EDITORIAL Port Klang’s PANEL Journey ThroughTime Writers: JOHN DORAISAMY G. DURAIRAJ Advisor: Y. BHG. DATUK RAJASINGAM J.P All rights reserved. Copyright © 2013 Port Klang Authority. No part or parts of this publication, Port Klang’s including but not limited to the information, text, images, graphics and their arrangement, and material therein, may be modied, copied, distributed, retransmitted, broadcasted, displayed, reproduced, published, licensed, transferred, sold or commercially dealt with any manner without the express prior Journey written consent of Port Klang Authority. ThroughTime This book is meant for internal reference only and is not made available for sale or any other commercial purpose. PORT KLANG AUTHORITY Mail Bag Service 202, Jalan Pelabuhan Utara, 42005 Port Klang, Selangor, Malaysia. Tel: +603-3168 8211 Fax: +603-3168 8228 www.pka.gov.my 9 789839 243048 CONTENTS FOREWORD PREFACE MILESTONE CHAIRMEN GENERAL MANAGERS PART ONE FROM EARLY BEGINNINGS TO RAILWAY PORT 001 • Origin of Klang • The Klang War • British Intervention • Railway Development & the Port PART TWO IMPULSE FOR ECONOMIC GROWTH 015 • Port Trade • Port & Shipping Rules • Changing Cargo Composition • Railway Expands • Port Moves Downstream PART THREE THE MAKING OF PORT SWETTENHAM 031 • Kuala Klang As a Port Site • Construction Begins at Kuala Klang • Opening of Port Swettenham: 23 September 1901 • Port Rules Enacted • Port Swettenham Advisory Board • Port Trade & Expansion • Dr. Watson & Malaria PART FOUR WAR AND THE LEAN YEARS 085 • Immigrant Labour • Trade declines • Port Limits & Pilotage Rules • Trade rebounds • Advisory Board Reconstituted • Economic Depression • New Port Site Mooted • Imperial Shipping Committee • World War II PART FIVE NEW DEEP DRAUGHT PORT SITE SOUGHT 157 • Dynamics of Port Growth • Straits Trade Rivalry • Federal Ports Committee • The World Bank & North Klang Straits • Labour Unrest Plagues Port • Wretched Bottleneck I PART SIX NORTH KLANG STRAITS, AT LAST! 229 • Port Congestion & Crash Development • Port Authorities Act 1963 • North Klang Straits Wharves Commissioned • Port Swettenham Authority • Advent of Containerisation PART SEVEN GROWTH PAINS & WINDS OF CHANGE 307 • Congestion & Teething Problems • Major Port Disaster • Improving Outreach & Connectivity • Bulk Cargo & RoRo PART EIGHT PRIVATISATION & THE PORT 327 • Guidelines on Privatisation • Privatisation of Container Terminal • Klang Port Management • West Port Privatisation PART NINE ROLE OF PORT IN POST-PRIVATISATION ERA 377 • Port as Trade Facilitator • Dangerous Cargo Handling • Inland Linkages • National Port Authority • Distriparks & Free Zones PART TEN PORT KLANG TODAY AND THE 403 CHALLENGES AHEAD • Learning From History • New Berth Capacity • Navigational Issues • Regional Port Landscape • New Port Site? ABOUT THE AUTHORS GLOSSARY PICTURE CREDITS II FOREWORD Lembaga Pelabuhan Kelang (LPK), or Port Klang Authority (PKA), is pleased to present this book on the history of Port Klang, which has served as the principal sea port and economic lifeline of the country for over a century. The history of Port Klang dates back to the pre-British era, when it was a flourishing centre for trade in tin. It later developed as a railway port when Malaya was under British rule, and continued to grow to this day as it remains – in the post-independence era – Malaysia’s leading sea port. As the national gateway, Port Klang mirrors the history and development of the country, and it is in this context that PKA decided, in 1995, that the history of Port Klang should be compiled for posterity. We now have the opportunity to appreciate the full historical context of the growth and development of Port Klang. The extensive research into the contents of this book, and the contextual references made herein, make this book a reference not only for students of history and the general public, but also for all those who were involved with the development of the port in the past, as well as in the present and the future of Port Klang. This work also fills in many gaps of the country’s sparsely-written maritime history, as it provides glimpses into the past of how Port Klang responded and reacted to demands and changes in global shipping, port trends and technology. The history that unfolds in this book is one of constant building of the port - a task that no doubt required broad vision – and strong determination – to bring ideas to fruition and to succeed. The result of all the hard work of both port authority and policy planners is clearly reflected in the impressive range of facilities and services at Port Klang, and in its rise as a port of global reputation and ranking. PKA, as the publisher, acknowledges the various sources of contributions referred to in this publication. We would like to record our appreciation to our former General Manager, Datuk M. Rajasingam, J.P. for initiating this project to compile the history of Port