JANUARY 2011

CERTIFIED ISO 9001:2008 Inside this issue

08 Focus ’S TOPS FOR TRADE PKA’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. Published by

PORT AUTHORITY 13 Associates Mail Bag Service 202, Jalan Pelabuhan, PRESENTING A UNITED FRONT 42005 , Selangor, Malaysia PKA business associates share their views on PKA trade mission Tel: 603-3168 8211 initiatives. Fax: 603-3167 0211 / 3168 8228 www.pka.gov.my 17 Inside PKA BEYOND PUBLIC RELATIONS The Corporate Communications department elaborates on its roles in presenting PKA’s corporate messages to the public.

Management Team 18 At a Glance KEE LIAN YONG CREATING TRADING PLATFORMS PKA reports on the results of its trade missions overseas as well as General Manager reciprocal and joint trade visits.

CAPT DAVID RAJAN PADMAN Assistant General Manager (Regulatory)

IR A MURYTHARAN 20 Waterways Assistant General Manager (Engineering) PORTS: GATEWAYS TO NATIONAL ECONOMIC SUSTAINABILITY HAJI SALIHUDDIN B YUSSUF Ports are key to a nation’s economy, and to its continued Assistant General Manager (Administration) growth after recovery from a recession or depression.

AZURA BT MUHAMAD Assistant General Manager (Corporate) 22 About Town PULAU KETAM All about the small, tranquil island off the coast from Port Klang.

GATEWAY is the official magazine of Port Klang Authority (PKA). The publication covers issues, trends and developments affecting Port Klang and the Malaysian port 04 Port Talk industry in general. News from the local front.

All care is exercised to ensure that facts presented herein are correct. PKA and its editorial and design agencies 07 Port Update shall not be held liable for any loss, action or damages The latest key performance figures for Port Klang arising from the content published in GATEWAY. 23 Radar Copyright © Port Klang Authority 2011 Upcoming events for the industry.

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY SUPPORTING MALAYSIAN TRADE AT HOME AND ABROAD

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 welcome journals and magazines out there. As always, your feedback and comments are welcomed.

Thank you.

KEE LIAN YONG General Manager Port Klang Authority

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY 0 4 PORT TALK

APA SPORTS MEET SOUTH AFRICA COURTESY VISIT

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.

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, FRANCE COURTESY VISIT Singapore, Brunei, Vietnam and Thailand. Among the September 9, 2010 sports organised were badminton, football, sepak takraw, ten-pin bowling, mini marathon and golf. The CMA CGM Malaysia delegation, led by Managing Director Mr. Simon Whitelaw paid a courtesy call to General Manager, Mr. Kee Lian Yong. DELEGATION The objective of the visit was to discuss several matters FROM THE ROYAL and to strengthen relationship between both parties. CMA AUSTRALIAN NAVY CGM is France’s largest shipping line, and the world’s 3rd-ranked.

MOT VIETNAM VISIT

September 18, 2010

The Ministry of Transport Vietnam, comprising 16 delegates from port authorities, port project management and October 6, 2010 consultants, made a courtesy visit to Port Klang. The objective The Australian navy, led by Commander John Stavridis of the visit was to study the and Commander Anthony Rayner, accompanied by development plans, operations, Colonel Stephen Paul, paid a courtesy call to PKA. The maintenance and environment visit was in conjunction with the arrival of two Australian management programmes in navy vessels namely HMAS Success and HMAS Arunta Port Klang. to the port.

