger Terminal Visitor Terminal VTMS General Services One Stop Agency

Westports’ conventional terminal began operations in 1994, and now ranks among the world’s top 10 ports in term of state-of-the-art infrastructure and facilities. (see page 12 for more information)

PORT KLANG FREE ZONE Spanning 1,000 acres, Port Klang Free Zone (PKFZ) is a mixed development comprising manufacturing, trading and logistic activities, complemented by amenities designed to facilitate the growth of regional distribution centres or international procurement centres. (see page 14 for more information)

BRIGHT PROSPECTS Given its propensity for growth, there is no doubt that Port Klang will increasingly figure as an important port in the development of trade in the region, spurred by the opportunities arising from changing times and tides of trading regimes and shipping patterns.

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06

FOCUS

RISING TO THE

CHALLENGE

KEE LIAN YONG

General Manager Port Klang Authority

PKA General Manager, Kee Lian Yong, speaks on his plans to drive Port Klang to an even higher level of performance.

Much of Port Klang’s success is attributable to the role and contributions of Port Klang Authority (PKA), the regulatory body responsible for overseeing, managing and stimulating port growth and development.

With a distinguished track record spanning over five decades, it now sets sights on the future with the hope of taking Port Klang to a whole new level of performance as Malaysia’s premier world-class port.

The task of realising these lofty aspirations is entrusted to Kee Lian Yong, recently appointed to helm PKA as its General Manager. Armed with over 25 years of experience in the private and corporate sector, he envisions a new PKA that is even more efficient, effective and responsive to handle the plenitude of commercial opportunities and challenges that will inevitably emerge.

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In a little over three months since taking office, Kee has been busy setting the wheels of change in motion. GATEWAY speaks to the man on what the industry and PKA insiders can expect.

Q: What were your views about PKA before joining?

KEE: Managing something as massive as Port Klang cannot be easy.

So, given its monumental task, PKA has accomplished quite a lot. It has helped turn Port Klang into one of the world’s top 15 ports. This is no small achievement and it has a tremendous significance and impact on Malaysian trade and industry. However, I have always felt that PKA could easily become much better. Any project, whether private or government, can rise to even higher standards of performance if the people who handle it are prepared to work with commitment, dedication and integrity.

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K E E P I N G U P W ITH K E E

“Port Klang has been ranked the 15th best container port in the world for two years running now.”

Q: How did you feel about moving from the private to the government sector?

KEE: I enjoy taking on new and different challenges. So, I regard my role in enhancing PKA’s performance as a personal challenge as well as an opportunity to put my years of corporate experience to good use.

In my view, while there are differences between the two sectors, in some respects, they are not very different. For instance, private sector companies have to be revenue and profit-driven. However, statutory bodies have equally real and measurable performance indices to meet. In PKA’s case, we have to be more dynamic and service-oriented. I believe I can help enhance our performance management culture, incorporating good customer service, executional efficiency and effectiveness, resultorientation and so on. These operational parameters determine every organisation’s role and relevance.

• Kee is a qualified accountant and a member of Chartered & Certified Accountants, UK and Malaysia Institute of Accountants.

• In 25 years, he has held senior corporate management positions in 10 public-listed companies in Malaysia and London.

• Kee has worked in diverse industries, including property development, construction, engineering, education and manufacturing.

•

His philosophy in life is “Conscience incorporates two aspects; good intention and good commitment. And only then, can you truly contribute to society,”.

Q: Clearly, business is burgeoning in Port Klang. How will PKA’s role change or improve in order to cope?

KEE: Port Klang surges with business and commercial activity. As such, it is important that PKA strengthens its role as a port authority and regulator.

We need to achieve a good balance of commercial considerations and regulatory aspects in order to safeguard the interests of the public and industry. We will also actively moderate between service providers and industry players. Finally, we also have to be mindful of providing adequate port facilities for all players, both big or small.

Q: Are you facing any major challenges?

KEE: Not really. However, there are issues to be resolved - for example, inter-terminal competition and competition between regional and international ports. In order to be regarded as the preferred port of call, we need to keep up with the dynamically changing demands of the shipping lines and improve ourselves continuously.

Q: What’s the outlook for Port Klang?

KEE: Port Klang has been ranked the 15th best container port in the world. We have also been experiencing double-digit growth, at an average of 10% growth annually. In 2008, we recorded a volume increase to 8 million TEU. We expect our volume growth to continue in 2009 even though we may experience a slight decline in percentage terms, due to impact of the global financial crisis. We are poised and eager to accelerate our growth again when the economy recovers.

Q: What pro-growth measures has PKA set for Port Klang?

KEE: At the local level, we are looking into various measure to boost our efficiency, tonnage capacity and productivity. Concurrently, we are working with the government to streamline the country’s entire port

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FOCUS

The success of Port Klang Authority (PKA) is heavily attributed to the expertise and hard-work of its employees.

industry with the view to strengthening our international position. We have duly set our KPIs. Q: What are some of the key thrusts required to enable Port Klang to achieve its full potential?

