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Table of Contents Westports Phase II Development – Proposed Expansion of Container Terminal CT10-CT17 and Its Associated Works at Westports Pulau Indah Selangor Chapter 3 Statement of Need TABLE OF CONTENTS TABLE OF CONTENTS ................................................................................................................................i LIST OF FIGURES .......................................................................................................................................ii LIST OF TABLES ........................................................................................................................................iii 3 STATEMENT OF NEED ................................................................................................................... 3-1 3.1 LOCATION AND CAPABILITY ......................................................................................................... 3-1 3.2 GROWTH PERSPECTIVE ............................................................................................................... 3-3 3.3 ADHERENCE TO STATE AND NATIONAL DEVELOPMENT PLANS AND POLICIES ................. 3-6 3.3.1 ELEVENTH MALAYSIA PLAN (2016-2020) ........................................................................ 3-8 3.3.2 NATIONAL PHYSICAL PLAN 3 ......................................................................................... 3-10 3.3.3 NATIONAL PHYSICAL PLAN FOR COASTAL ZONE ....................................................... 3-12 3.3.4 SELANGOR STRUCTURE PLAN 2035 ............................................................................. 3-14 3.3.5 KLANG DRAFT LOCAL PLAN 2035 (REPLACEMENT).................................................... 3-14 L:\1021\Document\Reports\Westports Phase II EIA\F0\Main Report\Westports Phase II EIA-Ch3-StatementofNeed-F0.docx Page i Westports Phase II Development – Proposed Expansion of Container Terminal CT10-CT17 and Its Associated Works at Westports Pulau Indah Selangor Chapter 3 Statement of Need LIST OF FIGURES Figure 3.1 Westports container throughput and capacity (million TEUs) .................................... 3-2 Figure 3.2 Annual container throughput for South East Asian ports in 2018............................... 3-3 Figure 3.3 Location of Malaysia seaports in the east-west trading route .................................. 3-11 Figure 3.4 Spatial growth plan in Selangor, Wilayah Persekutuan Kuala Lumpur, and Wilayah Persekutuan Putrajaya ............................................................................................................... 3-12 Figure 3.5 Blok Perancangan BP9 – Pulau Indah and Blok Perancangan Kecil (BPK) ............ 3-15 Figure 3.6 Proposed land use plan in Pulau Indah .................................................................... 3-16 Figure 3.7 Proposed development corridor ............................................................................... 3-17 L:\1021\Document\Reports\Westports Phase II EIA\F0\Main Report\Westports Phase II EIA-Ch3-StatementofNeed-F0.docx Page ii Westports Phase II Development – Proposed Expansion of Container Terminal CT10-CT17 and Its Associated Works at Westports Pulau Indah Selangor Chapter 3 Statement of Need LIST OF TABLES Table 3.1 Forecast of container throughput, 2018 – 2040 ........................................................... 3-3 Table 3.2 National, state and local development plans and policies on ports in Malaysia .......... 3-7 Table 3.3 Strategies of Focus Area A and Focus Area B ............................................................ 3-9 Table 3.4 Outline of themes and strategies in the National Physical Plan for Coastal Zone .... 3-13 L:\1021\Document\Reports\Westports Phase II EIA\F0\Main Report\Westports Phase II EIA-Ch3-StatementofNeed-F0.docx Page iii Westports Phase II Development – Proposed Expansion of Container Terminal CT10-CT17 and Its Associated Works at Westports Pulau Indah Selangor Chapter 3 Statement of Need 3 STATEMENT OF NEED 3.1 LOCATION AND CAPABILITY Starting out as Kelang Multi Terminal Sdn. Bhd. (KMT) in 1994, the company was renamed as Westport Sdn. Bhd. in 1997 and now, the world renowned port carries the name Westports Malaysia Sdn. Bhd. The seaport terminal has played a leading role in Malaysia's efforts to provide storage, bunkering, cargo/freight handling, and other port related facilities, that has added significantly to Malaysia's importance as a link in the global maritime trade. In the early 90s, in order to have a major port of call for shipping lines in the port industry with world-class facilities, a large swathe of swampland near a remote fishing village in Pulau Indah, located on the west coast of Selangor, was deemed to be the most strategic and sustainable location. Thus, land