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Penang Port Taps Southern Thailand's Booming Economy

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Penang Port Taps Southern Thailand's Booming Economy THURsday, JanuaRY 25, 2018 ALL BUSINESS DAILY 22 TRENDS Penang Port taps southern Thailand’s booming economy Penang Port is fully equipped to handle all types of cargo such as containers, liquid, dry bulk and break bulk BY SHAHEERA AZNAM SHAH In 2015, Thailand announced a seven-year lishment of the Rubber City Project in its tion, particularly in the southern region. investment promotion strategy with the goal Southern Industrial Estate in Songkhla “New investments are constantly pouring PENANG Port is on an expansion mode. The of nurturing the investments in the border province has also led to the increase in in. Several multi-national companies have set oldest and longest established port in Malay- provinces of southern Thailand and attract- cargo shipment. up factories there. We see the potential to sia is rolling out a five-year plan, partly to ing international investment. “Over the past few years, Thailand has generate more than 6-7% growth in contain- capture the growing business coming from Sasedharan said that Thailand’s estab- emerged as an attractive investment destina- ers per annum,” he said. southern Thailand. Shippers in Thailand see the geographical Penang Port Sdn Bhd (PPSB), which runs advantages of Penang Port. Via rail or road, the port, has earmarked RM320 million for the distance between Hat Yai and Penang is the five-year plan, with a big portion of the around 230 km, or about a four-hour drive. capital expenditure (capex) expected to go However, hauliers will take 12 to 13 hours to towards purchasing new equipment. There drive from Hat Yai to Thailand’s main ports are also plans to reclaim land. like Bangkok Port and Laem Chabang Port. “In 2017, we had ordered three new rub- The Songkhla Port does not cater to big ships ber-tyred gantry (RTG) cranes as part of due its limited water draft and handling our new expansion plan and to extent our capacity. footprint,” PPSB CEO Sasedharan Vasude- “Thus, it is only logical for them to load van told The Malaysian Reserve in a recent and ship the containers in Penang. Penang interview. serves the Thai shippers’ requirement in One key factor in the plan is the latest terms of meeting their logistical demands,” developments across the border. Over the he said. years, Penang Port has served as the main Penang Port is fully equipped to handle all gateway for shippers in the northern states of types of cargo such as containers, liquid, dry Malaysia and also the southern provinces of bulk and break bulk. Thailand. The same holds true today. Located strategically a mere two hours History away from Bukit Kayu Hitam’s customs Going back into history, Penang’s port of the point, Penang Port is set to catch the pro- north was acquired by the British as they jected spill over from the booming invest- Penang Port serves nearly 30 shipping lines and agents needed a port to act as a collecting centre for ments now taking place in the south of Thai- the produce of the Malay Archipelago and land. The border checkpoint at Bukit Kayu also as a place for ships plying the India- Hitam is soon expected to operate 24 hours to China trade route to replenish their stocks of facilitate the cargo movement. fresh food and water. In 1786, Captain Fran- In 2017, the railway’s cargo terminal at cis Light, an English trader of the East India Padang Besar was upgraded in a RM23.5 mil- Company, formally took possession of the lion project to give a boost to the logistics Penang Island and renamed it to the Prince of industry. Wales Island. The longer hours at Bukit Kayu Hitam The port was administered and operated checkpoint and the railway cargo terminal by two public authorities: Federal Malay upgrade is expected to spur cross-border States Railway at Prai Wharf and Penang trade, with a potential to increase capacity to Harbour Board at Swettenham Pier. In 400,000 TEUs per annum from the present 1956, Penang Port Commission came into 270,000 TEUs. the picture. “We receive quite a major portion of cargo Fast forward, the port was corporatised in from southern Thailand as its businesses 1994 under Penang Port Sdn Bhd, a whol- have been booming. The cargo from the south ly-owned company of the Ministry of Thailand region accounted for more than a Finance, and then privatised in 2014. It is now quarter of our total containers handled,” he part of MMC Port Holdings Sdn Bhd, a unit said. of MMC Corp Bhd. He estimated that container segment Today, Penang Port serves nearly 30 ship- makes up 70% of Penang Port’s business, ping lines and agents. These lines provide the with about 38% of it coming from southern connectivity to the world that Penang Port Thailand. The other businesses include gen- requires as a gateway port to its hinterland of eral and liquid cargo, marine services and Container segment makes up 70% of Penang Port’s business, with about 38% of it coming from southern North Malaysia and Southern Thailand, in the cruise terminal. Thailand particular. THE MALAYSIAN RESERVE THURSDAY, JANUARY 25, 2018 23.
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