KEE: PKA has to initiate different ways to develop Port Klang with the port terminal operators. This will enhance and optimise the usage of port facilities. We also have to capitalise on Port Klang’s strengths. Of course, another important aspect is strategic and pro-active marketing and port promotions. In addition to that, another key element would be to reposition PKFZ. Q: As the General Manager of PKA, how are you playing a role in repositioning the Port Klang Free Zone?

KEE: I have been appointed as a member of the Task Force which the government set up to develop a moving forward plan for PKFZ. With my years of corporate and crisis management experience, I intend to play an active role in assisting in the financial restructuring aspects of PKFZ

Kee and his top management team L-R: Azura Bt Muhamad, Capt David Rajan Padman, Kee Lian Yong, Tn Haji Salihuddin B Yussuf, Ir A Murytharan

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and re-examining its business model. Besides that, I will be engaging in dialogues with the various stakeholders, like government agencies and investors.

Q: It’s only been 3 months plus since you took over the helm of PKA. How has the experience been so far?

KEE: My job is to help to restore PKA’s focus and priorities to making Port Klang Malaysia’s premier world class port. I’m happy to say that the PKA Board have been fully supportive. At the same time, the management and staff clearly take their roles seriously. Our efforts are facilitated by the very good working relationship that PKA enjoys with all stakeholders. As such, we have been able to hold dialogues, meetings, discussions and networking sessions with all relevant quarters - government ministries, industry organisations, terminal operators and even their customers.

This is an excellent foundation for PKA to continuously review our position and utilise our resources to maximum effect in planning ahead for the whole port industry in Malaysia.

FOCUS

09

GOOD STEWARDSHIP PKA moving forward for better governance, accountability and responsibility.

DATO’ LEE HWA BENG Chairman Port Klang Authority

The controversy surrounding PKFZ continues to rage in the public and political domains. Understandably, it has affected public perception of PKA and impeded business opportunities to some extent. In fact, the perception among some people is that PKA is so embroiled with PKFZ that it is neglecting its role as a port authority for Port Klang as a whole.

organisation. At the Board level, we are also ensuring the range of skills and understanding to be able to deal with various business issues.

We must also have the ability to review and challenge management performance. Independent verification, timely and balanced disclosure and enforcement measures will be implemented procedurally.”

PKA Chairman Dato’ Lee Hwa Beng understands the concerns but goes on to say that Port Klang Authority is committed to carrying out its primary duties and striving to make Port Klang the premier world-class port of Malaysia. He says: “Controversial issues are being addressed and attended to separately, even more so with the establishment of the Government task force that has been entrusted to handle the matter.”

Dato’ Lee is aware that this calls for a review of existing processes and the institution of new checks and balances. But the determination is resolute. The assurance of good stewardship is central to all of PKA’s endeavours as it continues to play its role as port authority, regulator and trade facilitator within the industry regionally and internationally.

Dato’ Lee remarks that, as part of its restoration, PKFZ needs to be more commercially focused and customer-oriented in order to better cater to changing market needs. However, he adds the PKFZ ordeal has provided valuable lessons in the need for transparency and uncompromised compliance with all prevailing guidelines, rules and regulations.

He says: “Integrity is sacrosanct, especially when you are a regulatory body, like PKA. We have to be more attentive to, and careful with, the planning and implementation of any project or venture under our purview. We will be held accountable for the outcome.”

In line with this, the PKA Board has instituted various measures to ensure good corporate governance in PKA. Dato’ Lee remarks: “We fully welcome the mechanisms that are designed to enhance PKA’s economic efficiency, stakeholders’ welfare and restore public confidence in our

Standing L-R: Y.Bhg. Datuk M. Rajasingam, Tarmalingam A/L Karuppiah, Mohamad Nor Bin Taib, Y.Bhg. Dato’ Hj. Ahmad Bhari Bin Abd Rahman.

Seated L-R: Y.Bhg. Datuk Haji Shuib Bin Md. Yusop, Y.Bhg. Dato’ Lee Hwa Beng, Kee Lian Yong.

Absentees: Abdullah Yusuff Bin Basiron, Tan Boon San @ Tan Hock Guan.

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THE AWARD WINNING PORT It’s Five More Feathers In The Cap. Northport is Malaysia’s largest multipurpose port operator. Linked to over 300 ports worldwide, it is currently one of the most important hub ports in the region.

On the pulse of global trade, Northport strives to meet shippers’ demands for maximum returns through the provision of extensive, sophisticated facilities. The combined resources of its container and conventional terminals are richly complemented by extensive sea, air, road and rail infrastructure that enable seamless

trade connections throughout the country and the region.

Northport’s enlarged capacity to supply both essential and value-added port services and facilities greatly enhances its image as the choice of some of the world’s largest shipping lines. This is a reputation that has, time and again, been re-affirmed by coveted local and international awards. The accolades for Northport continue to resound with three recent wins, articulating the admiration and approval of stakeholders.