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY PORT TALK 0 5

PORT SAFETY AUDIT US NAVY COURTESY

September 27, 2010 – VISIT 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 October 11, 2010 The commander of USS Abraham Lincoln paid a August 6, 2010 courtesy call to PKA General Manager, Mr Kee Lian Yong. Mr Kee is shown here presenting a memento to The Guard Missile Cruiser the commander. 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 DELEGATES FROM General Manager, Capt David Padman, receiving the Russian PORT OF MANTA, Navy representatives. ECUADOR

KEELUNG PORT DELEGATES

October 7, 2010

Keelung Port and Wilhelmsen Ships Services, comprising 8 delegates and led by Mr Hsu Wen Liang, the Port Harbor November 9-10, 2010 Master, paid a courtesy visit to YBhg Dato’ Lee Hwa Beng and YBhg Dato’ Lee Hwa Beng received a courtesy visit by his management team. The the delegates from Port of Manta, Ecuador (Port Klang’s main purpose of the visit was to sister port) led by HE the Ambassador of Ecuador to foster closer cooperation and to Malaysia. The objective of the visit was to discuss about exchange ideas. strengthening ties between both ports.

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY 0 6 APPOINTMENTS

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

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.

New MITI Deputy Secretary-General - Zulkafli Abdul Karim

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.

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY PORT UPDATE 07 A SPLENDIDLY SUCCESSFUL YEAR Port 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.

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.

2010 1,716 1,719 5,437 8,872

1,516 1,478 4,316 7,310 IMPORT 2009

EXPORT

TRANSHIPMENT 2008 1,630 1,598 4,745 7,974

NUMBER OF SHIP CALLS FREIGHT WEIGHT TONNES 2008 - 2010 (’000 TEUs) 2008 - 2010 (’000 TEUs)

1,613 380 1,381 1,547 400 274 2,100 1,463 1,682 1,485 1,469 1,419

CONTAINER

BREAKBULK LIQUID

LIQUIDBULK DRY 147,081 130,157 119,277 8,574 GENERAL 6,182 5,354 DRYBULK 4,794 4,246 8,789 11,675 11,080 12,332 5,588 5,779 6,384 CONTAINER OTHERS 2008 2009 2010 2008 2009 2010

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY 0 8 FOCUS MALAYSIA’S TOPS FOR TRADE

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY FOCUS 0 9

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 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.”

KEE LIAN YONG General Manager Port Klang Authority

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY 1 0 F O C U S

IMPROVING PORT FACILITIES AND EQUIPMENT

Port 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). • Invest in ICT improvements, in the form of PortNet.

PLANNING TRANSPORTATION INFRASTRUCTURE IMPROVEMENTS

Ready 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. • Ensure MASKargo has an office in Port Klang to handle LCL and delayed cargo, which need to be transported quickly via the airways.

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY F O C U S 11

STREAMLINING PROCESSES AND ENHANCING COMMUNICATIONS

As 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.

• Revise process and procedures, reduce red tape and increase throughput. • Simplify transshipment documentation and requirements. • Update existing regulations to reduce burden

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. • Update user guide based on documentation flowchart to be distributed to whomever calls at the port.

OVERSEEING FREE TRADE ZONE DEVELOPMENTS

Over 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.

• Manage the through PKA subsidiary, Port Klang Free Zone Sdn Bhd. • Oversee the other free zones attached to the terminals.

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.

• Reduce bureaucratic processes and increase accuracy of data collected by having a single form provide information across several departments and agencies. • Register all warehouse operators, consolidators and other free zone users. • Create a condusive and safe environment to carry out all activities and operations. • Undertake joint inspections and other risk management initiatives with relevant government agencies within the free trade zones.

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY 1 2 F O C U S

MOVING BEYOND THE PORT

Ultimately, PKA shoulders the responsibility of ensuring that Port Klang, as Malaysia’s premier port, continues to boast excellent standards of service excellence, and remains capable of handling an ever-increasing influx of trade into 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.

WORKING TOGETHER

The success of Port Klang as a whole cannot depend on Port Klang Authority (PKA) alone, PKA Chairman Lee Hwa Beng believes. “PKA and terminal operators must work together for the same goals, to market Port Klang and cement its place amongst the world’s best and most heavily used ports,” he adds.

According to Lee, PKA in its position of being port landlord, port regulator and trade facilitator, has to play the driving role, pulling Northport and Westports as the main cargo terminal operators in tow. “PKA bears the heavy responsibility of charting the port’s way forward into the future, and must not allow the terminal operators to propose their own agendas, possibly to the detriment of the port as a whole,” he elaborates.