Klang, and most importantly, seeing it through by spending his time, even after his retirement, with the authors of this book. We also thank the authors of this book, John Doraisamy, former lecturer with University Malaya and G. Durairaj, Managing Director of PortsWorld, for their extensive work and research in compiling and writing this book, PORT KLANG’S JOURNEY THROUGH TIME. CAPT. DAVID PADMAN General Manager PORT KLANG AUTHORITY III NORTHPORT PETALING JAYA KUALA LUMPUR SHAH ALAM UTARA-SELATAN HIGHWAY PREFACE A PORT BY ANY OTHER NAME…… SUBANG JAYA PUCHONG Aerial view of Northport. NORTHPORT PKA HQ SOUTHPOINT WESTPORTS Aerial view of Southpoint (previously South Port). WESTPORTS SOUTHPOINT PKFZ Map of Port Klang showing the 3 terminals that comprise it. Aerial view of Westports. t is not jus in its early history that there was confusion over the origin of its name, Ior how it should be spelled; even in modern history, the spelling of Port Klang (or indeed, what Port Klang refers to) has been much of a speculation to some, and perhaps puzzling to others. Port Klang (previously Port Swettenham), as we now understand it, refers to both a seaport as well as the settlement that emerged following its development. As a port, it comprises facilities and services under the jurisdiction of Port Klang Authority (PKA). The geographical limit that forms the seaport of Port Klang has grown over the years since its inception, in tandem with the expansion of the port facilities at Port Swettenham (later to be known as South Port), and a similar expansion at the North KLIA Port. Today, there are 3 port terminals at Port Klang; Southpoint and Northport, both operated by Northport (Malaysia) Bhd. and Westport, operated by Westports Holdings Sdn. Bhd. The seaport of Port Klang includes facilities on the mainland section of the sea frontage along the estuary of Klang River comprising South Port and North Port, now better known as Northport, as well as facilities on the island of Pulau Indah (previously called Pulau Lumut) off the mainland that is called West Port. IV Privatisation of the port facilities and services at Port Klang, taking part over a decade-long period beginning in 1986, saw PKA divesting its role in the management and operation of all the facilities in South Port, North Port and West Port. The port authority, however, retained its overall jurisdiction over all the privatised facilities and services Old pic of port in inset. (and the operators), and remained the ‘landlord’ over the facilities and services it had leased out to the private terminal operators. Most importantly, the port authority took on the larger role of a ‘trade facilitator’ and also to coordinate various logistics activities for the greater utilisation of Port Klang. Port Klang also refers to the town or settlement that developed in the immediate vicinity of the port, and made up the geographical area which forms part of the administrative district of Klang - one of the 9 administrative districts in the state of Selangor, a constituent member state of the Federation of Malaysia. Inhabited by less than 1,000 people when the port was commissioned, Port Klang has grown into a respectable township, with a population totalling more than 100,000. Port Klang started out as a railway port in 1886, when a new railway line connected Kuala Lumpur (at Market Street) to the Klang terminus (at Bukit Kuda), where temporary wharves were constructed on the bank of the Klang River in 1886. Later, in 1890, new wharves were built on the adjacent bank of the river (at what was called Pengkalan Batu). The foundation for the development of a modern port was in the making. When the Harbour Regulations (1891) and Shipping Lights Regulations (1894) were promulgated to regulate shipping and port trade at the wharves, it was sufficient evidence that the shipping and port trade was flourishing. Railway Station, Port Swettenham. V Growth in shipping traffic and vessel size soon convinced the relevant authorities of the need for development of a port downstream of the Klang river, so as to accommodate deeper draught vessels, the growing volume and variety of cargoes, and the need to assure faster turnaround of ships. Kuala Klang was developed as the new port, and was opened to traffic in 1899. The new port was named Port Swettenham, after the British Resident in Selangor at the time, Sir Frank Swettenham, who had taken a keen interest in the development of the railway line and the new port. Port Swettenham was referred to as ‘Old Port’ after the new port at North Klang Straits was built. Old Port was later to be called South Port, while the North Klang Straits port was called North Port. As a railway port, Port Klang’s management and operations was vested with the Malayan Railway until 1963, when the Port Swettenham Authority was created as a statutory agency of the Federal Government, with the passage of the Port Authorities Act (1963).