2007 • Technology Business Review Excellence Awards • ASRIA Social Responsibility International Award • BrandLaureate SMEs Chapter Award 2008 • Asia Pacific Entrepreneurship Award Investment in People Award • The BrandLaureate Awards Best Brands in Logistics – Ports 2009 • Human Resources Ministry HR

Development Award • Frost & Sullivan Best Multi-Purpose Terminal Operator of the Year • AFSCA Best Container Terminal Award Asia (under 4 million TEU) • The BrandLaureate Awards The Top Ten Most Preferred Brand • MPK Smart Partnership Award

October 13 2009

BEST MULTI-PURPOSE TERMINAL OPERATOR OF THE YEAR On July 23, 2009, Northport was again acknowledged when it was named Best Multipurpose Terminal Operator of the Year during the prestigious Frost & Sullivan Awards. The win reflected Northport’s exacting international standards to meet the needs and high expectations of leading global shipping lines.

In 2008 alone, it saw approximately 8,000 ship calls made by 81 shipping lines as well as 44 conventional and 502 container vessels.

The Frost & Sullivan Awards identifies exemplary achievements within a multitude of industries and functional disciplines.

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REVIEW

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April 20 2009

BEST CONTAINER TERMINAL AWARD ASIA 2009 (under 4 million TEU) Northport had its proudest moment yet when it was selected from among the region’s top players to win the Best Container Terminal Award Asia (under 4 million TEU). The honours were presented during the Asian Freight & Supply Chain Awards (AFSCA) 2009 ceremony on April 20, 2009. Nominees were evaluated against a set of stringent criteria, which included crane productivity, timely and adequate investment in new terminal infrastructure to meet future demand, effective use of IT systems and efficient turn-around of trucks

delivering and picking up containers. The award reaffirmed Northport’s commitment to maintaining high standards in performance and productivity, far exceeding those of many other major global ports.

Asian Freight & Supply Chain Awards – long established as the industry’s top accolade for excellence – distinguish organisations that demonstrate leadership as well as consistency in service quality, innovation, customer relationship management and reliability.

July 23 2009

MAJOR EMPLOYER AWARD

Assistant General Manager Human Resources & Support Services Northport, En. Zubir Jaafar (left), receiving the award with En. Nizam Tambi (right), Senior Manager Human Resources Division Northport

Its efforts to develop a knowledgeable and highly skilled workforce earned Northport the distinction of winning the Major Employer Award at the Human Resources Minister HR Development Awards Ceremony held on October 13, 2009. This was an eloquent recognition of the value of Northport’s investment in retraining and skills upgrading for employees in tandem with the increasing demands of competitive business. Northport currently employs 2,700 experienced

employees who have all contributed to the achievement and excellence of Northport thus far.

The Human Resources Ministry HR Development Awards, organised yearly by Pembangunan Sumber Manusia Berhad (PSMB), is the country’s leading recognition scheme for outstanding people leadership and HR practice benchmarking.

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15 YEARS OF EXCELLENCE “Our aim in this anniversary year is to showcase the story of Westports, the important work done by our employees, both in the past and today, and the exciting prospects for the future.”

Ruben Emir Gnanalingam, Executive Director, Westports Malaysia Sdn Bhd.

Founded in 1994 on Pulau Indah, a former fishing village, Westports’ pursuit of excellence has turned it into a beacon of outstanding Malaysian achievement with the enviable credentials of having moved 30 million boxes and saved billions for the country in the last 15 years. From a global perspective, it is also one of Southeast Asia’s premier ports and a world leader in terms of port productivity.

Westports had commenced operations with its conventional terminal. Today, it is ideally positioned to become the preferred port for local boxes within the next 5 years. It is also well on the way towards becoming a veritable megahub for both local and trans-shipment containers. With its current 5 container terminals, Westports was

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able achieve container volumes touching 5 million TEUs in 2008 alone. With the addition of another 4 container terminals along its total quay length of 3.2 kilometers, Westports will eventually have a capacity of 15 million TEUs.

Part of Westports’ success is owed to its commitment to anticipate and cater to customers’ needs and wishes, coupled

with a keen effort to create ‘best practices’ based on those of the world’s best. Some of its major innovations included turning around the entire logistics chain to serve the shipping fraternity. Westports set new records for turnaround times and vessel productivity (twice in 2008 and thrice in 2006), thereby raising the performance bar for the industry. It challenged the modus operandi of each service delivery to enable ‘fastport’ standards to evolve, aspiring to exceed the last performance each and every time. Westports also petitioned for essential services, like customs and immigration, to be operational around the clock and

REVIEW

Westports is widely recognised in the ports & maritime industry for 6 achievements, including:

During the last 15 years, Westports has been conferred more than 20 awards, the more recent ones including:

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•

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Best in Productivity Best in Information Technology Best in Customer Service Best Employer Best Terminal Practices Best in Corporate Social Responsibility

reduced physical checks of trans-shipment containers to zero.

High productivity, fast turnaround and berth on arrival are key attributes that customers value the most at Westports. They are also delighted by just-in-time practices to remove inefficiencies in the supply chain.

International Association of Ports and Harbors (IAPH) Gold Award for IT (May 2007) Human Resoures Minister HR Development Award (September 2007) BrandLaureate Best Brands in Logistics – Ports (March 2009).

In spite of the challenges of competition, an uncertain global economy and possible conflicts around the world, Westports aims to be the 6-star Port in the industry and be counted among the world’s top ten ports.