However, Lee also stresses the importance of the terminal operators playing greater roles in the marketing of the port in a unified manner. He contends that the two terminal operators can come together and plan and implement various initiatives to improve Port Klang’s standing in the world, through joint port promotional activities, investment in other ports, and greater responsiveness to customer demands and requirements.

Lee also strongly believes that players in the logistics industry, as major stakeholders in Port Klang, also must play their part. According to him, it is not enough to accompany Port Klang on these trade missions and other overseas jaunts. Rather, the industry needs to provide KPIs for measuring the ROIs from each mission trip planned, and to follow up with regular reports, so that PKA can evaluate the usefulness of the excursions.

DATO’ LEE HWA BENG Chairman Port Klang Authority

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY ASSOCIATES 1 3 PRESENTING A UNITED FRONT Promoting Port Klang for Trade

The highly developed transportation industry’s awareness of the port, including going new trade opportunities, it relies on its business infrastructure in Malaysia is a critical component on trade mission trips, speaking at international associates, especially SFFLA, to initiate such of promoting the country abroad as an ideal maritime conferences and establishing sister port missions. These trade missions have as their trade partner, especially sea transportation. relationships. main emphasis the cargo terminals, the PKFZ, International ports with world-class infrastructure, and various ancillary facilities. When embarking efficient workforces and high cargo handling One of the roles that PKA plays in promoting on them, whether jointly organised by MATRADE capacity are one of Malaysia’s strongest selling Malaysia and Port Klang as an ideal trading partner or on its own initiative, PKA is not Port Klang’s points. In addition to serving as import and export is through providing a platform by which its lone standard-bearer. Usually accompanying points, ports also serve as transshipment hubs. business associates can strike new partnerships at PKA’s senior management officials are high-level Port Klang, being Malaysia’s most important port, a global level. In its capacity as port regulator and representatives from the terminal operators, figures greatly in any effort to promote Malaysian statutory government body, PKA is able to reach PKFZ, as well as the major logistics players in the trade and industry. out to other port authorities in the world and port. While these disparate parties have different arrange for bilaterally profitable trade missions. reasons for participating in these efforts, together PKA as port landlord plays a pivotal role in These missions, organised either by MATRADE or they present a single face of Port Klang. readying and equipping Port Klang to become PKA, are a starting point for an increased drive in a premier trading gateway in South East Asia, promoting Malaysian trade and Port Klang. So what do the various players who go along on but it also recognises the need to market and these trips think about PKA’s involvement in the promote the port overseas. PKA explores many While PKA does conduct background research trade missions? Gateway speaks to a few of them avenues to heighten the international shipping before embarking on trade missions, seeking to find out.

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY 1 4 ASSOCIATES

Highlighting Industrial Development In 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 investmalaysia@ mida.gov.my. Or you can go to their website at http://www.mida.gov.my.

Expanding Trading Horizons The 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 info@matrade. gov.my. Alternatively, you may also visit their website at http://www.matrade.gov.my.

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY ASSOCIATES 1 5

Freight Forwarders Can Play a Greater Role

Port 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.

ALVIN CHUA SENG WAH I think these international trade missions are good initiatives and should be continued. The Acting President symbiotic relationship between Port Klang and SFFLA necessitates the need to collaborate Selangor Freight Forwarders and Logistics Association (SFFLA) 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.

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY 1 6 ASSOCIATES

Reaching Out and Expanding Our Horizons

PKA 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 BENJAMIN KENG area. PKA has done tremendously well; it’s never easy to plan and prepare for these trips Council Member and yet PKA have done so many of them. I am very happy that these trips attract higher Federation of Malaysian Freight local participation each time, and hope more of PKA’s business partners and associates Forwarders (FMFF) will take the time to attend in the future.

