Malaysian News: Stakeholder Participation, Port Freight, New Budget, MSC Incentives, Monorail September 13, 2004

Malaysian News: stakeholder participation, port freight, new budget, MSC incentives, monorail September 13, 2004 1. New road not well integrated into community and residents feel that they were mislead during planning process 2. Another port sees increase in freight traffic, some description of how the port is integrated into the freight transportation network 3. The new Malaysian budget specifically calls for more socio-economic equity by awarding more contracts to small and medium sized construction firms, also some budgetary numbers for upcoming infrastructure, in general 4. Continued growth for Northport, also some good figures describing freight growth through port and description of how the port will be upgraded to handle increased freight traffic 5. To lure companies into setting up shop in MSC, MDC has offered incentives, including funding for logistics 6. Malaysian company exporting monorail technology to South Korea in turn key fashion - not a Malaysian project, but shows that Malaysian transportation expertise and technology may be regional or world class *********************************************************** ***1. New roadway development not integrated into community*** *********************************************************** http://www.nst.com.my/Current_News/NST/Monday/National/20040913082353/Article/i ndexb_html Residents irked by roadworks seek clarification Shannon Teoh SUBANG JAYA, Sept 12: -------------------------------------------------------------------------------- When Juliet Choy read a small story in the papers about roadworks in Jalan Tujuan last March, she thought nothing of it. Now she wishes she had taken more interest. The article concerned works on Jalan Tujuan and the intersecting Jalan Subang Utama to divert traffic into the New Pantai Expressway (NPE). "The first sign that something big was going on in our area was in early July when they chopped down all the trees in the buffer zone," said Juliet's husband, Choy Thiam Hwa. In the six months since then, the little roadworks have grown into a full-blown construction monster throwing up dust, noise and danger, but there seems little that residents can do now. Nearly 100 SS19 residents, representing the 5,000 households in that section, gathered in front of what used to be their neighbourhood landmark buffer zone — a verdant oasis of trees that has been cut down — to highlight their plight. The residents claim they were virtually "ambushed" and had had no warning that the roadworks would be so extensive. "They've gone ahead so quickly, it's like an army moving in," said Datuk Moehamad Izat Emir, a resident of 20 years and an ex-councillor for the Subang Jaya Municipal Council (MPSJ). "It's not that we are against progress. But it must take into account the interests of the residents," said SS19 residents' committee chairman Datuk Mohamed Jamrah. The residents say the roadworks are so near their houses with little regard for residents, especially when there is no place to walk safely by the road anymore. "Our children walk to school every day and now they have no choice but to walk on the road itself," said another resident, Jaafar Karim. "It's bad enough that they work up to 2am, but when I wake up, I see these prison walls," he said. The residents also claim to have been misinformed about the construction. When the residents first met with the town council and contractor Road Builder Sdn Bhd, they were told that the company was building an underpass to connect to the NPE. "But now they've built a flyover and the roads leading to the NPE merely pass under the flyover instead of going underground," Choy said. The residents now want to know who approved the plans for the project, because they have been variously told it's not the MPSJ, or the Malaysian Highway Authority (LLM) and were asked to enquire with the Works Ministry. Kelana Jaya MP Loh Seng Kok said that the authorities must not pass the buck. "Both MPSJ and LLM must explain the situation to residents. The public delivery system must be transparent and effective," he said. Residents believe the construction's sole purpose was to increase use of the NPE, not to alleviate congestion in the area. "We want the works to cease until the impact of the proposed highway is properly studied. "Hopefully, there is transparency in this matter," Mohamed Jamrah said. ***************************************** ***2. Another port sees increase in cargo*** ***************************************** http://www.nst.com.my/Current_News/BTimes/Monday/Corporate/20040912234535/Art icle/index_html NIP eyes higher revenue, cargo volume By P. SHARMINI NILAI Inland Port (NIP) expects to increase its monthly revenue to RM1.5 million per month from about RM1.1 million at present by the end of this year. The port is also expected to increase its volume of cargo handled to about 3,000 TEUs (20-foot equivalent units) by year-end, from the present 2,000-odd TEUs which it currently handles. Located in Nilai, Negri Sembilan, the port has