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VISION & DETERMINATION Despite having no port experience to speak of, Executive Chairman Tan Sri G Gnanalingam had recognised the potential of a competitive and more cost-effective alternative to Singapore as an export gateway to the world. Thus inspired and armed only with his marketing acumen and the support of a novice team, he set out to establish what would subsequently be known as Westports. Successfully proving its capabilities and aided by novel concepts (eg Garden Port and Fastport Standards), the port went on to establish an impressive clientele of shipping lines that had never before called on Port Klang directly. The profundity of Westport’s achievements is articulated by its tagline: The World Moves Here. It is the result of an extraordinary vision and the determination to bring it to reality. Reflecting upon the journey thus far, Tan Sri Gnanalingam likens helming Westports to managing a football team. “To win, we must assemble the best players, train very hard, formulate specific strategies, out-do our opponents and continuously improve our skills and knowledge of the game.

Headquarters of Westports Malaysia Sdn Bhd.

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Dato’ Mukhriz Mahathir, Deputy Minister of the Ministry of International Trade and Industry (MITI) at the SIMS Copper Sdn. Bhd. ground breaking ceremony at PKFZ.

YOUR LOGISTICS HUB A Dynamic and Integrated Free Zone Port Klang Free Zone (PKFZ) offers multinational companies as well as small and medium-sized industries an outstanding launching pad to the world, loaded with a unique bundle of competitive advantages for manufacturing, trading and logistics activities.

PKFZ is the country’s first fully- integrated free commercial and industrial zone. Launched in 2004, the 1,000-acre development is an extension of the government’s objective of transforming Port Klang into a regional distribution hub as well as a trade and logistics centre.

The fully-integrated zone enables both commercial and manufacturing activities to co-exist. In its full operational capacity, PKFZ is forecasted to generate 8-10 million tonnes of cargo or 1-1.5 million TEUs per annum, creating more than 20,000 job opportunities and a host of spin offs for the logistics industries.

Supply chain management is enhanced by PKFZ’s easy access to world-class transportation infrastructure – namely, Port Klang with links to 500 ports in 120 countries, Malaysia’s highway network and Kuala Lumpur International Airport.

Light Industrial & Warehouse Unit

Prepared Industrial Land

Business Complexes

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Suitable as warehouse or factories for light assembly 512 pre-constructed units Each unit is 510 sq. m. or 5,487 sq. ft.

(17mx30m) Short or long term leases Terrace, semi-detached and detached facilities

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Ideal for multi-national companies to construct their own warehouse or factory – for manufacturing, value-added, storage and distribution Long term lease available

Spacious office suites are housed within four 8-storey office complex Building facilities are designed for use as operations and trade office, conventions and trade exhibitions

The Right Choice!

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STRATEGIC ADVANTAGES 3 Multi model access to neighbouring and global markets by land, sea and air 3 Integrates both industrial and commercial operations 3 One-stop centre with a comprehensive, efficient and cost-effective investment facilitation 3 Seamless port environment 3 Competitive lease rental rates for land and buildings 3 Simple trans-shipment procedures 3 Logistic cost savings

INVESTMENT ADVANTAGES 3 Investor-oriented policies 3 Fully-backed by the Malaysian Government 3 Duty, sales tax and service tax exemption 3 100% foreign equity 3 100% repatriation of capital and profits (except for certain products) 3 Export incentives 3 R&D incentives

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One Stop Centre

Strategic Advantages

FACILITIES 3 Light industrial & warehouse units 3 Prepared industrial land 3 Commercial Centres 3 An on-site customs centre and other government agency support services 3 Trade offices for forwarding agents 3 Food courts offering a wide variety of international and local cuisine 3 24-hour security 3 Ample parking bays for cars and lorries 3 Business class hotel 3 Other supporting amenities

Exhibition Centre

Industrial and Commercial Operations

MAKE YOUR MOVE The One-stop Centre at PKFZ is a government initiative to assist investors to facilitate and expedite the setting-up of their businesses in PKFZ. The centre is equipped to hand all applications for business licenses, permits, customs and OGA documentations to facilitate business in PKFZ.

For further information, please contact us at Tel: (603) 3101 2236 or visit www.pkfz.com

Business Class Hotel

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A S S O C I AT E S

Malaysia’s freight forwarding and logistics industry holds tremendous promise. But as Alvin Chua Seng Wah, Acting President of the Selangor Freight Forwarders and Logistics Association (SFFLA) tells GATEWAY, much needs to be done to tap that potential.

Education and Training For a start, Chua feels that professional standards have to be raised.

According to him, the freight forwarding and logistics industry is often perceived as lacking in professionalism. He says: “This is understandable, considering the fact that most of our personnel do not possess tertiary qualifications and have to learn ‘on the job’ and from mentors.”

FORWARDING INTO THE FUTURE SFFLA takes on the challenge of developing professionals for the industry.

Given the ever-increasing competitiveness of the industry, however, Chua states that something has to be done to address the situation.

He says: “It is vital that we push up standards of the existing workforce and start attracting qualified new talent if we wish to continue seizing opportunities for growth.

“For this reason, we in SFFLA have strongly advocated and implemented a sustainable capacity development education and training programme.

The primary objective is to develop a skilled and professional labour force in the logistics industry.”