Showcasing Malaysia’s Halal Hub Concept

I 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 GAN SEONG KAH Assistant General Manager of Business worth of capital investment and a total workforce of about 2,000. We are seeing growth Development in the level of activities and awareness of the PKFZ at an encouraging pace. PKFZ Sdn Bhd

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY INSIDE PKA 17 BEYOND PUBLIC RELATIONS

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. For more information, It serves as contact point for businesses wishing to know more call +603-3168-8211 or about Port Klang, or to do business within the port. email [email protected]

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.

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY 1 8 AT A GLANCE

CREATING TRADING PLATFORMS

Port 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 September 19-21, 2010 Malaysian delegates led by PKA MATRADE Deputy Chief Executive General Manager Mr Kee Lian Yong, Dato’ Mohamad Kamarudin Hassan visited the Guangdong Association of led a high-powered delegation Garment and Article Industry. During of logistics companies to host a the visit, they took the opportunity joint seminar on Malaysia-Slovenia to explore the Kapok International Business Opportunities in the Fashion City, one of the biggest Logistics Sector. The seminar was fashion wholesaler centres in China. organised by MATRADE, CCIS, JAPTI and Port of Koper.

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY AT A GLANCE 1 9

September 22-25, 2010 November 9-11, 2010 PKA General Manager Kee Lian Yong with Dirk Bequart from Port of PKA Chairman YBhg Dato’ Lee Hwa Beng and other PKA officials entertain Marseilles, after signing a memorandum of understanding. an official delegation from the Port of Manta, Ecuador, including the Ambassador of Ecuador to Malaysia, HE Lourdes Puma Puma.

October 10-12, 2010 November 1-3, 2010 PKA representatives, in a joint trade promotion with sister port Luka Koper, Representatives from the Port of Belawan in Medan, under the banner briefing Vietnamese officials on Port Klang and the benefits of collaboration of Indonesian Forwarders Association, paying a return visit to PKA to with the sister ports. formalise partnership and agreements made when PKA went over to Medan earlier in the year.

PKA Sister Ports

Port 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

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY 2 0 WATERWAYS

PORTS: GATEWAYS TO NATIONAL ECONOMIC SUSTAINABILITY

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 AND REGIONAL GDP REPORT AND FORECAST

Global GDP, which declined by 2.2% in 2009, a relatively robust recovery, with 5.2% GDP in Europe and Central Asia, while, in contrast, was projected to grow 2.7% in 2010 and 3.2 growth in 2010 and 5.8% in 2011 – up from growth continued to be relatively strong in percent in 2011. World trade volumes, which 1.2% in 2009. First World countries, which East Asia and the Pacific; aptly dubbed the fell by a staggering 14.4% in 2009, were declined by 3.3% in 2009, were expected to “Tiger Economies”**. predicted to expand by 4.3% and 6.2% for grow less quickly – by 1.8% and 2.3% over 2010 and 2011 respectively, according to the same periods. **INSEAD eLab Report 2010. PKA’s Annual Report 2009. INSEAD eLab is a research centre to one Performance across the developing world had of the world’s leading and largest graduate Developing countries were expected to make been varied. The recession had been severe business schools.

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY WATERWAYS 2 1

AN OPTIMISTIC OUTLOOK PARTNERSHIPS

Despite this, Malaysia has staged a remarkable comeback. The International Monetary Fund PAVING THE WAY (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 FOR SUCCESS expected to recover from the global recession (see sidebar). Together with its business associates and It is the ports, logistics and maritime industries, forming a sizable sector of our economy, that logistics partners – terminal operators, freight were highly regarded as ‘the gateway to our nation’s economic rebound’. Ports support regional forwarders, hauliers, shipping agents and other economic development, specifically in terms of improving investment and foreign trade. It can be related members of Port Klang community – said that movement of trade will not be possible without the existence of ports making them a key PKA took this time of slow movement to review component in Malaysia’s economy. This being so, both the federal government as well as the Port the port’s current policies, operational practices Klang Authority (PKA) have made port development a core part of their overall strategies. 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 FOCUSED FEDERAL GOVERNMENT recovery, then surely they will also prove to be INVESTMENTS engines for increased economic growth.