reclamation was carried out on the identified site and this was followed by the construction of an extensive quay complemented by port facilities that has made Westports the nation's largest multi-purpose port. Initially operating as a conventional terminal, Westports gradually transformed into a mega hub for both local and transshipment containers. Today, Westports serves as the main gateway for container and conventional cargo for the central hinterland of Peninsular Malaysia, owing mainly to the strategic location and deep water berth which allows it to accommodate large vessels. Port Klang is recognized as Malaysia’s principal gateway and busiest port, strategically located on the west coast of Peninsular Malaysia at the northern end of the Straits of Malacca, about 50km west of the nation’s capital Kuala Lumpur. Port Klang is generally made up of three ports, i.e. the Northport, Southport (Southpoint) and Westports. In the year 2000, Northport and Southport merged into one entity, currently known as Northport (Malaysia) Bhd. The Government’s national development plans and policies are geared towards Port Klang being further enhanced as the main port of Malaysia to meet the expected increase in shipping activities in this region. This is explained further in Section 3.3 below. To meet the Government’s plans, the port facilities at Port Klang need to be expanded and improved. Westports has continued to be developed over the years; on the other hand, the other port terminal operators face a shortage of space for terminal expansion. The location of Westports allows the terminal to have a higher capacity for very large volumes of cargo throughput and Westports has been expanding its container terminals to cater for the increase in import, export, and transshipment cargo. In 2019, container throughput at Westports stood at 10.86 million TEUs, an improvement from 9.5 million TEUs in the previous year. To cater to the increase, Westports capacity was increased to 14 million TEUs in the same year. Its growth in container volume has made Westports the leading terminal operator in Port Klang, controlling 75% of the L:\1021\Document\Reports\Westports Phase II EIA\F0\Main Report\Westports Phase II EIA-Ch3-StatementofNeed-F0.docx Page 3-1 Westports Phase II Development – Proposed Expansion of Container Terminal CT10-CT17 and Its Associated Works at Westports Pulau Indah Selangor Chapter 3 Statement of Need market share as at year end 2017. Westports’ capacity in TEUs per year up to 2019, is shown in Figure 3.1 below1. Figure 3.1 Westports container throughput and capacity (million TEUs) Source: Stage 1 Port Development Planning Report – Port Planning Consultancy for the Conceptual Masterplan of Westports Expansion CT10-CT19, BMT Asia Sdn. Bhd. (August 2018) With the continuing growth in shipping activities and the handling capacity of Westports nearing its maximum, it is imperative for the port to consider further expansion. A masterplan study was therefore undertaken to forecast the demand for container throughput at Westports. Table 3.1 shows the container throughput forecast for Westports from year 2018 to 2040, under three growth scenarios, i.e. low, base, and high. The cargo forecast carried out by BMT Asia Sdn. Bhd., an international and global company with specialists in the planning and design for the port and maritime industry, indicates that on a base scenario, the total container throughput for Westports is expected to grow to 12.2 million TEUs by 2022 and to 26.8 million TEUs by 2040 at an annual growth rate of 4.8%1. Since the maximum handling capacity of the existing terminals at Westports is 15 million TEUs, there is an urgent requirement for the port expansion to be initiated seeing as there is a long lead time for the expansion works to be completed. 1 Stage 1 Port Development Planning Report – Port Planning Consultancy for the Conceptual Masterplan of Westports Expansion CT10-CT19, BMT Asia Sdn. Bhd. (August 2018) L:\1021\Document\Reports\Westports Phase II EIA\F0\Main Report\Westports Phase II EIA-Ch3-StatementofNeed-F0.docx Page 3-2 Westports Phase II Development – Proposed Expansion of Container Terminal CT10-CT17 and Its Associated Works at Westports Pulau Indah Selangor Chapter 3 Statement of Need Table 3.1 Forecast of container throughput, 2018 – 2040 Container Throughput CAGR 2018 2022 2030 2040 (million TEUs) 17 – 40 High Scenario 9.6 12.6 21.6 31.7 5.6% Direct 2.9 3.5 5.0 6.7 3.9% T/S 6.7 9.1 16.6 25.0 6.2% Base Scenario 9.5 12.2 18.3 26.8 4.8% Direct 2.9 3.5 5.0 6.7 3.9% T/S 6.6 8.7 13.3 20.1 5.2% Low Scenario 9.5 12.0 17.4 23.5 4.2% Direct 2.9 3.5 5.0 6.7 3.9% T/S 6.6 8.5 12.5 16.8 4.4% Source: Stage 1 Port Development Planning Report – Port Planning Consultancy for the Conceptual Masterplan of Westports
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