Chua adds that, as part of its education and training efforts, SFFLA is also currently involved in the development of multi-level (foundation, certificate, diploma and degree) courses in logistics. The initiative is led by the Federation of Malaysia Freight Forwarders (FMFF) in collaboration with United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) and International Federation of Freight Forwarders Associations (FIATA).

SFFLA has also signed an MoU (Memorandum of Understanding) with Universiti Tunku Abdul Rahman (UTAR) to develop a diploma course in logistics, available to the general public.

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A S S O C I AT E S Registration and Accreditation of Logistics Services Providers Chua laments how the image of the freight forwarding and logistics industry is being compromised by the presence of numerous small, unregulated companies offering low quality services. He explains: “This is mainly because freight forwarders are currently not required to register themselves. As a result, there is hardly any information about the number of such companies, the extent of their services or even their financial status.”

According to Chua, SFFLA has teamed up with FMFF to recommend to the government the mandatory registration of all freight forwarders in the country. The two organisations have also developed stringent criteria for freight forwarders to be licensed.

The plan will entail setting up a Registry of Accredited Members from the following categories: • • • •

Customs agents Freight forwarders Multimodal transport operators Integrated logistics service providers

Chua stresses that only proven, respected, financially sound, ethical and professional companies will be invited to become members of the registry. He adds: “So as to encourage logistics providers to become more efficient

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and competitive, the registry will also include Gold Standard Recognitions for those that uphold a certain high level of performance.”

He also reveals that a criteria framework is being developed to regulate and benchmark local logistics service providers against international standards.

On Bumiputra Equity Currently, 51% Bumiputra equity is expected before a customs agent license is approved or renewed. However, there is no such requirement under MIDA’s International Integrated Logistics Services Provider Incentive. In view of the impending liberalisation of the logistics industry in 2010, both SFFLA and FMFF feel the government should urgently review the 51% Bumiputra equity requirement.

Chua remarks: “Since the imposition of this equity requirement, many of the agents, have managed to avoid having to invest any capital.

The policy also discourages non-Bumiputra agents from expanding their businesses, as they may not have control over the entities.

“They then have little choice but to set up separate companies with different equity partners and spread their investments over warehousing, transportation, distribution and value-added services. In some cases, this makes the companies ineligible to benefit from MIDA’s Integrated Logistics Services Providers Incentive.”

ALVIN CHUA SENG WAH

Acting President Selangor Freight Forwarders and Logistics Association

According to Chua, only 21 domestic companies out of nearly 12,000 have qualified for the Incentive. “So as to increase the economic contribution of the logistics services sector to the national economy, cooperation from both the logistics industry and the government is vital,” he says.

Selangor Freight Forwarders and Logistics Association (SFFLA) SFFLA was formed 36 years ago, on June 14 1973. Back then it was known as the Association of Forwarding Agents Port Klang, or AFAPK. The main purpose of its establishment was to protect and champion the interest of forwarding agents and custom brokers. The association has evolved in tandem with the growth of the logistics industry Mission • To promote SFFLA members’ activities (upstream businesses) and to enhance the awareness of Port Klang as the premier port in Malaysia (the gateway to Malaysia), promoting the services and incentives

available in Port Klang’s port and inducing more activities for the business community and logistics players (downstream businesses).

• To market and promote its members activities and businesses through participations in exhibitions, trade missions, dialogue and forums, locally and internationally. Through all this, it is our hope that our members will benefit both directly and indirectly through the heightened awareness of the existence of logistics players in all areas.

• To protect members’ interests through pro-active approaches in all fields, and at the same time take measures to avoid blatant abuse by unscrupulous companies.

SFFLA Office Bearers. (L-R): Chan Kong Yew, Yeoh Kean Jin, Alvin Chua Seng Wah, Henry Tan Swee Heng, Benjamin Keng Kiat Beng

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PERSPECTIVES

RESPECTED, RECOGNISED & WORLD-CLASS

The Royal Malaysian Customs, Selangor pursues its vision of excellence.

DATO’ HAJI ROSLAN BIN YUSOF Director Royal Malaysian Customs, Selangor

Customs are an intrinsic part of the trade & economic activities, revenue generation and crime interdiction that go on in a port of call.

In Port Klang, the Royal Malaysian Customs is not only present but playing an active role to help enhance the reputation of Malaysia’s premier port.

Director Dato’ Haji Roslan bin Yusof speaks with GATEWAY about his vision for the The Royal Malaysian Customs, Selangor (RMCS) as a respected and recognised entity, working to world-class standards.

RESPECTED According to Dato’ Roslan, respect needs to be earned. Therefore, as far as he is concerned, the RMCS needs to be recognised by society for its level of excellence, wellrounded staff, quality services, management and transformational leadership.

He says: “We operate as a service-oriented department. As such, we have to be proactive, dynamic and strict to gain respect both from

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inside and outside of the department.”

Towards this end, RMCS focuses on developing its facilities and other physical aspects.

Additionally, the Department continuously strives to instill good employee values, such as integrity, honesty, quality working culture, a sense of responsibility, the will to accept change, sharing of knowledge and experience, as well as the willingness to admit to, and improve one’s shortcomings.”