been managed and operated by Gugusan Peremba Sdn Bhd (Guper) since October last year, taking over from the previous operator, Nilai Inland Port Sdn Bhd. Guper chief executive officer Datuk Ibrahim Ahmad is confident that the port will be able to increase and maintain its monthly revenue based on its existing capacity. Ibrahim believes there will be good growth for the port next year due to the steady increase in customers since Guper took over the operations. “We have seen good progress in the number of customers, as well as TEU load and volume in the period of almost one year since Guper took over management and operations of the port,” he said in an interview. Guper also manages the first Free Commercial Zone and distribution park in Port Klang, and this experience and support facilitate logistics needs of investors, especially those in the southern region. Ibrahim said the port is best suited to cater to the various investors in the southern region, especially those in Nilai, Bangi, Semenyih, Beranang, Mantin, Seremban, Senawang, Taman Tuanku Jaafar, Chembong, Kota and even Malacca. The port has warehouse space of 80,000 sq ft and a staff strength of 108 people. Among its major clients are DongHua, Hume Fiberboard and Philip Morris. It is spread across a 5.6ha site located close to the industrial zone in Nilai and just across the road from the Nilai 3 wholesale centre. It has another 5ha for expansion, and Ibrahim said expansion plans are in the pipeline, possibly in the next year or two. Ibrahim said NIP is more than just an inland port, as it offers comprehensive logistics solutions to investors, encompassing port services, haulage and total logistics services under one roof. The port has been gazetted by Customs Department as an authorised landing place for import and export, and is also recognised by the department as a seaport. It has its own rail link to the North-South main line, connecting it to Bangkok in the north and up to Singapore in the south. There are regular chartered train services between the port and Port Klang, the Port of Tanjung Pelepas, and other major ports, ensuring prompt deliveries for shipments. Ibrahim said Guper is also in discussions with the the Negri Sembilan State Government to utilise empty building lots which had been left abandoned by the previous operator in the port's vicinity. Although Guper is only focusing on logistics and management of the port, Ibrahim said, by utilising the vacant lots and turning Nilai into a retailers’ paradise, it would benefit both the investors and Guper as well. ************************************************************************ ***3. Medium size companies to benefit from future construction projects*** ************************************************************************ http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_f6d9e78a- cb73c03a-940b8400-9ec1fb53 Mayban Research: Small & mid-cap construction firms to benefit By Jimmy Yeow Small-to-medium capitalised construction companies are expected to benefit from the government's emphasis on socio-economic enhancing projects and those costing less than RM200 million in the final year of the Eight Malaysian Plan, Mayban Securities Research said. In its research note on Budget 2005, it said while there were many listed construction companies of that size, it advised that investors stick to those with a track record, such as WCT Engineering Bhd, Hock Seng Lee Bhd and Protasco Bhd. However, it said larger construction companies that had benefited from government contracts, such as Ranhill Bhd and MTD Capital Bhd, were a safer investment for their diversified exposure (expressways, water concession and oil and gas). "The big boys of the sector - Gamuda Bhd, IJM Bhd and Road Builder (M) Holdings Bhd - may not appear as beneficiaries from prudent public spending, but would be frontrunners if public privatisation contracts see light next year (that is interstate water transfer). "In addition, we are also positive on the government effort to secure new projects from abroad for the local contractors through Construction Industry Development Board (CIDB)," it said. Mayban Research said it was maintaining its neutral call on the sector until there was a noticeable pick-up in government contracts. It said based on the allocation of RM28.3 billion, it was conceivable that approximately 60% to 65% was for construction projects. "This is based on our estimate that includes the RM10 billion additional development allocation announced recently, in which the bulk of it (estimated to be RM8.5 billion) has yet to be spent. In addition, the original allocation for development spending for 2005 under the 8MP was RM18.3 billion." "Assuming half is for construction, the government is expected to allocate approximately RM9.1 billion for new construction projects for 2005. As such, the total of RM17.6 billion estimated for construction spending for 2005 (RM8.5 billion + RM9.1 billion) is higher than the estimate for 2004 of RM15 billion (assuming 50% of RM30 billion development allocation)," it said.

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