The 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). KEYS TO

In the 10th Malaysian Plan 2011 – 2015, the Malaysian government has allocated RM4.6 Billion BUSINESS 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 SUSTAINABILITY earmarked for development of their own sections of the ports. The volume handled in Port Klang has spurred the entire logistics industry in Port Klang, which eventually led to the PKA INITIATIVES swift revival of the nation’s economy. The efficiency of the entire logistics Meanwhile, PKA and the terminal operators had been taking stock of the current scenario and chain supported by cost effective port their future strategic plans during 2009. Some of the plans included: operations has assisted in increased growth for our domestic importers and • Analysing and reviewing the port’s target markets. exporters. • Upgrading of facilities and equipment through maintenance and refurbishment to ensure the port would be ready for the upsurge when the economy recovered. The port operations and pricing • Retraining and movement of workforce, which produced an increase in work efficiency and mechanism are very competitive, productivity. There was no large-scale retrenchment or VSS during that time. supporting cost effective transshipment • Keeping within compass with all its expansion projects; however, it has started planning for activities for this region. 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.

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY 2 2 ABOUT TOWN

PULAU KETAM About Pulau Ketam A 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 Getting Around There There are no cars in Pulau Ketam, only bicycles, some of which The island is easily accessible are motorised. Bicycles can be from the Port Klang passenger rented for RM5/day, and the jetty by ferry. The ferry ride more adventurous can opt to takes anywhere from 45 minutes walk around the island. to 1 hour, and in relatively air- conditioned comfort.

Things to Do Eat – 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.

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY ON THE RADAR PORT KLANG FACILITIES GATEWAY magazine invites you to announce your upcoming industry events here. PORT KLANG CONTAINER NORTHPORT WESTPORTS TOTAL Email us at: [email protected] BERTHS Or mail us at: NUMBER OF BERTHS 12 11 23 Port Klang Authority LENGTH (METRES) 2,679 3,200 5,879 Mail Bag Service 202, Jalan Pelabuhan Utara, DRAFT (METRES) 11.0 - 15.0 16 11 - 16 42005 Port Klang, Selangor Malaysia STORAGE A GIFT FOR ORPHANS 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

On 7 October 2010, Port Klang Authority (PKA) made a charitable LIQUID BULK NORTHPORT WESTPORTS TOTAL contribution in the form of duit raya and some gifts to the orphans from Al-Munirah Orphanage. The contribution was presented by PKA BERTHS Chairman Dato’ Lee Hwa Beng and PKA General Manager Kee Lian NUMBER OF BERTHS 4 5 9 Yong. LENGTH (METRES) 779 1,305 2,084 DRAFT (METRES) 10.5 - 11.5 10 - 16.5 10 - 16.5 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 DRY BULK NORTHPORT WESTPORTS TOTAL management from PKA, PKFZ, terminal operators, other government agencies and PKA associates. Also in attendance was Dato’ Roslan bin BERTHS Yusuf, the director of Royal Selangor Customs. NUMBER OF BERTHS 2 4 6 LENGTH (METRES) 426 850 1,276 In his welcome speech, Dato’ Lee highlighted some of the key DRAFT (METRES) 12 14 - 15 12 - 15 improvements in terms of Port Klang’s and PKFZ’s performance. According to Dato’ Lee, Port Klang had seen a 27% increase in volume STORAGE as of August 2010, compared with the same period in 2009. PKFZ was expected to double its operating surplus to over RM10 million in COVERED STORAGE (SQ. METRES) 36,623 11,630 48,253 2010. He attributed these successes to the support and cooperation OPEN STORAGE (SQ. METRES) 17,520 - 17,520 of “every single entity of our Port Klang community”. BREAK BULK NORTHPORT WESTPORTS TOTAL

BERTHS NUMBER OF BERTHS 9 5 14 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

GATEWAY A PUBLICATION OF PORT KLANG AUTHORITY Reaching New Horizons

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.