Dato’ Roslan stresses that these positive traits will go a long way towards eliminating bribery, misuse of power and any other practices that go against the law and RMCS’s values, vision and mission.

One challenge that RMCS faces is in identifying and developing talented staff. Dato’ Roslan explains: “We try our best to provide the means for our people to gain leadership experience through fair placement programmes, the right training and reasonable incentives. However, personal and career development only comes if employees take the initiative to gear

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19

themselves up with desire, confidence and knowledge to grow.”

“ICT moves the future by improving productivity and effectiveness.”

Dato’ Haji Roslan with Tuan Haji Razif Ratha Abdullah, Deputy Director, Royal Malaysian Customs, Selangor

Dato’ Roslan says: “ICT moves the future by improving productivity and effectiveness.

strategic skills.

RECOGNISED Dato’ Roslan firmly believes that recognition is best gained by meeting people’s needs at all times. He elaborates: “We in Customs are mindful of our role as frontliners whom visitors will encounter when they reach our shores. Therefore, we have to put up a good front. Besides excellent service, we also have to ensure good facilities as well as working systems and process.”

As part of promoting optimum job performance, RMCS insists on compliance with its customer charter. The effort to prevent and/or stop smuggling and fraud is aided by an effective intelligence system.

Dato’ Roslan says that winning awards for being a model department is secondary.

More emphasis should be placed in ensuring excellent performance. Evidently RMCS would rather give more emphasis to developing its people’s analytical and

He stresses: “We aim to develop top-notch staff who can act as transformation agents with knowledge and expertise in all areas of customs. The ability to be dynamic, creative and continuously explore new ideas to come up with innovations is also important. Besides this, they also need to possess high idealism and a wide worldview, while having charisma and a sound emotional and spiritual stand.”

WORLD-CLASS Dato’ Roslan likes quoting international management personality Michael E Joyce who wrote: “A world-class organisation is one that has acquired the best position in its given business and continuously strives to beat its own standards to retain that position.”

Aiming to attain a world-class status, RMCS tries to acquire the characteristics needed to beat its competitors. The use of latest information communications technology is one of the department’s many focal aspects.

At RMCS, we ensure that the usage and application of ICT are in line with global trends and demands. At the moment, we are making sure that our people master ICT to put customs-related information will be at their fingertips.”

RMCS possesses international certification, eg ISO 9001, and other quality awards.

However, the quest to become a worldclass organisation also spurs the department to benchmark its working systems and practices against those of international institutions. From time to time, recognitions are given to individuals that have displayed excellence in terms of knowledge, skills and abilities, too. This leads to the development of positive attitudes and mindsets.

Dato’ Roslan remarks: “We work towards achieving dynamism that will enable us to identify our weaknesses. This will result in constant and continuous improvement in all aspects of our work.”

Headquarters of Royal Malaysian Customs, Selangor

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P O R T TA L K

CALLING ALL NEWSMAKERS You are invited to submit press releases and photographs to GATEWAY magazine. Publication shall be subject to space availability and the full editorial discretion of Port Klang Authority. Materials submitted shall not be returned.

Email us at: onestopagency@pka.gov.my Mail us at: Port Klang Authority, Mail Bag Service 202, Jalan Pelabuhan Utara 42005 Port Klang, Selangor Malaysia

August 10, 2009

WELCOMING APL Northport recently welcomed the arrival of vessel, APL Dallas, at Port Klang. The occasion marked the inauguration of new services from APL, a subsidiary of Singapore-based Neptune Orient Lines. Northport (Malaysia) Bhd hopes to foster greater business partnership by jointly promoting APL’s services to the world. This venture is expected to provide a further boost in growth and productivity to Northport.

August, 12, 2009

WORLD’S LARGEST DREDGER AT PORT KLANG The Port Klang Authority has awarded a tender to local dredging company, Integrated Marine Works (IMW) Sdn Bhd to carry out capital dredging works at Pintu Gedung of the South Channel. The task entails deepening the south entrance to Port Klang from the current depth of 15.5 meters to a new declared depth of 16.5 meters. The width of the channel will also be widened from the current 365 meters to 500 meters. This will enable the largest superpost panama container vessels of drafts exceeding 15 metres to pass one another safely while transiting the 8 km channel.

The project will involve a dredged volume of approximately 6.2 million cubic meters. IMW

has assured that the project will be completed by the end of this year. To ensure deadlines are met, they have engaged the services of TSHD Ham 318, the world’s largest trailing suction

hopper dredger. Having a hopper capacity of 37,000 cubic meters, the 225 meter LOA dredger has capabilities to dredge depths of up to 170 meters.

August 18, 2009

GOLF TOURNAMENT & DINNER FOR ANNIVERSARY Golfers from the shipping and maritime fraternity converged upon the Tropicana Golf and Country Club in Petaling Jaya for the Westports Open Golf Tournament 2009. The event was held in conjunction with Westports Malaysia’s 15th anniversary. Despite their varying handicaps, all the participants thoroughly enjoyed themselves, with many going home with attractive prizes. The day’s

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outing was followed by an evening cocktail and dinner reception, which featured a multimedia presentation titled Westports Voyage through Excellence. This was followed by a speech by Tan Sri G Gnanalingam, Executive Chairman of Westports Malaysia Sdn Bhd, who took the opportunity to thank the attendees for their continued support.

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August, 31, 2009

AN ASIAN ‘FIRST’ French-based CMA CGM, the world’s third largest container shipping company, recently opened a dedicated on-deck depot (ODD) at Westports. Present at the opening were Simon Whitelaw, Managing Director of CMA CGM ANL Malaysia, as well as other personnel from the local CMA CGM office.

In his speech, Whitelaw remarked that the

ODD is the company’s first in Asia. He said: “The facility will provide another strategic base for our customers to meet the growing demand generated by ever-increasing levels of trade.” Westports Malaysia Sdn Bhd was represented by its Executive Chairman Tan Sri G Gnanalingam and Executive Director Ruben Emir Gnanalingam.

Simon Whitelaw with Tan Sri G Gnanalingam

September, 3, 2009

October, 20, 2009

PKA REFOCUSSING ON CORE BUSINESS

NORTHPORT IS CERTIFIED HALAL

During his inaugural press conference as the new General Manager of Port Klang Authority, Kee Lian Yong announced proactive actions and strategic plans for Port Klang’s future.

Accordingly, the plans were formulated after a series of discussions with the PKA management and industry players to gain insight into current areas of need and improvement.

Kee stressed the importance of PKA returning to its fundamental role. As such, PKA is set to reposition itself as a strong regulatory authority and to institute measures to safeguard the interest of all players in the industry. In line with this aim, he announced several new initiatives, including registering all necessary logistics services providers operating at Port Klang; monitoring the performance of port terminals to ensure compliance with international standards; licensing all direct port activities and ancillary services within the port limit; and enforcing security and safety within the port limit and pilotage district.

He pointed out that PKA is also mindful of its role as a trade facilitator in the privatised and highly competitive port environment. Towards this end, PKA will continually engage with relevant government agencies and industry players with

the view to establishing a fair and equitable playing field.

Kee added that PKA will be drawing up a strategic port master plan which will map out the directions of Port Klang over the short and long term. He said: “We are looking at future port positioning in relation to port competition, pricing and market challenges at national and regional levels.”

On matters relating to current developments, Kee remarked that the free storage period for import and export containers in Port Klang will be reduced from 5 to 3 days, effective January 1, 2010. This is to provide for more efficient utilisation of port storage capacity and overall improvement in the logistics chain. Regarding the issue of depot gate charges, he said that PKA has been requested to step in to mediate and seek an amicable solution between the Association of Malaysian Hauliers and the Malaysian Container Deport Association.

Kee stated that PKA has identified certain key result areas (KRA) within the organisation and is implementing a result-oriented workforce with KPIs and regular reporting on the progress of individual departments to ensure performance.

Northport has become the first Malaysian port to be awarded halal certification by the Halal Industry Development Corporation. The move will allow Northport to be integrated as a key component in the logistics & transportation chain to help shippers and shipping lines tap into the US$500 billion global halal industry market. Northport now offers designated areas for packing and unpacking of inbound and outbound halal products. Not only that, among the recent initiatives is providing “Halal” connectivity of dedicated shipping services linking Northport with key Muslim consumer markets in the Europe and Middle East through the weekly Halal Express Service by MISC Bhd, Malaysia’s national flag carrier. On the 20th of October 2009, MISC launched its second service loop at Northport.

According to Datuk Basheer Hassan Abdul Kader, Managing Director/CEO of Northport (Malaysia) Bhd, these extensive facilities help position Northport very well to tap the vast potential of the expanding halal consumer product market.

Port Klang Authority headquarters since 1963

Datuk Basheer Hassan Abdul Kader receiving the Halal Certificate

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ACROSS THE SEAS September 29, 2009

LARGEST JOINT-VENTURE PROJECT IN ROMANIA RailPort Arad, a recently inaugurated inland container terminal, stands as the largest Slovenian investment in Romania.

The enterprise is owned Luka Koper, Mav Cargo and TII with each holding a one-third stake. According to Luka Koper officials, the project’s tremendous potential stems from its strategic location in Curtici which is situated in the economically well-developed far West of Romania, a region which already generates 35% of Romania’s total GDP. Covering more

than ten hectares, RailPort Arad enjoys a mainline rail link to Hungary and the cities of Western Romania. It currently enjoys a direct weekly service to Koper, on the basis of which maximum annual throughput is estimated at 60,000 tonnes. By promoting the development of multimodal connections, RailPort Arad will serve the needs of surrounding multinational companies with manufacturing operations in steel, foodstuffs, vehicles, chemicals and consumer goods.

October 20, 2008

A BIGGER ROLE IN MALAYSIA-SLOVENIA TRADE Government and business representatives from Slovenia were in Kuala Lumpur recently to promote the logistics potential of the Port of Koper for servicing trade between South East Asia and Central and South Eastern Europe.

Their visit culminated in a seminar titled Slovenia - A Logistics Platform for Central & Eastern Europe. Deputy Transport Minister YB Datuk Robert Lau graced the event, which drew an audience of 300 delegates. He expressed his support for bilateral trade between the two countries which, in 2008, amounted to

e27.9 million (RM140 million). The strong ties between Slovenia and Malaysia are reflected by the ‘sister port’ relationship that exists between the countries’ principal ports – Luka Koper and Port Klang, respectively. Luka Koper has been growing strongly in the last decade at an average of one million tones per year.

The port’s connection to the Asian region was further enhanced with the introduction of the Phoenician Express weekly container service in June 2008.

October 28, 2009

MARSEILLES-FOS AND PKFZ SIGN MOU

L-R: Monica Bonvalet, YB Datuk Seri Ong Tee Keat, Chia Kon Leong, Datuk Lee Hwa Beng, Kee Lian Yong

Marseilles Fos Port Authority (MFPA) and Port Klang Free Zone (PKFZ) have signed a Memorandum of Understanding to elevate their 10-year partnership to a higher level. This

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will be achieved by exploring and implementing a coordinated marketing approach for the distribution of halal products originating from Malaysia and neighbouring countries to Muslim

markets in Europe, Africa and the Mediterranean.

The event was officiated by Transport Minister YB Datuk Seri Ong Tee Keat. Also present were MFPA Commercial Director Monica Bonvalet, PKFZ General Manager Chia Kon Leong, Port Klang Authority Chairman Datuk Lee Hwa Beng and General Manager Kee Lian Yong. In his speech, Datuk Seri Ong said: “Smart partnership and strategic alliances should be undertaken by ports for the mutual benefit of all parties concerned.” The MoU also entails the exchange of technical assistance, traffic developments and promotion of activities. The Minister acknowledged that France is an excellent base for Malaysian companies wanting to tap the Euro-Mediterranean and North African market.

The port of Marseilles itself is directly linked to the seven largest European markets.

ON THE RADAR

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

Email us at: onestopagency@pka.gov.my 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

2009

2009

12

11

23

2679

3,200

5879

15

15-16

15 -15.5

Berths Number of berths Length (metres) Draft (metres)

IAPH AFRICA/ EUROPE REGIONAL MEETING IN HAMBURG IAPH Africa/Europe Region will meet in Hamburg, Germany, November 16-18, 2009, hosted by Hamburg Port Authority (HPA). The IAPH Officers Meeting is scheduled on Monday, 16 November. The venue of the meeting previously announced to be in the premises of Hamburg Port Authority building (Neuer Wandrahm 4, Hamburg) has now been changed to the German Customs Museum.at “Altes Hauptzollamt, Alter Wandrahm 20, D-20457 Hamburg”, which is right across from HPA. Date : 16- 18 November 2009 Venue : German Customs Museum, Germany

UNESCAP TRAINING IN BANGKOK

Storage

4.9

7.2

12.1

Reefer points

759

1236

1,995

Equipment

Quay cranes

27

32

59

Rubber tyred gantry cranes

52

92

144

Straddle carriers

70

-

70

High stackers

33

18

15

LIQUID BULK

Berths

4

5

9

779.4

1,365

2144.4

11.3-11.5

9.0-16.5

9 - 16.5

Number of berths Length (metres) Draft (metres)

Berths

2

4

6

Length (metres)

426

935

1,361

Drafts (metres)

12

13.5-15

12 - 15

Date : 16-19 November, 2009 Venue : Bangkok, Thailand For further details, contact the SFFLA Secretariat at 03- 3168 4363.

Date : 13 November 2009 Time : 7.30 pm Venue : Mahkota Ballroom, Hotel Istana, Kuala Lumpur For further details, contact Maimunah at 03-2275 2136.

DRY BULK

Number of berths

Malaysian Shipowners Association (MASA) will be organizing their annual dinner on November 13, 2009. The organizers have invited YB Datuk Ong Tee Keat to grace this event. This is an excellent opportunity for to promote greater cohesiveness among its members and practitioners in the maritime industry .

2009

Annual capacity (mill TEU)

United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) will be organizing a Regional Training of Trainers (TOT) Workshop on Multimodal Transport and Logistics in Bangkok, Thailand.

MASA ANNUAL DINNER – 2009

TOTAL

Storage

Open storage (sq. metres)

11,880

-

11,880

BREAK BULK

Berths

8

5

13

Length (metres)

1,286

1,000

2,286

Drafts (metres)

3.0-15.0

Number of berths

3.0-12.5

15

Storage

Transit sheds (sq. metres)

19,879

2,973

22,852

Warehouses (sq. metres)

40,519

13,471

53,990

Open storage (sq. metres)

67,500

46,452

113,952

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equipped for your

SUCCESS With a maritime tradition hailing back to 1901, Port Klang is today a major gateway that’s connected to over 500 ports in more than 120 countries.

As Malaysia’s national load centre and a fast-emerging regional trans-shipment hub, we link product producers with the markets of Asia and the rest of the world. Enabling seamless cargo transfers with state-of-the-art facilities at two award-winning terminals and a fully-integrated industrial and commercial free zone. A world-class port pulsing with pro-business sensibilities, matched with the customer service excellence that will delight you. Now you know why we’re the world’s top 15 container port. The winning formula is here, in PORT KLANG.